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Acting Administrator Collins explained that in the material presented by Mrs. Tillman on the Gallagher -Bassett, it states that "Deductible does not include claims service or Attorney fees which are considered part of claim." He read this to mean that we would have to pay that -unless we bought their claims service package. Mrs. Tillman believed that is included in their premium and that it is considered part of a claim, and Glen Tobey, the representative from Gallagher -Bassett, confirmed that it is in the actual policy; it is included in the ultimate net loss; so the $48,000 figure cited by Acting Administrator Collins should not be added. Mrs. Tillman then pointed out that with the Florida League of Cities you have to add extra monies as there are no figures included for audits during the year of both General Liability and Worker's Compensation. She believed the audits for this last year will amount to $92,000 each, and those figures should be added into their total premium. Byron Cotrell, representative from the Florida League of Cities, advised that they expect to make a return on General Liability because the tax will drop the premiums $100,000 from last year to this year on the renewal, and the audit is expected to come down also. Acting Administrator Collins believed the audits referred to by Mrs. Tillman are a state requirement, and he asked if it wouldn't be the same for any carrier. Mrs. Tillman stated that when you are dealing with a self-insured type program, you do not have to comply with those rules. The Florida League of Cities does have to comply with them, and therefore, we do have to adjust their figures based on state rates. They have to audit our expenditures throughout the year and see what has changed and then possibly increase our premium or possibly decrease it, but she has never seen a decrease. 56 NOV 11988 BOOK 75 fr1%E 56