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<br /> Indian River County,Florida
<br /> Notes To Financial Statements
<br /> Year Ended September 30, 2012
<br /> NOTE 22 -RISK MANAGEMENT I
<br /> General Liability,Property, Worker's Compensation and Medical
<br /> The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of
<br /> assets, errors or omissions, injuries to employees, and natural disasters. The County established a Self
<br /> Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under
<br /> this program, the Self Insurance Fund provides coverage as follows:
<br /> 04/01/08 to 10/01/08 to 05/01/11 to j
<br /> 09/30/08 04/30/11 09/30/12
<br /> Worker's Compensation $ 300,000 $ 350,000 $ 350,000
<br /> General Liability 250,000 250,000 200,000
<br /> Auto Liability 250,000 250,000 200,000
<br /> Property Damage 500-25,000 250,000 200,000
<br /> Error or Omissions 250,000 250,000 200,000
<br /> Annual Aggregate 1,000,000 2,000,000 2,000,000
<br /> Liquor Liability 1,000,000 1,000,000 1,000,000
<br /> The County purchases excess insurance to cover claims in excess of the amounts listed above. There is
<br /> a 5% deductible per location for property damages arising due to a hurricane under the reinsurance
<br /> policy. All departments of the County participate in the program. Payments are made by various funds
<br /> to the Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay
<br /> current year claims. The County has received one reimbursement, for a liability claim in excess of the
<br /> general liability limit, in the amount of$134,820 in fiscal year 2012. The prior two fiscal years did not
<br /> incur any excess settlements.
<br /> The County is also self insured for medical claims covering employees and their eligible dependents.
<br /> As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the
<br /> same health care coverage as is offered to active employees; however, the retirees are responsible for
<br /> payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees
<br /> and by the County. Premiums and contributions are determined by projected claims based on historical
<br /> and actuarial experience. The self insurance plan assumes all risk for claims, other than worker's f
<br /> compensation, up to $250,000 per occurrence. The County has purchased a reinsurance policy to cover !
<br /> claims in excess of these limits. There were no claims in excess of these limits for current and prior
<br /> two fiscal years.
<br /> The claims liability of $8,074,000 reported at September 30, 2012, is based on the requirements of
<br /> generally accepted governmental accounting standards, which require that a liability for claims be
<br /> reported if information prior to the issuance of the financial statements indicates that it is probable that
<br /> a liability has been incurred at the date of the financial statements, and the amount of the loss can be
<br /> reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and
<br /> recorded. Based on the actuary's report, $2,197,855 will be liquidated over the next twelve months.
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