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Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2018
<br />NOTE 18 - RISK MANAGEMENT
<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 />Worker's Compensation
<br />General Liability
<br />Auto Liability
<br />Property Damage
<br />Error or Omissions
<br />Annual Aggregate
<br />Liquor Liability
<br />10/01/14 to
<br />9/30/2015
<br />$ 750,000
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />2,000,000
<br />1,000,000
<br />10/01/15 to 10/01/16 to 10/01/17 to
<br />9/30/2016 9/30/2017 9/30/2018
<br />$ 650,000
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />2,000,000
<br />N/A
<br />$ 650,000
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />2,000,000
<br />N/A
<br />$ 650,000
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />2,000,000
<br />N/A
<br />All departments of the County participate in the program. Payments are made by various funds to the
<br />Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current
<br />year claims. The County has received three workers compensation reimbursements totaling $1,685 in
<br />fiscal year 2018, three workers compensation reimbursements totaling $37,643 in fiscal year 2017, and
<br />two workers compensation reimbursements totaling $49,222 in fiscal year 2016.
<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. In fiscal year 2018, the County was approved by the insurance carriers to receive approximately
<br />$1.03 million in insurance recoveries related to Hurricane Irma damage.
<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
<br />compensation, up to $300,000 per occurrence. The County has purchased a reinsurance policy to cover
<br />claims in excess of these limits There were eleven medical claim reimbursements totaling $471,549 in
<br />excess of the $300,000 limit for fiscal year 2018. In fiscal year 2017 there were three medical claim
<br />reimbursements totaling $61,593 and in fiscal year 2016 there were none.
<br />The claims liability of $8,439,000 reported at September 30, 2018, 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.
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