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Specialty Lines
I just read the results of a lawsuit in Philadelphia related to the collapse of a building in 2013 in center city. Seven people died and 12 were injured as a result of the collapse of the building, which was being demolished. The adjacent Salvation Army thrift store was crushed by the collapse.
The civil case lasted 17 weeks, the longest in Philadelphia court history. The jury found the defendants guilty and the trial was entering the phase where the jury would be deciding on damages and then deliberating on punitive damages. At that point the parties involved reached a settlement, reported to be $227 million.
I don't have space to include all the information about this case, but what is very interesting is that the settlement is coming from the owner of the building and the Salvation Army. Reports indicate the Salvation Army is paying $200 million of the settlement, and has insurance for $100 million.
So how does the owner of a building crushed by an adjacent building end up agreeing to pay most of the damages for the collapse? According to the Philadelphia Inquirer, "Although the Salvation Army's thrift store building was destroyed and two of its workers were killed, it was sued for ignoring warnings of an imminent collapse of the building from the owner's top aide, and not telling workers and customers about the potential danger."
"Salvation Army officers testified that they did not believe the warnings because of the aide's penchant for exaggeration. But the jury, in its liability verdict on Jan. 31, found that the charity bore 75 percent of the responsibility for the harm caused to the shoppers killed and injured in the collapse."
So when you are thinking about risk management, and potential liability for your county or county related entity, keep in mind liability can come from any decision you make. While this is a tragic example, the lesson of "erring on the side of safety" is always good to keep in mind.
Make sure you contact us when you need help with something,
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PComp Board Nominations Open
The six elected positions on the PComp Board of Directors are all up for election this year, and nominations are being accepted through March 17. To nominate someone please email John Sallade.
The board positions are noted below, along with the person currently serving. All are eligible for re-election.
2, 2A, 3rd & 4th Class Counties Representative - Sabrina Fischer (Erie County HR Director)
6th Class Counties Representative - Mike Baker (Indiana County Commissioner)
6th Class Counties Representative - Mark McCracken (Clearfield County Commissioner)
7th and 8th Class Counties Representative - Dee Robinson (Union County Chief Clerk)
At Large Representative - Jean Zore (Elk County Chief Clerk)
At Large Representative - John Christopher Soff (Crawford County Commissioner)
Here are a couple of important notes. First, there is a 5th Class County Representative position provided in the PComp bylaws. At present there is no one on the board from a 5th Class County, and when that happens the seat becomes an At Large position. Normally there is only one At Large Position.
Secondly, no one county may have more than one representative on the board. This means nominations cannot be made for individuals from these counties which are already represented on the PComp board: Adams, Bradford, Clinton, Lawrence, Sullivan, Tioga and Wayne.
The board meets three times a year, twice in Harrisburg and once in June at a location which moves around the state. Expenses to attend the meetings are paid by PComp. We recommend persons interested in serving on the board have a knowledge or interest in workers' compensation claims, risk control, finance or administration
If you have any questions about service on the board, or the nomination and election process, please contact
John Sallade.
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PELICAN Rates for 2017-18 Remain the Same, $500,000 Dividend Declared!
PELICAN subscribers (members) will see the same rate per bed for 2017-18 as for the recently completed policy year. Action taken by the PELICAN SAC at its January meeting continues PELICAN's history of affordable, stable rates by leaving the skilled bed rate at $350 per bed for most members for fifth year in a row! The SAC also declared another $500,000 dividend for its membership as well as agreeing to continue to fund the highly successful Loss Control Grant project and offering up to $5,000 to all of its members for safety improvement projects (subject to a maximum of 20 percent of the member's annual premium).
PELICAN subscribers can expect to receive their dividend checks in mid to late March.
Questions about PELICAN should be directed to John Sallade or Andrew Smith at CCAP.
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Openings on the PELICAN SAC
In the past several months two members of the PELICAN SAC have resigned, one due to retirement and the other to accept a position at a different facility. This leaves two openings on the Subscribers Advisory Committee (SAC), which is PELICAN's board of directors.
The PELICAN members will be meeting at the PACAH Spring Conference and one of the open positions will come up for election at that time. The membership meeting will be on Thursday, April 27 during the PELICAN luncheon, at the Penn Stater in State College.
Anyone interested in the position should attend the luncheon and have someone nominate them.
The PELICAN SAC meets three times a year, once in January at the CCAP office, and then a May meeting which is typically a conference call, followed by a meeting in Vermont in late August. As a Vermont domiciled captive insurance company, Vermont law requires the SAC to meet once a year in the state. Expenses to attend the SAC meetings are paid by PELICAN.
Here is a listing of the current members of the SAC (no member may have more than one representative on the SAC, so individuals from the facilities listed below are not eligible for the open positions).
2017 PELICAN Subscribers Advisory Committee
Class A Members:
Kelly Andrisano (Executive Director, PACAH) (2017), President
James Aurand (Administrator, Susque-View Home) (2019), Vice President
Dennis Biondo (Executive Director, John J. Kane Centers) (2018)
Terry Brennan (Administrator, Berks Heim) (2018)
Diane Cleary (Vermont Director) (2019)
Molly Hess (Administrator, Philadelphia Nursing Home) (2018)
Edna Youngster (Risk Management Coordinator/Investigative Nurse, Gracedale Nursing
Home) (2017)
Vacancy (2017)
Class B Members
Howard Jaffe, Esq. (Oak Health and Rehabilitation Centers) (2018)
Vacancy (2019)
Also up for election at the annual meeting are the positions currently held by Edna Youngster and Kelly Andrisano. They are both eligible for re-election.
The other open position is a for a Class B subscriber, and there is only one facility in that category which is not represented on the SAC, and once that member has selected a new NHA, we will be in contact about their interest in serving.
Questions about PELICAN vacancies, election and the annual meeting should be directed to
John Sallade or
Andrew Smith at CCAP.
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PELICAN SAC Meeting Summary
The PELICAN Subscribers Advisory Committee (board of directors) met on January 26 at the CCAP office. The SAC elected officers for 2017:
President: Kelly Andrisano, PACAH Executive Director
Vice President: Jamie Aurand, NHA, Susque-View Nursing Home
Secretary/Treasurer: John Sallade, Managing Director, Insurance Programs, CCAP
The SAC approved two new PELICAN subscribers, Loyalhanna Care Center of Latrobe and William Penn Care Center of Jeannette. This brings the number of PELICAN subscribers (members) to 42.
The SAC heard a presentation from AIG, the new PELICAN Vermont management firm, about the transition from the prior manager, and reviewed draft December 2016 financials. The proposed 2017 budget was approved, and bank account signatories updated. CCAP staff reviewed membership marketing and retention plans, Medicare Section 111 claims reporting, and plans to update the PELICAN Rules and Regulations to clarify the classifications of subscribers. Several changes to the PELICAN insurance policy were approved; they mainly clarify coverage. The reinsurance renewal was reviewed, and the SAC took action on 2017-18 rates and a dividend. PELICAN's policy year begins March 1 and ends February 28.
The SAC also acted to continue the Loss Control Grant program for 2017-18, with a maximum grant amount of $5,000 per subscriber, with a limit that no subscriber can receive more than 20 percent of their gross premium in grant funds.
It was also decided that Andrew Smith, Risk Control Specialist at CCAP, would be assuming the main role for new member marketing for PELICAN. Andrew is well known to PACAH members through his consistent attendance and participation in PACAH conferences.
Please see other PELICAN articles in this issue of Insurance Matters for updates on 2017-18 rates, dividend and vacancies on the PELICAN SAC.
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Hot Topics
The PCoRP Renewal Process
It is that time of year when we are working with the 50 PCoRP counties and 4 county related entities to prepare quotes for the June 1 renewal. We often get questions from their local insurance producers and the county about why we need the renewal applications in January for a June renewal.
As with many projects, we work backwards from the renewal date. Our commitment to the members is to provide a renewal package by the start of May, which gives everyone time to review the details of the property, auto, liability and crime coverages. To do that, the PCoRP board meets in early April to review the finances and renewal proposals from the reinsurers and also Coverage Document changes. And in order for that information to be provided to the board, we meet with our reinsurers in mid-March.
So, to provide the reinsurers with updated data - property values, payroll, number of officers and vehicles, etc., we need that information from the members in January, so we can review and compile all the information.
It is a process that works well, and we appreciate the PCoRP members and producers getting us the information we need in a timely manner.
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Spring Workshop Season!
By:
Linda Rosito, Risk Management Training Director
The CCAP Insurance Programs will be offering a full slate of excellent training opportunities starting this month. This season we are offering sessions on intruder/active shooter, defensive driving, prison risk management, workers' compensation, time management and building a better county culture. We are also coordinating with the Juvenile Detention Centers and Alternative Programs (JDCAP) for a session on Lessons Learned Regarding PREA.
For a complete listing of our risk management trainings, dates and location please see the listing below:
March:
April:
May:
June:
As always, if you have any questions, please feel free to contact me, Risk Management Training Director at (717) 736-4728. Thank you for your continued support of the CCAP Insurance Programs trainings! And I look forward to seeing you this spring!
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Maintenance and Testing of Fire Sprinkler Systems
By:
Dennis Cutler, CSHM, Senior Risk Control Specialist
When properly installed and maintained, automatic fire sprinkler systems have proven to be the most effective means for protecting life and property against fire. Automatic fire sprinkler systems are required to be inspected, tested and maintained in accordance with NFPA 25, Standard for the Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems.
Please keep in mind, sprinkler systems are designed to limit fire spread until the fire department arrives to control/extinguish the fire. In most cases, sprinkler systems are not designed to extinguish a fire.
The requirements contained in NFPA 25 are based on the type of sprinkler system installed. The two types most commonly found in county occupancies are wet pipe and dry pipe sprinkler system. This article is intended to serve as a quick reference guide only and is not intended to be all inclusive. Some facilities may have additional equipment not covered in this article (fire pumps, antifreeze systems, deluge systems, etc.). It is important, that the user has access to, and become familiar with all of the requirements found in NFPA 25.
It is the county's responsibility to ensure that only properly trained and competent persons perform inspections, testing and maintenance on its fire sprinkler system. These tasks may be performed by qualified in-house staff or outside contractor.
The following weekly visual inspections should be
performed:
1. Visually inspect control valves to ensure that they are in the normal open position, accessible, properly sealed, locked and/or supervised, free from leaks, and provided with appropriate signage identifying the portion of the system they control.
2. Visually inspect gauges on wet pipe systems to verify that they are in good condition and that normal water pressure is being maintained.
3. Visually inspect gauges on dry pipe systems to verify that they are in good condition and that normal air and water pressure are being maintained.
The following quarterly visual inspections are required:
1. For hydraulically designed sprinkler systems, inspect the hydraulic nameplate to verify that it's securely attached to the sprinkler riser and is legible.
2. Inspect alarm devices to verify that they are not physically damaged.
3. Inspect fire department connections to verify that: they are visible and accessible, couplings or swivels are not damaged and rotate smoothly, plugs or caps are in place and not damaged, gaskets are in place and in good condition, identification signs are in place, and the check valve is not leaking.
The following quarterly physical tests are required and can be performed by a fire sprinkler contractor or by county staff with proper training: Note - prior to any physical testing, contact alarm company and/or fire department to notify them of testing duration and notify them when testing is completed.
1. Test the water flow alarm on wet pipe sprinkler systems by opening the inspector's test connection.
2. Test the water flow alarm on dry pipe sprinkler systems by using the bypass connection.
3. Record static and residual pressures, and compare them to prior tests. If there is any significant discrepancy, the cause must be investigated and corrected.
For your reference, below is a sample inspection and testing documentation form, which should be attached to the sprinkler riser.
There are additional tests required on a regular basis, but these are beyond the scope of this article.
If you require additional assistance with your sprinkler system inspection, testing and maintenance requirements, please contact the Risk Control Department at (800)-895-9039; or email us at:
The Documentation Record of Fire System Tests chart can be found
here.
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CCAP Health Alliance Board Election Results
The nomination process for the CCAP Health Alliance Board of Directors was completed in February. Since there were three nominations for the three open positions on the board, incumbents Erick Coolidge, Tioga County Commissioner and Steve Howsare, Southern Alleghenies Planning and Development Commission Executive Director have been declared re-elected for another two year term, and Jeff Snyder, Clinton County Commissioner, who will be new to the board, is declared as elected for a new two year term. Commissioner Coolidge will remain the 6th Class Representative and Steve Howsare and Commissioner Snyder will serve on the board as At Large Representatives. Thank you to the membership for your nominations and to Commissioner Coolidge, Steve Howsare and Commissioner Snyder for your dedication and service to the CCAP Health Alliance Board of Directors.
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COMCARE PRO SAC Meeting Update
The COMCARE PRO SAC (board of directors) held their first meeting of the year on January 25 at the CCAP Office. They were pleased to welcome their new captive management firm, AIG (based in Vermont), and the three members of their team who will be handling COMCARE PRO matters - Brenda Stewart, Anne Bueche and Stacey Beaudoin. Captive regulations state a Vermont resident must serve on the SAC, and Brenda Stewart was approved to serve in this capacity.
The transition from SRS to AIG proceeded smoothly, which allowed AIG to present the 2016 Draft Financial Statement, as well as the 2017 Proposed Budget, which was approved by the SAC. While the program incurred losses materially higher than in prior years due to a large spike in claim frequency, COMCARE PRO was able to curb some of the loss through a rate increase during the renewal process. The SAC will continue to monitor the high frequency in claims to determine if this is the new norm for the program.
COMCARE PRO is a stop loss insurance program for behavioral health inpatient MH and D&A costs. Questions about COMCARE PRO should be directed to
Desiree Nguyen
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PComp Annual Membership Dinner Meeting March 26
The annual meeting of the PComp members will be held on Sunday evening, March 26, at the Harrisburg Hilton. The meeting is held during the CCAP Spring Conference, and will begin at 6 p.m. There is no cost for PComp members, their representatives, and PComp local insurance producers to attend, and spouses/guests are welcome. Preregistration is required. An email was sent to all PComp members, and you may use that to register, or click here to let us know who will be attending.
This year the meeting will include proposed amendments to the PComp bylaws, which must be approved by the members prior to taking effect. Most of the changes are to bring the bylaws up to current practices and terminology. A copy of the proposed changes has been sent to all PComp members.
PComp is CCAP's workers' compensation insurance pool.
If you have any questions about the dinner, please contact
John Sallade at CCAP.
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Staff Updates
Welcome to two new CCAP insurance staff members! Brian Holloway started on January 9 and is a Claims Representative 2. Brian works on PComp claims. He comes to us from CM Regent Insurance Company (formerly School Board Insurance Company and School Claims Services). Brian can be reached at his direct line (717) 736-4791 or (800) 895-9039 x 3391 or email:
bholloway@pacounties.org.
Our new Marketing Associate is Aubrey Morris. She began work on February 20 in a part time capacity until she completes her Bachelor's Degree at Millersville University. She will begin work full time on May 15. Aubrey served as an intern in the insurance department the last two semesters, and is a Government and Political Affairs major with an English minor at Millersville. She can be reached at her direct line (717) 736-4723 or (800) 895-9039 x 3323 or email:
amorris@pacounties.org.
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Upcoming Events
PIMCC Board Meeting
March 10, 2017
CCAP Office, Harrisburg
Controlling Workers' Compensation Costs Workshop
March 23, 2017
Penn Stater Conference Center, State College
2017 CCAP Spring Conference
March 26-28, 2017
Hilton, Harrisburg
PCoRP Committee Meetings and Board of Directors Meeting
April 6, 2017
Penn Stater Conference Center, State College
PCoRP Risk Control Workshop
April 7, 2017
Penn Stater Conference Center, State College
CCAP Health Alliance Board of Directors Meeting
April 21, 2017
CCAP Office, Harrisburg
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Quote of the Month
"I think what people really want is just a few things done really, really well. And if you think about every day of your life, the things you really appreciate aren't the complicated things. They're the simple things that work just the way you expect them to.
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- Jason Fried
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