Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
WELCOMEScott Tennant
Deputy Executive DirectorSPELL JIF, ACCASBO JIF, BCIP JIF and GCSSD JIF
July 22, 2015
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
PurposeEnvironmental Management &
Preventionwith a focus on
Mold and Indoor Air Quality
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Why?Mold is a problem that is not going to go away.
Coverage for mold remediation is going to disappear or be restructured to move more of the financial risk onto
the insured schools’ balance sheets.
If we don’t get better at managing mold, it will manage us and consume vast sums of time and money on
cleaning it up and dealing with all of the overwhelming negative consequences of a mold infestation.
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
WHEN DID MOLD BECOME SUCH A
PROBLEM?1996/97 through 2011/12 – 15 years
First purchase of an Environmental/Pollution Policy 1996‐97
Two claims from the 15 year period beginning 1996/97 through 2011/12 with slightly more than $100,000 of claim activity.
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
SPELL JIF Mold Claims Accounting 2012‐2013
Number of member districts with mold 5 Number of building locations with mold 8
Total value of mold related costs to districts 1,983,686 Deductibles (50K per location or 8) (400,000)
Balance after deductibles 1,583,686
Insurance/SPELL JIF RecoveryACE Insurance Company (800,000)SPELL JIF Contribution (350,000)
Balance after recovery 433,686
Total cost to 5 member budgets 833,686 42%Total recovery from ACE and SPELL JIF 1,150,000 58%Sum of out of packet cost and recovery 1,983,686 100%
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
SPELL JIF Mold Claims Accounting 2013‐2014
Number of member districts with mold 4 Number of building locations with mold 5
Total value of mold related costs to districts 958,080 Deductibles (50K per location or 8) (250,000)
Balance after deductibles 708,080
Insurance RecoveryAIG (American Insurance Group) (571,234)
Balance after recovery 136,846
Total cost to 5 member budgets 386,846 40%Total recovery from ACE and SPELL JIF 571,234 60%Sum of out of packet cost and recovery 958,080 100%
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
1,371,234 350,000
1,220,532
Insurance SPELL JIF Member
Who Paid How Much Over Two Years
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Would you insure the risk?
‐
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2012‐2013 2013‐2014
254,134 302,322
800,000
571,234
Premium Losses Premium Losses
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Would you insure the risk?Annual Perspective Cumulative Claim Payments by Carrier
Year Carrier Name Annual
PremiumClaims Paid by
CarrierAnnual Loss
RatioCumulative Premiums
Cumulative Claim Payments by Carrier
Cumulative Loss Ratio by
Carrier
2001‐2002 ACE $ 130,941 $ ‐ 0% $ 130,941 ‐ 0%
2002‐2003 ACE $ 231,165 $ ‐ 0% $ 362,106 ‐ 0%
2003‐2004 ACE $ 233,312 $ ‐ 0% $ 595,418 ‐ 0%
2004‐2005 ACE $ 212,993 $ ‐ 0% $ 808,411 ‐ 0%
2005‐2006 ACE $ 267,244 $ ‐ 0% $ 1,075,655 ‐ 0%
2006‐2007 ACE $ 281,362 $ ‐ 0% $ 1,357,017 ‐ 0%
2007‐2008 ACE $ 283,856 $ ‐ 0% $ 1,640,873 ‐ 0%
2008‐2009 ACE $ 254,963 $ ‐ 0% $ 1,895,836 ‐ 0%
2009‐2010 ACE $ 240,083 $ ‐ 0% $ 2,135,919 ‐ 0%
2010‐2011 ACE $ 240,086 $ ‐ 0% $ 2,376,005 ‐ 0%
2011‐2012 ACE $ 246,299 $ ‐ 0% $ 2,622,304 ‐ 0%
2012‐2013 ACE $ 254,134 $ 800,000 315% $ 2,876,438 $ 800,000 28%
2013‐2014 AIG $ 302,322 $ 571,234 189% $ 302,322 $ 571,234 189%
2014‐2015 AIG $ 328,603 $ ‐ 0% $ 630,925 $ 571,234 91%
2015‐2016 AIG $ 364,753 ? ? $ 995,678 ? ?What is our future? What is our future?
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Year Avg. Temp. (°F)
Avg. Dewpoint (°F)
Avg. Humidity (°F)
Precip. (in)
No. of Days Events
2012 79 65 66 3.06 31 8 rain or fog days
2013 78 69 76 3.13 31 11 rain or fog days
2014 75 63 70 1.98 31 9 rain, thunderstorm or fog days
2015 75 67 78 1.93 21 9 rain, thunderstorm or fog days
Source: http://www.wunderground.com/history/airport/KVAY/2015/7/21/MonthlyHistory.html?req_city=Marlton&req_state=NJ&req_statename=New+Jersey&reqdb.zip=08053&reqdb.magic=1&reqdb.wmo=99999&MR=1
What is our immediate future?
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
We hope this seminar adds to your ability to win the battles against mold because our future depends upon it.
Presented by School Pool for Excess Liability Limits Joint Insurance FundACCASBO JIF • BCIP JIF • GCSSD JIF • SEJIF
www.spelljif.com
Agenda• When Mold Attacks – The Somers Point Story
– Suzanne Keller, Edward Doran & Jeff Kendall
• My classroom smells funny! – Two Real Life Scenarios– Haddon Township School District
• Jennifer Gauld & Michael Moore– Medford Township Public Schools
• Joseph Biluck, Jr.
• Practical Mold and IAQ Complaint Management Process– John Geitz & Christopher Hillmann
• SPELL JIF Environmental Hotline– Christopher Hillmann
• Open Discussion – Q&A – Full Panel