RISK MANAGEMENT ADVISORY COMMITTEE (RMAC) Meeting Minutes June 25, :00 a.m.

Transcription

1 RISK MANAGEMENT ADVISORY COMMITTEE (RMAC) Meeting Minutes June 25, :00 a.m. This meeting f the Risk Management Advisry Cmmittee was called t rder in the LBJ Building, Cnference Rm 155, Bise, ID. Members Present: Others Present: Directr Teresa Luna, Department f Administratin, CHAIR Kit Cffin, Risk Prgram Manager, Risk Management Prgram Jim Carpenter, Idah Transprtatin Department Tanya Hellewell, Department f Lands Representative Jhn Gannn Senatr Dean Mrtimer (participated by phne) Theresa Chrisman, LewisClark State Cllege (participated by phne) Jennifer Pike, Department f Administratin Keith Reynlds, Department f Administratin Kris Cffman, Risk Management Prgram Jan Cmptn, Risk Management Prgram Glen Gff, Risk Management Prgram Kathy Adams, Risk Management Prgram Kristie Field, Risk Management Prgram Kay Christensen, Office f the Attrney General CALL TO ORDER by Directr Luna at 9:05 a.m. WELCOME & INTRODUCTIONS Teresa Luna Directr Luna welcmed the cmmittee members and ther attendees t the first meeting f the recnstituted Risk Management Advisry Cmmittee. All f the meeting attendees then intrduced themselves and briefly stated their rle in either RMAC r the state s Risk Management Prgram. WHY ARE WE HERE? Teresa Luna Directr Luna explained that RMAC was recnstituted in light f the increased interest int hw the state s Risk Management Prgram perates, frmulates billings and cmmunicates. Idah Cde enumerates the pwers and duties f the state s Risk Management Prgram, prvides fr a Risk Management Advisry Cmmittee, and directs the Directr f the Department f Administratin t cnsult with RMAC n cverages administered by Risk Management. Histrically, RMAC met n an ad-hc basis, but has nt met fr several years. The recnstituted Cmmittee has a mre frmal membership and meeting schedule t ensure that the Risk Management Prgram is prviding the best service and cverage t agencies. RMAC Minutes, June 25, 2013 Page 1

2 The RMAC membership includes: an emplyee f higher educatin, an emplyee f a small-medium sized agency, an emplyee f the Idah Transprtatin Department, a Senatr, a Representative, the Risk Management Prgram Manager and the Directr f the Department f Administratin. The Department f Administratin (Admin) prpsed a pssible cmmittee cmpsitin t JFAC during the 2013 legislative sessin. The riginal prpsal included a representative frm private sectr legal, a private insurance carrier and a private insurance agent. The Attrney General s Office had sme cncern with thse three psitins and what their relatinship with the state wuld be since serving n RMAC wuld preclude them frm ding business with the state. Admin and the AG s Office will cntinue t explre the ptins fr including thse grups, but fr nw, representatives frm thse three areas have nt been included as part f RMAC. The Cmmittee will nt be discussing r prviding cnsultatin n specific cases, prviding legal advice, r advising n settlements. The RMAC members will nt be privy t cnfidential infrmatin n claims r lawsuits. RISK MANAGEMENT 101 Teresa Luna Directr Luna presented an verview f the many aspects f the Risk Management Prgram including types f cverage, billing, claims prcessing, and defense f claims. See Attachment 1 Presentatin Slides. The Risk Management Prgram manages the state s prperty and casualty insurance with six (6) emplyees. They place and maintain cmmercially insured and self-insured cverages, with the exceptin f Wrkers Cmp and the emplyee grup benefits; adjust trt claims made against the state, its agencies r emplyees, adjust claims fr cmmercially insured cverages within the state s retentin; and act as a cnsultant t agencies t manage/limit expsures. Agencies are billed thrugh the SWCAP prcess; prjectins are given t the Divisin f Financial Management (DFM) prir t each fiscal year t wrk in t the SWCAP prcess. Risk is self-funded fr mst liability and retained prtins fr cmmercially insured cverages. Risk wrks with an actuary and Admin s Chief Financial Officer t establish liability at the beginning f the year and t determine the apprpriate amunt t be held in the Retained Risk Accunt. The Retained Risk Accunt is treated as a dynamic reserve accunt; there is n cntractual minimum fr this accunt. The claims prcess fr liability claims are gverned by the prvisins f the Idah Trt Claim Act and risk management statutes. Risk prvides defense fr state emplyees within curse and scpe f emplyment, prviding they acted withut malice r criminal intent; the Idah Trt Claims Act mandates this duty. Risk als manages defense fr litigated trt claims, and defends and pays damages fr cvered causes f lss fr which the state is legally liable r which were settled by a negtiatin r cmprmise settlement such as aut accident claims. The Risk Management Prgram is a cllabrative prcess between the Risk Management staff and the AG s Office. All billings are heavily scrutinized by multiple peple at the Risk Management Prgram and the AG s Office. Fr FY2012, Risk prvided liability cverage fr ver 8000 state-wned r leased vehicles, liability cverage fr the actins f ver 21,000 state emplyees, and placed prperty cverage in excess f $6.27 Billin. RMAC Minutes, June 25, 2013 Page 2

3 Kit Cffin, Risk Prgram Manager, prvided additinal details n hw the State places and maintains cverages thrugh their wrk with an actuary. The largest premium every year is fr the $6.27 Billin in prperty cverage. Risk wrks with an utside brker t place that cverage. Risk was able t negtiate a significant rate decrease fr the upcming year, keeping premiums and cverage levels abut the same, despite an increased amunt f prperty cvered and market trends shwing increases f 4% 10%. The liability cverage is cmpletely self-funded while sme f the ther cverges are cmmercially insure with a retentin. Risk handles all claims within the retentin. Claims are reviewed n an individual basis. Several f the cmmittee members expressed sentiments abut the diligent and skilled wrk that is perfrmed by the six emplyees at the Risk Management Prgram. The expertise and effrt n the part f the Risk Management Prgram have directly resulted in strnger relatinships f trust with the cases the State is defending cmpared t thse a few years ag. The behind the scenes effrts are shaping the recveries against the state and minimizing lss. COMMUNICATIONS AND WEBSITE Teresa Luna Directr Luna asked the members t weigh in n hw the Risk Management Prgram can better serve agencies, highlight areas that culd be imprved, r share thughts n imprving cmmunicatin. The gal f imprving these effrts is t cmmunicate what Risk des and the necessity fr it, and t have as many resurces available t agency persnnel respnsible fr submitting claims n behalf f their agency. [The current Risk Management Prgram website can be fund at A website has been established fr RMAC at Cmmittee members asked fr a mre user-friendly website that wuld include templates and frms, and prcedures fr filing claims. While the Risk Management Prgram has cntacts in each agency, ften times the issues arise frm lack f cmmunicatin within the agency abut the prtcl fr filing claims. Emplyees in each agency need t knw wh their Risk persn is and utilize them as a resurce t mitigate risk within their agency. Ms. Cffin ffered t prvide n-site training r infrmatinal sessins t agency persnnel, nt just thse in Risk, t talk abut risk mitigatin as it pertains t that particular agency. Sen. Mrtimer asked the Risk Management Prgram t bring t the next meeting a breakdwn f new claims by categry and a breakdwn f current claims by categry. ADJOURNMENT The meeting was adjurned at 10:10 a.m. Jennifer Pike, Public Infrmatin Specialist Department f Administratin RMAC Minutes, June 25, 2013 Page 3

4 Attachment 1 6/25/2013 Why Are We Here? Risk Management Advisry Cmmittee ( ) Recnstituting the RMAC: Representative f the AG s Office Representative f Higher Ed Representative f the Department f Transprtatin Representative f Small/Medium Sized Agencies 2 Legislatrs (1-Huse, 1-Senate) Risk Prgram Manager Directr f the Department f Administratin Representative f Private Sectr Legal Private Insurance Carrier Private Insurance Agent T meet twice per year 1

5 Manages the state s prperty and casualty insurance manager. Six emplyees Prgram Manager 2 Adjudicatrs Claim Technician Technical Recrds Specialist Insurance Analyst Annual perating budget f $595,600. Types f cverage include, but are nt limited t: Cmprehensive Public Liability Majr Prperty Biler and Machinery Emplyee Bnd and Crime Optinal Cverages Inland Marine (small prtable bjects like laptps, cell phnes, etc) Aut Physical Damage Aircraft Liability Freign Liability Out f State Wrkers Cmpensatin, etc 2

6 Agencies are billed fr the csts f cverage and an administrative fee fr persnnel and ffice peratins. All agencies receive these statewide cverages: Prperty Biler/Machinery Liability Emplyee bnd/crime Only agencies using ptinal cverages are billed fr them Reserves are kept in the Retained Risk Accunt. ( ) Retained Risk Accunt is used fr: Payment f Premiums Investigative csts Payment f claims Defense f litigatin Settlements r judgments Reserves amunts were: FY11 = $22,020,674 FY12 = $18,342,624 FY13 = $14,888,915 3

7 Gverned by the prvisins f the Idah Trt Claim Act and Risk Management statutes. ( ) Average f 400 pen claims at any given pint in time apprximately 25% f pen claims are in litigatin r appeal Claims are tracked by date f lss, and the actual claim cunt increases ver time as new reprts are received r suits filed Ttal new claims filed fr recent years: FY 10: 850 FY 11: 885 FY 12: 872 (as f 2/1/13) Trt liability claim is received frm Secretary f State If necessary, the AG s Office appints the Special Deputy AG Risk & the AG's Office cnsult with the agency n litigatin thrughut the lifetime f the suit Risk Manager reviews new claims and assigns a Claim Handler Risk & the AG's Office discuss the suit Attrney bills are reviewed thrugh a multi-level prcess Claim Handler reviews, investigates & determines liability Lawsuit is filed by the Claimant Reslutin f the suit may be dismissal, mediatin r trial 4

8 Defense is directed and paid fr by Risk Management with the versight f the Office f the Attrney General. Cases are assigned t the Civil Litigatin Divisin f the AG s Office r t utside cunsel. Fr utside cunsel, there is a list f attrneys/firms that respnded t the RFP prcess and were apprved by the Bard f Examiners at the rate f $125/hur. Cases may require deviatin frm the list f apprved utside cunsel in the event f cnflicts r needed specialties/expertise. All billings fr utside cunsel g thrugh a multi-level review prcess: Risk Adjudicatr Paralegal Office f the Attrney General Cntracts & Administratin Risk Prgram Manager Divisin Administratr Office f the Attrney General Cntracts & Administratin 5

9 Questins? 6