divider page 5 18 16 - NJSIG · [email protected] Gene Mercoli ERIC South Sub Fund Liaison v Cumberland Cnty. Voc. 601 Bridgeton Avenue Bridgeton, NJ 08302 O: (856)

NJSIG

Board of Trustees Meeting

June 21, 2017

New Jersey Schools Insurance Group 6000 Midlantic Drive, Suite 300 North

Mount Laurel, New Jersey 08054 (609) 386-6060 • FAX (609) 386-8877

www.njsig.org

1-888-NJ Pool 1

Revised: 11/17/16

2016/2017 NJSIG Board of Trustees

Irene Le Febvre Chairperson v2016-2019

North Board Member

180 South Terrace Boonton, NJ 07005 (Boonton Town BOE)

O: (973) 614-8585x3811 F: (973) 614-1334 C: (973) 513-2772

H: (973)335-3382 [email protected] Committees: Claims, Policy

Christopher Russo, Ed.D. Vice-Chairperson v2016-2019

South Business Administrator

1310 Mallard Lane Millville, NJ 08332 (Delran BOE)

O: (856) 461-6800x1006 F: (856) 461-6125 C:

H: (609) 694-1505 [email protected] Committees: Claims, Personnel

Thomas F. Connors, Ph.D. Trustee

v2015-2018 Central Board Member

10 Seward Ave Piscataway, NJ 08854 (Piscataway Twp BOE)

O: F: C: (732) 491-3248

H: (732) 463-3230 [email protected] Committees: Finance

James J. Jencarelli, Jr. Trustee

v2015-2018 North Superintendent

2 Mill Creek Road Sparta, NJ 07871 (Morris Hills Regional)

O: (973) 664-2291 F: (973) 627-6588 C: (201) 320-7049

H: (201) 320-7049 [email protected] Committees: Personnel

Joseph Meloche, Ed.D. Trustee

v2016-2019 South Superintendent

45 Ranoldo Terrace Cherry Hill, NJ 08034 (Cherry Hill Public Schools)

O: (856) 429-5600x4309 F: (856) 616-9647 C: (856) 229-4318

H: (856) 906-5523 [email protected] Committees: Personnel

Steven K. Robinson Trustee

v2015-2018 North Business Administrator

5 Rodin Lane Marlboro, NJ 07746 (Livingston Twp. BOE)

O: (973)535-8000x8009 F: C: (973) 476-1046

H: (732) 617-1219 [email protected] Committees: Finance

Dana Sullivan Trustee

v2016-2019 Central Business Administrator

302 Elm Street, Room 101 Westfield, NJ 07090 (Westfield BOE )

O: (908) 789-4414 F: (908) 789-4180 C: (201) 803-2028

H: (973) 884-1737 [email protected] Committees: Claims, Policy

Gerald North Trustee

v2016-2019 Central Superintendent

117 Evergreen Road New Egypt, NJ 08533 (Plumsted Twp. BOE)

O: (609)758-6800x4206 F: (609)758-6808 C: (609)209-5018

H: [email protected] Committees: Finance, Policy

Vacant Trustee

v2014-2017 South Board Member

O: F: C:

H: Committees:

William Mayo Executive Director

6000 Midlantic Drive, Suite 300 North Mt. Laurel, NJ 08054

O: (609) 386-6060x3039 F: (609) 386-8877 C: (609) 500-4787

H: (609) 217-4845 [email protected]



www.njsig.org

1-888-NJ Pool 1

2016/2017 NJSIG Sub Fund Liaisons

Rev: 2/23/17

Frank Domin

BACCEIC Sub Fund Liaison

v

Berlin Borough 215 South Franklin Ave Berlin, NJ 08009

O: (856)767-0129 F: (856)767-2465 C: (609)405-1018

[email protected]

Barbara Prettyman

CAIP Sub Fund Liaison

v

Hammonton BOE 566 Olds Forks Road PO Box 631 Hammonton, NJ 08037

O:(609)567-7000 x353 F: (609)561-3567

[email protected]

Thaddeus Thompson

ERIC North Sub Fund Liaison

v

South Brunswick BOE P.O. Box 181 Monmouth Junction, NJ 08852

O: (732)297-7800x5105 F: (732)297-8448

[email protected]

Gene Mercoli ERIC South

Sub Fund Liaison v

Cumberland Cnty. Voc. 601 Bridgeton Avenue Bridgeton, NJ 08302

O: (856) 451-9000 F: (856) 451-8487

[email protected]

Vincent A. Gonnella

ERIC West Sub Fund Liaison

v

Kenilworth Public Schools 426 Boulevard Kenilworth, NJ 07033

O: (908)276-1644x1550 F: (908) 709-7315

[email protected]

Loretta Hill MOCSSIF

Sub Fund Liaison, v

Belmar BOE 1101 Main Street Belmar, NJ 07719

O: (732)681-8888 F: (732)681-8709

[email protected]

Anthony Dragona

NJEIF Sub Fund Liaison

v

Union City BOE 3912 Bergen Turnpike Union City, NJ 07087

O: (201) 348-5677 F: (201) 223-0471

[email protected]



www.njsig.org

1-888-NJ Pool 1

Meeting Dates 2016/2017

September 21, 2016

NJSIG Mount Laurel Office

October 25, 2016 Caesars Hotel, Palladium A,

2100 Pacific Avenue, Atlantic City, NJ 08401

November 16, 2016 NJSIG Marlboro Office

January 12, 2017, 5:30 p.m. NJSIG Mount Laurel Office

March 15, 2017


May 17, 2017 NJSIG Marlboro Office

June 21, 2017


All meetings will begin at 4:00 p.m. unless otherwise noted.



www.njsig.org

1-888-NJ Pool 1

Rev.: 6/20/17

BOARD OF TRUSTEES MEETING Wednesday, June 21, 2017

6000 Midlantic Drive, Suite 300 North, Mount Laurel, NJ Meeting 4:00 p.m. Dinner 5:00 p.m.

JUNE AGENDA

PUBLIC SESSION

ITEM #

*1 Call to Order:

In accordance with the Sunshine Law, due notice of all pending meetings was given to the Atlantic City Press, Newark Star Ledger, and Trenton Times on January 6, 2017. Copies of these notices are on file with the New Jersey Secretary of State.

*2 Roll Call:

Thomas F. Connors, Ph.D. Gerald North James J. Jencarelli, Jr. Steven K. Robinson Irene Le Febvre Christopher Russo, Ed. D Joseph Meloche, Ed. D Dana Sullivan

*3 Acceptance of the Public and Executive Session Minutes for May 17, 2017. *4 Public Participation - Opportunity for Public to address the NJSIG Trustees regarding specific

agenda items. Each person will have five minutes to speak. *5 Sub Fund Liaisons - Reports/Comments *6 Reports:

A. Executive Director’s Report William Mayo B. Comptroller’s Report Michele Carosi C. Client Relations and Underwriting Report Kelly Machu D. Safety & Risk Control Report Tony Jones E. Claims Report Tony Ruggeri F. Information Technology Report Jeff Cook

*7 Discussion Items:

A. Contracting William Mayo B. Office of Legislative Services William Mayo



www.njsig.org

1-888-NJ Pool 1

Rev.: 6/20/17

Board of Trustee Meeting – June 21, 2017 Agenda Pg. 2

*8 Action Items:

A. Payroll Adjustment William Mayo B. Competitive Contracting: 1. Outside Counsel William Mayo 2. Payroll Administration Database Software & Services William Mayo C. Second Reading: 1. 2017/2018 Draft Budget William Mayo 2. 2017/2018 Draft Plan of Risk Management William Mayo 3. 2017/2018 Proposed Meeting Dates William Mayo D. Checking Accounts & New Claims Ratification William Mayo

*9 New Business: *10 Executive Session:

EXECUTIVE SESSION

EXECUTIVE SESSION RESOLUTION

WHEREAS, N.J.S.A. 10:4-6 et. seq., (“the Open Public Meetings Act”), authorizes public entities to meet in executive session under certain circumstances; and WHEREAS, the Open Public Meetings Act requires that the Group adopt a resolution at a public meeting to go into private session; now, therefore, BE IT RESOLVED by the Board of Trustees of the New Jersey Schools Insurance Group that it is necessary to meet in executive session to discuss certain items involving: 10A. Litigation; 10B. Personnel matter - outside employment appeal; BE IT FURTHER RESOLVED that any discussion held by the Board of Trustees which need not remain confidential will be made public as soon as feasible. The minutes of the executive session will not be disclosed until the need for confidentiality no longer exists. FURTHER RESOLVED that the Board of Trustees will not return to open session to conduct business at the conclusion of the executive session.

New Jersey Schools Insurance Group 6000 Midlantic Drive Suite 300 North


www.njsig.org

1-888-NJ Pool 1

6/9/17

Board of Trustees Meeting of June 21, 2017 Board of Trustees Meeting Minutes of May 17, 2017

New Jersey Schools Insurance Group’s (NJSIG) Board of Trustees Meeting of May 17, 2017 at NJSIG’s Marlboro office. ATTENDEES Trustees: Thomas F. Connors, Irene Le Febvre, Joseph Meloche, Steven Robinson, and

Christopher Russo. Participants: David Rapuano, Esquire representing Archer & Greiner, Dave Ritch representing Willis Re. NJSIG Staff: William Mayo, Executive Director; Michele Carosi, Comptroller; Jill Deitch, Chief Legal Officer;

Stephen Tucker, Assistant General Counsel; Anthony Jones, Safety and Risk Control Manager; Kelly Machu, Underwriting/Client Relations Manager; Neil Marek, Liability Claims Examiner; and Renee Johnson-Payne, Executive Assistant.

ITEM #1 CALL TO ORDER

With a quorum present, the meeting was called to order at 4:00 p.m. In accordance with the Sunshine Law, due notice of all pending meetings was given to the Atlantic City Press, Newark Star Ledger, and Trenton Times on January 6, 2017. Copies of these notices are on file with the New Jersey Secretary of State.

ITEM #2 ROLL CALL

Thomas F. Connors, Ph.D. √ Gerald North A James J. Jencarelli, Jr. A Steven K. Robinson √ Irene Le Febvre √ Christopher Russo, Ed. D √ Joseph Meloche √ Dana Sullivan A

ITEM #3 ACCEPTANCES OF THE PUBLIC AND EXECUTIVE SESSION MINUTES OF

MARCH 15, 2017. Action Taken: M (Connors)\ S (Russo)\ Abstention (Robinson) \Carried (Affirmative Votes

Connors, Le Febvre, Meloche, Robinson, Russo) to accept the March 15, 2017 Public Session Board of Trustees Meeting Minutes.



www.njsig.org

1-888-NJ Pool 1

6/9/17

Board of Trustees Meeting Minutes of May 17, 2017 Pg. 2

ITEM #8 ACTION ITEMS A. Contracts: 1. Temporary Staffing Direct Hire and Recruiting Action Taken: M (Meloche)\ S (Robinson)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche,

Robinson, Russo) to designate a Primary, Secondary and Tertiary award to the vendors identified in the attached resolution in the event that a single vendor is unable to provide a candidate as a result of a search request.

B. Competitive Contracting: 1. Property Appraisal William Mayo, Executive Director, provided details regarding NJSIG’s current property

appraisal service CBIZ. He announced as a matter of compliance NJSIG will go out for Request for Proposal (RFP) to procure real and personal property appraisal services through the competitive contracting process.

Action Taken: M (Russo)\ S (Meloche)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche,

Robinson, Russo) to approve the attached resolution that authorizes NJSIG to procure both real and personal property appraisal services via the competitive contracting process.

C. Investors Bank Action Taken: M (Russo)\ S (Robinson)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche,

Robinson, Russo) to approve the attached Investors Bank resolution. D. Checking Accounts & New Claims Ratification Action Taken: M (Russo)\ S (Connors)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche,

Robinson, Russo) to approve and ratify the checks and new claims which have been issued from accounts XXXX392 (operating account) and XXXX555 (claim account) for the period of 3/1/2017 to 4/30/2017 as shown in the online (Microscribe) version of the meeting package.



www.njsig.org

1-888-NJ Pool 1

6/9/17


ITEM #7 DISCUSSION ITEMS A. 2017/2018 Draft Budget Executive Director, William Mayo, provided background on the development of the

budget. William Mayo explained he and Michele Carosi, Comptroller, participated in a conference call with the finance committee to go through the budget line-by-line, answer questions, and make recommended changes to the finance committee’s satisfaction. The budget increased from last year to $131 million. The actual numbers will be adjusted once it is known which Members have renewed and how much new business has been obtained and lost.

Action Taken: M (Meloche)\ S (Robinson)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche,

Robinson, Russo) to approve the draft 2017/2018 budget as a first reading. B. 2017/2018 Draft Plan of Risk Management William Mayo, reported the approved Plan of Risk Management (PORM) is required to be

filed with the New Jersey Department of Banking and Insurance (DOBI) by July 1st. He further explained the Legal Team made extensive necessary updates to the PORM’s verbiage and making certain it is consistent with NJSIG’s bylaws. This is a much improved version of our former PORM.

Action Taken: M (Robinson)\ S (Russo)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche,

Robinson, Russo) to approve the draft 2017/2018 Plan of Risk Management as a first reading.

ITEM #4 PUBLIC PARTICIPATION There was no public participation. ITEM #5 SUB-FUND LIAISONS – Reports/Comments There were no Sub-Fund liaison reports or comments.



www.njsig.org

1-888-NJ Pool 1

6/9/17


ITEM #6 REPORTS A. Executive Director’s Report William Mayo, Executive Director, announced Chris Russo, Vice-Chairperson, and

Business Official of the Year, is leaving Delran Board of Education to take a Business Administrator position with the West Windsor-Plainsboro Board of Education. William Mayo congratulated Chris Russo on his future endeavors. The unfortunate news is West Windsor Plainsboro is currently not a Member of NJSIG.

William Mayo expressed his appreciation for the staff. He commented on the demands of

the compliance work the Legal Team has put into the purchasing and procurement policy procedures, with its’ 151 legal footnotes among other important initiatives. NJSIG has become a very different organization than it was two years ago and it is exclusively due to the work of the staff. Thank you all for all of the work you have done.

B. Comptroller’s Report Comptroller, Michele Carosi, reported NJSIG has gone live with our new bank, investors

Bank. We will keep our TD Bank accounts open for at least 90 days during the transition. She also reported everything has gone smoothly until yesterday when we found out that investors Bank forgot to send us one of their agreements, which has since been resolved. Michele Carosi explained we are still working on the Wilmington Trust contracts. We also have a conference call scheduled for next week with DOBI to resolve issues with some of their contract languages as it relates to indemnification clauses.

C. Client Relations/Underwriting Report Kelly Machu, Client Relations and Underwriting Manager, reported the Underwriters are

working very hard getting proposals out the door. We have received ⅔ of the applications from the Brokers. We have about 60 new business opportunities in and we are reviewing those.

D. Safety and Risk Control Report

Tony Jones, Safety and Risk Control Manager, conveyed we are assisting the Members who have yet to start the Safety Grant process. We are following-up with every Member entitled to a Safety Grant before the May 31, 2017 due date.



www.njsig.org

1-888-NJ Pool 1

6/9/17


E. Claims Report

Neil Marek, Claims Examiner, had no additional information to add to the Claims Report, but would answer any questions.

F. Information Technology Jeff Cook, Information Systems Manager, explained NJSIG has relied heavily on

Symphony for programming consulting services for many years. Some of those consultants are going to retire, to prepare for that time a three-day training has been scheduled to train us to build queries, individual reports and help us with PeopleSoft so we can build expertise analysis.

Jeff Cook also reported he recently hired a new Desktop Support person, John Paoline. ITEM #9 NEW BUSINESS There was no new business. ITEM #10 EXECUTIVE SESSION

EXECUTIVE SESSION

EXECUTIVE SESSION RESOLUTION

WHEREAS, N.J.S.A. 10:4-6 et. seq., (“the Open Public Meetings Act”), authorizes public entities to meet in executive session under certain circumstances; and

WHEREAS, the Open Public Meetings Act requires that the Group adopt a resolution at a public meeting to go into private session; now, therefore,

BE IT RESOLVED by the Board of Trustees of the New Jersey Schools Insurance Group, that it is necessary to meet in executive session to discuss certain items involving:

10A. Litigation; 10B. Attorney client privilege BE IT FURTHER RESOLVED that any discussion held by the Board of Trustees which need not remain confidential will be made public as soon as feasible. The minutes of the executive session will not be disclosed until the need for confidentiality no longer exists.



www.njsig.org

1-888-NJ Pool 1

6/9/17


FURTHER RESOLVED that the Board of Trustees will return to open session to conduct business at the conclusion of the executive session. Action Taken: M (Meloche)\ S (Robinson)\ Carried (Affirmative Votes = Connors, Le Febvre,

Meloche, Robinson, Russo) to adjourn meeting at 7:10 p.m. William Mayo William M. Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1

Board of Trustees Meeting of June 21, 2017 Executive Director’s Report

Since our last meeting, NJSIG has begun reaching out to Members and Brokers asking for feedback regarding loss control services NJSIG provides, and suggested areas for improving delivery of those services. Feedback from the Members will help inform NJSIG in establishing what services we deliver and how we will deliver those services. NJSIG anticipates presenting a recommendation for the Board by the end of September. New Jersey School Boards Association nominated Anthony Grafton as NJSIG Trustee representing the Southern Region. Dr. Russo and Dr. Meloche will schedule a meeting with Mr. Grafton to determine his interest in serving and to provide him an overview of service as a Trustee. Office of Legislative Services auditor have delivered their revised draft audit report to NJSIG, and will release the report and NJSIG’s responses to the Legislature and the Governor’s Office on June 29th. NJSIG continues working on requests for proposals (RFP) and requests for qualifications (RFQ) following the NJSIG Procurement Manual. The manual outlines NJSIG’s contracting policies and procedures pursuant to the Public Schools Contracting Law. NJSIG Members may find the manual helpful in updating their own policies and, in the future, we are looking to provide training to our Members on this complex area. Respectfully Submitted, William Mayo William Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1

Revised: 6.15.17

Board of Trustees Meeting of June 21, 2017 Comptroller/Financial Reporting Report

The following are updates to and/or new accounting issues (if applicable) since the last Board Package. Ø ACCOUNTING DEPARTMENT PROCESSES:

(1) Billing & Accounts Receivable Processes: The NJSIG Accounting Department has

processed $129.9 million of 2016/2017 renewal gross premiums, and endorsements in our Billing Module as of the date of this report (06/05/2017). The Accounting Department is current with all business that has been bound and exported from the Underwriting system. In addition, the Accounting Department continues to invoice our customers in our Billing system for monthly Workers’ Compensation installments, 2016/2017 Renewals (off 07/01/2016), miscellaneous endorsements as we receive the billing data from the Underwriting Department. The Accounting Department has collected and applied $128.9 million of premium deposits (to date) for the 2016/2017 fiscal year. Collections of NJSIG premiums are kept current with the Accounting Department’s issuance of our color-coded NJSIG Customer Statements on the 15th of each month.

(2) Accounts Payable: All Accounts Payable vouchers and payments are current. The Accounting Department has processed $12.5 million of broker commissions as part of the Direct Bill procedures during the 2016/2017 fiscal year.

Ø FINANCIAL REPORTING ISSUES 2016/2017:

Please find the attached final financial reports for 04/2017. I have also included the most current Investment/Cash report. I am currently working on the 04/2017 reconciliations and the 05/2017 month-end close/reporting. I will report on any material findings at our meeting.

Ø SPECIAL PROJECTS: In addition to my standard responsibilities, I have also been working on the following special projects since our last board meeting:



www.njsig.org

1-888-NJ Pool 1

Revised: 6.15.17

Comptroller’s Report – June 21, 2017 Page 2

(1) Investors Bank Transition and Implementation: NJSIG transferred funds from TD Bank and went “live” with Investors Bank for all banking operations on 05/08/17. For the most part, it has been a fairly smooth transition with only a few issues that I am working on resolving with the Investors “team”.

(2) Wilmington Trust (Financial Advisors) Contracts and Implementation – I am also the

project leader for finalizing all Wilmington Trust contracts and documents. Wilmington Trust’s current indemnification contract language is not compliant with DOBI’s required contract language. Wilmington Trust is currently working on revising this language as it relates to investment and custodial services. Any operations/services with Wilmington Trust are on hold until all contract language is compliant and all documents are fully executed.

(3) 2017/2018 Budget: - I have compiled the data and prepared the 2017/2018 final budget for your review and action. The final 2017/2018 budget is included in the “Action Items” section of this report. After you have accepted and adopted the 2017/2018 budget, NJSIG will file it with the Department of Banking and Insurance.

(4) 2016/2017 Nisivoccia Fiscal Year-End Auditor: – Nisivoccia has not scheduled their “pre-audit” meeting with NJSIG yet. It is pending the execution of the service agreement/engagement letter. Once I have a meeting scheduled, I will reach out to the Finance Committee for any interest in attending this annual “pre-audit” meeting (via conference call).

(5) Payroll Provider RFP – NJSIG only had one respondent for the Payroll Services RFP. The results of the RFP committee and the recommendation are included in the “Action Items” section of this report.

Please contact me if you have any questions or concerns email is [email protected] and cell number is 609-949-1973.

Michele Carosi

Michele Carosi, Comptroller

NJSIG

Balance Sheet

For the Period Ended 4/30/2017

Current Balance Prior Year

Current Assets:

D.W. Active Assets 0.00 0.00

Petty Cash 210.04 330.50

Cash Mgmt. Fund - N.J. State 325,166.41 323,569.79

Operating Account (1st Union) 0.00 0.00

Concentration (1st Union) 0.00 0.00

Payroll (1st Union) 0.00 0.00

Claims (1st Union) 0.00 0.00

Legal Account (1st Union) 0.00 0.00

A.G. Edwards Cash 0.00 0.00

Concentration Acct (TD Bank) 332,024,620.93 234,129,242.19

Operating Acct (TD Bank) 0.00 0.00

Payroll Acct (TD Bank) 0.00 0.00

Claims Acct (TD Bank) (2,589,202.69) (2,009,693.86)

FSA/DCA Acct (TD Bank) 0.40 0.00

Lock Box Account(TD Bank) (37,445.48) (548,798.78)

Willis/NJSBAIG Cash (Commerce) 0.00 0.00

Cash Suspense 0.00 0.00

Tri-State Capital Bank Account 0.00 0.00

Beneficial Bank Accont 0.00 0.00

Operating Account (TD Bank2) (95,837.25) (166,219.33)

Concentration Acct (Investors) 68,807.38 0.00

Operating Acct (Investors) 0.00 0.00

Claims Acct (Investors) 0.00 0.00

Payroll Acct (Investors) 0.00 0.00

FSA/DCA Acct (Investors) 0.00 0.00

Assessmnt Collection Acct(INV) (68,706.54) 0.00

CASH IN BANKS 329,627,613.20 231,728,430.51

Certificates of Deposit 0.00 40,000,000.00

Partnership Interests 2.00 2.00

U.S. Treasury Bills (A.G. Edw) 0.00 0.00

N.J. State Investment Fund 0.02 38,246,365.95

Investment Premiums (NJ Inv F) 0.00 0.00

Market Value Adjust (NJ Inv F) (0.02) (0.02)

Certificates of Deposit Suspns 0.00 0.00

MARKETABLE SECURITIES 2.00 78,246,367.93

Reinsurance Rebate Receivable 0.00 0.00

Reinsurance Recoverables 0.00 0.00

Reins. Recovery Receivable 0.00 0.00

Reins. Recovery 85/86 Recvb'l (36,223.49) (34,858.95) REINSURANCE RECEIVABLES (36,223.49) (34,858.95)

NJSIG

Balance Sheet



Interest/Divid Recvb'l-AG Ewds 0.00 0.00

Interest/Divid. Recvb'l-NJ Inv 0.02 0.02

Interest/Divid Recvb'l-CD's 0.00 0.00

Interest/Divid Recvbl-Ptnr Dst 0.00 0.00

INTEREST/DIVIDENDS RECEIVABLES 0.02 0.02

Misc. Accounts Receivable 0.00 0.00

Assessments Receivable 0.00 0.00

Legal Settlement Recvb'l 100.00 100.00

Seminar/Training Academy Rec 0.00 0.00

Retro Premium/Service Recvbl 0.00 0.00

Retro Audit Receivable 0.00 0.00

Retro Endorsement Receivable 0.00 0.00

Retro Add'l Servcs Recvb'l 0.00 0.00

MISC ACCOUNTS RECEIVABLES 100.00 100.00

Audit Premium Receivable 0.00 0.00

Premium Recvb'l Installments 5,572,253.85 5,556,338.68

Premium Recvb'l Prebill 0.00 0.00

Premium Receivable 3,722,899.34 3,727,112.91

Commission Recvbl Control Acct 0.00 0.00

Allowance of Doubtful Accts 0.00 0.00

A/R Maintenance Control Acct. 0.00 0.00

Asset Transfer Control Acct. 0.00 0.00

Agent Commission Receivable 0.00 0.00

PREMIUM RECEIVABLES 9,295,153.19 9,283,451.59

TOTAL Current Assets 338,886,644.92 319,223,491.10

F&F Original Value 1,693,729.71 1,913,336.07

Accumulated Depreciation (860,185.36) (1,051,429.32)

Leasehold Improvements 0.00 0.00

Accumulated Amortization 0.00 0.00

TOTAL FIXED ASSETS 833,544.35 861,906.75

Other Assets:

Prepaid General Insurance 99,877.50 97,559.94

Prepaid Crime Insurance 12,597.68 10,889.86

Prepaid General Expenses 109,849.62 131,351.04

Prepaid TPA Expenses (0.12) 112,499.88

NJSIG

Balance Sheet



PREPAID ASSETS 222,324.68 352,300.72

Unearned M&M Fees 0.00 0.00

Unearned Marsh Reins Exp 0.00 0.00

Unearned Marsh Ag Comm 0.00 0.00

Unearned Willis Fees 0.00 0.00

Unearned Reins Exp 651,390.18 578,013.38

Unearned Agent Comm. 199,824.44 197,928.47

Unrn'd Cigna/Fireman's Reins. 0.00 0.00

Unrnd Cigna/Fireman's Ag. Comm 0.00 0.00

Retro Reinsurance Unearned 0.00 0.00

Retro Agent Comm Unearned 0.00 0.00

Retro M&M Fee Unearned 0.00 0.00

UNEARNED EXPENSES 851,214.62 775,941.85

Travel Advance 0.00 0.00

Deposits 0.00 0.00

OTHER ASSETS 0.00 0.00

GASB68-Defer Out-ChngInAssump 1,703,943.00 383,215.00

GASB68-DeferOut-ChngProportion 1,347,926.00 563,383.00

GASB68-DeferOut-ExpectvsActual 378,521.00 0.00

DEFERRED OUTFLOWS 3,430,390.00 946,598.00

TOTAL OTHER ASSETS 4,503,929.30 2,074,840.57

TOTAL ASSETS 344,224,118.57 322,160,238.42

A/P Module ADM01 0.00 0.00

Notes Payable 0.00 0.00

Accrued Expenses Payable 122,496.71 122,698.73

A/P Module INS01 (1,346.62) (32,009.40)

Safety Grant Payable 3,420,840.33 2,798,541.65

Reins Recov Paybl- XL Reins 0.00 0.00

Mngmt Maintenance Syst Paybl 0.00 0.00

Broker Refund Payable 0.00 0.00

Federal Income Tax W/H 0.00 0.00

FICA W/H Employee 0.00 0.00

FICA W/H Employer 0.00 0.00

FUI Taxes Payable 0.00 0.00

SUI Payable 0.00 0.00

NJSIG

Balance Sheet



State Income W/H-NJ 0.00 0.00

State Income W/H-PA 0.00 0.00

Garnishment Payable 0.00 0.00

Medicare - Employee 0.00 0.00

Medicare - Employer 0.00 0.00

Employee Savings Payable 0.02 0.02

Local Income W/H-Phila 0.03 0.03

FSA MED Payable (1,950.90) 0.00

FSA Depend Payable 3,038.00 0.00

Group Term Life Payable 0.00 0.00

TOTAL CURRENT LIABILITIES 3,543,077.57 2,889,231.03

Estimated Unpaid Losses 217,262,000.00 213,198,000.00

Reserve-Unalloc Loss Adjust 1,498,994.27 1,721,588.39

Unearned Premiums-Marsh 0.00 0.00

Aggregate Contingency Fund 0.00 0.00

Unearned Premiums 1,606,448.11 1,555,470.06

Unrn'd Cigna/Fireman's Premium 0.00 0.00

Unernd Willis Mgt Fees/Ret Prm 0.00 0.00

Post Retirement Bene Paybl 1,181,940.64 899,776.66

Mngmt Maintenance Syst Paybl 0.00 0.00

Rate Stabilization-ERIC North 593,362.40 593,362.40

Rate Stabilization-ERIC South 232,385.94 377,053.53

Rate Stabilization - ERIC West 197,760.85 216,760.85

Rate Stabilization - BACCEIC 290,564.19 290,564.19

Rate Stabilization - MOCSSIF 320,824.09 215,463.00

Rate Stabilization - NJEIF 437,559.63 704,753.39

TOTAL LONG TERM LIABILITIES 223,621,840.12 219,772,792.47

Employee Benefits Payable 0.00 0.00

Pensions Payable 39,643.62 44,037.43

GASB68-Pension Payable 15,866,572.00 12,186,706.00

DCRP Payable 1,079.41 0.00

Dividend Payable 0.00 0.00

403B/T. Rowe Price Payable 6,806.40 5,109.68

Colonial Life Payable 0.00 0.00

Retro Claims (Cash) 180,905.62 314,305.79

STARS Recon/Claims Liability 0.00 0.00

Return of excess subrogation 0.00 0.00

AFLAC Payable 0.00 0.00

Group Term Life Payable 15,887.29 4,533.73

Due to Retro Reinsurer 0.00 0.00

Retro Agent Comm Payable 0.00 0.00

M&M Retro Fee Payable 0.00 0.00

Retro Unearned Prem/Service 0.00 0.00

Marsh Due to Reinsurers 0.00 0.00

NJSIG

Balance Sheet



Marsh Ag. Comm. Payable 0.00 0.00

Due to Reinsurers (1,464,493.32) (1,872,614.65)

Agent Comm. Payable 601,664.12 573,070.15

Due To Reinsurers Installments 0.00 0.00

Due To Reinsurers Prebill 0.00 0.00

Ag Comm Paybl Installments 0.00 0.00

Ag Comm Paybl Prebill 0.00 0.00

TOTAL OTHER LIABILITIES 15,248,065.14 11,255,148.13

GASB68-DeferIn-DiffInInvest 255,104.00 726,261.00

GASB68-DeferIn-ChngIn Proport 0.00 0.00

TOTAL DEFERRED INFLOWS 255,104.00 726,261.00

TOTAL LIABILITIES 242,668,086.83 234,643,432.63

Retained Earnings Fund Balance 68,222,366.06 57,315,325.86

Year-to-Date Earnings 33,333,665.68 30,201,479.93

Total Capital 101,556,031.74 87,516,805.79

Total Liabilities and Capital 344,224,118.57 322,160,238.42

NJSIG

Income Statement

For the Period Ending 4/30/2017

Actuals YTD Budget YTD Variance Actuals Month Budget Month Variance

Income:

4103 Workman's Compensation 68,469,290.15 67,264,966.00 1,204,324.15 0.00 0.00 0.00

4104 Property 19,308,762.80 19,414,236.00 (105,473.20) (39.05) 0.00 (39.05)

4105 Automobile Liability 6,769,980.12 7,110,715.00 (340,734.88) 50.14 0.00 50.14

4106 Automobile Phys. Damage 1,161,391.46 1,081,480.00 79,911.46 16.43 0.00 16.43

4107 General Liability 9,523,637.43 10,345,211.00 (821,573.57) 0.00 0.00 0.00

4108 Boiler 1,074,593.87 1,095,686.00 (21,092.13) 0.11 0.00 0.11

4109 Errors & Omissions 15,331,939.73 16,054,110.00 (722,170.27) 0.00 0.00 0.00

4110 Umbrella 4,625,848.29 4,910,169.00 (284,320.71) 0.00 0.00 0.00

4111 Crime 627,846.48 613,024.00 14,822.48 0.00 0.00 0.00

4113 Pollution Liability Income 55,152.72 0.00 55,152.72 0.00 0.00 0.00

4114 E.D.P. 902,397.81 886,593.00 15,804.81 0.00 0.00 0.00

4117 Retro Accounts Income 6,389.23 0.00 6,389.23 1,814.58 0.00 1,814.58

4122 Supplemental Indemnity 1,722,695.61 1,304,428.00 418,267.61 0.00 0.00 0.00

4123 Bond Premium 288,428.64 299,058.00 (10,629.36) (49.65) 0.00 (49.65)

Premium Income 129,868,354.34 130,379,676.00 (511,321.66) 1,792.56 0.00 1,792.56

Retro Accounts Income 0.00 0.00 0.00 0.00 0.00 0.00

Total Income 129,868,354.34 130,379,676.00 (511,321.66) 1,792.56 0.00 1,792.56

Adjustments:

4301 Reinsurance Recoveries 10,095,041.79 1,576,000.00 8,519,041.79 0.00 0.00 0.00

4304 Subrogation Income 935,970.72 0.00 935,970.72 92,907.33 0.00 92,907.33

Recoveries & Subro Income 11,031,012.51 1,576,000.00 9,455,012.51 92,907.33 0.00 92,907.33

Revenue 140,899,366.85 131,955,676.00 8,943,690.85 94,699.89 0.00 94,699.89

Page 1 of 5

NJSIG

Income Statement



Expenses:

5102 Salaries-Temporary Employees 38,869.39 89,583.33 (50,713.94) 8,270.08 8,958.33 (688.25)

5103 Salaries 4,771,486.43 5,054,149.16 (282,662.73) 494,579.35 505,414.92 (10,835.57)

5104 Salaries-Overtime 0.81 2,500.00 (2,499.19) 0.00 250.00 (250.00)

5108 Payroll Tax Expenses 398,635.27 491,666.67 (93,031.40) 46,438.53 49,166.67 (2,728.14)

5109 Pension Expense 643,434.37 550,260.00 93,174.37 0.00 55,026.00 (55,026.00)

5111 Recruiting Costs 23,814.75 6,250.00 17,564.75 330.00 625.00 (295.00)

5112 Post Retirement Bene Exp 0.00 142,960.83 (142,960.83) 0.00 14,296.08 (14,296.08)

5113 Employee Medical Benefits 769,392.40 1,038,190.00 (268,797.60) 77,466.35 103,819.00 (26,352.65)

5114 Employee Dental Benefits 45,022.65 47,000.00 (1,977.35) 4,380.66 4,700.00 (319.34)

5115 Employee Vision Benefits 20,600.45 20,600.00 0.45 1,887.84 2,060.00 (172.16)

5116 EE HRA Benefits 120,937.27 285,000.00 (164,062.73) 0.00 28,500.00 (28,500.00)

5117 Employee FSA Benefits 19,251.73 27,500.00 (8,248.27) 0.00 2,750.00 (2,750.00)

5118 Employee ST Disab & Other Ins 34,323.40 62,500.00 (28,176.60) (3,645.10) 6,250.00 (9,895.10)

5119 Defined Contrib Retirement Exp 7,572.53 0.00 7,572.53 0.00 0.00 0.00

Personnel Expenses 6,893,341.45 7,818,159.99 (924,818.54) 629,707.71 781,816.00 (152,108.29)

5203 Marketing Expenses 19,498.58 10,000.00 9,498.58 179.17 1,000.00 (820.83)

Member Services Dept Expenses 19,498.58 10,000.00 9,498.58 179.17 1,000.00 (820.83)

5227 Loss Prevention 120,872.01 146,166.67 (25,294.66) 11,012.77 14,616.67 (3,603.90)

Loss Control Dept Expenses 120,872.01 146,166.67 (25,294.66) 11,012.77 14,616.67 (3,603.90)

5252 Claims Audit Expense 0.00 10,000.00 (10,000.00) 0.00 1,000.00 (1,000.00)

5253 Claims Admin. Expenses (63.00) 0.00 (63.00) (27.00) 0.00 (27.00)

Claims Dept Expenses (63.00) 10,000.00 (10,063.00) (27.00) 1,000.00 (1,027.00)

5301 Accounting Fees 530.00 1,000.00 (470.00) 0.00 100.00 (100.00)

5303 Actuary Fees 124,658.18 150,000.00 (25,341.82) 26,460.13 15,000.00 11,460.13

5305 Mngmt Maintenance Syst Expense 24,209.99 75,000.00 (50,790.01) 0.00 7,500.00 (7,500.00)

5306 Legal & Professional Fees 121,581.97 250,000.00 (128,418.03) 6,902.50 25,000.00 (18,097.50)

5310 Third Party Admin.-Willis 337,500.00 562,500.00 (225,000.00) 0.00 56,250.00 (56,250.00)

Outside Service Fees 608,480.14 1,038,500.00 (430,019.86) 33,362.63 103,850.00 (70,487.37)

5309 MOCSSIF Agent Commission Exp. 0.00 0.00 0.00 0.00 0.00 0.00

5311 Agent Commission Exp 12,661,150.23 11,326,243.33 1,334,906.90 16.13 1,132,624.33 (1,132,608.20)

5312 NJEIF Agent Commission Exp. 0.00 0.00 0.00 0.00 0.00 0.00

Page 2 of 5

NJSIG

Income Statement



5315 ERIC North Agent Comm. Exp. 319,361.72 0.00 319,361.72 0.00 0.00 0.00

5316 ERIC South Agent Comm Exp 0.00 0.00 0.00 0.00 0.00 0.00

5318 ERIC West Agent Comm Exp 0.00 0.00 0.00 0.00 0.00 0.00

5319 BACCEIC Agent Commission Exp 0.00 0.00 0.00 0.00 0.00 0.00

5320 CAIP Agent Commission Expense 0.00 0.00 0.00 0.00 0.00 0.00

Total Agent Commission Expense 12,980,511.95 11,326,243.33 1,654,268.62 16.13 1,132,624.33 (1,132,608.20)

5401 Claims Expense 53,686,226.58 57,255,833.33 (3,569,606.75) 4,698,060.32 5,725,583.33 (1,027,523.01)

5404 NEPHA Deductible Reimb. Exp. 5,000.00 0.00 5,000.00 0.00 0.00 0.00

Claims Expenses 53,691,226.58 57,255,833.33 (3,564,606.75) 4,698,060.32 5,725,583.33 (1,027,523.01)

5505 Reinsurance Exp-District Bill 32,395,261.20 27,913,271.67 4,481,989.53 58.35 2,791,327.17 (2,791,268.82)

Reinsurance Expenses 32,395,261.20 27,913,271.67 4,481,989.53 58.35 2,791,327.17 (2,791,268.82)

5352 IT - Office Equipment Supplies 8,969.02 22,500.00 (13,530.98) 0.00 2,250.00 (2,250.00)

5353 Office Equipment Maintenance 17,232.28 32,833.33 (15,601.05) 0.00 3,283.33 (3,283.33)

5354 Computer Software Maintenance 254,704.37 247,300.00 7,404.37 23,424.52 24,730.00 (1,305.48)

Information Technology Dept Expenses 280,905.67 302,633.33 (21,727.66) 23,424.52 30,263.33 (6,838.81)

5702 Depreciation Expense 304,615.45 482,283.33 (177,667.88) 31,523.97 48,228.33 (16,704.36)

5703 Dues & Subscriptions 83,050.34 74,804.16 8,246.18 4,539.95 7,480.42 (2,940.47)

5704 Misc. Bank Fees 2,916.68 2,916.67 0.01 291.67 291.67 0.00

5708 Rent Expense 404,526.24 388,914.17 15,612.07 27,463.52 38,891.42 (11,427.90)

5709 Office Supplies 23,030.02 60,141.67 (37,111.65) 2,246.56 6,014.17 (3,767.61)

5710 Office Operating Expenses 52,159.11 51,315.00 844.11 5,414.78 5,131.50 283.28

5711 Office Leased Expenses 26,796.73 32,916.67 (6,119.94) 2,638.23 3,291.67 (653.44)

5712 Telephone Expense 0.00 2,083.33 (2,083.33) 0.00 208.33 (208.33)

5715 Group's Insurance Expense 155,796.68 187,500.00 (31,703.32) 9,026.54 18,750.00 (9,723.46)

5716 Group's Crime Insurance Exp. 32,715.68 16,666.67 16,049.01 3,400.17 1,666.67 1,733.50

5717 FSA Admin Fee 757.30 0.00 757.30 0.00 0.00 0.00

5723 Postage 38,502.38 52,916.67 (14,414.29) 840.12 5,291.67 (4,451.55)

5727 Employee Seminar Expenses 8,626.44 91,812.49 (83,186.05) 1,542.33 9,181.25 (7,638.92)

5728 Insurance Course Fees 2,818.65 6,666.66 (3,848.01) 155.00 666.67 (511.67)

5729 Tuition Reimursement 1,042.00 18,125.00 (17,083.00) 0.00 1,812.50 (1,812.50)

5730 Audit Fees (890.00) 20,833.33 (21,723.33) 0.00 2,083.33 (2,083.33)

5731 Consulting Fees 127,615.56 285,416.68 (157,801.12) 10,125.00 28,541.67 (18,416.67)

5732 Miscellaneous Expenses 1,326.51 6,208.33 (4,881.82) 225.13 620.83 (395.70)

5733 Disaster Recovery Expenses 87,900.55 95,341.66 (7,441.11) 8,602.25 9,534.17 (931.92)

5737 Cell Phone Expense 10,915.70 15,833.33 (4,917.63) 1,186.42 1,583.33 (396.91)

Page 3 of 5

NJSIG

Income Statement



5738 OPRA expenses 38,428.71 83,333.33 (44,904.62) 0.00 8,333.33 (8,333.33)

Business Operating Expenses 1,402,650.73 1,976,029.15 (573,378.42) 109,221.64 197,602.92 (88,381.28)

5201 Travel & Related Expenses 48,697.29 125,696.66 (76,999.37) 5,143.33 12,569.67 (7,426.34)

5851 Annual Meeting 46,828.72 42,166.67 4,662.05 (616.25) 4,216.67 (4,832.92)

5852 Trustee Meeting Expense 4,276.46 20,000.00 (15,723.54) 179.21 0.00 179.21

Conferences & Meeting Expenses 99,802.47 187,863.33 (88,060.86) 4,706.29 16,786.33 (12,080.04)

Total Expenses 108,492,487.78 107,984,700.80 507,786.98 5,509,722.53 10,796,470.08 (5,286,747.55)

Page 4 of 5

NJSIG

Income Statement



Other Revenue and Expenses:

4413 Interest-NJ St Inv Fund 139.64 215.00 (75.36) 0.00 21.50 (21.50)

4414 Interest-NJ Cash Mgmt Fund 1,381.03 186.67 1,194.36 182.10 18.67 163.43

4415 Interest-Commerce Concentr 881,186.74 126,666.67 754,520.07 160,159.29 12,666.67 147,492.62

4420 Interest - Certificate of Dep 37,754.36 62,500.00 (24,745.64) 0.00 6,250.00 (6,250.00)

4423 Interest - InvBk Concentration 0.84 0.00 0.84 0.84 0.00 0.84

Investment Income 920,462.61 189,568.34 730,894.27 160,342.23 18,956.83 141,385.40

Financial Income 0.00 0.00 0.00 0.00 0.00 0.00

4603 Miscellaneous Income 2,379.87 0.00 2,379.87 0.00 0.00 0.00

4605 Seminar Income 3,944.13 2,708.33 1,235.80 0.00 270.83 (270.83)

Other Revenues 6,324.00 2,708.33 3,615.67 0.00 270.83 (270.83)

Investment Expenses 0.00 0.00 0.00 0.00 0.00 0.00

Total Other Revenue and Expenses 926,786.61 192,276.67 734,509.94 160,342.23 19,227.67 141,114.56

Net Revenue 33,333,665.68 24,163,251.87 9,170,413.81 (5,254,680.41) (10,777,242.41) 5,522,562.00

Page 5 of 5



www.njsig.org

1-888-NJ Pool 1

Rev.: 6/9/17

Board of Trustees Meeting of June 21, 2017 Client Relations and Underwriting Report

The Underwriting Department continues to work diligently to provide our Brokers with both renewal and new business proposals. To date, the Underwriters have released over 250 proposals and are awaiting the arrival of the remaining 80+ applications. Also to date, we have received over 50 binding orders which are now being processed and prepared for invoicing post July 1st. The Client Relations Staff was impressively instrumental in successfully concluding this year’s Safety Grant project. They spent several weeks calling, personally visiting and emailing both our Brokers and our Business Administrators to ensure that no safety grant allotment went uncollected. I would be happy to answer any questions you may have. Thank you, Kelly A. Machu Kelly A. Machu, CSRM Client Relations and Underwriting Manager



www.njsig.org

1-888-NJ Pool 1

Revised: 6/9/17

Board of Trustees Meeting of June 21, 2017 Safety and Risk Control Report

Safety Grants The safety grant portal is now closed. Only two Members neglected to meet the deadline. One decided not to file and the other was not interested. The checks will be sent to the Members after renewal season. It required a joint effort from Safety and Risk Control and Client Relations to complete this task as over 100 Members waited until the final week to complete their application. SafetyNet Newsletter The safety theme for June is Prevent Heat Stress. The article gives common sense precautions such as never leave anyone in a closed parked vehicle during hot weather. Claims Supervisor, Ellen Shaw provided the article Be Aware and Observant of Outdoor Environment which outlined outside recreational hazards. During summer, many schools address construction, repair and maintenance issues. We thought it was the right time to remind Members of the Top Four Construction Hazards as reported by OSHA. The Loss Control Department will once again host a National Safety Council Defensive Driving Class this summer at Mount Laurel and Marlboro offices. Last year many teachers and their driving age students participated. Over 40 people have signed up as of June first. A copy of the SafetyNet is included with this report. Continuing Education Senior Safety and Risk Control Representative, Jim Gabrieli attended the Hartford Steam Boiler Symposium in Houston, Texas. The topics included New Technology is Disrupting Insurance and There Will Be A Shift Toward Value Added Service. Safety and Risk Control Supervisor, Steve Williams and I attended School Dude University in Raleigh, North Carolina. Over 120 of our Members use School Dude Maintenance Direct software as part of our 50% reimbursement program. Also, a number of our Members are now using safety grant funds to purchase other School Dude software.



www.njsig.org

1-888-NJ Pool 1

Loss Control Report – June 21, 2017 Page 2 PRIMA Webinar- Senior Safety and Risk Control Representative, Terry Barlow partnered with me to conduct a webinar for the Public Risk Management Association (PRIMA) titled Loss Control Self Audits for Public Entitles. 196 people signed up for the one-hour webinar, which received positive reviews. If you wish to access the webinar please go to the website www.primacentral.org then click on education and trainings and scroll down to May 17, 2017. In-House Seminars- During July and August, we will host three Hartford Steam Boiler (HSB) Operator Seminars at locations throughout the state. In these seminars, HSB teaches boiler operators how to properly operate and maintain their boilers. We hold these seminars bi-annually. The last time they were held we attracted over 160 boiler operators from across the state. Tony Jones Tony Jones Safety and Risk Control Manager

May 2017 New Jersey Schools Insurance Group

www.njsig.org New Jersey Schools Insurance Group June 2017

April showers bring May flowers is a welcoming expression of

SPRING TIME. We need to be mindful of potential hazards

associated with this time of year. Take proactive steps to address

slippery surfaces due to rain, fallen plant debris and hazards

inherent to activities such as Frisbee, baseball and other seasonal

events. Be aware and observant of your outdoor environment to

avoid potential hazardous activities. Districts should see that the

premise is as safe and as hazard free as possible. Report all

possible issues to the appropriate school personnel. NJSIG is

here to assist with questions before and after an injury occurs. A

safe environment benefits everyone!

Ellen Shaw

NJSIG Claims Supervisor

www.njsig.org

Be Aware and Observant of Outdoor Environment

http://www.njsig.org

www.njsig.org New Jersey Schools Insurance Group June 2017

1 The top four causes of construction fatalities are:

Falls, Struck-By, Caught-In/Between and Electrocutions.

Prevent Falls

Wear and use personal fall arrest equipment.

Install and maintain perimeter protection.

Cover and secure floor openings and label floor openings covers.

Use ladders and scaffolds safely.

Prevent Struck-By

Never position yourself between moving and fixed objects.

Wear high-visibility clothes near equipment/vehicles.

Prevent Caught-In/Between

Never enter an unprotected trench or excavation 5 feet or deeper without an adequate

protective system in place; some trenches under 5 feet may also need such a system.

Make sure the trench or excavation is protected either by sloping, shoring, benching or

trench shield systems.

Prevent Electrocutions

Locate and identify utilities before starting work.

Look for overhead power lines when operating any equipment.

Maintain a safe distance away from power lines; learn the safe distance requirements.

Do not operate portable electric tools unless they are grounded or double insulated.

Use ground-fault circuit interrupters for protection.

Be alert to electrical hazards when working with ladders, scaffolds or other platforms.

Top Four Construction Hazards

2 3 4

Source: Occupational Safety and Health Administration (OSHA)

New Jersey Schools Insurance Group is offering summer Defensive Driving Classes. This six hour training class was developed by the National Safety Council.

Upon successful completion, participants will receive a certificate to be submitted to their insurance carrier which may entitle them up to a 5% reduction in their personal automobile liability insurance premium. In addition, if participants have points against their NJ Drivers license, they may apply to the Department of Motor Vehicles for a possible two-point reduction.

Training Location:

6000 Midlantic Drive, Suite 300 North Mount Laurel, NJ 08054

Time:

9:00 am to 3:00 pm

July 11, 2017

July 19, 2017

July 27, 2017

August 8, 2017

August 16, 2017

August 24, 2017

2017 Defensive Driving Classes

Dates:

You must be pre-registered to attend the

Defensive Driving Class.

Please contact Joanne Gunter at 609-386-6060 x3021 or via email at [email protected]. Please bring a check payable to:

New Jersey Schools Insurance Group.

Class size limited: 20 per class

Instructor: Stephen Williams, NJSIG Safety & Risk Control Supervisor

Employees who drive for their district: No Charge

All other employees, spouses and age appropriate children: $10.00

*Please bring your lunch to the class*

NJSIG - Mount Laurel, NJ Office

Register Today!

New Jersey Schools Insurance Group

Phone: 609-386-6060

Fax: 609-386-8877 www.njsig.org

mailto:[email protected]

New Jersey Schools Insurance Group is offering summer Defensive Driving Classes. This six hour training class was developed by the National Safety Council.

Upon successful completion, participants will receive a certificate to be submitted to their insurance carrier, which may entitle them up to a 5% reduction in their personal automobile liability insurance premium. In addition, if participants have points against their NJ Drivers license, they may apply to the Department of Motor Vehicles for a possible two-point reduction.

You must be pre-registered to attend the Defensive Driving Class.

Please contact Joanne Gunter at 609-386-6060 x3021 or via email at [email protected]. Please bring a check payable to:

New Jersey Schools Insurance Group.

Class size limited: 20 per class

Instructor: Stephen Williams, NJSIG Safety & Risk Control Supervisor

Employees who drive for their district: No Charge

All other employees, spouses and age appropriate children: $10.00

Training Location:

500 Campus Drive, Suite 100 Morganville, NJ 07751

Time:

9:00 am to 3:00 pm

Thursday, July 13, 2017

Thursday, July 20, 2017

2017 Defensive Driving Classes

New Jersey Schools Insurance Group Phone: 609-386-6060 | Fax: 609-386-8877

www.njsig.org

Dates:

*Please bring your lunch to the class*

NJSIG - Marlboro, NJ Office

Register Today!

mailto:[email protected]

Remaining to Complete Your NJSIG Safety Grant

Application! 9 Days

May 31, 2017 Safety Grant Portal Closes at 11:59 pm

Questions? email: [email protected]

Have a generic email address? Let us know!

6000 Midlantic Drive, Suite 300 North, Mount Laurel, NJ 08054 Phone: 609-386-6060 | Fax: 609-386-8877

www.njsig.org

Complete Your Safety Grant Application!



www.njsig.org

1-888-NJ Pool 1

Revised: 6/9/17

Board of Trustees Meeting of June 21, 2017 Claims Report

v May 1, 2017 to May 31, 2017 CLAIM ACTIVITY

Workers' Compensation Total pending work comp cases as of April 30, 2017 2655 New work comp cases months from April 30, 2017 to May 31, 2017 613 Total work comp cases months from April 30,2017to May 31, 2017 3268 Total closed work comp cases from April 30, 2017to May 31, 2017 (554)

Total Pending Work Comp Cases as of May 31, 2017 2714

Property / Liability

Total new property-liability reports as of April 30, 2017 645 New property-liability cases from April 30, 2017 to May 31, 2017 111 Total property-liability cases from April 30, 2017to May 31, 2017 756 Total closed property-liability cases from April 30, 2017to May 31, 2017 (81)

Total Property-Liability Cases as of May 31, 2017 675

Office Totals

Total pending cases as of April 30, 2017 3300 Total new reports from April 30, 2017to May 31, 2017 724 Total cases from April 30, 2017to May 31, 2017 4024 Total closed cases from April 30, 2017to May 31, 2017 (635)

Total Pending Cases as of May 31, 2017 3389 nPENDING BY ADJUSTER TITLE

Job Title April Claim Representatives 7 1101 Senior Claim Representatives 4 787 Claim Examiner 9 1323 LegalClaim Examiner 1 178 Totals 3389



www.njsig.org

1-888-NJ Pool 1

Revised: 6/9/17

Claim Report – June 21, 2017 Page 2

Work Load Standards Property/Liability Claim Representatives to 150 files Senior Claim Representatives to 150 files Claim Examiners to 150 files Workers’ Compensation Claim Representatives to 175 files Senior Claim Representatives to 180 files Claim Examiners to 185 files nMAY – CLAIMS ACTIVITY The total number of new claims for this period was 724. This is down from the previous two-month average of 777. The new claims volume is in line with results in previous years for the spring months. The overall pending 3389 is up 3% from the prior month total of 3301. Workers’ compensation incoming was 613, which is up 3% from the previous two-month average of 592. Property liability claims totaled 111, which is down 17% from the previous two-month average of 134. As predicted, May was a busy month, since it is the final full month of the school year. The property liability pending count contains one Hurricane Sandy claim, which is in litigation. nCLAIMS PERSONNEL Lauren Schmidt, previously a Medical Claim Representative, was moved to an Indemnity Claim Representative position vacated by Maureen Dempsey. Maureen was promoted to Senior Claims Representative last month. We recently filled the Medical Claim Representative position vacated by Lauren with a new hire scheduled to begin on June 16th. The Claims Department will have no vacant positions as of June 16th.



www.njsig.org

1-888-NJ Pool 1

Revised: 6/9/17


nSELECTED SELF-AUDIT RESULTS

RATING

PERCENT Satisfactory Unsatisfactory

Reporting & Communication 70 16 81%

Direction 166 6 97%

48 Hour Contact 107 24 82%

Investigation 6 1 86% TOTALS 349 47 88%

The preceding results are reflected in the overall claims analysis report for 6 individuals. Individual results were 98%, 82%, 93%, 90%, 83%, and 99%. The category of 48 Hour Contacts slipped slightly, which has been addressed. Noted improvement was made in the area of file Direction. nFRAUDULENT CHECK A review of 50 checks issued in May was completed to determine if any were fraudulent. No internal or external problems were found. nACCOUNT VISITATIONS AND INSTALLATIONS May 5, 2017 ERIC North Sub Fund Meeting attended by Ron Henry, Claims

Examiner.

May 10, 2017 BACCEIC/ERIC South Sub-Fund Meeting was attended by Tony Ruggeri, Claims Manager and Sherwin Archibald, Liability Claims Supervisor.

May 12, 2017 NJEIF Sub-Fund Meeting was attended by Tony Ruggeri, Claims Manager and Sherwin Archibald, Liability Claims Supervisor.

May 17, 2017 Orange BOE Workers’ Compensation training was completed by Ellen Shaw, Claim Supervisor and Tom Fratantoni, Claim Examiner.



www.njsig.org

1-888-NJ Pool 1

Revised: 6/9/17


nEDUCATION AND TRAINING May 4-5, 2017 Tony Ruggeri, Claims Manager attended the New Jersey Self Insurer

Association Conference in Atlantic City. The focus of the conference was Workers’ Compensation law.

May 11, 2017 Settlement Funding Associates did a seminar on Structured Settlements for the entire claims staff to reinforce the benefits of using structured settlements to negotiate and settle cases.

nLITIGATION There are two upcoming trials scheduled, one in June and one in July. Details will be discussed at the June Board of Trustees meeting. nMISCELLANOUS/ MANAGED CARE RESULTS Reports from our managed care company, Qual-Lynx, show a 62% savings on medical bills repriced so far in 2017. This is in line with previous results of 65% in 2016, 63% in 2015, and 61% in 2014. REINSURANCE RECOVERIES On the Plainfield BOE fire loss, claim number 14PR00097D, a total of $219,526.78 was recovered thus far of $264,174.47 owed. CLAIMS OUTCOMES We continue to receive favorable outcomes through the efforts of our Claims Staff. The case of Chavez v. City of Elizabeth BOE resulted in a motion for summary judgment (MSJ) win. The plaintiff allegedly was injured as a result of slipping and falling on our insured's icy sidewalk on 12/11/14. We denied this claim based on snow and ice immunity under Title 59. A lawsuit was filed in the Superior Court of New Jersey, Union County. After discovery, we filed a MSJ, which was granted by Judge Camille M. Kenny. Counsel for the plaintiff did not appeal or file a motion for reconsideration.



www.njsig.org

1-888-NJ Pool 1

Revised: 6/9/17


EXTERNAL CLAIMS REVIEW Regional Claims Manager Christian Kolb of our reinsurer Safety National reviewed recent claim outcomes of workers’ compensation claims we reported to reinsurance. He advised, “We are definitely getting what we need. Your staff has always been very responsive to our requests, which we appreciate. They are always easy to work with and always on top of everything.” INTERNAL CLAIMS AUDIT The firm conducting our 2017 Internal Claims Review, MCM CPAS and Advisors of Louisville, Kentucky, completed all testing and review of our claims files. Claims files have been audited and sampling was completed. Auditors examined our office procedures, conducted interviews with our personnel and reviewed the claims processes. The results of the internal claims audit will be communicated upon receipt of the final report. CAT PREPAREDNESS On June 8th and 9th, our property reinsurers conducted a comprehensive review of our plans in case of a property catastrophe. We brought in our property appraisers and restoration companies to take part in the review. Our property reinsurers expressed confidence that our processes and procedure to handle a property catastrophe is solid and well-defined. Tony Ruggeri Anthony Ruggeri, AIC, ARM, INS Claims Manager Email: [email protected]



www.njsig.org

1-888-NJ Pool 1

Board of Trustees Meeting of June 21, 2017 Information Technology Report

Origami Upgrade (Claims Management Software) We continue to move forward with the configuration and testing of our new claims management system Origami. We completed our second data extraction test to confirm the timing of the data delivery, which is the first step in the migration process. Origami is tested their data import procedures and Staff training begins June 19th and June 26th. On June 29th, Stars will shut down and will be available to staff as read only. The IT Department will be testing and validating data counts over the weekend of June 29th through July 2nd so as to have Origami up and running on July 3rd. Origami will be live on July 3, 2017. Jeff Cook Jeff Cook, Information Systems Manager



www.njsig.org

1-888-NJ Pool 1

Board of Trustees Meeting of June 21, 2017 Discussion Item

Contracting As a part of the New Jersey School Insurance Group’s (“NJSIG”) efforts to maintain compliance with the Public School Contracts Law (“PSCL”), NJSIG has sought approval from the State of New Jersey, Department of Community Affairs, Division of Local Government Services (“DLGS”) to use competitive contracting for the following goods and services in accordance with N.J.S.A. 18A:18A-4.1(k):

1. Workers’ compensation managed care services; and, 2. Property appraisal services.

A copy of the DLGS approval is attached. NJSIG intends to issue the requests for proposals for workers’ compensation managed care services in July 2017, and for property appraisal services in September 2017. In addition, NJSIG constantly reviews all expenditures to ensure that it is receiving sufficient value for the expenditures. As part of this effort, NJSIG plans to issue a public request for comments on the scope of services for sub-fund administration services in July 2017. After this public comment period is complete, NJSIG intends to issue the request for proposals for sub-fund administration services. William Mayo William Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1

Revised: 6/21/17

Board of Trustees Meeting of June 21, 2017 Discussion Item

Office of Legislative Services Audit The State of New Jersey, Office of Legislative Services, Office of the State Auditor (“OLS”) audit team conducted a post-audit conference at NJSIG’s offices on May 9, 2017. The audit report is scheduled to be publicly released on July 3, 2017. William Mayo William Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1

Board of Trustees Meeting of June 21, 2017 Action Item

Payroll Adjustment As a part of New Jersey Schools Insurance Group (NJSIG)’s efforts to streamline the organization, the employee responsible for the payroll function has assumed many additional responsibilities associated with administering NJSIG’s benefits program (including participation in Public Employees’ Retirement System and the State Health Benefits Program) and the associated compliance efforts. This employee assumed these functions effective February 3, 2017; however, her salary was only adjusted in April 2017 to recognize these additional duties. This payroll adjustment was made retroactive to February 3, 2017. Per the request of the State of New Jersey, Department of the Treasury, Division of Pension and Benefits, because this retroactive salary adjustment crosses reporting quarters, it must be ratified by the NJSIG Board of Trustees for pension purposes. Recommended Resolution: to ratify the attached payroll change notification. William Mayo William Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1


Outside Counsel As a part of New Jersey Schools Insurance Group (NJSIG)’s efforts to maintain compliance with the Public School Contracts Law (PSCL), NJSIG issued requests for qualifications for outside counsel for Subrogation and Recovery Litigation (C-2017-0006), Insurance Coverage Counsel and Litigation (C-2017-0007), and Joint Insurance Fund Counsel (L-2017-0001). As a result of this competitive contracting process, NJSIG received numerous proposals from qualified firms. These proposals were evaluated using the weighted evaluation criteria, and the results of that evaluation are attached. The designation of a firm as approved outside counsel is not a retention for a specific matter, and does not entitle a firm to be retained for a specific matter. Rather, these firms would now be eligible to handle matters on behalf of NJSIG and its insureds in the respective areas. The cutoff for qualifying for the outside counsel designation was an average score of seventy-five or greater. Thus, it is proposed that the firms identified in the attached resolution be designated as outside counsel in the respective areas. Recommended Resolution: to approve the firms identified in the attached resolution be designated as outside counsel in the respective areas. William Mayo William Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1

Resolution Authorizing the Execution of Contracts Pursuant to the Public School Contracts Law

Page 1 of 3

WHEREAS, the New Jersey Schools Insurance Group (“NJSIG”) is

authorized by N.J.S.A. 18A:18B-1, et seq. to provide insurance coverage for its

members;

WHEREAS, NJSIG requires professional services in the form of outside

counsel to represent the interests of NJSIG and its insureds;

WHEREAS, NJSIG has engaged in a fair and open competitive contracting

process, pursuant to which proposals were solicited; and,

WHEREAS, an evaluation committee was convened by NJSIG and has

evaluated all proposals submitted.

NOW THEREFORE, BE IT RESOLVED, on this 21st day of June, 2017 that:

1) NJSIG designates the following firms as Outside Counsel as to each respective

area based on technical criteria, management criteria, cost criteria and the

service provider’s demonstrated service to public entities in the State of New

Jersey:

a. Subrogation and Recovery Litigation (C-2017-0006):

i. Butler, Weihmuller, Katz Craig, LLP;

ii. Law Offices of Stephen E. Gertler; and,



www.njsig.org

1-888-NJ Pool 1

Resolution Authorizing the Execution of Contracts Pursuant to the Public School Contracts Law

Page 2 of 3

iii. Methfessel & Werbel.

b. Insurance Coverage Counsel and Litigation (C-2017-0007):

i. Florio, Perrucci, Steinhardt & Fader, LLC;

ii. Malapero, Prisco, Klauber & Licata, LLP; and,

iii. Schenck, Price, Smith & King, LLP.

c. Joint Insurance Fund Counsel (L-2017-0001):

i. Archer & Greiner, P.C.;

ii. Brown & Connery, LLP;

iii. DeCotiis, Fitzpatrick, Cole & Giblin, LLP;

iv. Florio Perrucci Steinhardt & Fader, LLC; and,

v. Schenck, Price, Smith & King, LLP.

2) The Executive Director is hereby authorized to execute professional services

agreements with the above-referenced service providers;

3) NJSIG is hereby authorized to retain firms designated as Outside Counsel that

have executed a professional service agreement as to each respective area;

4) This designation is in accordance with the Public School Contracts Law,

N.J.S.A. 18A:18A-1, et seq.;

rjohnson

Typewritten Text

rjohnson

Typewritten Text

June 21, 2017

rjohnson

Typewritten Text

Connors

rjohnson

Typewritten Text

Meloche

rjohnson

Typewritten Text

rjohnson

Typewritten Text

rjohnson

Typewritten Text

Connors, Le Febvre, Meloche, Robinson, Sullivan

rjohnson

Typewritten Text

rjohnson

Typewritten Text



www.njsig.org

1-888-NJ Pool 1


Payroll Administration Database Software and Services As a part of New Jersey Schools Insurance Group (NJSIG)’s efforts to maintain compliance with the Public School Contracts Law (PSCL), NJSIG issued a request for proposals for payroll administration database software and services (A-2017-0002). As a result of this competitive contracting process, NJSIG received one proposal from the incumbent payroll administration database software and service provider, Paychex, LLC. This proposal was evaluated using weighted evaluation criteria, and the results of that evaluation are attached. Recommended Resolution: to approve the contract for payroll administration database software and services be awarded to Paychex, LLC based on the results of the committee’s evaluation. William Mayo William Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1

Resolution Authorizing the Execution of a Contract Pursuant to the Public School Contracts Law

Page 1 of 3

WHEREAS, the New Jersey Schools Insurance Group (“NJSIG”) is

authorized by N.J.S.A. 18A:18B-1, et seq. to provide insurance coverage for its

members;

WHEREAS, NJSIG requires payroll administration database software and

services;

WHEREAS, NJSIG has engaged in a fair and open competitive contracting

process, pursuant to which proposals were solicited; and,

WHEREAS, an evaluation committee was convened by NJSIG and has

evaluated all proposals submitted.

NOW THEREFORE, BE IT RESOLVED, on this 21st day of June, 2017

that:

1) NJSIG awards the contract for payroll administration database software and

services to PayChex, LLC;

2) NJSIG awards the contract for payroll administration database software and

services to this service provider based on technical criteria, management

criteria, cost criteria and the service provider’s demonstrated service to public

entities in the State of New Jersey;

rjohnson

Typewritten Text

June 21, 2017

rjohnson

Typewritten Text

rjohnson

Typewritten Text

rjohnson

Typewritten Text

rjohnson

Typewritten Text

Connors, Le Febvre, Meloche, Robinson, Sullivan

rjohnson

Typewritten Text

Meloche

rjohnson

Typewritten Text

rjohnson

Typewritten Text

rjohnson

Typewritten Text

rjohnson

Typewritten Text

Robinson

rjohnson

Typewritten Text

rjohnson

Typewritten Text

rjohnson

Typewritten Text

rjohnson

Typewritten Text



www.njsig.org

1-888-NJ Pool 1


Second Reading 2017/2018 Budget

The attached 2017/2018 NJSIG budget was presented for discussion at the May 17, 2017 meeting. It is now attached as an action item for your approval and adoption for the 2017/2018 fiscal year. As per our bylaws and regulations, the attachments will be forwarded to the Department of Banking and Insurance (DOBI) once it is approved. Recommended Resolution: to approve the attached draft 2017/2018 budget as a second reading. Michele Carosi Michele Carosi Comptroller

NJSIG KEY:

Income Statement A8 - 8 months actual

For the Periods Ending: E12 - Estimate based on A7

B17 - Budgeted 2017 amount


FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018

06/30/2015 06/30/2016 06/30/2016 8 MONTHS 8 MONTHS 12 MONTHS 12 MONTHS PROJECTED 06/30/2018

Account Department Description Actuals YTD Budget YTD Actuals YTD Budget YTD Actuals YTD Budget YTD PROJECTED Variance Budget YTD

Income:

4101-4131 Premium Income 123,157,772.10 130,175,197.62 124,012,334.08 130,379,676.00 129,867,720.19 130,379,676.00 129,869,613 (510,063) 131,180,680

Total Income 123,157,772.10 130,175,197.62 124,012,334.08 130,379,676.00 129,867,720.19 130,379,676.00 129,869,613 (510,063) 131,180,680

Adjustments:

4301 Reinsurance Recoveries 12,954,141.75 0.00 21,016,979.81 1,576,000.00 9,936,264.38 1,576,000.00 9,936,264 A8 8,360,264 0

4302 Reins Recovery W/C 85/86 (34,329.65) 0.00 (1,364.54) 0.00 0.00 0.00 0 0 0

4303 Accrued Reins Recoveries 1,892,475.39 0.00 (1,892,475.39) 0.00 0.00 0.00 0 0 0

4304 Subrogation Income 1,127,723.08 0.00 1,237,058.32 0.00 759,467.49 0.00 759,467 A8 759,467 0

4306 Reinsurance Rebate Income 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Recoveries & Subro Income 15,940,010.57 0.00 20,360,198.20 1,576,000.00 10,695,731.87 1,576,000.00 10,695,732 9,119,732 0

Revenue 139,097,782.67 130,175,197.62 144,372,532.28 131,955,676.00 140,563,452.06 131,955,676.00 140,565,344 8,609,668 131,180,680

Expenses:

5102 Salaries-Temporary Employees 253,864.98 118,999.99 127,323.38 71,666.66 23,879.31 107,500.00 35,819 E12 (71,681) 112,520

5103 Salaries 5,472,796.80 6,002,794.37 5,391,689.51 4,043,319.33 3,776,210.60 6,064,978.99 5,664,316 E12 (400,663) 6,450,037

5104 Salaries - Overtime 20,195.37 3,000.00 3,843.13 2,000.00 0.81 3,000.00 1 A8 (2,999) 5,000

5108 Payroll Tax Expenses 451,129.41 526,788.00 466,532.88 393,333.34 303,161.82 590,000.00 454,743 E12 (135,257) 558,110

5109 Pension Expense 551,767.00 606,960.00 622,937.00 440,208.00 116.37 660,312.00 660,312 B17 0 745,215

5109-68 GASB68-Pension Expense 193,243.00 0.00 724,917.00 0.00 0.00 0.00 0 0 0

5110 Employee Benefits Expense (1,268.41) 0.00 0.00 0.00 0.00 0.00 0 0 0

5111 Recruiting Costs 5,447.45 10,000.00 10,753.50 5,000.00 11,484.75 7,500.00 23,485 A9 15,985 30,670

5112 Reiree Med Bene Exp 77,943.00 78,000.00 288,182.81 114,368.66 0.00 171,553.00 171,553 B17 0 182,402

5113 Employee Medical Benefits 859,315.26 1,149,720.00 884,408.38 830,552.00 614,472.91 1,245,828.00 921,709 E12 (324,119) 1,219,320

5114 Employee Dental Benefits 51,577.18 54,954.00 50,881.41 37,600.00 36,149.73 56,400.00 54,225 E12 (2,175) 65,602

5115 Employee Vision Benefits 21,131.34 24,000.00 21,202.43 16,480.00 16,719.51 24,720.00 25,079 E12 359 28,334

Page 1 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018



5116 EE HRA Benefits 204,229.21 342,000.00 118,204.60 228,000.00 120,937.27 342,000.00 120,937 A8 (221,063) 0

5117 Employee FSA Benefits 45,182.58 33,000.00 13,987.23 22,000.00 19,251.73 33,000.00 33,000 B17 0 0

5118 Employee Short Term Disability & Other Ins 57,283.57 75,000.00 55,328.99 50,000.00 27,472.89 75,000.00 75,000 B17 0 82,000

5119 Defined Contribution Retirement Expense 0.00 0.00 0.00 0.00 5,609.27 0.00 11,219 A8 11,219 6,722

Personnel Expenses 8,263,837.74 9,025,216.36 8,780,192.25 6,254,527.99 4,955,466.97 9,381,791.99 8,251,397 (1,130,395) 9,485,931

5202 Newsletter Expenses 3,348.23 0.00 0.00 0.00 0.00 0.00 0 0 0

5203 Marketing Expenses 25,677.09 12,000.00 19,053.17 8,000.00 19,058.26 12,000.00 28,587 E12 16,587 8,450

Member Services Dept Expenses 29,025.32 12,000.00 19,053.17 8,000.00 19,058.26 12,000.00 28,587 16,587 8,450

5227 Loss Prevention 153,669.54 160,300.00 156,926.39 116,933.34 97,480.80 175,400.00 175,400 B17 (0) 174,600

5228 Office Equipment Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0 0

5229 Computer Software Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Loss Control Dept Expenses 153,669.54 160,300.00 156,926.39 116,933.34 97,480.80 175,400.00 175,400 (0) 174,600

5252 Claims Audit Expense 8,471.18 7,600.00 14,867.59 8,000.00 0.00 12,000.00 12,000 B17 0 16,000

5253 Claims Admin. Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Claims Dept Expenses 8,471.18 7,600.00 14,867.59 8,000.00 0.00 12,000.00 12,000 0 16,000

5301 Accounting Fees 1,210.00 1,187.00 1,140.00 800.00 530.00 1,200.00 1,200 B17 0 1,100

5303 Actuary Fees 148,269.66 160,000.00 114,520.74 120,000.00 98,198.05 180,000.00 180,000 B17 0 220,000

5305 Mngmt Maintenance Syst Expense 54,470.76 65,000.00 71,083.73 60,000.00 24,209.99 90,000.00 90,000 B17 0 90,000

5306 Legal & Professional Fees 179,710.86 300,000.00 171,570.59 200,000.00 103,197.19 300,000.00 300,000 B17 0 250,000

5310 Third Party Admin.-Willis 506,250.00 675,000.00 675,000.00 450,000.00 337,500.00 675,000.00 675,000 B17 0 675,000

Outside Service Fees 889,911.28 1,201,187.00 1,033,315.06 830,800.00 563,635.23 1,246,200.00 1,246,200 0 1,236,100

5309 MOCSSIF Agent Commission Exp. 344,570.00 398,646.48 344,138.16 0.00 0.00 411,216.00 411,216 B17 0 447,080

5311 Agent Commission Exp 12,825,878.22 12,879,905.02 12,605,095.06 9,060,994.66 12,661,426.43 13,591,492.00 12,661,426 A8 (930,066) 12,673,259

5312 NJEIF Agent Commission Exp. 456,864.00 492,058.76 520,435.52 0.00 0.00 506,030.00 506,030 B17 0 557,183

5315 ERIC North Agent Comm. Exp. 500,000.00 500,000.00 378,385.20 0.00 319,361.72 500,000.00 500,000 B17 0 500,000

5316 ERIC South Agent Comm Exp 239,872.00 248,267.96 217,837.24 0.00 0.00 256,823.00 256,823 B17 0 255,659

5318 ERIC WEST AG. COMM EXP 371,535.00 297,254.87 359,710.01 0.00 0.00 306,376.00 306,376 B17 0 323,958

5319 BACCEIC Agent Commission Exp 201,505.00 208,537.94 160,830.12 0.00 0.00 215,508.00 215,508 B17 0 229,131

5320 CAIP Agent Commission Expense 168,022.56 132,255.44 88,928.83 0.00 0.00 136,582.00 136,582 B17 0 130,127

Total Agent Commission Expense 15,108,246.78 15,156,926.47 14,675,360.14 9,060,994.66 12,980,788.15 15,924,027.00 14,993,961 (930,066) 15,116,396

5401 Claims Expense 79,557,899.87 68,502,032.00 68,439,096.09 45,804,666.66 42,767,666.05 68,707,000.00 68,707,000 B17 0 69,071,521

5402 Change in Claims Reserves (184,000.00) 0.00 4,064,000.00 0.00 0.00 0.00 0 0 0

Page 2 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018



5403 Change in Claims Reserves for ULAG (66,496.62) 0.00 (222,594.12) 0.00 0.00 0.00 0 0 0

5404 NEPHA Deductible Reimb. Exp. 0.00 0.00 0.00 0.00 0.00 0.00 5,000 A8 5,000 0

Claims Expenses 79,307,403.25 68,502,032.00 72,280,501.97 45,804,666.66 42,767,666.05 68,707,000.00 68,712,000 5,000 69,071,521

5502 Reinsurance Exp (Group/Flat) 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5505 Reinsurance Exp-District Bill 29,021,094.05 33,486,128.80 32,334,931.57 22,330,617.34 32,388,803.79 33,495,926.00 32,388,804 A8 (1,107,122) 32,968,039

5507 Reinsurance Exp-NJSBAIG Paid 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Reinsurance Expenses 29,021,094.05 33,486,128.80 32,334,931.57 22,330,617.34 32,388,803.79 33,495,926.00 32,388,804 (1,107,122) 32,968,039

5352 IT - Office Equipment Supplies 11,672.12 22,000.00 13,483.97 18,000.00 7,739.29 27,000.00 27,131 131 29,000

5353 Office Equipment Maintenance 15,192.00 44,400.00 23,000.56 26,266.66 17,232.28 39,400.00 39,400 B17 0 39,900

5354 Computer Software Maintenance 195,587.00 240,760.00 170,754.41 197,840.00 203,971.47 296,760.00 305,957 E12 9,197 275,056

Information Technology Dept 222,451.12 307,159.99 207,238.94 242,106.66 228,943.04 363,160.00 372,488 9,328 343,956

5702 Depreciation Expense 369,371.35 489,855.00 469,735.89 385,826.66 240,419.58 578,740.00 578,740 B17 0 606,611

5703 Dues & Subscriptions 28,172.17 30,499.99 40,700.00 59,843.33 74,829.14 89,764.99 112,244 E12 22,479 100,337

5704 Misc. Bank Fees 3,232.36 3,500.00 3,500.03 2,333.34 2,333.34 3,500.00 3,500 E12 0 37,860

5708 Rent Expense 193,191.29 323,510.00 301,575.19 311,131.34 339,327.63 466,697.00 508,991 E12 42,294 471,391

5709 Office Supplies 29,630.80 41,940.00 41,929.00 48,113.34 18,978.09 72,170.00 72,170 B17 (0) 70,670

5710 Office Operating Expenses 85,515.03 86,003.00 97,148.61 41,052.00 40,691.52 61,578.00 61,037 E12 (541) 92,984

5711 Office Leased Expenses 31,599.87 29,100.00 30,000.39 26,333.34 20,437.07 39,500.00 39,500 B17 (0) 39,500

5712 Telephone Expense (2,735.59) 4,900.00 199.00 1,666.66 0.00 2,500.00 2,500 B17 0 1,000

5713 Employee Internet Reimbursmt 1,839.03 0.00 0.00 0.00 0.00 0.00 0 0 0

5714 Utilities 31,071.52 33,200.00 21,542.26 0.00 0.00 0.00 0 0 0

5715 Group's Insurance Expense 194,352.20 223,000.00 183,014.89 150,000.00 130,369.60 225,000.00 225,000 B17 0 250,000

5716 Group's Crime Insurance Exp. 35,832.04 47,000.00 37,562.01 13,333.34 25,915.34 20,000.00 38,873 E12 18,873 40,000

5723 Postage 59,908.79 62,000.00 50,525.63 42,333.34 31,964.93 63,500.00 63,500 B17 (0) 62,000

5727 Employee Seminar Expenses 23,427.84 60,000.01 26,609.69 73,449.99 6,494.61 110,174.99 9,742 E12 (100,433) 126,500

5728 Insurance Course Fees 1,087.24 7,500.00 2,292.10 5,333.33 1,140.65 7,999.99 7,215 B17 (785) 12,000

5729 Tuition Reimursement 3,930.00 16,889.00 4,224.00 14,500.00 0.00 21,750.00 1,563 E12 (20,187) 6,000

5730 Audit Fees 119,927.00 45,000.00 47,773.00 16,666.66 (890.00) 70,500.00 45,500 (25,000) 60,000

5731 Consulting Fees 284,114.83 266,000.00 195,189.31 228,333.34 114,054.31 342,500.02 342,500 B17 (0) 355,000

5732 Miscellaneous Expenses 33,550.19 65,750.00 36,159.06 4,966.66 953.00 7,450.00 1,430 E12 (6,020) 6,200

5733 Disaster Recovery Expenses 40,756.37 118,840.00 84,628.50 76,273.33 70,415.68 114,409.99 114,410 B17 0 123,696

5734 Building Appraisal Fees 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5735 DOBI Audit Fees 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5737 Employee Cell Phone Expense 13,864.00 17,560.00 16,721.47 12,666.66 8,543.13 19,000.00 12,815 E12 (6,185) 20,250

5738 OPRA expenses 0.00 100,000.00 33,770.90 66,666.66 38,428.71 100,000.00 57,643 E12 (42,357) 100,000

Page 3 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018



5807 Ins. Write-off Exp 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5809 Safety Grant Distribution Exp 2,200,000.00 0.00 3,000,000.00 0.00 0.00 0.00 0 0 0

Business Operating Expenses 3,781,638.33 2,072,047.02 4,724,800.93 1,580,823.32 1,164,406.33 2,416,734.98 2,298,873 (75,505) 2,582,000

5201 Travel & Related Expenses 156,150.99 173,000.00 118,333.36 100,557.33 39,585.59 150,835.99 52,422 E12 (98,414) 114,288

5851 Annual Meeting 63,783.93 47,600.00 45,991.43 33,733.34 47,311.22 50,600.00 47,311 A8 (3,289) 53,400

5852 Trustee Meeting Expense 16,283.91 24,000.00 9,136.88 20,000.00 3,607.07 20,000.00 5,411 E12 (14,589) 10,000

Conferences & Meeting Expenses 236,218.83 244,600.00 173,461.67 154,290.66 90,503.88 221,436.00 105,144 (116,292) 177,688

Total Expenses 137,021,967.42 130,175,197.63 134,400,649.68 86,391,760.64 95,256,752.50 131,955,675.96 128,584,854 (3,328,465) 131,180,681

Page 4 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018



Other Revenue and Expenses:

4405 Partnership Distributions 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

4413 Interest-NJ St Inv Fund 148,514.08 258.00 782.52 172.00 139.64 258.00 140 A8 (118) 0

4414 Interest-NJ Cash Mgmt Fund 206.25 224.00 786.82 149.34 1,030.09 224.00 1,545 E12 1,321 224

4415 Interest-Commerce Concentr 162,758.69 171,548.00 308,075.28 101,333.34 577,776.41 152,000.00 577,776 A8 425,776 578,269

4419 Interest - Operating Account 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

4420 Interest - Certificate of Dep 762,608.96 616,388.00 538,751.20 50,000.00 37,754.36 75,000.00 37,754 A8 (37,246) 0

4421 Tri-State Capital Intrst Inc 0.61 0.00 0.00 0.00 0.00 0.00 0 0 0

4422 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Investment Income 1,074,088.59 788,418.01 848,395.82 151,654.67 616,700.50 227,482.01 617,216 389,734 578,493

4501 Gain on Securities (109,794.40) 0.00 0.00 0.00 0.00 0.00 0 0 0

Financial Income (109,794.40) 0.00 0.00 0.00 0.00 0.00 0 0 0

4603 Miscellaneous Income 11,438.56 0.00 1,579.01 0.00 2,376.00 0.00 2,376 A8 2,376 0

4605 Seminar Income 3,865.00 3,250.00 9,910.00 2,166.66 3,694.13 3,250.00 3,694 A8 444 8,750

4609 Willis Change in Unrnd Ag Comm (24,791.50) 0.00 1,895.97 0.00 0.00 0.00 0 0 0

4610 Willis Change in Unrnd Reins (78,830.10) 0.00 73,376.80 0.00 0.00 0.00 0 0 0

4620 Legal Settlement Income 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Other Revenues (88,318.04) 3,250.00 86,761.78 2,166.66 6,070.13 3,250.00 6,070 2,820 8,750

5901 Amortization of Inv. Premiums 32,810.60 0.00 0.00 0.00 0.00 0.00 0 0 0

5902 Investment Costs 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Investment Expenses 32,810.60 0.00 0.00 0.00 0.00 0.00 0 0 0

Total Other Revenue and Expenses 843,165.55 791,668.01 935,157.60 153,821.34 622,770.63 230,732.00 623,286 392,554 587,243

Net Revenue 2,918,980.80 791,667.99 10,907,040.20 45,717,736.70 45,929,470.19 230,732.04 12,603,776 12,373,044 587,243

Page 5 of 5 5/4/2017 12:41 PM

New Jersey Schools Insurance Group 6000 Midlantic Drive

Mount Laurel, New Jersey 08054

(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

PREMIUM INCOME

Account # 4105 – 4118 Budget: $ 131,180,680

GROSS PREMIUM

Estimated at current levels

Workers’ Compensation $ 70,526,032

Property $ 18,602,082

Auto Liability $ 6,064,955

Auto Physical Damage $ 1,391,342

General Liability $ 9,047,456

Boiler $ 1,215,963

E&O $ 16,251,856

Excess Liability $ 4,533,332

Crime $ 627,846

Pollution $ 0

E.D.P. $ 857,278

Retro Income $ 0

Builders Risk $ 0

Workers’ Compensation Supplemental Indemnity $ 1,774,376

Bond $ 288,162

TOTAL $ 131,180,680

http://www.njsig.org/



(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

SALARIES TEMPORARY EMPLOYEES

Account # 5102 Budget: $ 112,520

Claims $ 70,000

Information Technology $ 10,000

Underwriting/Client Relations $ 6,000

Administrative $ 26,520

TOTAL $ 112,520




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

SALARIES

Account # 5103 Budget: $ 6,450,037

PERSONNEL SALARY EXPENSE

500 – Claims $ 2,427,287

510 – Loss Control $ 623,415

530 – Legal $ 249,153

540 – Administrative $ 579,375

550 – Accounting $ 550,265

560 – Underwriting $ 1,131,311

570 – Information Technology $ 889,231

All increases scheduled for 9/1/2017.

TOTAL $ 6,450,037




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OVERTIME


Information Technology $5,000

TOTAL $ 5,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

PAYROLL TAXES


Social Security

Unemployment tax $ 558,110

TOTAL $ 558,110




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE PENSION EXPENSE


Pension Expense - Estimated $ 745,215

Defined by the State of New Jersey actuary

Based on employer appropriation.

TOTAL $ 745,215




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

RECRUITMENT



TOTAL $ 30,670


New Jersey Schools Insurance Group 450 Veterans Drive

Burlington, New Jersey 08016

(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

RETIREE MEDICAL BENEFITS


This funds the retiree medical benefits account. The NJSIG will reimburse

$500/month for medical benefits to retired employees that have accumulated

25 years of service and reached a minimum age of 60 at retirement.

The annual budget amount is determined by an independent actuary study.

The program is administered by an outside vendor.

TOTAL $ 182,402




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE MEDICAL BENEFITS

Account # 5113 Budget: $ 1,219,320

Assumed 5% increase @ 2017/2018 $ 1,219,320

TOTAL $ 1,219,320




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE DENTAL BENEFITS


Assume 5% increase @ 2017/2018 $ 65,602

TOTAL $ 65,602




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE VISION BENEFITS


Assume 5% increase @ 2017/2018 $ 28,334

(82 employees)

TOTAL $ 28,334




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EE SHORT TERM DISABILITY BENEFITS


Based on 82 employees

TOTAL $ 82,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

ER Defined Contribution Retirement Expense


DCRP $4,979

Group Term Life $1,228

Long Term Disability $ 515

Based on 3 eligible employees @ 2017/2018

TOTAL $ 6,722




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

MARKETING/ADVERTISING EXPENSE


Miscellaneous brochure folders

training materials and advertising expenses $8,450

TOTAL $ 8,450



Mount Laurel, New Jersey 08054 (609) 386-6060 FAX (609) 386-8877

www.njsig.org

1-888-NJ Pool 1

Rev.: 4/12/17

2017/2018 Budget LOSS PREVENTION MISCELLANEOUS EXPENSE Account # 5227 Budget: $ 174,600 Training Academy Expenses Food for 20 classes @ $150 each $ 3,000 150 folders for classes $ 200 NJ Safety Council – DDC

500 Books @ $13.50 per student $ 6,750 500 Certification @ $10 per student $ 5,000 Instructor Certification $ 800 NJSIGtrain.org $10,000 First Aid/CPR/AED Training $ 1,500 First Aid/CPR/AED Instructor Certification $ 500 CPI Books & Certificates & Instructor Certification $ 2,000 Safety Materials Video $ 200 Family Safety Magazine $ 600

Top Health Newsletter $ 600

Safety Awards 45 @ $100 each $ 4,500 Safety Calendars 600 @ $3.25 $ 1,950 Safety Committee Recognition $ 1,000

Awards/Poster/Frames WeTip (discretionary) $ 1,000 Dupont/Coastal/Video Stream $ 2,000 Safe School Online Training $ 125,000 Boiler Seminar $ 8,000 TOTAL $ 174,600



(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CLAIMS AUDIT


Claim Audit $ 16,000

Independent auditor reviews claim operation

TOTAL $ 16,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

ACCOUNTING FEES


Accounting Fees $ 1,100

(To support monthly closing)

TOTAL $ 1,100




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget ACTUARIAL FEES


Two reserve studies, one rating study, and

miscellaneous services performed $ 220,000

by independent actuary.

TOTAL $ 220,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget MANAGEMENT MAINTENANCE SYSTEM EXPENSE


School Dude reimbursements are made to members

that have maintenance direct (MD) and scored $ 90,000

a minimum of two from School Dude.

TOTAL $ 90,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

LEGAL AND PROFESSIONAL FEES


TOTAL $ 250,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

THIRD PARTY ADMIN FEE


Broker Fees $ 675,000

Provide retail and reinsurance brokerage services - Willis

TOTAL $ 675,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

AGENT FEES

Account # 5309-5320 Budget: $ 15,116,396

Auto Liability & Physical Damage $1,054,550

General Liability $ 1,299,162

Property $ 2,651,332

EDP – Electronic Data Processing $ 123,000

Boiler & Machinery (equipment breakdown) $ 170,961

Auto Liability/General Liability Excess $ 650,316


Errors & Omissions $ 2,326,784

Crime $ 91,887

Bond $ 41,462

Workers’ Compensation Supplemental Indemnity $ 175,595

Pollution $ 0

Sub Fund Agent Commissions $ 2,443,137

TOTAL $ 15,116,396




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CLAIMS EXPENSE

Account # 5401 Budget: $ 69,071,521

CLAIMS EXPENSE

From Actuary Pricing Study $ 69,071,521

TOTAL $ 69,071,521


New Jersey School Insurance Group 6000 Midlantic Drive, Suite 300 North


(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

REINSURANCE EXPENSE

Account # 5505 Budget: $ 32,968,039

NET REINSURANCE

Auto Liability $1,014,800

General Liability $ 978,147

Property $ 9,052,915

E.D.P $ 123,469

Boiler $ 971,851

Excess Liability $ 3,732,479


E&O $ 14,008,857

Crime $ 111,782

Bond $ 51,622

Workers’ Compensation Supplemental Indemnity $ 1,379,287

TOTAL $ 32,968,039




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

INFORMATION TECHNOLOGY OFFICE SUPPLIES

Account # 5352 Budget: $29,000

CD Copies $ 4,000

Cintas Paper Shredding @ 100 per month $ 6,000

Kodak Scanner Supplies $ 1,500

Miscellaneous Expenses $ 10,000

Pitney Bowes Supplies $ 4,000

Shredder Supplies $3,500

TOTAL $ 29,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OFFICE EQUIPMENT MAINTENANCE


Avalanche (ML350) 1yr 13x5x4 Support $ 1,000

Dresx1 (Mt. Laurel) DL 380 G5 $ 1,000



DR Backup (Mt. Laurel) DL 380 G5 $ 1,000

DR San 4300 (DRISCSI 1) $ 2,800

DR San 4300 (DRISCSI 2) $ 2,800

DR Cisco Router 2901 (DRISCSI 2) $ 800

ESX1 DL380 G6 $ 1,000

ESX2 DL380 G6 $ 1,000

ESX3 DL380 G6 $ 1,000

ISCSI1 SAN 4500 $ 3,000

ISCSI2 SAN 4500 $ 3,000

ISCSI3 SAN 4500 $ 3,000

Kodak Scanner Support $ 4,500

Misc. Hardware Support $ 10,000

Backup $ 1,000

ImageRight Full Text DL 380 G4 $ 1,000

TOTAL $ 39,900




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget COMPUTER SOFTWARE MAINTENANCE

Account # 5354 Budget: $ 275,056 1099Pro $ 1,000

Brook Trout Fax Board Software $ 1,000

Cisco Support $ 1,600

Comcast Internet/TV $ 3,000

Escrow Tech for NavRisk $ 1,000

Ethernet 40MB Broadview (Data/Phone) $ 56,496

Go To Meeting $ 700

ImageRight $ 52,800

ImageRight (After 9-5) Support $ 2,000

Micro Scribe (Paperless Board Package) $ 2,360

Microsoft Web Mail $ 5,800

Misc. Software Support/Licensing $ 5,000

Misc. Software Cal. Licensing $ 10,000

NavRisk Programming Projects $ 10,000

eFax (Cloud Faxing) $24,000

SSL VPN $ 9,000

Origami Programming Projects $ 10,000

Trend Micro Client/Server Protection $ 4,200

Veeam $ 2,700

VmWare (upgrade 5.1 to 6.1) $10,000

Watchguard (Mt. Laurel/Marlboro) $ 10,000

Windows Server 2012 $ 5,000

Zetafax $ 1,800

Constant Contact Software $ 1,000

Crystal Reports $500

ISO Data Analytics $25,000

Adobe Creative Cloud $2,000

ShareFile $15,300

SHI Asset Management $700

IOS/Mac Apps Development $350

AD Audit Plus $750

TOTAL $ 275,056




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

DEPRECIATION


1401 Capital

Monitors 22” LCD Flat Screen $250/each $ 5,000

Desktop Workstations/Thin Clients $1,250/each $ 25,000

All in One Printers (9 Road Personnel) $130/each $ 650

HP Laptop (Upgrades) $1,800/each $ 7,200

Laserjet Printers $2,000/each $ 4,000

LCD Projector $1,800/each $ 3,600

Oragami Risk $ 199,150

PeopleSoft (Oracle) $ 16,000

NavRisk $ 77,500

2 Desktop Scanning $200/each $ 600

60 VM Ware View Desktops $200/each $ 12,000

SSL Certs $ 7,000

ImageRight Upgrade $100,000

HP Storageworks $ 26,000

Office Furniture $ 25,000

Subtotal of Capital – Carry Forward $ 508,700

Continued on next page



Mount Laurel, New Jersey 08054 (609) 386-6060 FAX (609) 386-8877

www.njsig.org

1-888-NJ Pool 1

Rev.: 4/12/17

2017/2018 Budget

DEPRECIATION Account # 5702 1401 Capital

Subtotal of Capital – from Previous Pages $ 508,700

Total Capital 2017/2018 $ 508,700

Total 2017/2018 Depreciation Expenses Budgeted $ 206,680 + Carried forward Depreciation Expenses from

previous years $ 399,931 Budget plus Carry Forward = 2017/2018 Depreciation Budget $ 606,611 TOTAL Depreciation Budget= $ 606,611



(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

DUES & SUBSCRIPTIONS


Claims $ 25,000

Loss Control $ 2,500

Legal $4,912


Underwriting $5,650

TOTAL $ 100,337




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

MISCELLANOUS BANKING FEES


Miscellaneous Banking Fees $ 37,860

TOTAL $37,860




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

RENT EXPENSE


Rent and Fees – Mt. Laurel Office $ 471,391

TOTAL $ 471,391




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OFFICE SUPPLIES


Office Supplies

Administrative $68,670

Underwriting $2,000

TOTAL $ 70,670




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OFFICE OPERATING EXPENSES


UAS – Monthly $160 $ 2,400

Coffee Services (ML & DR) $ 4,000

Water Services (ML & DR) $1,000

Payroll $ 80,000

Mt Laurel Fire License $400

Verizon Wireless Tablets $5,184

TOTAL $92,984




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

LEASE PAYMENTS


Lease Payments $ 32,000

(copiers, fax machine and Pitney Bowes)

Pitney Bowes Postage Machine $7,500

TOTAL $39,500




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

TELEPHONE EXPENSE


Including long distance & fax lines $ 1,000

TOTAL $1,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

GROUP’S INSURANCE


Property/Liability $ 250,000

Workers’ Compensation

Errors & Omissions

Data Breach

TOTAL $ 250,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CRIME INSURANCE


Crime Coverage $ 40,000

TOTAL $40,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

POSTAGE


Federal Express Postage $10,000

Pitney Bowes - Administrative $50,000

Pitney Bowes Pre-Sort – IT $2,000

TOTAL $ 62,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE SEMINAR EXPENSE


Claims $ 12,000


Legal $8,500


Accounting $ 7,500

Underwriting $ 24,500


TOTAL $ 126,500




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

INSURANCE EDUCATION


Claims $ 5,000


TOTAL $ 12,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

TUITION REIMBURSEMENT


Loss Control $3,000

Accounting $3,000

TOTAL $ 6,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

FINANCIAL AUDITS


Fiscal Year End Audit $ 60,000

TOTAL $ 60,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CONSULTING FEES


Consultants for Information Technology, Accounting,

Loss Control and Administration

Loss Control

WeTip and property Inspection $ 40,000

Accounting

PeopleSoft $ 35,000



CBIZ

Retreat

Korn Ferry/Hay Group

Legal One

ISO

Watson Consulting

Echo Group

Canning Group

TOTAL $ 355,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

MISCELLANEOUS


Claims $1,000

Underwriting

Storage Facility Files $2,200

Administrative

Miscellaneous $1,000

Petty Cash Reimbursements $2,000

TOTAL $6,200




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

DISASTER RECOVERY


Disaster Recovery

Information Technology – Site Costs $ 109,108

Rent $ 58,308

Analog Phone Line $ 3,600

Ethernet Line $ 34,200

ADT – Alarm System $ 2,400

PSE&G $ 5,400

Postage $ 1,200

Comcast/Verizon $ 3,000

Misc. Annual Fees $ 1,000

Administrative – Site Costs $14,588

Cleaning Service $ 4,000

Copier Maintenance $ 4,800

CAM Costs $ 5,788

TOTAL $ 123,696




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CELL PHONES


$ 19,250

Data & International Package Annual Fee $ 1,000

TOTAL $ 20,250




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OPEN PUBLIC RECORDS ACTS (OPRA) EXPENSES


Miscellaneous Administrative Expenses $ 100,000

related to OPRA requests.

TOTAL $ 100,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget TRAVEL AND RELATED EXPENSE


Claims $ 13,000


Legal $ 2,500


Accounting $ 1,000


Information Technology $ 0

TOTAL $ 114,288




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

ANNUAL MEETING

Account #5851 Budget: $ 53,400

Hotel & Meeting Rooms Expenses $ 6,600

Booth Storage and Freight $ 3,000

NJSIG Booth Space $ 30,000

Union Labor & Booth Furniture $ 3,500

Convention Handouts/Materials $ 3,000

Badges $ 300

Annual Meeting and Luncheon $ 7,000

Total $ 53,400




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

BOARD OF TRUSTEES MEETINGS

Account# 5852 Budget: $ 10,000

$ 10,000

TOTAL $ 10,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

INVESTMENT INCOME

Account # 4406 - 4420 Budget: $ 578,493

Estimated Investment Income $ 578,493

TOTAL $ 578,493




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

SEMINAR INCOME

Account # 4605 Budget: $8,750

Defensive Driving $250

Training Academy $1,000

Boiler Seminars $7,500

TOTAL $8,750




www.njsig.org

1-888-NJ Pool 1


Second Reading 2017/2018 Draft Plan of Risk Management

Last month this draft Plan of Risk Management (PORM) was presented as a first reading. The approved PORM must be filed with the Department of Banking and Insurance (DOBI) each year. Recommended Resolution: to approve the attached draft 2017/2018 Plan of Risk Management as a second reading. William Mayo William Mayo, CPCU, ARM Executive Director

Rev.: 5/8/17

New Jersey Schools Insurance Group

PLAN OF RISK MANAGEMENT 2017/2018

Rev.: 5/8/17

TABLE OF CONTENTS Page INTRODUCTION - Mission Statement 1 Coverage Provided, Limits of Liability, Self-Insured Retentions and Deductibles 2

General Property Equipment Breakdown

Comprehensive General and Automobile Liability

2 3 3 3

Workers’ Compensation and Employers Liability 4

School Leaders Errors and Omissions Liability 4

Reinsurance 4

Operational Philosophy 5 General/Sub-Fund 5 Premium Contribution 5 Brokers 6 Claims Response and Reserving 6-7 Standards of Performance 7 General Liability/Automobile Liability 7-8 Workers’ Compensation and Employers Liability 8-10 Property 10-11 Productivity/Pending Standards 11

Rev.: 5/8/17

TABLE OF CONTENTS Continued Page Legal Claim Handling 12 Claim Payment Procedures 12 Incoming/Outgoing Correspondence 12 Outside Independent Assignments 12 Reporting Guidelines - Workers’ Compensation 12

Reporting Guidelines - General Liability/Automobile

12-13

Reporting Guidelines - Property 13 Rehabilitation - Administrative Controls 14 General Comments 14 Discretionary Settlement Authority 14-15

Claims Committee

Financial Management

15-16

16 Safety and Loss Prevention 16 Standards of Participation 16

1 Rev.: 5/8/17

NEW JERSEY SCHOOLS INSURANCE GROUP PLAN OF RISK MANAGEMENT The mission of New Jersey Schools Insurance Group (“NJSIG"), a school insurance pool, is to ensure the availability of insurance to New Jersey public school districts and charter schools by offering the best coverage at the lowest possible cost while providing risk management education, training and services. I. INTRODUCTION NJSIG is a joint insurance fund formed under the provisions of N.J.S.A. 18A: 18B-1 et. seq. NJSIG’s membership is comprised of public school districts and charter schools. NJSIG commenced operations in October 1983.

NJSIG’s objectives include the following:

A. Providing eligible school districts and charter schools with a long-term alternative to the conventional insurance market as a means of stabilizing the otherwise cyclical nature of insurance expenditures;

B. Maintaining proactive safety and loss prevention programs specific to issues inherent in

public schools;

C. Aggressively evaluating, defending and/or settling claims made against M embers which fall within the defined coverages afforded through NJSIG;

D. Maintaining a responsible funding posture in an effort to ensure long-term

financial security for NJSIG and, by extension, the membership.

2 Rev.: 5/8/17

II. COVERAGE PROVIDED, LIMITS OF LIABILITY, SELF-INSURED RETENTIONS AND DEDUCTIBLES A. GENERAL

NJSIG offers coverage to its Members through one or more of the following vehicles:

• Pooled self-insurance • Excess insurance • Reinsurance • Individual contracts

NJSIG offers its Members the following coverages:

1. Workers’ Compensation and Employers’ Liability

2. Automobile Liability,

3. General Liability

4. Property

5. Equipment Breakdown

6. Automobile Physical Damage

7. School Leaders Errors and Omissions Liability

8. Crime and Bonds

9. Electronic Data Processing

10. Excess Liability

11. Supplemental Indemnity

12. Breach Response

13. Environmental Liability

The specific limits of coverages afforded by NJSIG incorporate individual Member deductibles, funded self-insured retentions and various jointly purchased conventional and excess/reinsurance policies. Unless specifically stated to the contrary, limits shown in the following sections shall be considered to be inclusive of applicable pooled self-insured retention.

3 Rev.: 5/8/17

NJSIG also provides for aggregate excess insurance where applicable. B. PROPERTY

1. Limit of liability $500,000,000 per occurrence

2. NJSIG self-insured retention (SIR) $1,000,000 per occurrence

3. Member deductible $1,000 to $50,000

4. Perils included see policies “Appendix A” C. EQUIPMENT BREAKDOWN

1. Limit of liability $100,000,000 per loss

2. NJSIG self-insured retention $0

3. Member deductible 12 hours/$1,000 - $10,000

4. Policy conditions refer to specific policy language D. COMPREHENSIVE GENERAL AND AUTOMOBILE LIABILITY

1. Limit of liability between $1,000,000 and $31,000,000 per occurrence

2. NJSIG self-insured retention (SIR): $500,000 per occurrence

3. Member deductible liability options $0-$50,000 except

$1,000 employee benefits

4. Insuring agreement provides coverage for bodily injury, property damage and personal injury liability arising out of the business activities of the Member. See specific policy language.

E. WORKERS’ COMPENSATION

1. Limits of liability: (a) Workers’ Compensation statutory (b) Employers Liability $2,000,000 per occurrence

2. NJSIG specific self-insured retention (a) Workers’ Compensation $1,000,000 (b) Employers Liability $1,000,000

3. Member deductible none

4 Rev.: 5/8/17

F. SCHOOL LEADERS ERRORS & OMISSIONS LIABILITY

1. Coverage A Limits of liability between $1,000,000 and $31,000,000 per occurrence/aggregate, per member. Limit chosen by district may be subject to retro-active dates. Refer to specific policy language.

2. Coverage B $100,000/$300,000 or $50,000/$150,000 3. Member deductible: between $5,000 to $250,000 Coverage A and B 4. Insuring agreements: refer to specific policy language.

5. NJSIG self-insured retention $0 G. REINSURANCE

1. NJSIG may purchase reinsurance or excess insurance, which is subject to the terms and

conditions of the specific excess or reinsurance carrier agreements. NJSIG purchased reinsurance for the following:

(a) Property: NJSIG cedes 100% net loss per occurrence in excess of $1,000,000

to a maximum of $500,000,000.

(b) Comprehensive General Liability and Automobile Liability: NJSIG cedes 100% net loss per occurrence in excess of $500,000.

(c) Workers’ Compensation and Employers Liability: NJSIG places excess

statutory limits of liability and employers’ liability in excess of $1,000,000 per occurrence.

2. The cost of reinsurance is variable depending on Member exposure. The final number

will be determined by audit at year-end. Based upon known exposures the total reinsurance cost is estimated to be $33,500,000.

5 Rev.: 5/8/17

III. OPERATIONAL PHILOSOPHY

A. SUB-FUNDS NJSIG organized the state into seven (7) predominately geographical groups known as Sub-Funds. There is also an eighth group consisting of non-geographical members. Eligible NJSIG Members are assigned to a geographic Sub-Fund. Continued membership in the Sub-Fund is predicated on Members meeting the minimum standards of participation and maintaining the required loss profile as defined by the eligibility requirements. These Sub-Funds have no decision making authority relative to the operation of NJSIG. Sub-Fund governing documents do not supersede any governing documents of NJSIG. Each Sub-Fund is individually analyzed and priced by NJSIG’s actuary for workers’ compensation based on that particular Sub-Fund’s loss experience, size and premium volume. Each of the seven geographical Sub-Funds has a Sub-Fund Administrator. The Sub-Fund Administrator is an insurance broker with demonstrated school board risk management expertise and a contract with NJSIG. Members may be removed from a Sub-Fund if they do not meet the eligibility requirements.

B. PREMIUM CONTRIBUTION

1. Each year, the actuary shall compute the probable net cost for the upcoming

year by line of coverage.

2. The annual premium of each Member shall be its share of the probable net cost for the upcoming year based upon exposures, loss portfolio and experience modifiers.

3. A Member’s right to continue membership in a particular Sub-Fund for the full

term of its commitment is contingent upon meeting the eligibility requirements.

4. The calculation of premium for each Member shall be based on the overall annual budget. Premiums may be modified to reflect the loss history or underwriting data of the individual Member.

5. NJSIG’s Board of Trustees votes and approves the budget at least one (1)

month prior to the beginning of the next fiscal year.

6. The annual premium shall be paid in one (1) installment, except Workers’ Compensation, where Members may request up to a maximum of twelve (12) monthly installments.

6 Rev.: 5/8/17

C. BROKERS

Members are required to retain the services of a broker. Service expectations of brokers include, but are not limited to the following: 1. The Broker retained must be licensed by the State of New Jersey.

2. The Broker shall be paid commission by NJSIG as defined in the standard

commission policy. 3. The Broker’s specific responsibilities shall include but not be limited to:

(a) Annual evaluation of the Member’s exposures, policies and risk

portfolio.

(b) Expert knowledge and guidance with respect to coverages, limits and deductibles applicable to the Member’s individual exposures.

(c) Preparation and completion of reports, applications, statements of

values, schedules and other required Underwriting documentation to obtain coverage terms.

(d) Review of Member’s insurance costs in preparation of the Member’s

insurance budget.

(e) Review of the Member’s loss experience, engineering reports and participation in the Member’s safety committee meetings.

(f) Assist and guide in the claims process, as necessary.

(g) Attendance at their Member’s respective Sub-Fund meetings.

4. The broker shall be a New Jersey licensed Property/Casualty Insurance

Producer who has demonstrated and provided proof of prior experience in the management of public entity insurance risks. The broker shall maintain at least a $5,000,000 per claim errors & omissions insurance limit and provide evidence of coverage to NJSIG prior to binding. Brokers earning less than $30,000 of annual NJSIG commission may request an annual exemption for the $5,000,000 errors and omissions insurance minimum requirement. Such requests must be submitted to the Underwriting Manager in writing 60 days prior to renewal.

D. CLAIMS RESPONSE AND RESERVING

1. CLAIM DEPARTMENT STATEMENT

(a) Customer Service

NJSIG is committed to partnering with member districts to provide extraordinary claim service to all members.

7 Rev.: 5/8/17

(b) Quality Services

Departmental procedures have been developed to meet the present and future needs of Members. Achieving consistently favorable results is a clear measure of sustained quality service.

IV. STANDARDS OF PERFORMANCE

A. GENERAL LIABILITY/AUTOMOBILE LIABILITY

1. Coverages

Claims will be promptly reviewed for coverage. If there is a question concerning coverage, the issue(s) will be documented and reviewed. If issues of coverage remain, the matter will be referred to coverage counsel with a request for a timely determination. Excess and/or reinsurance carriers will be informed as required. Upon determination of coverage, any remaining questions or issues will be documented and communicated with a reservation of rights letter.

2. Initial Technical Processing New losses are assigned promptly, reserved and entered into the claim system within one business day of receipt. Appropriate matters are centrally index to cross reference prior claims. An acknowledgement letter is sent to the Member when the file is set up, with a copy to the broker.

3. Insured/Claimant Contact

(a) All insureds must be contacted within two business days of assignment.

(b) All claimants will be contacted within two business days of assignment. If verbal contact is not made, written correspondence will follow.

4. Investigation

(a) Investigation of claims will be guided by the adjuster assigned.

5. Reporting and Communication

(a) The claim file will be documented detailing all developments.

Correspondence will be addressed and answered timely, as necessary.

(b) All reserves will be reviewed and, as necessary, approved by a supervisor and/or Claims Manager.

(c) Claims that are 50% of NJSIG’s retention, catastrophic losses or that meet

the criteria under any reinsurance or excess reporting guidelines, shall be reported to the reinsurer/excess carrier immediately.

8 Rev.: 5/8/17

(d) All files are reviewed on a periodic and as needed basis by the claims adjuster and supervisor.

6. Recovery/Subrogation/Contribution

(a) Claims with subrogation recovery and/or contribution potential shall be

recognized, investigated and documented.

(b) If recovery, subrogation and/or contribution is to be waived or compromised, it must be approved by the Claims Manager.

7. General

(a) Loss Control will be notified as to conditions which may require corrective measures. Loss Control will contact the Member and ensure the condition is given appropriate attention.

(b) For all physical damage automobile losses, the vehicle must be

inspected by an independent auto appraiser within five business days of assignment and concluded within ten business days. If damages are less than $2,000, two estimates may be reviewed by the claims adjuster in lieu of a physical inspection.

(c) Centers for Medicare and Medicaid Services (CMS) reporting complied with in all cases involving bodily injury.

B. WORKERS' COMPENSATION

1. Coverages

Claims will be promptly reviewed for coverage. If there is a question concerning coverage, the issue(s) will be documented and reviewed. If issues of coverage remain, the matter will be referred to coverage counsel with a request for a timely determination. Excess and/or reinsurance carriers will be informed as required. Upon determination of coverage, any remaining questions or issues will be documented and communicated.

2. Initial Technical Processing

New losses are assigned promptly, reserved and entered into the claims system within one business day of receipt. Appropriate matters are centrally indexed to cross reference prior claims. An acknowledgement letter is sent to the Member when the file is set up, with a copy to the broker.

3. Insured/Claimant Contact

All insureds and claimants must be contacted within two business days of assignment for lost time cases.

9 Rev.: 5/8/17

4. Investigation

(a) The claimant should be interviewed or a statement obtained for all claims involving questionable and/or serious exposure when appropriate.

(b) A detailed investigation shall be conducted for all claims commensurate

with the potential exposure.


(a) The claim file will be documents detailing all significant developments. Correspondence will be addressed and answered timely, as necessary.

(b) All reserves will be reviewed and, as necessary, approved by a

supervisor and/or Claims Manager. (c) Claims that are 50% of NJSIG’s retention, catastrophic losses or that

meet the criteria under any reinsurance or excess reporting guidelines shall be reported to the reinsurer/excess carrier immediately.

(d) All files are reviewed on a periodic and as needed basis by the claims

adjuster and supervisor. 6. Recovery/Subrogation/Contribution

(a) Claims with subrogation recovery and/or contribution potential shall be recognized, investigated and documented.

(b) If recovery, subrogation and/or contribution is to be waived or

compromised, it must be approved by the Claims Manager.

7. General

(a) Loss Control will be notified as to conditions which may require corrective measures. Loss Control will contact the Member and ensure the condition is given appropriate attention.

(b) Compensability analysis shall be in accordance with New Jersey law.

(c) Initial indemnity payment on all loss time cases shall occur within

twenty-one (21) business days of receipt of loss.

(d) Medical bills should be process/paid within ten (10) business days of receipt.

(e) Lost wages and permanency claims are to be properly calculated based on

current New Jersey law and disability chart. The disability chart is updated by the State of New Jersey annually.

10 Rev.: 5/8/17

(f) Physician contact and control is completed based on the treatment plan established by the claims adjuster along with the managed care provider.

(g) Centers for Medicare and Medicaid Services (CMS) reporting complied

with in all cases involving bodily injury. The First Report of Injury (FROI) and the Subsequent Report of Injury (SROI) are complied with in accordance with New Jersey law.

C. PROPERTY

1. Coverage

Claims will be promptly reviewed for coverage. If there is a question concerning coverage, the issue(s) will be documented and reviewed. If issues of coverage remain, the matter will be referred to coverage counsel with a request for a timely determination. Excess and/or reinsurance carriers will be informed as required. Upon determination of coverage any questions or issues will be documented and communicated.

2. Initial Technical Processing

New claims are assigned promptly, reserved and entered into the claims system within one business day of receipt. Appropriate matters are central indexed to cross-reference prior claims. An acknowledgement letter is sent to the Member when the file is set up, with a copy to the broker.

3. Insured Contact

All insureds must be contacted within two (2) business day of assignment. If verbal contact is not made, written correspondence will be sent.

4. Investigation

A NJSIG claims adjuster, along with a designated property appraiser, if necessary, will be assigned to verify damages, cause of loss and provide an appraisal/estimate for needed repair or replacement. If a physical inspection is necessary, it will be completed within three (3) business days of assignment. If no inspection is warranted, receipts, purchase orders, or other substantiated documentation will be obtained to verify and pay the loss. All claims with significant subrogation potential will be assigned to subrogation counsel, as necessary.


(a) The claim file will be documented detailing all developments. Correspondence will be addressed and answered timely, as necessary.

11 Rev.: 5/8/17

(b) All reserves will be reviewed, and as necessary, approved by a claims supervisor and/or Claims Manager.

(c) Claims that are 50% of NJSIG’s retention, catastrophic losses or that

meet the criteria under reinsurance or excess reporting guidelines shall be reported to the reinsurer/excess carrier immediately.

(d) All claims are reviewed on a periodic and as needed bases by the claims

adjuster and supervisor.

6. Recovery/Subrogation

(a) Claims with subrogation recovery and/or contribution potential shall be identified, investigated and documented.

(b) If subrogation, recovery and/or contribution is to be waived or

compromised, it must be approved by the Claims Manager. 7. General

(a) Loss Control will be notified of conditions which may require corrective measures. Loss Control will contact the Member and ensure the condition is given appropriate attention.

(b) A proof of loss will be required on all property claims. The proof of

loss must be signed and notarized by the school business administrator. D. PRODUCTIVITY/PENDING STANDARDS

1. The guidelines below indicate the number of files each claims adjuster should

handle by position.

Property/Liability claim representative to 150 senior claim representative to 150 claim examiner to 150

Workers’ Compensation claim representative to 175 senior claim representative to 180 claim examiner to 185

Claims supervisors shall have claims adjusters under their direct supervision, reviewing all files on a scheduled and as needed basis.

12 Rev.: 5/8/17

2. Productivity Guidelines

(a) The goal is for all claims adjuster to close one file for every file that is opened.

E. LEGAL CLAIM HANDLING

1. Counsel Billing (a) Counsel bills must be submitted for each matter, adhering to NJSIG’s

litigation guidelines. Itemized bills should contain a description of each charged activity, date of service and time allocated for each activity. The bills must indicate total time spent and total charges. The claims adjuster is expected to audit each bill and communicate with counsel on questionable charges.

2. Legal Handling

(b) Counsel should perform only legal work. Investigative activities should be conducted by the claims adjuster. The claims adjuster and counsel should work together to determine who is appropriate to handle negotiations All negotiations shall be documented in the file and confirmation of that authority shall be provided to counsel.

F. CLAIM PAYMENT PROCEDURES

1. Once a medical, legal, or service bill is verified, the claims adjuster shall highlight the amount to be paid. The claims adjuster shall initial the bill, date it, indicate the payment and coverage type, and forward it to the bill processor for payment. The bill processor must verify the payment. Bills are to be paid within ten (10) calendar days of receipt, unless further clarification is necessary.

G. INCOMING/OUTGOING CORRESPONDENCE

1. All incoming mail is date stamped on the same day it is received and tasked to the

respective claim adjuster. Prior to close of business, the claims adjuster will process the task and determine if it is a priority or scheduled activity for a later date.

2. Any correspondence without an addressee or claim number will be brought to the

attention of a claims supervisor for further action.

H. OUTSIDE INDEPENDENT ADJUSTERS ASSIGNMENTS

1. The claims adjuster maintains control of any investigation. Should the services of an independent appraiser or adjuster become necessary, their activities and direction are guided by the NJSIG claims adjuster.

I. REPORTING GUIDELINES WORKERS’ COMPENSATION

A summary report will be completed within ten (10) business days by the claims adjuster.

13 Rev.: 5/8/17

The contents of that report shall include:

1. Occurrence/accident description 2. Compensability acceptance/denial – if denied explanation 3. Injury 4. Subrogation 5. Action plan 6. Reserve

The above information shall be added as an entry into the claims file. This information should be brief with an explanation in each category. An annual report is to be done one year from the date the file was assigned, as well as each year the file remains open.

J. REPORTING GUIDELINES - GENERAL LIABILITY/AUTOMOBILE LIABILITY

A summary report will be completed within fifteen (15) business days by the claims adjuster. The contents of that report shall include:

1. Description of loss/occurrence

2. Liability 3. Damages 4. Action plan 5. Reserves

The above information shall be added as an entry into the claims file. This information should be brief with an explanation in each category. An annual report is to be done one year from the date the file was assigned, as well as each year the file remains open.

K. REPORTING GUIDELINES - PROPERTY

A summary report will be completed within fifteen (15) business days by the claims adjuster. The contents of that report shall include:

1. Description of loss/occurrence 2. Coverages 3. Scope of damages 4. Action plan 5. Reserve

The above information shall be added as an entry into the claims file. This information should be brief with an explanation in each category.

14 Rev.: 5/8/17

An annual report is to be done on year from the date the file was assigned, as well as each year the file remains open.

L. REHABILITATION GUIDELINES - ADMINISTRATIVE CONTROLS

1. The following criteria shall be used when a claim is to be referred for medical rehabilitation.

(a) The following injuries are to be immediately referred:

- Spinal cord injuries - Serious head injuries - Amputations - Severe burn - Crush injuries - Heart Problems - Stress-related disorders - Serious eye injuries - Complex regional pain syndrome (RSD)

(b) Other possible referrals, post initial injury, could include:

- Herniated disc - Multiple fractures - Exacerbation of pre-existing condition - Exacerbation of congenital condition - Extensive over-treatment for a soft tissue injury

V. GENERAL COMMENTS

A. DISCRETIONARY SETTLEMENT AUTHORITY

Pursuant to a school’s workers’ compensation policy, NJSIG will pay medical and loss wage benefits when such payments are warranted, legal or as ordered by a court. There may be some claims however, where either liability or amount of benefit due is contested. The Board of Trustees approved the following authority for the settlement of contested workers’ compensation claims:

Settlement Authority

$1—$500 bill processor $501 - $60,000 claim representative and senior claim

representative

15 Rev.: 5/8/17

$60,001 - $120,000 claim examiner $120,001 - $200,000 claim supervisor $200,001 - $300,000 claim manager $300,001 – Up Board of Trustees The Claim Manager shall have discretion to adjust any individual’s authority under $300,000. All lines of coverage, other than workers’ compensation, are subject to the following settlement authority:

Settlement Authority $1—$5,000 bill processor $5,001 - $35,000 claims representative and senior claims

representative $35,001-$60,000 claims examiner $60,001-$90,000 claims supervisor $90,001-$200,000 claims manager $200,001-$300,000 claims manager and chief legal officer $300,001-above Board of Trustees

The Claim Manager shall have discretion to adjust any individual’s authority under $200,000. NJSIG recognizes that there may be instances where the Board of Trustees has approved authority and facts arise that indicate more settlement authority is required. It may be impossible to reconvene the Trustees timely to consider the matter further. The Trustees authorize the Claims Manager, Chief Legal Officer and one member of the NJSIG claims committee for the purpose of extending additional authority on such cases, in an amount not to exceed 120% of the original extended authority. Should this occur, the Claims Manager shall report it to the Trustees at the next regularly scheduled Board of Trustee meeting.

16 Rev.: 5/8/17

B. CLAIMS COMMITTEE

In the event that settlement authority is required before the next regularly scheduled meeting, the Claims Committee shall be convened. The claims committee is comprised of the Claims Manager, the Chief Legal Officer and up to three (3) Board of Trustee Members. The Claims Committee shall have authority to approve claims, provided that the amount is recommended by both the Claim Manager and the Chief Legal Officer. All three Trustee participants will be notified of all meetings, however, only one Trustee is required to participate in order to extend settlement authority, in addition to the Claim Manager and Chief Legal Officer. Agreement by a simple majority of attendees, along with the recommendation of the Claim Manager and Chief Legal Officer, shall be sufficient to establish settlement authority.

C. FINANCIAL MANAGEMENT

All actuarial, investment and banking functions of NJSIG are outlined in NJSIG’s policies, cash management plan, procedures and bylaws.

D. SAFETY AND LOSS PREVENTION

In an effort to identify and prevent loss, NJSIG will implement safety and risk control programs and procedures intended to reduce and eliminate conditions or practices which may lead to loss.

E. STANDARDS OF PARTICIPATION

The following are the eligibility requirements for participation as approved by the Board of Trustees:

1. The Member’s five (5) year claims history, policies and risk management philosophy should demonstrate safety performance consistent with NJSIG’s requirements.

2. A safety inspection and evaluation, where required, conducted by NJSIG’s

Safety and Loss Control department to confirm that the Member meets NJSIG’s safety standards.

3. Members must develop a safety committee and actively participate in NJSIG

sponsored safety programs and trainings.

4. Members must be in compliance with all Federal and New Jersey Statutes governing the operations of public schools and the accompanying regulations.

5. Member must promptly pay all premiums or other obligations arising out of or

related to the Member’s participation in NJSIG.

6. Actively participate in all NJSIG sponsored or directed meetings, programs or activities to ensure the continued successful operation of NJSIG.

17 Rev.: 5/8/17

NJSIG’s will notify the Member of any eligibility concerns as outlined above. In each case, NJSIG will work with the Member to address and correct, as necessary, the concerns. Continued improvement with safety and loss control programs, as guided by a member of the NJSIG Safety and Risk Management team, will be required to remain eligible. Should a Member fail to work with NJSIG in addressing any eligibility concern, NJSIG may seek termination of membership as outlined in the NJSIG Bylaws.



www.njsig.org

1-888-NJ Pool 1


Second Reading Proposed 2017/2018 Meeting Dates

Each year the meeting dates are set for the next fiscal year. Below are the updated proposed meeting dates for the July 1, 2017 to June 30, 2018 fund year.

September 20, 2017

October 24, 2017

November 29, 2017

March 21, 2018

May 16, 2018

June 27, 2018 Recommended Resolution: to approve the proposed 2017/2018 meeting dates as shown above as a second reading. William Mayo William Mayo, CPCU, ARM Executive Director



www.njsig.org

1-888-NJ Pool 1


Checking Accounts and New Claims

Attached are the check registers for May 2017. In addition, attached is a list of all new claims. The claims list has been provided to coincide with the check registers. The list includes all new claims for May 2017. This report shows the nature and financials for each claim. Recommended Resolution: Approve and ratify the checks and new claims which have been issued from accounts XXXX392 (operating account), XXXX555 (TD Bank claim account) and XXXXXXX229 (investors Bank claim account) for the period of 5/1/2017 to 5/31/2017 as shown in the online (Microscribe) version of the meeting package. William Mayo William Mayo, CPCU, ARM Executive Director

Documents

divider page 5 18 16 - NJSIG · [email protected] Gene Mercoli ERIC South Sub Fund Liaison v Cumberland Cnty. Voc. 601 Bridgeton Avenue Bridgeton, NJ 08302 O: (856)