ATLANTIC COUNTY INSURANCE COMMISSION AGENDA ......ATLANTIC COUNTY INSURANCE COMMISSION AGENDA AND REPORTS MARCH 13, 2015 STILLWATER BUILDING 201 SHORE ROAD NORTHFIELD, NJ 08225 11

ATLANTIC COUNTY INSURANCE COMMISSION AGENDA AND REPORTS

MARCH 13, 2015

STILLWATER BUILDING 201 SHORE ROAD

NORTHFIELD, NJ 08225 11 AM

OPEN PUBLIC MEETINGS ACT - STATEMENT OF COMPLIANCE In accordance with the Open Public Meetings Act, notice of this meeting was given by: I. Advertising the notice in the Press of Atlantic City II. Filing advance written notice of this meeting with the Commissioners of the Atlantic County Insurance Commission; and III. Posting notice on the Public Bulletin Board in the Atlantic County Office Building

ATLANTIC COUNTY INSURANCE COMMISSION

AGENDA OPEN PUBLIC MEETING: MARCH 13, 2015

MEETING CALLED TO ORDER - OPEN PUBLIC MEETING NOTICE READ FLAG SALUTE ROLL CALL OF COMMISSIONERS APPROVAL OF MINUTES: February 12, 2015 Open Minutes…………………Appendix I February 12, 2015 Closed Minutes………..To be Distributed CORRESPONDENCE – Letter from James Ferguson – Page 1

EXECUTIVE DIRECTOR/ADMINISTRATOR - PERMA

Executive Director’s Report………………………………………………......…..Page 2

CLAIMS SERVICES – Conner Strong & Buckelew Monthly Report……………………………………………………………………..Verbal

TREASURER– Bonnie Lindaw Resolution 23-15, Bills List………………………………………………………..Page 23

CEL SAFETY DIRECTOR – JA Montgomery Risk Control

Monthly Report………………………………………………………………….....Page 25

MANAGED CARE – Qual Care………………………………………………………Page 26

CLAIMS SERVICE – Qual Lynx

EXECUTIVE SESSION FOR CERTAIN SPECIFIED PURPOSES - PERSONNEL - SAFETY & PROPERTY OF PUBLIC LITIGATION

Motion for Executive Session Motion to Return to Open Session Motion to Authorize Payment Authorization Request

OLD BUSINESS NEW BUSINESS PUBLIC COMMENT MEETING ADJOURNMENT

NEXT SCHEDULED MEETING: April 10, 2015 11 AM

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ATLANTIC COUNTY INSURANCE COMMISSION 9 Campus Drive, Suite 16

Parsippany, NJ 07054 Telephone (201) 881-7632

Date: March 13, 2015 Memo to: Commissioners of the Atlantic County Insurance Commission

From: PERMA Risk Management Services Subject: Executive Director's Report Welcome Commissioner Tammi Robbins – Perma was advised that the Atlantic County

Freeholders have appointed Tammi Robbins to replace James Ferguson on the Insurance Commission. We welcome Commissioner Robbins to the Fund and look forward to working with her. With Mr. Ferguson’s resignation, we need to elect a new Chairperson of the Fund and also amend the Cash Management Plan to amend the authorized Signatories for the Commission bank accounts. Executive Director calls for nominations for Fund Chairperson.

Motion to approve Resolution 17-15, Certifying the Election of Chairperson

and Vice Chairperson

Motion to approve Resolution 18-15, Designating Authorized Signatures on Commission Bank Accounts

Fund Attorney – The Fund desires to Appoint James F. Ferguson as Fund Attorney. (Page 6)

Motion to approve Resolution 4-15, Appointing James F. Ferguson as Fund Attorney.

We would like to thank Mr. Ferguson for all of his support, guidance, and dedication to the Commission and its members for the start up of the Fund and look forward to his continued work in his new role as Fund Counsel.

RFQ for Professional Services – The Fund advertised for proposals for Defense Attorneys for the

Fund. Responses were due back on Wednesday, March 11th at 2PM. A report will be distributed and discussed at the meeting. If the Commissioners desire to award the positions, Resolution 19-15 is on Page7.

Motion to approve Resolution 19-15, Appointing Fund Defense Attorneys

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Certificate of Insurance Issuance Report –There were no certificates of insurance issued during the period of 2/5/15 to 3/6/15.

Establishing Committees – Advisory committees are permitted to be appointed per the Rules and

Regulations adopted by the Fund. The Claims and Safety Committees and their associated charters are complete. Both committees and their members are ready for appointments. The draft Claims Committee Assignments and Charter were distributed last month, attached on page 8 is the revised list of Committee members. Resolution 20-15 is on Page 11.

Motion to approve Resolution 20-15 adopting the Claims Committee Assignments and Charter

Enclosed on Page 13 is the Safety and Accident Review Committee Charter that would establish the Committee. Resolution 21-15 is on Page 17.

Motion to approve Resolution 21-15 adopting the Safety and Accident Review Committee Assignments and Charter

Notice of Tort Claim Form - As discussed at prior meetings, the Insurance Commission should

adopt its own Tort Claims Form. Commission members along with the Fund’s Professionals have reviewed sample forms and have developed its own. (Sent under separate cover).

Motion to Approve Resolution 22-15 Adopting a Notice of Tort Claim Form for

the Insurance Commission

NJ Excess Counties Insurance Fund (CELJIF) – The CEL held its 2015 Reorganization meeting on February 26, 2015 at Camden County College Regional Emergency Training Center. A recap of the meeting is on Page 19.

NJ CEL Property and Casualty Financial Fast Track (Page 22) – Included in the agenda is a copy of the Financial Fast Track Reports for the month of December. As of December 31, 2014 the report indicates the Fund has a surplus of $5,322,956.

2015 Assessment Bills – The 2015 Assessment Bills were sent to the member entities via e-mail. The first payment was due on February 15, 2015.

Insurance Commission Website – The Counties IT Department is developing the Commission’s

website. An update will be provided at the April meeting.

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RESOLUTION NO. 17-15


CERTIFYING THE ELECTION OF CHAIRPERSON AND VICE CHAIRPERSON

WHEREAS, the ATLANTIC COUNTY INSURANCE COMMISSION (hereinafter “ACIC”) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the ACIC has deemed it necessary and appropriate to amend Resolution 1-15 due to the resignation of James Ferguson and the Board of Chosen Freeholders appointment of Tammi Robbins. NOW THEREFORE by the Atlantic County Insurance Commission that the following persons will serve as Chairperson and Vice Chairperson: ____________________ Chairperson _____________________ Vice Chairperson BE IT FURTHER RESOLVED that the Chair and Vice Chair shall serve through the 2016 reorganization of the Commission or until their successors are elected and qualified. ADOPTED by THE ATLANTIC COUNTY INSURANCE COMMISSION at a properly noticed meeting held on March 13, 2015. ADOPTED: BY:______________________________________________ CHAIRPERSON ATTEST: _________________________________________________ VICE CHAIRPERSON

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ATLANTIC COUNTY INSURANCE COMMISSION DESIGNATING AUTHORIZED SIGNATURES FOR COMMISSION BANK ACCOUNTS WHEREAS, the ATLANTIC COUNTY INSURANCE COMMISSION (hereinafter “ACIC”) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the ACIC has deemed it necessary and appropriate to amend Resolution 8-15 NOW THEREFORE BE IT RESOLVED by the ACIC, that all funds of the ACIC shall be withdrawn from the official named depositories by check, which shall bear the signatures of at least two (2) of the following persons who are duly authorized pursuant to this resolution. __________________________ - Chairperson __________________________ - Vice Chairperson __________________________ - Commissioner Bonnie Lindaw - Treasurer ADOPTED by THE ATLANTIC COUNTY INSURANCE COMMISSION at a properly noticed meeting held on March 13, 2015. ADOPTED: BY:______________________________________________ CHAIRPERSON ATTEST: _________________________________________________ VICE CHAIRPERSON

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RESOLUTION NO. 4-15


DESIGNATING COMMISSION ATTORNEY

WHEREAS, the ATLANTIC COUNTY INSURANCE COMMISSION (hereinafter “ACIC”) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the ACIC requires the services of an Attorney, and WHEREAS, James F. Ferguson has demonstrated the skill and possesses the qualifications to perform the duties of Commission Attorney for the County Insurance Commission; WHEREAS, the Commission authorizes the appointment of James F. Ferguson as ACIC Attorney for the term commencing upon adoption of the within resolution through 2016 ACIC Reorganization; and BE IT FURTHER RESOLVED that James F. Ferguson shall receive no compensation to serve as Commission Attorney to the ACIC. ADOPTED by THE ATLANTIC COUNTY INSURANCE COMMISSION at a properly noticed meeting held on March 13, 2015. ADOPTED: BY:______________________________________________ , CHAIRMAN ATTEST: _______________________________________________ , VICE CHAIRMAN

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APPOINTING APPROVED COUNSEL

WHEREAS, the Atlantic County Insurance Commission is responsible for providing a defense to certain claims brought against its members in accordance with the Fund’s coverage documents; and WHEREAS, in order to appoint defense counsel, a law firm must be on the approved counsel list of the Atlantic County Insurance Commission to defend any members of the Fund; and WHEREAS, the Atlantic County Insurance Commission appoints firms to the panel in accordance with a fair and open process pursuant to N.J.S.A. 19:44A-20.4 et. Seq.; WHEREAS, responses were received in the Fund office, WHEREAS, the law firms attached to this resolution have been proposed as Counsel for the Atlantic County Insurance Commission for the year 2015, 2016 & 2017 and have been reviewed and recommended by the Fund’s Attorney, NOW, THEREFORE BE IT RESOLVED, by the Commissioners of the Atlantic County Insurance Commission that the law firms attached to this resolution be and the same are hereby appointed as the approved counsel for the Atlantic County Insurance Commission for Fund Years 2015, 2016 & 2017. BE IT FURTHER RESOLVED by the Fund Commissioners of the Fund that the following fee schedule for Defense Attorney’s for 2015 is established: 1. Third Party Liability cases - $______/hour 2. Workers Compensation cases - $_____/hour 3. Litigation Expense and paralegal charges - $___/hour ADOPTED by THE ATLANTIC COUNTY INSURANCE COMMISSION at a properly noticed meeting held on March 13, 2015. ADOPTED: BY: ______________________________________________ CHAIRPERSON ATTEST: _______________________________________________ VICE CHAIRPERSON

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ATLANTIC COUNTY INSURANCE COMMISSION ESTABLISHING CLAIMS COMMITTEE

WHEREAS, the ATLANTIC COUNTY INSURANCE COMMISSION (hereinafter “Commission”) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the Commission has deemed it necessary and appropriate to form advisory committees as permitted by the duly adopted Commission Rules and Regulations; and WHEREAS, the Commission has resolved to establish a “Claims Committee”, comprised of representatives from the participating Atlantic County agencies and authorities; NOW THEREFORE BE IT RESOLVED by the Atlantic County Insurance Commission that a Claims Committee is hereby established and its initial members shall be: Representative Affiliated Member Entity

Janette Kessler Atlantic County Utilities Authority James Dugan, Esq. Atlantic County Insurance Commission Joseph Giralo Atlantic County Improvement Authority

Fund Professional Fund Position

James Ferguson, Esq. Commission Counsel Jackie Woods Atlantic County Insurance Commission Bradford Stokes PERMA Robyn D. H. Walcoff, Esq. Conner Strong & Buckelew Glenn Prince J.A. Montgomery Gene Siracusa Risk Manager Michael Ridge Risk Manager Michael Thomas Risk Manager Kathleen Kissane Qual-Lynx Patricia Davidson Qual-Lynx

BE IT FURTHER RESOLVED that the members of the claims committee shall serve pursuant to the Rules and Regulations of the Atlantic County Insurance Commission, Article III, Organization, Advisory Committees. BE IT FURTHER RESOLVED that the Claims Committee Charter is hereby adopted. ADOPTED by THE ATLANTIC COUNTY INSURANCE COMMISSION at a properly noticed meeting held on March 13, 2015.

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ADOPTED: BY: ______________________________________________ CHAIRPERSON ATTEST: _________________________________________________

VICE CHAIRPERSON

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SAFETY AND ACCIDENT REVIEW COMMITTEE CHARTER The Atlantic County Insurance Commission hereby constitutes and establishes a Safety and Accident Review Committee, an advisory committee authorized by the Commission’s rules and regulations: Composition The Safety Committee shall be comprised of at least seven (7) members, appointed by the Chairman of the Atlantic County Insurance Commission (ACIC). One member shall be an ACIC Commissioner. The ACIC Commissioner shall serve as the Chairman of the Committee. Each representative shall have one vote. The ACIC’s chairman shall appoint all members. The term of each member shall be one (1) year. Also serving on the Committee, with no voting privileges, shall be a representative from the NJ CE Joint Insurance Fund’s Safety Director’s office and a representative from the ACIC Executive Director’s office and a representative from the Risk Management Consultant’s office. Authority and Responsibility The Safety and Accident Review Committee is to serve as a focal point for communication between the members and the Commission on matters pertaining to safety and training which is geared toward reducing the frequency or severity of insured losses. In addition the Committee is charged with reviewing member accidents in order to make the appropriate recommendation to prevent future accidents of similar nature from occurring. The function of the Committee is advisory in nature and is not intended to impinge upon the individual responsibility or discretion of each member and their respective Safety Committees. The Committee shall advise the Commission on the nature, frequency, financing, and content of safety and training programs, which would be supported or financed by the Commission. Safety and Accident Review Committee Bylaws Safety Committee Charter, which will be presented to the ACIC at the next Insurance Commission meeting, set for March 13, 2015. At that time it is anticipated that the Commissioners will accept the Charter of the Safety Committee and approve its members. The Committee’s operational guidelines are set down herein and may be amended by the Commissioners of the ACIC. Safety and Accident Review Committee Members Members with Voting Rights: Janette Kessler, Safety Committee Chair Atlantic County Utilities Authority 6700 Delilah Road Egg Harbor Township, NJ 08234 609-272-6903; (F) 609-872-1260 [email protected] James T. Dugan, Assistant County Counsel Atlantic County Department of Law 1333 Atlantic Avenue, 8th Floor Atlantic City, NJ 08401 609-345-6700 x2470; (F) 609-343-2373 [email protected]

mailto:[email protected]


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William Reinert, Department Head Public Works Atlantic County Department of Public Works New Road and Dolphin Avenue Northfield, NJ 08225 609-645-5898 x4428; (F) 609-645-5836 [email protected] Geraldine Cohen, Warden Atlantic County Department of Public Safety 5060 Atlantic Avenue Mays Landing, NJ 08330 609-909-7395; (F) 609-909-7451 [email protected] Michelle Savage, Meadowview Administrator Meadowview Nursing and Rehabilitation Center 235 Dolphin Avenue Northfield, NJ 08225 609-645-5955 x4558; (F) 609-645-5939 [email protected] Joseph Giralo Atlantic County Improvement Authority 1333 Atlantic Avenue, Suite 700 Atlantic City, NJ 08401 609-343-2159; (F) 609-343-2188 [email protected] Glen Mawby, Division Director Facilities Atlantic County Division of Facilities Management 1227 Drexel Avenue P.O. Box 1107 Atlantic City, NJ 08401 609-343-2176; (F) 609-344-6630 [email protected] Fund Professionals Non-Voting Rights: Michael A. Ridge Insurance Agencies, Inc. 1601 New Road, Suite 100 P.O. Box 225 Northfield, NJ 08225 609-646-1000 x703; (F) 609-646-7721 [email protected]







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Glenn A. Prince, Senior Risk Control Consultant J.A. Montgomery Risk Control 401 Route 73 North, Suite 300 P.O. Box 717 Marlton, NJ 08053 856-552-4744; (Cell) 609-238-3949 [email protected] Bradford Stokes, Account Executive, Fund Executive Director PERMA 40 Lake Center Executive Park 401 Route 73 North, Suite 300 P.O. Box 989 Marlton, NJ 08053 856-552-6816; (F) 856-552-6817; (cell) 609-820-7205 [email protected] Meetings The Committee shall meet quarterly or as many times as the Committee Chairman deems necessary. Attendance Members of the Safety & Accident Review Committee are to be present at all meetings. Additionally, a representative from the NJ CE Joint Insurance Fund Safety Director’s Office, a representative from the Executive Director’s office and a representative from the Risk Management Consultant’s Office shall be present at all meetings. The Chairman has the authority to request that other Commission professionals or Members’ employees attend meeting(s). Minutes Minutes of each meeting are to be prepared and approved by Committee members. Specific Duties The Committee is to:

• Review Accident Investigations Reports and determine preventability.

• Provide members with the Committee’s determination and applicable recommendations.

• Encourage cooperation among members in the development and scheduling of safety and training sessions.

• Review requests from members for monies to conduct safety related training programs

and/or purchase safety related equipment.



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• Review the impact of safety related state and federal regulations upon the Commission and its members and make recommendations regarding any changes which may be justified.

• Make recommendations to the members on standards for safety and training.

• Apprise the ACIC Commissioners, as necessary, of significant developments in the course

of performing the above duties.

• Recommend to the ACIC Commissioners any appropriate extensions or changes in the duties of the Committee.

• Recommend to the ACIC Commissioners the retention or replacement of safety and training

contractors and provide a written summary of the basis of such recommendations.

• Report at least annually to the ACIC Commissioners on the discharge of these responsibilities.

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ATLANTIC COUNTY INSURANCE COMMISSION ESTABLISHING SAFETY COMMITTEE AND CHARTER

WHEREAS, the ATLANTIC COUNTY INSURANCE COMMISSION (hereinafter “Commission”) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the Commission has deemed it necessary and appropriate to form advisory committees as permitted by the duly adopted Commission rules and regulations; and WHEREAS, the Commission has resolved to establish a “safety committee”, comprised of representatives from the participating Atlantic County agencies and authorities and representation by the Commission’s Safety Director/Loss Prevention Officer; NOW THEREFORE BE IT RESOLVED by the Atlantic County Insurance Commission that a safety committee and charter are hereby established and its members are appointed. BE IT FURTHER RESOLVED that the members of the safety committee shall serve pursuant to the rules and regulations of the Atlantic County Insurance Commission, Article III, Organization, Advisory Committees ADOPTED by THE ATLANTIC COUNTY INSURANCE COMMISSION at a properly noticed meeting held on March 13, 2015. ADOPTED: BY: ______________________________________________ CHAIRPERSON ATTEST: _______________________________________________

VICE CHAIRPERSON

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ADOPTING A NOTICE OF TORT CLAIM FORM FOR THE INSURANCE COMMISSION

WHEREAS, the New Jersey Tort Claim Act, N.J.S.A. 59:8-6, provides that a public entity may adopt a form to be completed by claimants seeking to file a Notice of Tort Claim against the public entity, and WHEREAS, the Atlantic County Insurance Commission is a public entity covered by the provisions if the New Jersey Tort Claims Act, and WHEREAS, the Atlantic County Insurance Commission, on behalf of its member entities, deems it advisable, necessary and in the public interest to adopt a Notice of Tort Claim Form in the form attached hereto and made part of, and NOW THEREFORE, BE IT RESOLVED that all persons making claims against the member entities of the Atlantic County Insurance Commission or its agents/employees, pursuit to the New Jersey Tort Claims Act, be required to complete the Notice of Claim for Damages Against member entities of the Atlantic County Insurance Commission herein and provide the information specified therein as a condition and requirement of compliance with the notice requirements of the New Jersey Tort Claim Act.

ADOPTED by THE ATLANTIC COUNTY INSURANCE COMMISSION at a properly noticed meeting held on March 13, 2015. ADOPTED: BY: ______________________________________________ CHAIRPERSON ATTEST: _________________________________________________

VICE CHAIRPERSON

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NEW JERSEY COUNTIES EXCESS JOINT INSURANCE FUND 9 Campus Drive – Suite 16 Parsippany, NJ 07054-4412

Telephone (201) 881-7632 Fax (201) 881-7633

Date: February 26, 2015 To: Executive Committee Atlantic County Insurance Commission From: PERMA Risk Management Services Subject: New Jersey Counties Excess Meeting Report 2015 Reorganization: The NJCE conducted its 2015 Reorganization and adopted the respective resolutions to conduct the business of the Fund. As per the NJCE Bylaws, the total number of commissioners exceeds seven and can meet as an Executive Committee with a Chair, Secretary, five-member Executive Committee and up to four Alternate Commissioners. Below is a listing of the 2015 Executive Committee and alternates; however, the NJCE meets as a Board of Fund Commissioners.

2015 Officers & Executive Committee

2015 Meeting Schedule

April 23, 2015 Camden County Emergency Training Center 1:00PM June 25, 2015 Camden County Emergency Training Center 1:00PM September 24, 2015 Camden County Emergency Training Center 1:00PM October 22, 2015 Camden County Emergency Training Center 1:00PM November 19, 2015 9 Campus Drive – Parsippany, NJ (Fund Office) Via Teleconference 1:00PM February 25, 2016 2016 Reorganization Camden County Emergency Training Center 1:00PM

Claims Committee: Executive Director addressed the need to schedule separate NJCE claims meeting to meet at least monthly in conjunction with the fund’s meeting dates. Further discussion and review of dates is required before finalizing a claims committee. 2015 Risk Management Plan: Included as part of the Reorganization was the 2015 Risk Management Plan with changes highlighted from the prior year.

Chairman Michael Smith Burlington County Insurance Commission Secretary Ross Angilella Camden County Insurance Commission Executive Committee Gerald White Gloucester County Insurance Commission Norman Albert Union County Ken Mecouch Cumberland County Insurance Commission Andrew Mair Mercer County Insurance Fund Commission Kevin Crouch Salem County Insurance Commission Alternate #1 John Kelly Ocean County Alternate #2 Janette Kessler Atlantic County Insurance Commission Alternate #3 Edmund Shea Hudson County

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NJCE Membership/Marketing Report: Atlantic County Insurance Commission has joined the Fund effective January 1, 2015 for a total of ten members. Mr. Proctor of Conner Strong & Buckelew provided a marketing report noting that efforts for 2015 will focus on Essex, Monmouth, Bergen, Cape May and Middlesex Counties. Professional Contracts: Executive Director, Underwriting Manager and Safety Director original contracts have fee provisions based upon a percentage of the budget with a “not to exceed amount” ceiling for the 3-year contract period. The subsequent years of the fee amounts adjust to the corresponding membership and a percentage over the previous year of no more then 2% on the annualized budgeted amount. The Board authorized contract amendments for the Executive Director, Underwriting Manager and Safety Director to adjust original percentages down to equal the actual budgeted amounts.

Auditor Quotations: The Fund office will obtain quotes for auditing services; the results will be prepared by the next meeting for the board to review and make the necessary appointment so work can begin on the audit ending December 31, 2014.

2015 Excess & Ancillary Renewals: The Board previously approved authorization for the Underwriting Manager to bind coverage of the 2015 renewal program. The Extraordinary Unspecifiable Services (EUS) statements were included in the agenda and the Board of Fund Commissioners adopted Resolution 13-15 memorializing the authorization of the purchase of insurances. Underwriting Manager provided a report on the 2015 Renewal Program and said negotiations were successful for an alternative for the Excess Liability ($15,000,000 excess of the underlying Underwriters at Lloyds policy) program with National Casualty Company. Underwriting Manager secured additional aggregate Flood limits, above those offered by the Primary Property carrier, Zurich American Insurance Company. The additional limits were negotiated through Axis Surplus (33.34%) / RSUI Indemnity (33.33%) / Westchester Surplus which provides a $15,000,000 aggregate limit above the aggregate limits provided by Zurich American Insurance Company ($25,000,000 for all locations in a Special Flood Hazard Area and $50,000,000 for all other locations). Lastly, there were 15 entities that elected to purchase Network Privacy & Security Liability coverage through National Union Fire Insurance Company (AIG) in 2015. 2015 Renewal Policies: The renewal policies are made available to NJCE members electronically through the Conner Strong & Buckelew secure website at sftp.connerstrong.com for those authorized representatives designated by their respective member entity. We are in the process of reviewing the policies and will release an e-mail with instructions to access the website when the policies are available. The policies are expected to be available by April 2015. To be granted access to the secure site please contact Missy Williamson at 267-702-1424. BRIT acquisition: Enclosed in the agenda was a notice on the acquisition of BRIT by Fairfax. Underwriting Manager reported once BRIT is owned by Fairfax Financials Holdings, LTD, BRIT will continue to operate on a decentralized basis, which means there will be no significant changes to their day-to-day underwriting and management.

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Claim Reporting Requirements: Included in the agenda was a memorandum dated 1/26/15 distributed to all local Commission TPA’s on the 2015 Claim Reporting Procedures. Claims Status Summary: AmeriHealth Casualty Services prepared a summary report of any claims with large open reserves which were reviewed during Closed Session. Catastrophe losses (CAT): The majority of the insurance industry has adopted a standard definition of a CAT loss, which is a multiple loss claim as a result of a single cause. CAT losses are typically assigned and numbered by Property Claims Services (PCS). Executive Director reported that the most recent CAT63 loss was on 2/14/15-2/15/15 and impacted some NJCE members and as such would be treated as one occurrence subject to one shared deductible. NJCE Financials: The Financial Fast Track as of December 31, 2014 showed the fund’s statutory surplus of $5.3 million. NJCE Website: The fund’s website, www.njce.org, continues to be updated on an as-needed basis with fund information. Risk Control: Safety Director’s report included a report reflecting the risk control activities from November 2014 thru March 2015. Next Meeting: The next meeting of the NJCE fund is scheduled for April 23, 2015 at 1:00PM at the Camden County Emergency Training Center.

http://www.njce.org/

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ATLANTIC COUNTY INSURANCE COMMISSION BILLS LIST – MARCH 2015

WHEREAS, the Treasurer has certified that funding is available to pay the following bills:: BE IT RESOLVED that the Atlantic County Insurance Fund Commission, hereby authorizes the Commission Treasurer to issue warrants in payment of the following claims; and FURTHER, that this authorization shall be made a permanent part of the records of the Commission. FUND YEAR 2015 CheckNumber VendorName Comment InvoiceAmount

000001 000001 QUALCARE, INC. MANAGED CARE SERVICES - 1ST QTR 2015 47,500.00 47,500.00 000002 000002 NEW JERSEY COUNTIES EXCESS JIF CEL 1ST INSTALLMENT 2015 318,749.44 318,749.44 000003 000003 QUAL-LYNX CLAIMS ADMIN - 1ST QTR 2015 70,000.00 70,000.00 000004 000004 PERMA RISK MANAGEMENT SERVICES EXECUTIVE DIRECTOR FEE 1ST QTR 2015 30,000.00 30,000.00 000005 000005 THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING 1ST QTR 2015 2,062.50 2,062.50 000006 000006 CHANDRA ANDERSON SECRETARY SERVICES - 1ST QTR 2015 1,250.00 000006 CHANDRA ANDERSON DOMAIN NAME PURCHASE - NETWORK SOLUTIONS 86.97 1,336.97 000007 000007 THE PRESS OF ATLANTIC CITY CUST NO. 103259 - 1/31/15 148.89 148.89 000008 000008 INSURANCE AGENCIES, INC. RMC FEE 1ST QTR 2015 - ACIC 50,000.00 50,000.00

TOTAL PAYMENTS FY 2015 519,797.80

TOTAL PAYMENTS ALL FUND YEARS $ 519,797.80

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_____________________________________ Chairperson Attest: ____________________________________ Dated:______________________________ I hereby certify the availability of sufficient unencumbered funds in the proper accounts to fully pay the above claims. ____________________________________ Treasurer

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APPENDIX I MEETING MINUTES

1 February 12, 2015

Atlantic County Insurance Commission OPEN Minutes

ATLANTIC COUNTY INSURANCE COMMISSION OPEN MINUTES

MEETING – February 12, 2015 Freeholders’ Meeting Room

Stillwater Building 201 Shore Road

Northfield, New Jersey 08225 11:00 A.M.

Meeting was called to order by Commissioner Ferguson. Open Public Meetings notice read into record. PLEDGE OF ALLEGIANCE ROLL CALL OF COMMISSIONERS: James Ferguson Present Jacqueline Woods Present Janette Kessler Present FUND PROFESSIONALS PRESENT: Executive Director PERMA Risk Management Services Bradford C. Stokes Claims Administrator Qual-Lynx Kathy Kissane Kim DeLaurentis Peggy Holmes Conner Strong & Buckelew Robyn Walcoff CEL Underwriting Manager Conner Strong & Buckelew Attorney To be named Treasurer Bonnie Lindaw Safety Director J.A. Montgomery Risk Control Glenn Prince Risk Management Consultant Glenn Insurance Michael Thomas Insurance Agencies, Inc. Michael Ridge

2 February 12, 2015


ALSO PRESENT: Joseph J. Giralo, Atlantic County Improvement Authority James T. Dugan, Assistant County Counsel Rachel Chwastek, PERMA Risk Management Services Chandra Anderson, Atlantic County

APPROVAL OF MINUTES: OPEN MINUTES OF JANUARY 16, 2015

MOTION TO APPROVE OPEN MINUTES OF JANUARY 16, 2015 Motion: Commissioner Kessler Second: Commissioner Woods Vote: 3 Ayes, 0 Nayes CORESPONDENCE: There was no correspondence. EXECUTIVE DIRECTOR’S REPORT: RFQ FOR PROFESSIONAL SERVICES: Executive Director Stokes presented the Executive Director’s report. The RFQ for Professional Services of Fund Actuary and Auditor were due on February 10, 2015. The bid opening was done at PERMA’s location and Commissioner Kessler participated by phone. A synopsis of the RFQ responses was reviewed. The only submission received for Auditor was from Bowman & Company with a proposed fee amount of $9,300.00 with 2% increases for years 2016 and 2017. The budgeted amount for Auditor was $18,600.00. The only submission received for Fund Actuary was from Actuarial Advantage with a proposed fee amount of $8,250.00 for 2015, $8,415.00 for 2016, and $8,583.00 for 2017. The budgeted amount for Actuary was $25,000.00. Executive Director Stokes indicated both of these firms are highly experienced in their fields, and he was pleased they had responded with amounts well under budget. Commissioner Ferguson stated he had received the summary of the responses and found them to be clear. MOTION TO APPROVE THE AWARD OF THE CONTRACTS TO THE TWO COMPANIES AS RECOMMENDED BY THE EXECUTIVE DIRECTOR. Motion: Commissioner Ferguson Second: Commissioner Kessler Vote: 3 Ayes, 0 Nayes 2015 RFQ: Executive Director Stokes went on to review that Resolution 15-16 is a Resolution to approve advertising of RFQ’s for Fund defense attorneys. He noted there are some attorneys already on board with the County, however, felt there was a need to add some more in case there are conflicts. The Fund Attorney would try to keep matters in house as much as possible, but there are certain matters which would have to be handled on the outside. Executive Director Stokes anticipated being able to advertise, review, and be ready to make recommendations before the next Commission meeting. There were no questions. MOTION TO ADOPT RESOLUTION 16-15 AUTHORIZING TO ADVERTISE FOR FUND DEFENSE ATTORNEYS.

3 February 12, 2015


Motion: Commissioner Ferguson Second: Commissioner Woods Vote: 3 Ayes, 0 Nayes CERTIFICATE OF INSURANCE ISSUANCE REPORT: Executive Director Stokes continued on his report that there were 26 Certificates of Insurance issued. Most were the annual Certificates and they are listed on the Certificate of Insurance Monthly Report. MOTION TO APPROVE THE CERTIFICATE OF INSURANCE MONTHLY REPORT Motion: Commissioner Woods Second: Commissioner Ferguson Vote: 3 Ayes, 0 Nayes CERTIFICATE OF INSURANCE ISSUANCE REQUEST FORM: Executive Director Stokes reviewed the Certificate of Insurance Request form, procedure, and where it can be found. ESTABLISHING THE 2015 PLAN OF RISK MANAGEMENT: Executive Director Stokes continued on his report with the 2015 Plan of Risk Management which is an overview of the Commission’s coverages, risks retained by the Commission, reserving, and certain methods of assessing member contributions, and claim payment authority. A telephonic meeting was held with the underwriters, including Joe Hrubush, to review the plan in great detail. It was a very worthwhile exercise which generated some questions, some typos were found and corrected. The Executive Director expressed thanks to Joe Hrubush for taking time out to assist with the review. The revised 2015 Risk Management Plan is attached to the agenda. Commissioner Ferguson also expressed thanks for the participation, including Joe Hrubush which helped with the review of the plan. MOTION TO APPROVE RESOLUTION 15-17 APPROVING THE 2015 RISK MANAGEMENT PLAN. Motion: Commissioner Woods Second: Commissioner Kessler Vote: 3 Ayes, 0 Nayes ESTABLISHING COMMITTEES: Executive Director Stokes reviewed Establishing Committees. The claims committee draft charter was included with the agenda and will be reviewed by Robyn Walcoff, Esq. Glenn Prince will talk about the safety committee. Executive Director Stokes is hopeful that members of each committee will be appointed at the next meeting. NJ EXCESS COUNTIES INSURANCE FUND (CELJIF): Executive Director Stokes continued that the NJ Excess Counties Insurance Fund (CELJIF) will be having its reorganization meeting on February 26, 2015 at the Camden County College Regional

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Emergency Training Center and Commissioner Kessler will be attending. The agenda will be coming out next week. A synopsis report will be provided. NJ CEL PROPERTY AND CASUALTY FINANCIAL FAST TRACK: Executive Director Stokes reviewed an example of the Financial Fast Track reports which were included with the agenda and provides a snap shot of the financial situation of the Funds. The report reflects a surplus of $5,382,691.00 and shows the Fund is in excellent shape. It may take two to three months for our Fund to start receiving CEL reports. Eight of the 10 Funds are doing very well, with only one in deficit. 2015 ASSESSMENT BILLS, EXCESS INSURANCE, AND ANCILLARY COVERAGE POLICIES: The Executive Director reported assessment bills for 2015 were sent out and are due back on February 15, 2015. Checking accounts have been established so the agencies can make their payments. The excess insurance coverage policies will be available on line shortly through the Conner Strong & Buckelew website. PERMA will be sending out that information next week. The Risk Managers and selected individuals from the agencies will be able to view them. Mike Ridge of Insurance Agencies questioned why the one Fund mentioned earlier is in deficit. Executive Director Stokes replied it is due to workers’ compensation claims. Robyn Walcoff explained that particular Fund had two or three bad claims right as they came into the CELJIF. They joined the CELJIF in October 2012, and their largest workers’ compensation claims occurred in December 2012. They are improving month by month. INSURANCE COMMISSION WEBSITE: Executive Director Stokes reviewed that the County is exploring whether their IT department can establish a stand-alone website that will comply with State regulations. If the County can do this it could save the Commission $2,000.00 to $3,000.00 down the road. Commissioner Woods commented that the County can establish the website, and we would just need to purchase a domain name. This concluded the Executive Director’s report. CLAIM SERVICES – CONNER STRONG & BUCKELEW: Commissioner Ferguson introduced Robyn Walcoff who presented the Claims Services Report. Following up from the last meeting, included with the agenda is a draft of the Claims Committee Charter. The Claims Committee can meet prior to the Commission meetings; however, the meetings can also be scheduled as needed. Agendas will be forwarded to members prior to the meetings. If there are five claims to discuss the meeting would take longer and would begin at 10:00 A.M. If there are only a couple of claims to discuss, the meeting would begin at 10:30 A.M. Another option would be to have telephonic meetings unless there are five or more claims to discuss. Another option would be to have the claims committee meetings two weeks prior to the Commission meetings, that way if follow up is needed prior to getting Commission approval it allows time for that to occur. Members of the committee need to be chosen. The Claims Committee makes the recommendation to the Fund Commissioners for approval, therefore, if two voting Commissioners are on the claims committee, one or the other would have to abstain from voting. Commissioner Woods was listed as a Fund professional and would not be a voting member of the Claims Committee. Another member from Atlantic County will need to be named. Ms. Walcoff mentioned possibly having Mr. Jim Dugan appointed on the Claims Committee. The Committee

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would consist of a representative of each entity and one Fund Commissioner. The charter will be finalized and ready for approval on Resolution at the next Commission meeting. The charter also covers the reserving and payment authority granted to Qual-Lynx. As new members are added to the Atlantic County Insurance Commission those members would be invited to have representation on the Claims Committee. Also on the Committee with no voting privileges would be Fund Professionals who are representatives from the Executive Director’s office, Risk Management, Qual-Lynx, the CEL Safety Director’s Office, and the Fund Attorney. Payment authority requests (PARs) will be reviewed by the Claims Committee which exceed $7,500.00 for all lines of insurance that go through the Claims Committee. Workers’ Compensation reviews would be for requests that exceed $15,000.00. Before placing a large reserve on a claim it would be discussed at the Claims Committee meetings. Minutes are taken from the Claims Committee review as to whether the PARs were approved, and are added to the public meeting minutes. Ms. Walcoff reviewed that the claims reporting guidelines were updated. The employment practice claims and the public official’s claims will go through the Risk Managers before getting reported. This concludes the claims service report. CEL SAFETY DIRECTOR – J.A. MONTGOMERY RISK CONTROL: Commissioner Ferguson introduced the CEL Safety Director, Glenn Prince, to provide the safety report. Mr. Prince spoke to Commissioner Woods regarding safety initiatives they would like to take for Atlantic County. The Safety Charter is a rough draft. Commissioners need to determine who would like to sit on the Safety Committee, such as Risk Managers, and Department Heads from departments with larger claims. Loss control visits for the County will be scheduled in the near future. This will assess exposures for OSHA and PEOSHA. The ACUA has already begun to utilize the resources available, and Mr. Prince has attended one of their Safety Committee meetings in early January. Loss control visits and training have been scheduled. Commissioner Ferguson commented that he had discussions with the County Administrator who would like Mr. Prince to start out with the entities within Atlantic County that produce the most claims, such as the Jail, Public Works, and the Nursing Home. Mr. Prince will coordinate with Commissioner Woods to arrange the visits. He will provide a loss control report which includes S.F.I.’s (suggestions for improvement), where they identified deficiencies, and recommendations for correcting them, such as training, personal protective equipment, etc. Executive Director Stokes also suggested regional training where if there is a training session in Burlington County other members could be invited attend as well. This concluded the safety report. CLAIMS SERVICE – QUAL-LYNX: Commissioner Ferguson introduced Kathy Kissane who will provide the claims reports. Ms. Kissane reported that with regard to claims, they will be discussed during the executive session. With regard to the managed care side, Ms. Kissane handed out several types of reports they will be able to provide at future meetings. The reports include the types of claims that are coming in (i.e. medical only, lost time) how many claims there are, and from which entity. Ms. Kissane pointed out that the high PPO penetration rate is very important as those are providers within their network and will have the most savings. Ms. Kissane noted that with other Funds Qual-Lynx works with typically the workers’ compensation claims are 70% of the loss dollars, and any savings will add up over the course of the year. Qual-Lynx can run reports separately as to entity so Atlantic County can see their information separately. This concluded the claims service report for open session. The balance of the report will be delivered in executive session. MOTION TO GO INTO EXECUTIVE SESSION IN ORDER TO DISCUSS PAYMENT AUTHORITY REQUESTS

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Motion: Commissioner Kessler Second: Commissioner Woods Vote: 3 Ayes, 0 Nayes

MOTION TO RETURN TO OPEN SESSION Motion: Commissioner Kessler Second: Commissioner Woods Vote: 3 Ayes, 0 Nays

Commissioner Ferguson requested a Motion to approve the first PARs for $59,385.00 amended for an additional $800.00 for anticipated expenses for a new total of $60,185.00.

MOTION TO APPROVE THE PARS FOR CLAIM NUMBER 337 FOR $59,385.00

INCREASED BY $800.00 FOR A TOTAL OF $60,185.00 Motion: Commissioner Kessler Second: Commissioner Woods Vote: 3 Ayes, 0 Nays MOTION TO APPROVE THE PARS FOR CLAIM NUMBER 274 FOR $54,995.00. Motion: Commissioner Woods Second: Commissioner Kessler Vote: 3 Ayes, 0 Nays

OLD BUSINESS: None. NEW BUSINESS: None. PUBLIC COMMENT:

MOTION TO OPEN THE MEETING TO PUBLIC COMMENT

Motion: Commissioner Kessler Second: Commissioner Woods Vote: 3 Ayes, 0 Nayes

Commissioner Ferguson opened the meeting to public comment and having seen nor heard any public comment the public session is closed.

MOTION TO ADJOURN THE MEETING

Motion: Commissioner Kessler Second: Commissioner Woods Vote: 3 Ayes, 0 Nayes MEETING ADJOURNED: 11:50 A.M. Minutes prepared by: Chandra Anderson, Secretary

Documents

ATLANTIC COUNTY INSURANCE COMMISSION AGENDA ......ATLANTIC COUNTY INSURANCE COMMISSION AGENDA AND REPORTS MARCH 13, 2015 STILLWATER BUILDING 201 SHORE ROAD NORTHFIELD, NJ 08225 11