8.8 Agr Workers CompCITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
.. 4/15/91 4:00 P.M.
AGF. NDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR
NO. 8 Risk Management AGENDA:
NO. 8
BY: BY:
Several proposals were received to provide various components of our self-insured
workers compensation program. A full copy is available for inspection, however, in
summary, they are:
CLAIMS ADMINISTRATION
ESIS (CIGNA) .............................................. $30,600
GAB ........................................................ $17,903
EXCESS INSURANCE
Employers Reinsurance Corporation .......................... $18,458
LOSS CONTROL SERVICES
CRIS (CIGNA) (72 hours) ................................... $ 7,344
NATLSCO (72 hours) ........................................ $ 6,624
It is the recommendation of staff that the proposals from GAB and Employers
Reinsurance Corporation be approved in the total amount of $36,361. It should be
remembered that the claims administration proposal is based upon an average of 110
annual (77 medical and 33 indemnity) claims. The excess insurance quote is based
upon 20~ per $100 of payroll and contemplates retentions of $350,000 for police and
fire employees and $200,000 for all others.
It is further recommended that no proposal for loss control be accepted. We would
propose to spend approximRtely the same amount as the proposals in developing this
element in-house in such a manner so as to better reflect our needs.
All remaining monies from the $313,000 workers compensation renewal quote would be
placed into a reserve fund. We will utilize this money to fund our claims, expenses
and our retentions. Any funds remaining at the end of the budget year will be
allowed to accumulate.
COMMISSION ACTION
MOTION BY SECOND BY
TO:
Salina Insurance Board, Inc. Page 1
P.O. Box 2747
Salina, Kansas 67402 Telephone 827-7233
COST PROPOSAL FOR WORKERS COMPENSATION SELF INSURANCE
CLAIMS ADMINISTRATION - GAB BUSINESS SERVICES
Medical Only
(Estimate 77 Claimants) $ 65.00 fee per claimant
Indemnity
(Estimate 33 Claimants) 365.00 fee per claimant
Centralized Account Managements Fee 853.00
Total Annual Deposit Fee $17,903.00
CITY OF SALINA SELF INSURED RETENTION
$350,000 Police & Fireman
$250,000 All Other Employees
Employer's Reinsurance Corp., A+ - Best's Financial Guide
Excess over City's SIR is statutory with $500,000 limit, each
occurrence, Employer's Liability.
.20 per $100 of annual payroll
Minimum and Deposit Premium $18,458.00
LOSS CONTROL SERVICE ADMINISTERED BY NATIONAL LOSS CONTROL SERVICE CORP (NATLSCO)
Based on bimonthly visits
72 hours x $92.00/hour = $ 6,624.00
ONE TIME CHARGE FOR IMPLEMENTING SELF INSURANCE PROGRAM
John King, Insurors & Investors, Inc. $ 5,000.00
. .' Salina Insurance Board, Inc. Page 2
P.O. Box 2747
Salina, Kansas 67402 Telephone 827-7233
COST COMPARISON OF THE OTHER ADMINISTRATION SELF INSURANCE PLAN OFFERED_BY ESIS
THE RISK MANAGEMENT SERVICES ARM OF CIGNA CORPORATION.
Medical Only
(Estimated 66 Claimants) $ 100.00 per claimant
Indemnity
(Estimated 30 Claimants) 800.00 per claimant
Minimum Premium $24,480.00
Developed Premium 30,600.00
Excess Liability.America~, A Best's Financial Guide
~einsurance - would not cover Police and Firemen
LOSS CONTROL SERVICE ADMINISTERED BY ESIS OF CIGNA CORPORATION
Based on bimonthly visits
$102/hour $ 7,344.00
JOHN KING'S CHARGE, OF COURSE,
WOULD BE THE SAME $ 5,000.00