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Home My WebLink AboutInsurance Committee Minutes 01.14.1985M I N U T E S INSURANCE COMMITTEE • DATEJanuary 14, 1985 TIME 4:30 pm PLACE OF MEETING City Hall A. Members present: Don Hackmann Chairman Bob Gauthier ,Andy Loebe s Jim Flisrand, Don Meyers (late) B. Other's present: Dennis Gambill, Hoiness LaBar Insurance A quorum (3 or more) present the following action was taken by the committee: Due to the increase in premium by the State Workmen's Compensation Fund, the-committee is considering the possibility of going with a private carrier. Dennis Gambill.-from Hoiness LaBar Insurance presented rates, etc. from the insurance company that they write Workmen's Comp through (Employee Benefits Insurance Co.). The committee recommended that we get a proposal from Hoiness LaBar Insurance. The committee also-discussed and recommends that the City of Laurel go out for bid on all of their insurance coverages, including group health. • Don will immediately notify all agents in Laurel so that they may become "Agent of Record." Also to advise them that a copy of the specifications will be sent to them for their review and comments before actually advertising for proposals. Bids will be required on the total package, but they may be awarded in individual catagories. The committee set the following dates: February 4th,-4:30 p.m. Insurance Committee meeting. Request that Alan Crowe, Darrell McGillen, and Paul Peterson attend to review the coverage for vehicles. The specs will be reviewed and finalized and sent to the insurance carriers in Laurel.on February 6th for their comments and ask to return them by February 15th. February 25th, 4:30 p.m. Insurance Committee meeting. Possibly advertising for bid proposals around April lst, and bids opened on June 4th. Since the question of volunteer firemen being on our group health insurance policy came up last time we went out for bid, Don will do some further checking on the validity of them being enrolled with the City's group policy. Meeting adjourned at 5:30 p.m. Respectfully submitted, Donald L. Hackmann City Clerk b r? ?i 95 [] • CITY OF LAUREL WORKERS' COMPENSATION INSURANCE EMPLOYEE BENEFITS INSURANCE COMPANY Cost Comparison The following is a cost comparison between Employee Benefits Insurance Company (EBI) and your present insurer, the State Fund. Effective 1/1/85, the State Fund increased their rates 15%. Their original request of 40% was denied due to a lack of statistical documentation. We understand that the State Fund will request are additional increase on their normal rate increase date of July 1st. However, since we do not know what percentage, if any, will be granted, I have used only_ the present 15% for the entire 1985 projected cost for the State Fund comparison. E81 is a private carrier. Their rate filing parallels the State Fund rates. However, because they are a private carrier, they cannot increase a client's rates until the client's Normal Anniversary Rating Date (NARD). A copy of the NARD explanation sheet is attached. EBI will 'save' the 7/1/84 rates until 7/1/85 at which time their rates will be increased. The payroll figures used in my comparison are your 1984 quarterly payrolls, used in the same reporting period for this 1985 comparison as reported in 19x34. Any cost savings with EBI will only be magnified by whatever increase the State Fund may take 7/1/85. Submitted by: Dennis P. Gambill Manager, Workers' Compensation Department Y'QVW iwPM! MGEMT r? 2323 2nd Ave. North • Billings, Montano 59107 • 406-245-6511 r -- C 6A MEMBER E CITY OF LAUREL Workers' Compensation Cost Comparison 1. EmDlovee Benefits Insurance Compan Code 7w 7720 8743 (8742) 8810 9410 9420 1/1/85 - 6/30/85 1st Half - Quarter 1 & 2 11 Rates 7704 7720 * 8743 (8742) 8810 9410 9420 Description Firemen & Drivers Policemen & Drivers Salesmen, Collectors & Messengers Clerical Non-Professional Employees All Other Employees Cost 2.00 x $ 4,550.00 = $ 90.00 2.45 x $110,006.00 = $ 2,695.00 .70 x $ 50,243.00 = $ 351.00 .32 x $ 91,356.00 = $ 292.00 2.95 x $107,520.00 = $ 3,171.00 4.85 x $117,388.00 = $ 52693.00 1st Half Total = $12,292.00 7/1/85 - 12/31/85 2nd Half - Quarter 3 & 4 Rates Cost 7704 2.42 x $ 11,900.00 = $ 287.00 7720 2.96 x $117,417.00 = $ 3,475.00 * 8743 (8742) .85 x $ 47,048.00 = $ 399.00 8810 .39 x $ 99,276.00 = $ 387.00 9410 3.56 x $120,218.00 = $ 4,279.00 9420 5.86 x $144,251.00 = $ 8,453.00 2nd half Total = $17,280.00 Total = $29,572.00 Experience Modifier = x 1.08 31,937.00 Less Size Discount = - 2,559.00 29,378.00 Expense Constant = + 85.00 Projected 1985 Cost 29 463.00 * (EBI uses 8742 in lieu of 8743) Page 2 • 2. State Fund Code 7704 7720 8743 (8742) 8810 9410 9420 A Description Firemen & Drivers Policemen & Drivers Salesmen, Collectors & Messengers Clerical Non-Professional Employees All Other Employees 1/1/85 - 12/31/85 - Annual Payroll Rates Cost 7704 2.30 x $ 16,400.00 = $ 377.00 7720 2.82 x $227,423.00 = $ 6,413.00 8743 (8742) .92 x $ 97,291.00 = $ 895.00 8810 .37 x $190,632.00 = $ 705.00 9410 3.39 x $227,738.00 = $ 7,720.00 9420 5.58 x $261,639.00 = $14,599.00 Total = $30,709.00 Experience Modifier = x 1.08 33,166.00 Less Size Discount = - 1,809.00 * Projected 1985 Cost = $31,357.00 * (Note: No increase was shown for 7/1/85). * Savings with EBI = $ 1,894.00 * (Note: Aa increase with State Fund will only increase the savings with EBI). 0 • Normal State & Private Insurer Rate Change date A) B) 1) = EBI 7/1/84 NARD EXPLANATION EXAMPLE Assumed Client Change Date From State Fund Policy Effective Date 1/1/85 X X I EBI uses 7/1/84 rates until all private carriers change affects State Fund (former) previously with the Fund, 7 2) = State Fund Normal State & Private Insurer Rate Change Date 7/1/85 X 15% State Fund Increase 7/1/85 when State and rates. Increase now clients because, being 11 was their NARD. 7/1/85 1/1/86 7/1/86 X X L X 1 1) New EBI client now - ------ 1) Client now begins 2) If client stayed at former 1/1/85 1st year of NARD. with State Fund - rates. (Note: BEGINS!!! has now been must complete 1 increase with new 2) If client had full year on NARD State rates. stayed with State before EBI can Fund, new rate adjust rates 1) EBI cannot adjust increase - amount presently in force. rates because unknown w would client no loin err take effect. has a 7/1 NARD. C) 1/1/86 7/1/86 1/1/87 X X X *1) EBI can now adjust [See (B) Abovel [See (B) Above] rates to the 7/1/85 rates filed by EBI. *From policy date of 1/1/85, client with EBI has been adjusted to new rates 7/1/85 and now has used those rates for a period of 18 months. They have also missed the State Fund's 7/1/85 and 7/1/86 rate increase had they stayed with the "fund"!