|
Divisional Functions and Responsibilities
A. Underwriting and Claims
• Contracts for all insurance policies and bonds for the Commonwealth as well as the annuities for the State Lotteries and the Department of Revenue
• Counsels and advises Commonwealth Agencies, Branches and Independents on proper coverage
• Provides guidance, and direction to Commonwealth agencies regarding safety and loss prevention; coordinates inspection of CW properties for the purpose of recommending risk and abatement systems for property conservation and employee safety
• Reviews current coverage for possible self-insurance or policy consolidation
• Maintains a current portfolio of original insurance policies and bonds
• Acts as Administrator of The State Insurance Fund on any casualty to CW-owned building or property
• Acts as broker/liaison between CW Agencies and insurance companies on all claim matters
B. Tort Claims Pre-Litigation
• Reviews, investigates, and negotiates settlements of claims and lawsuits against the Commonwealth and employees.
• Administers the Tort and Employee Liability Self-Insurance Programs working closely with the OAG and General Counsel’s Office.
• Maintains a computer reporting system for all Torts Program and Employee Liability Self-Insurance Program claims or legal suits to assist Commonwealth Agencies and Office of the Budget in the preparation and projection of budgetary needs
B. Tort Claims Pre-Litigation
• Reviews, investigates, and negotiates settlements of claims and lawsuits against the Commonwealth and employees.
• Administers the Tort and Employee Liability Self-Insurance Programs working closely with the OAG and General Counsel’s Office.
• Maintains a computer reporting system for all Torts Program and Employee Liability Self-Insurance Program claims or legal suits to assist Commonwealth Agencies and Office of the Budget in the preparation and projection of budgetary needs
Commonwealth’s Insurance Programs
Both divisions play a vital role in the bureau’s mission to protect and maintain the financial integrity of the Commonwealth’s assets by administrating the Commonwealth’s established liability and property self-insurance programs.
A. Liability Self-Insurance
The Bureau, through passage of Act 1978-152, as amended, (Sovereign Immunity Tort Claims Act), is assigned the responsibility of administrating the funding and adjudication of claims against the following Commonwealth’s Torts Self-Insurance (Liability) Program programs:
1. MOTOR LICENSE TORT CLAIM FUND
Only Penn Dot claims that do not involve any of Penn Dot’s vehicles. (Ex. Improper design of roadway, lack of sight distance, line paint gets on vehicles, etc.).
2. AUTO LIABILITY SELF INSURANCE FUND
Any claim involving a Commonwealth owned vehicle. (Ex. CW owned car rear-ends a car at a red light, Penn Dot truck driver, while plowing, loses control and hits a fence, etc.).
3. GENERAL TORT CLAIMS SELF INSURANCE FUND
Claims for all agencies, except Penn Dot, NOT involving a Commonwealth Owned Vehicle. (Ex. Slip and fall injuries at a Senator or Reps district office, malpractice claims against a doctor at a state hospital, etc.).
4. EMPLOYEE LIABILITY SELF-INSURANCE PROGRAM (ELSIP)
ELSIP was established on March 17, 1975. It presently covers claims or suits against specifically named officials or employees, acting in good faith within the scope of employment for unintentional acts in civil rights and errors or omissions situations up to $250,000 each occurrence (as of 7-1-93, excess self-insurance may apply).
Annual internal premium billings are made to all Agencies to fund the Program. The Department of General Services administers the Program with legal assistance from the Office of Attorney General.
B. Property Self-Insurance
Commonwealth owned properties are self-insured for fire or other casualty under The State Insurance Fund created by Act 227 (1915 P.L. 524, approved May 14, 1915, as amended). The Fund is administered by BRIM. The State Insurance Fund:
• Provides coverage for fire, casualty, perils of flood and flood related hazards or any other natural disasters for approximately 10,500 Commonwealth owned properties with a value of $13.2 Billion.
• Affords coverage to Commonwealth owned contents at leased locations in addition to Commonwealth owned buildings and contents.
• The limit of coverage is $3,000,000 any one loss.
• There is $250,000,000 in excess private insurance over $1,000,000 retention for the Main Capitol Complex of buildings and all other owned properties. Total building and contents - at a premium of $2.75 million
• The excess insurance policy was extended to cover the perils of Flood and Earthquake with a sub-limit of $100,000,000 any one loss over $1,000,000 retention.
• The excess policy was also extended to include $100,000,000 coverage for Terrorism (certified and non-certified), coverage
• The Commonwealth is certified as a Self-Insurer under the Federal Flood Disaster Act of 1973, which affords Federal funds as partial reimbursement (for loss amounts not covered by the Fund or excess insurance) to the Commonwealth for such losses.
C. Purchased Insurance Contracts
To achieve BRIM’s mission to protect and maintain the financial integrity of the Commonwealth’s assets, the Underwriting and Claims Division periodically must also employ the risk management technique of transferring risk to commercial insurance carriers where it is not practical or feasible to assume that particular risk.
D. Bonds
A Master Public Employees Bond exists with an insurance company to provide Faithful Performance Coverage for employees up to $200,000 any one loss, subject to a $25.000 deductible any one loss. Premium billings are annually billed to the Agencies through the Purchasing Fund. This coverage is “tied in” to The State Insurance Fund. The Fund offers coverage above the bond amount up to $3,000,000 any one loss.
The Underwriting and Claims Division contracts for all insurance policies and bonds for the Commonwealth as well as the annuities for the State Lotteries and the Department of Revenue
• All insurance is contracted on a net and direct basis (no commission); placement through brokers on complex and specialty lines, premium includes fee
• The Code, and Field Procurement Handbook, establishes a separate selection procedure for insurance and notary bonds. The process allows for opportunities for discussion, negotiation and revision of proposals.
Supplier and Partner Relationships
The following matrix shows the current insurance contract portfolio; agency purchased for, contract coverage type, company procured from, effective date of coverage and premium placed by the bureau:
|
DEPARTMENT |
POLICY TYPE |
COMPANY |
EFFECTIVE DATE |
PREMIUM |
|
PHEAA |
Kidnap&Ransom |
Liberty Insurance |
1/24/2003 |
1/24/2006 |
$ 3,250.00 |
|
SSHE |
Fine Arts |
The Hartford |
2/17/2005 |
2/17/2006 |
$ 11,930.00 |
|
PTC |
Public Official Bond - R.M. Bailets |
St. Paul - Travelers |
2/17/2001 |
2/17/2006 |
$ 1,332.00 |
|
PHFA |
Flood |
National Flood Ins. |
2/27/2005 |
2/27/2006 |
$ 4,771.00 |
|
PHMC |
Flagship/Niagara-Liab. |
Inamar |
3/20/2005 |
3/20/2006 |
$ 43,817.00 |
|
PHFA |
Directors and Officers |
National Union Ins. Co. |
4/1/2005 |
4/1/2006 |
$ 86,015.00 |
|
PHFA |
Directors and Officers |
Zurich American Ins. Co. |
4/1/2005 |
4/1/2006 |
$ 74,774.00 |
|
PHFA |
Package Policy |
Peerless Ins. Co. |
4/1/2005 |
4/1/2006 |
$ 43,096.00 |
|
PHFA |
Computer Policy |
Peerless Ins. Co. |
4/1/2005 |
4/1/2006 |
$ 7,785.00 |
|
PHFA |
Auto Policy |
Peerless Ins. Co. |
4/1/2005 |
4/1/2006 |
$ 7,261.00 |
|
PHFA |
Workers Comp. Policy |
Peerless Ins. Co. |
4/1/2005 |
4/1/2006 |
$ 35,508.00 |
|
SPSBA - PHEFA |
Depositors Forgery |
St. Paul - Travelers |
4/2/2005 |
4/2/2006 |
$ 250.00 |
|
TREASURER |
Depositors Forgery |
St Paul - Travelers |
4/2/2005 |
4/2/2007 |
$ 750.00 |
|
TREASURER |
Money & Securities |
St Paul - Travelers |
4/10/2005 |
4/10/2006 |
$ 9,397.00 |
|
PIDA |
Blanket Mortgage/Flood |
Lloyd's |
5/8/2005 |
5/8/2006 |
$ 6,100.00 |
|
TREASURER |
Mail Policy |
St. Paul-Travelers |
5/15/2005 |
5/15/2006 |
$ 3,054.00 |
|
PHFA |
Crime / Fidelity Bond |
Great American Ins. Co |
5/22/2005 |
5/22/2006 |
$ 58,117.00 |
|
PTC |
Public Official Bond - Chairman |
St. Paul-Travelers |
6/4/2002 |
6/25/2006 |
$ 700.00 |
|
PTC |
Public Official Bond - Commissioner |
St. Paul-Travelers |
6/25/2002 |
6/25/2006 |
$ 700.00 |
|
COMM. PA. |
Package Policy |
St. Paul-Travelers |
7/1/2005 |
7/1/2006 |
$ 136,037.00 |
|
DPW |
Guardian Office Bond |
St. Paul-Travelers |
7/1/2005 |
7/1/2006 |
$ 177.00 |
|
PHFA |
AD&D / Employees |
CIGNA-Group Ins. |
7/1/2003 |
7/1/2006 |
$ 2,943.00 |
|
PIDA |
Mrtg. Impairment |
Lloyds/Bankers Ins. |
7/1/2005 |
7/1/2006 |
$ 4,868.00 |
|
PLCB |
Customs &Surety Bonds |
Travelers-Surety |
7/1/2005 |
7/1/2006 |
$ 4,500.00 |
|
SSHE |
Migrant Youth Pro. |
Nationwide Life Ins Co. |
7/1/2005 |
7/1/2006 |
$ 1,850.00 |
|
COMM. PA. |
Crime Policy |
National Union |
7/28/2005 |
7/28/2006 |
$ 12,921.00 |
|
DMVA |
AD&D |
Hartford Insurance |
9/1/2005 |
9/1/2006 |
$ 2,200.00 |
|
COMM.PA. |
Excess Property |
Lexington Insurance |
9/19/2004 |
9/19/2007 |
$ 5,826,250.00 |
|
PHMC |
Fine Arts Policy |
ACE Specialty Group |
10/16/2005 |
10/16/2006 |
$ 6,409.00 |
|
PHFA |
Mortgage Errors & Omissions |
Lloyds of London |
11/1/2003 |
11/1/2006 |
$ 123,120.00 |
|
PHEAA |
D&O Liability Policy |
Chubb Group |
11/21/2005 |
11/21/2006 |
$ 147,728.00 |
|
PHEAA |
Errors & Omissions |
Chubb Group |
11/21/2005 |
11/21/2006 |
$ 140,000.00 |
|
PHEAA |
Cyber Security |
Chubb Group |
11/21/2005 |
11/21/2006 |
$ 70,000.00 |
|
PHEAA |
Bankers Prof. Liability |
Chubb Group |
11/21/2005 |
11/21/2006 |
$ 110,000.00 |
|
PHEAA |
Employment Practices Liability |
Chubb Group |
11/21/2005 |
11/21/2006 |
$ 140,000.00 |
|
PHEAA |
Crime |
Chubb Group |
11/21/2005 |
11/21/2006 |
$ 55,000.00 |
|
PHEAA |
Kidnap & Ransom |
Chubb Group |
11/21/2005 |
11/21/2006 |
$ 3,765.00 |
|
PHMC |
Washington Crossing/Event Policy |
Nationwide Life Ins Co. |
12/1/2005 |
12/1/2006 |
$ 225.00 |
|
West Chester University |
Fine Arts |
ACE Westchester |
2/17/2006 |
2/17/2007 |
$ 12,084.00 |
|
DEPARTMENT |
POLICY TYPE |
COMPANY |
EFFECTIVE DATE |
PREMIUM |
|
PTC |
Public Official Bond-R.M. Bailets |
St. Paul-Travelers |
2/17/2006 |
2/17/2007 |
$ 469.00 |
|
PHFA |
Flood |
National Flood Ins. |
2/27/2006 |
2/27/2007 |
$ 4,799.00 |
|
PFHA |
Package Policy |
Peerless Ins. Co. |
4/1/2006 |
4/1/2007 |
$ 43,502.00 |
|
ATTORNEY GENERAL |
AD&D / Aircraft |
CIGNA-Group Ins. |
7/1/2004 |
7/1/2007 |
$ 4,320.00 |
|
DOT |
AD&D / Aircraft |
CIGNA-Group Ins. |
7/1/2004 |
7/1/2007 |
$ 19,484.00 |
|
St Police |
AD&D / Aircraft |
CIGNA-Group Ins. |
7/1/2004 |
7/1/2007 |
$ 60,634.00 |
|
PTC |
Public Official Bond - Secretary - Treas. |
Liberty Mutual |
5/18/2004 |
5/18/2008 |
$ 1,332.00 |
|
ATTORNEY GENERAL |
Public Official Bonds |
Travelers-Surety |
1/18/2005 |
1/20/2009 |
$ 1,938.00 |
|
AUDITOR GENERAL |
Public Official Bonds |
Travelers-Surety |
1/18/2005 |
1/20/2009 |
$ 1,938.00 |
|
TREASURER |
Public Official Bonds |
Travelers-Surety |
1/18/2005 |
1/20/2009 |
$ 1,938.00 |
|
PFHA |
AD&D/Employees |
CIGNA-Group Ins. |
7/1/2006 |
7/1/2009 |
$ 9,606.60 |
|
PIDA |
Blanket Mortgage/Flood |
Lloyd's |
5/8/2006 |
5/8/2007 |
$ 6,100.00 |
|
TREASURER |
Mail Policy |
St. Paul-Travelers |
5/15/2006 |
5/15/2007 |
$ 2,336.00 |
|
TREASURER |
Money & Securities |
St. Paul-Travelers |
4/10/2006 |
4/10/2009 |
$ 9,394.00 |
|
PHMC |
Flagship/Niagara-Liab. |
ACE & Navigators |
3/20/2006 |
3/20/2007 |
$ 67,075.00 |
|
PLCB |
Customs & Surety Bonds |
Travelers-Surety |
7/1/2006 |
7/1/2007 |
$ 4,500.00 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
$ 11,398,059.60 |
KEY PARTNERS
Key partners include:
|
Partner |
Relationship |
Status |
|
Department of Transportation
|
Receive, investigate and adjudicate pre-litigation tort claims for PennDOT |
Excellent |
|
Office of Attorney General |
Investigation, pre-litigation and administration of tort claims against the Commonwealth |
Excellent |
|
Office of General Counsel |
Administration and funding of Employee Liability Self Insurance Plan (ELSIP) |
Excellent |
|
Office of Chief Counsel |
Administration of Act 101 Death Benefits Program; Insurance-related issues for Department for DGS |
Excellent |
|
Vehicle Management |
Provide liability insurance for CW fleet, subrogation and recovery of property damage |
Excellent |
|
Fiscal Management |
Budget allocations and program funding |
Good |
|
Treasury |
Assist with administration of Treasury funding of Act 101 Death Benefits Program |
Good |
|
Bureau of Real Estate |
Submit State Insurance Find (SIF) Claims for submission to Building and Grounds Board |
Excellent |
The Bureau of Risk and Insurance Management (BRIM) works with almost all agencies of the Commonwealth as well as the Executive, Judicial and Legislative branches. We consult and advise on insurance coverage issues, loss control, claim handling, etc., as well as provide coverage for individuals CW employees through our self insurance programs (i.e. ELSIP – Employee Liability Self Insurance Program). However, we work much more extensively, often daily, with the agencies and bureaus noted above.
CUSTOMER NEEDS AND REQUIREMENTS
BRIM’s customer base is large and widely varied. We have both internal and external customers that have significantly different needs and requirements.
Underwriting and Claims Division **** Update
The Underwriting and Claims Division Counsels provides services to all Commonwealth Agencies by consulting and advising on insurance needs, purchasing insurance coverages, notary bonds, administrating and processing claims of the various CW self insurance funds, subrogating for property damages sustained against Commonwealth owned vehicles and property, adjudicating property claims against the State Insurance Fund, etc.
The Underwriting and Claims Division is preparing four (4) specific Customer Service surveys, as part of the Strategic Objectives for 2006-2007, to better assess it’s current and future levels of customer satisfaction. These initial surveys will be distributed to CW agencies bi-annually to provide the Bureau with a baseline score. Latter surveys will allow us to monitor the customer service level and satisfaction provided to these internal customers.
Tort Pre-Litigation Division **** Update
The Tort Pre-Litigation Division provides claim adjudication services for all tort claims made against the Commonwealth. Their primary customers are individuals or businesses that have filed property damage or bodily injury claims as a result of incident(s) that they believe the Commonwealth is negligent.
The Torts Division is also preparing a Customer Service survey, as part of the Strategic Objectives for 2006-2007, to better assess it’s current and future levels of customer satisfaction. The initial surveys will be distributed to claimants bi-annually to provide the Bureau with a baseline score. Latter surveys will allow us to monitor the customer service level and satisfaction provided to these external customers.
BRIM Dashboard – 1st & 2nd QTR 2006-07 Results
Tort Claims |
Target/Variance Range |
Resp |
Fiscal Year 2006-2007 |
MEASURE |
GREEN |
YELLOW |
RED |
|
Baseline |
1st Half |
2nd Half |
Final |
|
Tort Claims Filed |
<90% |
90-95% |
>95% |
KL |
7,611 |
3,510/3805.5
92.2% |
|
|
|
Number of Claims Settled
Per Year |
>95% |
90-95% |
<90% |
KL |
2,447 |
1,469/1223.5
120.1% |
|
|
|
Average Cost of Settlement |
<90% |
90-95% |
>95% |
KL |
$459 |
$547/$459
119.2% |
|
|
|
Tort Claims Pending |
<90% |
90-95% |
>95% |
KL |
6,832 |
6,621/6832
96.9% |
|
|
|
Amount of Claims Pending
(in Dollars) |
<90% |
90-95% |
>95% |
KL |
$278,604 |
$246,826/$278,604
88.6% |
|
|
|
Tort Claims Closed |
>95% |
90-95% |
<90% |
KL |
8,052 |
3,296/4,026
81.9% |
|
|
PD Claim Recoveries |
Target/Variance Range |
Resp |
Fiscal Year 2006-2007 |
MEASURE |
GREEN |
YELLOW |
RED |
|
Baseline |
1st Half |
2nd Half |
Final |
|
State Insurance Fund |
>85% of Potential |
70-85% of Potential |
<70% of Potential |
PM |
$ Of Potential Recovery * |
$0/$2,000
0.0% |
|
|
|
CW Auto PD Claims |
>85% of Potential |
70-85% of Potential |
<70% of Potential |
PM |
$455,000 |
$173,992/$227,500
76.1% |
|
|
Customer Service |
Target/Variance Range |
Resp |
Fiscal Year 2006-2007 |
MEASURE |
GREEN |
YELLOW |
RED |
|
Baseline |
1st Half |
2nd Half |
Final |
|
Underwriting & Claims Survey |
>95% of Potential |
90-95% of Potential |
<90% of Potential |
PM |
|
|
|
|
|
Tort Claims Survey |
>85% of Potential |
75-85% of Potential |
<75% of Potential |
DB |
|
|
|
|
Budget |
Target/Variance Range |
Resp |
Fiscal Year 2006-2007 |
MEASURE |
GREEN |
YELLOW |
RED |
|
Baseline |
1st Half |
2nd Half |
Final |
Bureau Budget |
At budget or below |
< 5% over budget |
> 5% over budget |
KL |
$83,000 |
$38,006/$41,000
91.6% |
|
|
Employee Development |
Target/Variance Range |
Resp |
Fiscal Year 2006-2007 |
MEASURE |
GREEN |
YELLOW |
RED |
|
Baseline |
1st Half |
2nd Half |
Final |
No. of Employees Trained |
>95% |
90-95% |
<90% |
KL |
100% |
100% |
|
|
|
EPR’s Completed On-time |
>99% |
90-99% |
<90% |
KL |
100% |
N/A |
|
|
|
Sick Leave Usage** |
<3% |
3-5% |
>5% |
KL |
100% |
1,277/25,350
5.0% |
|
|
|
