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loci -1r �9 <br />A i <br />SIVER INSURANCE MANAGEMENT CONSULTANTS <br />Mr. James Chandler <br />October 11, 1989 <br />Page Four <br />RECOMMENDATION <br />(Continued) <br />BOOK 16 PAGE i.9I <br />LOSS RESERVES <br />Under the recommended program the County would accept <br />a self insured retention on the Workers' Compensation <br />($175,000 per accident) and the Liability coverages <br />($500,000 per occurrence). <br />In anticipation of the County's assuming self insured <br />retentions, an actuarial study was performed by Coopers <br />& Lybrand to project the anticipated amount of losses <br />which the County would assume (pay itself) based on <br />various self insured retention combinations. <br />Based on the Coopers & Lybrand study, we recommend that <br />the County establish minimum loss reserves of $800,000 <br />to fund the anticipated ultimate cost of losses under <br />the self insured retentions for accidents and occurrences <br />during the next year. <br />SUMMARY OF COSTS <br />Based on the exposure data (payrolls, property values, <br />etc.) provided to us by the County the following is <br />the estimated annual cost of the various coverages and <br />services: <br />Property Insurance Program <br />Liability Insurance Progam <br />Claim and Risk Manag. Svc. <br />Boiler & Machinery Insurance <br />Liquor Liability Insurance <br />Excess Workers' Compensation <br />Public Officials E&O Tail <br />Total Coverages & Services <br />Loss Reserves <br />Total Cost <br />$144,591 <br />43,652 <br />57,175 <br />9,931 <br />4,096 <br />79,340 <br />33,466 <br />$372,251 <br />$800,000 <br />$1,172,251 <br />This summary does not include the cost of run-off claims <br />services which are actually a cost resulting from the <br />expiring program. We estimate these services should cost <br />in the $15,000 to $20,000 range. <br />48 <br />