Paul A. Forlenza, MGAExecutive Director

2019 Gloucester, Salem, Cumberland Counties Municipal Joint Insurance Fund

Annual Planning Retreat

July 25-26, 2019

HOUSEKEEPING

• Sign in• Retreat binders• Breaks and returns • Survey Monkey email• Cell phones off please• Conversations to a minimum

2

This is Your Program

2018 RETREAT EPILOGUE

July 26-27, 20183

2018 RETREAT EVALUATION

Excellent Good Fair Poor

Facilities 13 8 0 0

Relevance 12 8 1 0

Time of Year 8 11 2 0

Overall 13 8 0 0

Too Short Just

Right Too Long

Retreat Length 0 19 3

4

Excellent

Good

Fair

Poor

Facilities

13

8

0

0

Relevance

12

8

1

0

Time of Year

8

11

2

0

Overall

13

8

0

0

Too Short

Just Right

Too Long

Retreat Length

0

19

3

SUGGESTIONS FOR IMPROVEMENT

• One day Retreat – Difficult to get out of the office for 2 days

• One day Retreat – Start earlier and continue until 5 PM – No Executive Meeting

• Great Job – Food & servers were great• Thank you for keeping all of us informed

on our JIF Operations5

LIKES AND DISLIKESLIKED MOST

• All relevant & informative topics• Food• Interaction amongst the towns• Hodgepodge session had lots of useful information; items

most of us see every day• Location• OPRA information – Vey informative• Police presence in schools & work place safety• Temperature was much better this year• A lot of topics covered without being drawn out• I never leave without learning something6

LIKES AND DISLIKESLIKED LEAST

• Nothing• Met all my expectations• It was a good retreat – well done!• Room temperature fluctuation• The same update each year• 1 ½ days is too long; cut down to 1 day• Technology Risks

7

FUTURE TOPICS

• More emphasis on importance of transitional duty • Volunteers; reporting accidents immediately, adhering

to safety policies; etc.• More on volunteers; required training and coverage• More on marijuana• More on cyber• More on OPRA• More on security in the workplace

8

BEST IDEAS• Vacant property policies & procedures• Wellness – Always an eye opener• It is good to hear what other members

are doing & learn from their experience• Handling OPRA requests – I do not need

to create a document in response to an OPRA request

• Handling security in the workplace• Facility use insurance• Healthy employee vs. unhealthy

employee impact on costs9

10

There're Grrrreeeeaaat

TRICO JIF Results…

https://www.bing.com/images/search?q=tony+the+tiger+clip+art&id=91BD50398C033893B386207B85A478E1D0CA2424&FORM=IQFRBA

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65.90% 63.80%

80.00%67.60%

88.20%

64.00%

0%

25%

50%

75%

100%

2013 2014 2015 2016 2017 2018

Six Year Average Loss Ratio of 71.2%!

LOSS FUNDS: 2010 VS 2019

$6,670,966 $6,592,540

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

2010 2019 12*Includes the addition of Elsinboro, Vineland, West

Deptford, & Franklin Fire Districts12

*

44%

12%

34%

4%Loss Funding

Operations

Excess

RMC's

13

13

2019 JIF BUDGET

Operational Efficiency

1.97%

2.05% 0.00% -0.02%

-2.83%

1.40%

-3%

-1%

1%

3%

5%

7%

9%

2013 2014 2015 2016* 2017 2018** 2019-.020%

STEADY BUDGETS

Low single digits over 7 Years!

*$50K Increase in Property SIR14

**$200K Increase in WC & Liability SIR

$15,120,942

$16,926,580$18,214,719 $18,834,643

$19,618,799 $19,436,001

$0$2,000,000$4,000,000$6,000,000$8,000,000

$10,000,000$12,000,000$14,000,000$16,000,000$18,000,000$20,000,000

2013 2014 2015 2016 2017 2018

MAINTAINING STRONG SURPLUS POSITION

15

(Valued as of 12/31/18)

$750,000$825,000

$1,125,000$1,250,000

$1,375,000$1,475,000

$0

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

2013 2014 2015 2016 2017 2018

GROWING DIVIDENDS

16

MEL LOSS RATIO RESULTS(VALUED AS OF 3-31-2019)

17

24.80%

152.00%

52.80% 44.90%

13.90%

70.30%

0%

50%

100%

150%

200%

2013 2014 2015 2016 2017 2018

Six Year Average Loss Ratio of 58%!

18

37.60%

70.30%

99.60%

67.60%

44.90%

33.10%

0%

25%

50%

75%

100%

2013 2014 2015 2016 2017 2018

Six Year Average Loss Ratio of 57.8%!

A STRONG BOTTOM LINEHISTORICAL OPERATING RESULTS 1991 TO 3/31/2019

19

Earned Contributions & MEL / RCF Dividends $230,890,672

Claims Paid (Net of Subrogation) (76,360,695)Excess Recoveries 211,230 Excess Insurance Premiums Paid (62,549,466) Operating Expenses Paid (41,728,937) Residual Claims Fund Transfer Premiums (13,589,903) Total Payments (194,017,771)

Position After Expenses 36,872,901

Investment Income (per Treasurer) 9,331,868 TransfersReturn of Surplus (16,538,985)

Cash Position $29,665,784

Case Reserves 6,492,487)

Position After Case Reserves 23,173,297

IBNR Reserves (3,209,192)

Net Current Surplus/(Deficit) $19,964,105

1,691 1,6331,405

7801112

1649

24712745

3054

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2016 2017 2018

Instructor Online Total

EMPLOYEES TRAINEDInstructor Led vs. Online Training

Participation is increasing!20

95.50% 95.00% 95.00%

85.10%

98.40%96.20%

0.00%

25.00%

50.00%

75.00%

100.00%

2016 2017 2018PPO EPO

NETWORK USEBased on Provider Charges

Network Use Saves Money! 2121

(Valued as of 12/31/18)

74.10%

62.80%56.40%

49.80%

71.70% 71.00%

0.00%

25.00%

50.00%

75.00%

100.00%

2014 2015 2016 2017 2018 2019*

TRANSITIONAL DUTY DAYS

Use of Transitional Duty Increasing?• Through 5/31/2019

2222

1.591.90 2.05

2.342.02

1.881.51

2.142.39 2.35

2.061.83

1.98

1.37

0

1

2

3

4

2013 2014 2015 2016 2017 2018 2019*

TRICO JIF NJ MEL

LTAF RESULTS

Increased Use of Transitional Duty has a positive impact on the LTAF Rate

23• Through 4/30/2019

IT HASN’T ALL BEEN SMOOTH SAILING

24

CHALLENGES OVERCOME

25

LAND USE BOARDMEMBER TRAINING

26

• Send to Municipal Clerk for distribution to Land Use Board Secretary

• Training completed by & certified by Land Use Board Attorney

• Enhanced coverage for completing training

Training materials nearly complete!

POLICE SPECIFIC ONLINE TRAINING

27

• Requested by Police Ad Hoc Committee• 21 of 26 agencies enrolled• In excess of 400 courses taken• Online access to over 100 police oriented

training courses• Sexual Harassment• Hostile Work Environment• Interaction with Suspects• Cyber Hygiene

TULIPTenant User Liability Insurance Program

28

• New web based insurance purchase program for users of your municipal facilities

• $1 million of liability coverage automatically naming the municipality as an additionalinsured

• One code for each member – MEL Bulletin 19-28

• Program brochure available

CERTIFICATE OF INSURANCE GUIDELINES

29

• Provides recommendations for coverage types & limits based upon the size & scope of project

• Guidelines are more detailed and cover new exposures

• Includes model indemnification, defense & hold harmless language for use in contracts

• Guidelines are being finalized

AS WELL AS WE HAVE PERFORMED

30

THERE ARE STILL CHALLENGES AHEAD

31

TECHNOLOGY RISK

32

–Member awareness of risk–Evolving nature of the risk–Communication with the right

person in each town–Ongoing expense–Cyber overload?

30

1 4No Submission

Pending - AdditionalInfoTier 1

Tier 1 & 2

2

33

81% of the Members have not sought approval of

their Plan

34

35

CANCER PRESUMPTION

36

• Signed into law on July 8, 2019• PL 2019 c. 156

• Includes “preponderance of evidence” standard• Cancer type limited to those types of cancer

identified by a national standard as related to fire fighting

• Limited presumption to cancers diagnosed before age 75

The Latest Information:

CANCER PRESUMPTION

37

• A Program to manage these claims is being finalized

• Issues of concern include physicians, network access, Medicare reimbursements, etc.

• Likely that the claims will be funded by the RCF• Claims expenses will be billed back to the

member JIFs based upon number of full & part time firefighters

How the MEL JIFs are Responding:

Estimated $10 million Annual S/W Costs!

NEW SAM STATUTESEXUAL ABUSE AND MOLESTATION

(EFFECTIVE DECEMBER 1, 2019)

38

• Creates new, extended statute of limitations periods for civil actions by child and adult victims of sexual abuse (child victim – suit must be filed by the 55th birthday, or within seven years of discovering the injury, whichever date is later; adult victim – suit must be filed within seven years of discovering the injury).

• Establishes a two-year window during which actions may be commenced even though they would otherwise be time-barred, even after using the appropriate new, extended statute of limitations.

• Title 59 Immunities do not apply to these claims

SAM STATUTE AMENDMENT

39

• Aligns public entity immunities with those outlined under the Charitable Immunity Act.

• Clarifies that any available immunity for public entities and public employees from some source of law other than the “New Jersey Tort Claims Act” could be raised by public entities and public employees as a defense to any of the aforementioned types of sexual abuse lawsuits.

• Clarifies that immunities under the Tort Claims Act do not apply to these specific types of claims:

SAM STATUTE AMENDMENT

40

• an action at law for damages against a public entityor public employee as a result of sexual abuse being committed against a person, which was caused by a willful, wanton or grossly negligent act of the public entity or public employee.

• an action at law for damages against a public entityas a result of sexual abuse being committed against a minor under the age of 18, which was caused by the negligent hiring, supervision or retention of any public employee.

SAM STATUTE

41

• Utilization of specialized TPA, networks, & defense attorneys

• The claims will be funded by the JIF/MEL/RCF• Claims expenses will be billed back to the

member JIFs based upon a formula being created• Payback will be over a 10 year period• Extensive training program being developed for

Elected Officials & Managers/Supervisors

How the MEL JIFs are Responding:

PROPERTY INSURANCE

42

• TRICO JIF is experiencing significant losses in the JIF/MEL self insured layers• JIF Property Six Year Average Loss Ratio –

111.9%• MEL Property Six Year Average Loss Ratio

227.27%• Changes in the JIF/MEL retentions coming?• Hardening of the Excess Property Market?

THE KEY TO LASTING SUCCESS…

Weathering the storms…

43

THIS MORNING’S AGENDAII. Technology Risk Management – Lou Romero

• Technology Risk Services Director• Role & Responsibilities

• MEL Cyber Risk Management Program• Policies & Training• Compliance Process

44

III. Workplace Violence & Safety – Keith Hummel• Is your workplace as safe as it can be?• Is workplace violence a foreseeable hazard• Legal liability to protect employees• OSHA/PEOSHA Requirements

THIS MORNING’S AGENDA

45

Morning Break

IV. Managing Contractual Risk – Paul Miola & Dave DeWeese• Building & Infrastructure Projects• Rental agreements• Municipal Facilities use Agreements• Revised Certificate of Insurance Guidelines• Updated TULIP Program

(continued)

THIS MORNING'S AGENDA (CONTINUED)

V. Land Use Board Member Training – Paul Forlenza• Land Use Training Program

• Training materials• Certification• Enhanced coverage

46

Lunch!

AFTERNOON AGENDA

VI. Wellness – Debby Schiffer• Work Family Feud!

VII. MEL & RCF Update – Joe Hrubash & Ed Cooney • Financials• Current/New Initiatives• Legislative concerns & initiatives

• Sexual Abuse & Molestation• Firefighters Cancer Presumption• 2020 Coverage Renewal

47Afternoon Break

AFTERNOON AGENDA(CONTINUED)

VIII. Managing the Risk of Volunteers – Dave DeWeese & Paul Miola

• What is my exposure?• What is my coverage?

• Emergency Responders vs. Others?• How do I manage the risk?

July Executive Committee Meeting 4:00pm

48

FRIDAY MORNING’S AGENDA

IX. The Challenges of Transitional Duty - Paul Miola, Karen Beatty, & Tammy Langsdorf

• Member Use & Financial Impact• Best Practices for Transitional Duty Programs• Workers’ Compensation injuries vs. Non work

related injuries• Modified Duty Assignments• Returning to work

49

FRIDAY MORNING’S AGENDA (CONTINUED)

X. Optimizing your Safety Program – Liam Callahan• Back to Basics

• Safety Committee meetings• Loss control efforts• Loss control services • PEOSHA compliance

50

Morning Break!

FRIDAY MORNING’S AGENDA (CONTINUED)

XI. Designated Employee Representatives – Keith Hummel• Why the need?• How does the Program work?• What is the role of the DER?• Training Program

51

FRIDAY MORNING'S AGENDA (CONTINUED)

52

XII. Frequently Asked Questions• Domestic Violence Response Teams• GPS Tracking Devices• Police Off Duty• What’s on members minds?

Wrap Up & Lunch!

Slide Number 1Housekeeping2018 Retreat Epilogue2018 Retreat EvaluationSuggestions for ImprovementLikes and DislikesLikes and DislikesFuture TopicsBest IdeasSlide Number 10JIF Loss ratio results�(Valued as of 3-31-2019)Loss Funds: 2010 vs 2019Slide Number 13Slide Number 14Slide Number 15Slide Number 16Mel loss ratio results�(Valued as of 3-31-2019)EPL LOSS RATIO RESULTS�(Valued as of 3/31/2019)A Strong Bottom Line�Historical Operating Results 1991 to 3/31/2019Slide Number 20Slide Number 21Slide Number 22Slide Number 23It hasn’t all been smooth sailingChallenges overcomeSlide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32CYBER RISK MANAGEMENT PLAN COMPLIANCESlide Number 34Slide Number 35CANCER PRESUMPTIONCANCER PRESUMPTIONNEW SAM Statute�Sexual Abuse And Molestation�(Effective December 1, 2019)SAM Statute AMENDMENTSAM Statute AMENDMENTSam statuteSlide Number 42Slide Number 43This Morning’s AgendaThis Morning’s AgendaThis Morning's Agenda �(continued)Afternoon Agenda �Afternoon Agenda �(continued)Friday Morning’s AgendaFriday Morning’s Agenda (continued)Friday Morning’s Agenda (continued)Friday Morning's Agenda (continued)