Liability and Property Pool

Following a feasibility study, the North Carolina Association of County Commissioners (NCACC) created the Liability and Property Pool in 1986. During that time, local governments were often unable to buy certain types of coverages at a time when insurance rates were escalating rapidly and the traditional insurance market could not provide the coverages that were needed to meet the county’s specific needs. The Pool’s objective, created by counties to meet their specific needs, was to help counties jointly manage this risk and prevent future insurance market changes from creating havoc on county budgets. The Pool not only provides solid and reliable coverages for their members but also helps its members gain control of their losses. The results are substantial savings. With the oversight of the Association staff, service partner Sedgwick Claims Management Services, Inc. (SCMS) administers the Pool’s claims, so members can receive prompt and responsive claims administration. The Association staff and SCMS manage the day-to-day operations. In 1986 the Pool began with 16 members, currently we have 109 members.

About the pool

• On-Line Claim Reporting
• Governance
• Membership, coverages and services
• Risk management services
• L & P cost containment programs
• Litigation management
• Useful links

Governance

The Pool is governed by a Board of Trustees, comprised of county commissioners and county management staff, who are responsible for the strategic direction of the Pool. As a non-profit joint agency focused on long-term needs of its members, short-term financial return is not the Pool’s motivation. Appointed to three-year terms by the President of the North Carolina Association of County Commissioners, Trustees must represent a participating member county. The Board of Trustees contracts with the NCACC and service partners - Marsh USA Inc. and Sedgwick Claims Management Services - who are accountable to this Board for all program activities. Direction and authority is granted at quarterly meetings of the Board of Trustees, based on feedback from individual members as well as service partner staff.

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Membership, coverages and services

Membership is open to all counties and to certain other county-related agencies. The Pool offers general liability, auto liability, auto physical damage, crime, and property coverages. Additional coverages were added to further enhance the Pool’s services to the counties as needed. The Pool expanded its coverage to include public officials and law enforcement in 1989; and, in 1992, at no cost to members, coverage of underground storage tanks was added.

Members’ contributions are experience rated which means that a member’s own loss experience influences the contributions it will pay. This approach rewards members whose risk control activities have yielded reduced losses, and provides an incentive for members to initiate new efforts to control their liability and property losses. Instead of using standard insurance industry policies, the Pool has created its own coverage documents specific to the needs of the counties. To ensure that funds are available to meet the financial demands of claims and expenses, rates and loss reserves we are reviewed twice a year by an accredited actuarial firm. We further require an annual financial audit by a reputable Certified Public Accountant firm so members can be assured that the Pool is financially sound and solvent.

Rates may also be reduced through upfront discounts and other considerations as determined by the Board of Trustees. Members that choose to carry higher deductibles or who elect to participate in multiple Pools can realize additional savings and take advantage of a variety of deductible options available to participating member.

The Pool offers a number of specific coverages and services to our participating members. Such as:

• The coverage document is reviewed annually for needed coverage enhancements based on claim issues or specific member needs.
• Real and personal property is appraised annually at no cost to participating members. In addition to establishing appropriate limits of coverage, these detailed reports may also assist in other financial reporting requirements.
• Assistance is available to members on risk management issues regarding coverages, deductibles, contracts, limits and expense allocations.
• General Counsel on staff with extensive experience in county-specific issues.
• Pooling is a means of risk sharing among members. While pooling is not insurance the Pool purchases insurance coverage to limit the impact of severe or frequent losses. Together with the financial controls in place, proactive risk management and loss control activities, our Pool provides monetary savings, assures a safer workplace, improve employee morale, and convey peace of mind and security to the Members.

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Risk management services

Risk Control services are provided through our service partner Marsh USA Inc. Proactive risk management and loss control activities save money, assure a safer workplace, and improve employee morale. In addition, an aggressive claims management program helps members control claims costs.

• Criminal justice risk management services are provided to assist counties in managing the liability exposure of their law-enforcement activities and detention centers, with an emphasis on policy and procedures and operation of emergency vehicles.
• Risk and Criminal Justice Assessments are performed for each new member, identifying needs and risks specific to that member. Our professionals can help identify and alleviate exposures and physical hazards.
• On-site visits start with review of accident, claims, and loss trends, and include assessment of risk control policies and programs. Members receive detailed reports outlining recommendations for improvements intended to mitigate future losses.
• Members receive periodic newsletters, fliers, and e-mail “Alerts” regarding significant risk control issues, changes in safety laws, the management of specific hazards, etc.
• Seminars are conducted across the state to inform and educate our members. Past seminar topics include fleet management, suicide prevention, wellness and ergonomics. Current training emphasis is directed toward safe operation of law enforcement vehicles.

Members who are interested in training employees can take advantage of a video lending library containing VHS tapes on a variety of safety topics.

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L & P cost containment programs

Cost containment and prompt claims service is the key to any successful L&P program. We have developed a program to fit the needs of any size county.

Programs:

• Toll free claim reporting
• Auto damage program
• Property network

Toll free claim reporting

Rather than spend tedious time filing out and mailing or faxing first reports or loss notices, the claims reporting person can simply pick up the phone from any location and report the claim. Using a telephonic reporting system allows the claim process to begin much faster. Just call 1-877-NCACCRM (1-877-622-2276) and one call does it all. NO MORE PAPERWORK, we will complete the first report of injury or loss notices for you. This is for all (WC, auto, property, GL) types of claims. This service is available 24 hours a day 7 days a week, at no cost to members of the Pools. A copy of the report is faxed back to your office for your records. The after hours emergency number to speak with the claims supervisor on call regarding a serious claims is 1-866-261-5788.

Members may still report claims though traditional methods, but we encourage you to give this service a try. One study that compared telephonic reporting of claims vs. traditional paper methods, showed that clients using toll free reporting had claims that when reported within 10 days had 75% less litigation and attorney involvement.

We encourage you to promptly report all claims and to use this method.

Auto damage program

The NCACC Liability & Property Pool has partnered with QCS Inc. as part of our new auto physical damage program. All auto damage estimates under $3500 are now sent through QCS, which reviews the estimates and makes sure that they are inline with acceptable industry standards. Nationally, companies that have used this program have saved about 10 percent on their physical damage costs.

On more extensive damages, over $3500 or on total losses, onsite appraisals will be conducted.

Property network

The NCACC Liability & Property Pool has put together a network of property adjusters across the state ready to respond to any property losses that occur. Sedgwick CMS also has specialized CAT teams ready to assist in case of any disasters.

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Litigation management

It is the policy of the NCACC Liability & Property Pool to provide its Members prompt, high quality, cost effective legal representation. The RMP seeks to utilize attorneys who are experts in their fields in order to provide its Members the best possible defense. Additionally, the RMP seeks to minimize and control these legal costs by eliminating unnecessary and unreasonable costs. Comprehensive guidelines have been put in place to ensure the highest standards of legal representation at the most cost efficient means.

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Useful links

Some links that you may find helpful:

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