FYI

- Michael Hammond

2006 Member Satisfaction Survey Results

Each MVRMA Trustee was asked to complete the Membership Satisfaction Survey as a part of our 2006 work plan. The survey serves as MVRMA’s report card and provides feedback to the Board, staff and our service providers regarding service delivery. Respondents were asked to evaluate MVRMA’s services using a scale of 1-5 with 5 being "exceptional service with very positive results" and 1 being "service is unacceptable." Nineteen of MVRMA’s twenty members completed the survey. Staff compiled the responses and compared the results to the three previous surveys.

The results of this year’s survey will be discussed with MVRMA Trustees at the June Quarterly Board Meeting. A rating of 4 or higher with an upward rating trend is the goal in each category.

I am pleased to report the following summary results of the 2006 Membership Satisfaction Survey:

Claims Administration Services: This service was rated by the Members as having one of the highest levels of satisfaction. The overall rating was 4.5 compared to 4.5 and 4.7 in 2004 and 2003, respectively. One member commented, "We are most satisfied with the claim efforts and support." Another stated, "Very important in the decision making process here at the City. We know that our claims are in good hands." A final comment urged, "Please continue to aggressively fight lawsuits and defend our rights and interests."

Loss Control Services: The membership expressed a high level of satisfaction in this area with an overall rating of 4.2 compared to 4.2 and 4.3 in 2004 and 2003, respectively. Members’ comments included, "The last loss control visit was most helpful in moving us further down the line to improve our loss control efforts. The message sent is one of commitment and passion for doing the right thing within our cities for this important program. An excellent job in providing support and advice when needed." Finally, members expressed a desire to update the video training library.

Brokering Services: The overall evaluation was 4.3 compared to 4.1 in both 2004 and 2003. This rating reflected increased satisfaction in responsiveness to questions and concerns, participation at Board Meetings and quality of risk management consultation services. Members’ comments seemed to reflect increased satisfaction with the recent change in brokering services. Comments included, "Current arrangement certainly seems to be working well. The pool is well represented in handling the purchase of insurance."

Support Services: This service was also rated by the members as having the highest level of satisfaction. The overall satisfaction of 4.5 compares to 4.6 in both 2004 and 2003. Members rated responsiveness to questions or concerns very high at 4.8. Of the 10 items rated in this category, 8 received a rating of 4.0 or better. Typical comments included, "A well run operation staffed by dedicated and caring professionals. The administration is outstanding and is the backbone of the organization. (Staff) Will do what is necessary to get a response to any question we may have."

Litigation Services: Members have contact with one of three firms that we use for general litigation services. Though some members may have a somewhat limited contact with MVRMA’s attorneys, the overall opinion of litigation services was one of satisfaction and confidence. The overall evaluation for litigation services provided by Dinsmore & Shohl was 4.0, while both Surdyk, Dowd & Turner and Subashi, Wildermuth & Ballato received 4.3.

Governance Activities: The members provided an overall evaluation of management and governance activities at 4.4 compared to 4.3 and 4.4 in 2004 and 2003, respectively. Keeping members informed on key issues received the highest mark of 4.7. The five individual areas rated under this category have consistently received high marks over the last four surveys. Members commented, "It is an effective Board that has proven itself capable of handling different viewpoints professionally. The committee process is a very good one and does a good job of addressing any potential problems. Staff does an excellent job of informing and educating Board Members on pertinent issues."

Workers’ Compensation TPA Services: The overall evaluation of TPA service activities was 4.2 compared to 4.2 and 4.0 in 2004 and 2003, respectively. One member commented, "CompManagement is always available to answer the questions we ask."

Miscellaneous: The final section of the survey asked members to provide input on current or additional services and the overall benefit of membership in MVRMA. Some of the responses included:

l Supervisory and management-focused training have been very beneficial for our staff.

l The level of training and partnering with both MVCC and CLG only enhances what we are receiving.

l Research additional training on "hot topic" issues-including the HR track.

l This is a nicely operated organization, and it has proven to be highly cost-effective.

l The MVRMA staff makes you feel as if your issue is their most important issue of the day.

l Our city is much stronger financially and procedurally through our MVRMA membership.

The 2006 Membership Satisfaction Survey results reflect a continued high level of member satisfaction. The MVRMA staff and service providers appreciate the confidence shown by members. Much of MVRMA’s success can be attributed to building relationships and providing cost effective risk management services. Providing service is at the center of what we do.

A complete copy of the 2006 survey results is available by contacting the MVRMA office.

back to top

Counselors' Comments

 - Dinsmore & Shohl

Effective June 30, 2006, Sub. S.B. 7 becomes law in the State of Ohio, and with the exception of some reimbursements available to self insured employers, will apply to claims arising on or after the Bill’s effective date. Originally introduced in January of 2005, this workers’ compensation reform will provide some additional benefits for employees, including an increase in the minimum wage to match the federal minimum, which is currently $5.15 per hour. However, for the most part, the Bill will benefit employers of those individuals who are injured while working in the State of Ohio.

Some of the highlights of Sub. S.B. 7 include the following:

l reduces the waiting period for filing a permanent partial disability application from 40 to 26 weeks;

l specifies that an employee may not receive more than 226 weeks of working and non-working wage loss in the aggregate;

l clarifies the definition of permanent total disability, and provides specific factors that will not be considered in determining whether to award PTD benefits;

l clarifies that individuals confined in a county jail, state or federal correctional institution may not receive compensation during the period of confinement;

l increases the award for facial disfigurement from $5,000 to $10,000;

l eliminates claims for psychological conditions when there is no physical injury to the claimant, except where psychiatric conditions have arisen from sexual conduct in which the claimant was forced by threat of physical harm to engage or participate;

l requires "substantial aggravation" of pre-existing conditions and specifies that if a condition that pre-existed an injury is substantially aggravated, once that condition has returned to a measurable level that would have existed without the injury, no compensation or benefits are payable because of the pre-existing condition;

l specifies that a claimant may not dismiss a complaint filed with the Court of Common Pleas concerning an appeal of an Industrial Commission decision without the employer's consent if the employer is the party that filed the initial appeal, but increases the attorney fee award for a successful claimant to $4,200;

l expands the definition of workers' compensation fraud to include altering, forging or creating workers' compensation certificates to falsely show correct coverage, providing false information when that information is needed to determine an employer's actual premium or assessment and failing to secure or maintain workers' compensation coverage with the intent to defraud the Bureau;

l prohibits persons, healthcare providers, managed care organizations and their owners from obtaining or attempting to obtain by deception, payments under the workers' compensation law to which they are not entitled.

Every new piece of workers' compensation legislation enacted in Ohio since the early 1980s has been challenged as being unconstitutional, and it is likely that S.B. 7 will likewise be the target of a constitutional challenge by those representing organized labor. Therefore, how much of the new Act will survive, and what effect it will have on employer premiums in the State of Ohio remains to be seen.

back to top

The Claims File

- Craig Blair

Many of our member cities provide transportation services through their parks or public works departments. While these programs are necessary and fill a needed and valuable service to the community, the municipalities involved must realize the liability exposure they have assumed. When engaged in these activities, the municipality is generally recognized as performing the duties of a common carrier, which makes the program a "Proprietary Function." As noted in the April issue of Risky Business, a city’s "Proprietary Functions" generally can not take advantage of the statutory or immunity defenses available under O.R.C. 2744.

Many of these programs are designed to assist the elderly or physically handicapped. With this type of passenger, a minor incident can lead to a serious injury, and the city does not want to inflict any pain or suffering on the very citizens it is trying to help. The first step toward minimizing the risk is to properly evaluate the drivers you hire. These drivers must be able to physically assist passengers as they enter or exit the vehicle without endangering themselves or the passengers. Secondly, these drivers must be trained to properly secure passengers and their wheelchairs for transport.

MVRMA realizes the following recommendation would not be practical for a "cab-type" service, but when a member city provides transportation through a city sponsored program (i.e., taking people to dinners, concerts, camps, etc.), a waiver or release form should be signed by all passengers or their guardians. This document is the best way to protect the city from exposure to an injury claim and is a valuable tool, if a claim is pursued in the courts. If needed, MVRMA can provide assistance in drafting a waiver or release form for your program.

back to top

Loss Control Lowdown

-Starr Markworth

It’s June and summer is finally here. For most of us, summer means fun in the sun. But for city employees who work outside, summer can mean extreme temperatures and humidity. The summer heat can cause several common conditions that may land unsuspecting people in the emergency room. Be aware of the following conditions and get treatment for workers who experience symptoms.

Dehydration occurs when the body takes in less fluid than it is losing. Early warning signs of dehydration include: clumsiness, stumbling and excessive sweating.

Heat cramps are one of the most common heat-related ailments. They occur when muscles spasm because they don’t have enough sodium or potassium. The cramps usually occur in large muscles, such as the calves and legs, and may occur while exercising or as much as three hours later. Replacing the lost electrolytes, in the form of water or a sports drink, usually brings relief.

Heat exhaustion is slightly more serious. This condition occurs when the body cannot sweat enough to cool down. It happens when working or exercising in hot weather. Symptoms include fatigue, weakness, dizziness or nausea and skin that is cool, moist, pale or flushed. If untreated, heat exhaustion can lead to heat stroke, which requires immediate emergency treatment.

Heat stroke occurs when your body stops sweating and your temperature continues to rise, often to 105 degrees or higher. Heat stroke can be accompanied by confusion, unconsciousness and skin that is red, hot and dry. Each year, more than 4,000 people die of heatstroke, with construction workers and firefighters the most frequent victims.

Be safe, not sorry, by preventing these dangerous heat conditions both on the job and at home. When exercising or working outside in the summer heat, be sure to drink plenty of cool water, about 1 cup every 15-20 minutes, even if you are not thirsty. And, avoid alcohol, coffee, tea and caffeinated soft drinks because they dehydrate the body.

A quick card for heat safety is available for download on the OSHA website:

If working in the summer heat is an area of concern for your city, please contact me at 937-438-8878 or email smarkworth@mvrma.com. Videos from the MVRMA library can enhance your summer safety training and hopefully prevent any problems from the long hot summer ahead.

back to top

Brokers Beat

Property Appraisals

MVRMA performs appraisals on all structures valued in excess of $50,000 and annually updates those values. In this article, we will provide information on the purpose for the appraisals, how they are performed, what they mean and how MVRMA and insurance carriers use them.

Insurance companies base the rates and premiums they charge for property insurance on the total insurable value of the property they are insuring. The logic is: an insured with twice the property value or exposure as another insured should pay twice the premium, all other things being equal. The concept behind this logic is referred to as "insurance to value," and it is one of the key elements in developing property rates and premiums that are fair and equitable.

Because it is sometimes difficult to determine property values, and because there are some that would insure below value in order to reduce insurance costs, it is difficult to enforce "insurance to value." However, there are a number of different ways in which carriers impose arrangements that attempt to keep values at adequate levels. The first is coinsurance. Under a policy with a coinsurance clause, the carrier will pay claims in proportion to the declared value and the value of the property at claim time (i.e., if declared property is 70% of real value, claims are paid 70% to value). Another arrangement is a margin clause that restricts claim payments for property that is underinsured.

For public entities and public entity pools, carriers often use appraisals as a method to implement "insurance to value." In addition to the appraisals MVRMA requires, the insurance companies, under MVRMA’s excess property insurance placement, perform appraisals on all buildings over $5 million in value every three years. In return for these appraisals, MVRMA’s excess property carriers issue policies that are free of coinsurance and margin clauses that limit claim payments. The only limitation on MVRMA’s property policy, with respect to insurance value, would occur if claims were to exceed declared property values by $40 million.

Appraisals are generally done by a certified professional appraiser in the course of a visit to the building site. Information gathered includes area, number of stories, type of construction, type of occupancy, quality of construction and other building features such as air conditioning, sprinklers, heating, etc. The appraiser then refers to information tables that allow an estimate for the rebuilding cost of the structure. In this process, there are deductions for items that are not covered under the policy, such as grading, underground pipes away from the structure and land, to name a few. The appraiser also estimates the amount of building contents or personal property based on the building value and type of occupancy. Since MVRMA has a replacement policy form, the basis for MVRMA's appraisals is the reconstruction value and personal property replacement price. Appraisers can also use a depreciated or actual cash value basis as an option. It should be noted these values are not the same as the real estate values a tax or loan appraiser might use. It should also be noted, the appraisal process is subjective and is sometimes more of an art than a science and can produce estimates with some degree of error.

The insurance carrier and MVRMA both adjust the appraised values annually in a process called trending, in order to keep values current for inflation. Currently, trending adjustments are somewhat higher because the price of building materials such as steel, lumber and cement have all risen significantly in the recent past.

The result of the appraisal process is to create "insurance to value" allowing MVRMA to provide a property insurance cost basis to all members that is fair and equitable. It allows an insurance form that is relatively free of claim payment limitations because of inadequate values. Additionally, MVRMA uses the same appraised property values when determining each member’s annual pool contribution factor (PCF).

back to top

Coming Events

Confined Space Entry

MVCC

Confined Space Entry

Premier Safety

Hand Tool Safety

Disaster Planning and Recovery

Strategic Planning Retreat

8:30 am - 4:00 pm

Beavercreek Golf Club

Fall Protection

Vacant Buildings- Proper Care and Maintenance

PRIMA Annual Conference

Milwaukee, WI

MVRMA Quarterly Board Meeting

9:00 am

MVRMA Offices

back to top

 Making Your City Safe

In the News...

back to top