Public Risk May/June 2015

Published by the Public Risk Management Association

www.primacentral.org

MAY/JUNE 2015

ARIZONA RISK MANAGER BECOMES PRIMA'S PRESIDENT

MEET DEAN COUGHENOUR PLUS

AUTONOMOUS TRANSIT: Taking Shape and Reducing Risk Are Your Employment Practices About to Go

‘UP IN SMOKE?’

PREDICTIVE ANALYTICS A Workers’ Compensation Game Changer Getting Started with Enterprise Risk Management:

STEPS TO SUCCESS ANNUAL CONFERENCE PREVIEW

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Volume 31, No. 5 | May/June 2015 | www.primacentral.org

The Public Risk Management Association promotes effective risk management in the public interest as an essential component of public administration.

PRESIDENT Regan Rychetsky, ABCP Director, HHS Enterprise Risk Management and Safety Texas Health and Human Services Commission Austin, TX

CONTENTS

PAST PRESIDENT Betty Coulter Director of Risk Management and Insurance University of North Carolina at Charlotte Charlotte, NC PRESIDENT-ELECT Dean Coughenour, ARM Risk Manager City of Flagstaff Flagstaff, AZ

6 6 Arizona Risk Manager Becomes PRIMA's President MEET DEAN COUGHENOUR

By Jennifer Ackerman, CAE

12 AUTONOMOUS TRANSIT:

Taking Shape and Reducing Risk

By Jeffrey Meyers and John Willemsen

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DIRECTORS Ed Beecher Risk Manager City of Pompano Beach Pompano Beach, FL Terri Evans Risk Manager City of Kingsport Kingsport, TN Scott Kramer Risk Manager Montgomery County Commission Montgomery, AL Amy Larson, Esq. Risk and Litigation Manager City of Bloomington Bloomington, MN Scott Moss, MPA, CPCU, ARM-E, ALCM P/C Trust Director CIS Salem, OR

16 Are Your Employment Practices About to Go ‘UP IN SMOKE?’

Tracy Seiler, ARM-P Director of Risk Management Services Texas Association of Counties Austin, TX

NON-VOTING DIRECTOR Marshall Davies, PhD Executive Director Public Rick Management Association Alexandria, VA

By Sarah R. Schmitz

22 PREDICTIVE ANALYTICS

A Workers’ Compensation Game Changer

By Brian Billings

26 Getting Started with Enterprise Risk Management: STEPS TO SUCCESS

By Carrie Frandsen and Lisanne Sison

30 ANNUAL CONFERENCE PREVIEW

By Jennifer Ackerman, CAE

IN EVERY ISSUE 4 News Briefs | 31 Advertiser Index | 32 Member Spotlight

EDITOR Jennifer Ackerman, CAE Deputy Executive Director 703.253.1267 • jackerman@primacentral.org ADVERTISING Donna Stigler 888.814.0022 • donna@ahi-services.com Public Risk is published 10 times per year by the Public Risk Management Association, 700 S. Washington St., #218, Alexandria, VA 22314 tel: 703.528.7701 • fax: 703.739.0200 email: info@primacentral.org • Web site: www.primacentral.org Opinions and ideas expressed are not necessarily representative of the policies of PRIMA. Subscription rate: $140 per year.

Back issue copies for members available for $7 each ($13 each for non-PRIMA members). All back issues are subject to availability. Apply to the editor for permission to reprint any part of the magazine.

POSTMASTER: Send address changes to PRIMA, 700 S. Washington St., #218, Alexandria, VA 22314.

Copyright 2015 Public Risk Management Association Reprints: Contact the Reprint Outsource at 717.394.7350.

MAY/JUNE 2015 | PUBLIC RISK

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Message from PRIMA President Regan Rychetsky, ABCP

THANK YOU

M

y goal was to serve at the national level and give back to an organization that has given me a foundation from which to build my programs and professional network. You gave me that opportunity with your faith in my ability to lead PRIMA over the past year. Now, my journey as president of PRIMA is coming to an end. It is hard to believe that a year has elapsed. It has been an honor and privilege to represent this great organization. I am humbled by the faith and trust you had in my ability to carry out the duties of PRIMA President.

I also want to recognize the PRIMA staff, led by Executive Director Marshall Davies, for their commitment to providing our members with exceptional opportunities to expand our educational, professional and networking goals; PRIMA board of directors for their commitment to excellence and hard work implementing the strategic plan that guides this association; and PRIMA members who volunteered to serve on committees to help this association grow and choose our future leaders; and our great membership, who is the foundation of PRIMA. PRIMA is moving closer to achieving our goal of being the primary source for public risk management educational programs, products and services. Diversification of educational programming to meet the needs of our current and future members will ensure long-term sustainability in a continuously evolving field of public risk management. PRIMA must be on the cutting edge of public risk management education to remain viable to our members, and we are achieving this goal through educational offerings at or through Annual Conference, PRIMA Institute, ISO 3100 Risk Management Standard, webinars and podcasts.

PRIMA must continue working to achieve the vision of

being the recognized leader in public risk management, and exercise the mission of advancing the knowledge and practice of public risk management. This is essential for the continuity of a PRIMA that is visionary and relevant.

I welcome two new PRIMA board members, Jani Jennings, risk, insurance and safety manager, City of Bellevue, Neb., and Lori Gray, risk manager, Prince William County, Va. I know they will do a great job, and I look forward to working with them on the board.

A heartfelt ‘Thank You’ to outgoing board members, Ed Beecher, risk manager for Pompano Beach, Fla.; Amy Larson, risk and litigation manager, City of Bloomington, Minn.; and Betty Coulter, director of risk management and insurance, UNC-Charlotte. I have the pleasure of turning the helm over to Dean Coughenour, risk manager for the City of Flagstaff, Ariz. Dean brings great energy and will be an outstanding leader for PRIMA. As you move through life, please take time to thank current and former members of our armed forces. Remember the sacrifices they make to ensure we are a free society.

It is hard to believe that a year has elapsed. It has been an honor and privilege to represent this great organization. I am humbled by the faith and trust you had in my ability to carry out the duties of PRIMA President.

It has been an honor. See y’all in Houston.

Regards,

Regan J. Rychetsky, ABCP 2014–2015 PRIMA President Director, HHS Enterprise Risk Management and Safety Texas Health and Human Services Commission

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News Briefs

NEWS

BRIEFS STUDY: MORE PEOPLE COULD SURVIVE TSUNAMI IF THEY WALK FASTER About 5,500 more people could survive a major tsunami hitting the Pacific Northwest if they just walk a little faster to higher ground after roads are knocked out, a new study shows.

The report published in the Proceedings of the National Academy of Sciences looked at 73 communities along 700 miles of coastline in Oregon, Washington and Northern California, reports the Santa Cruz Sentinel. The area is considered most at risk from the next major earthquake and tsunami in the Cascadia Subduction Zone, where two plates of the Earth's crust come together miles off the coast.

Emergency preparedness experts generally agree that after the quake and tsunami, most roads will be too damaged for driving, so people will have to walk to safety.

Geographers estimated 21,562 residents would not make it to safety if they walk slowly—at about 2.5 mph. But if they walk faster, at about 3.5 mph, the death toll drops to 15,970. About 70 percent of them would be in Washington, nearly 30 percent in Oregon and only 4 percent in California.

The study said people working or staying at motels in the tsunami area also will be at risk, but it didn't say how many. It also noted where communities have dependent-care facilities, where residents might have trouble walking.

Lead author Nathan Wood, a geographer for the U.S. Geological Survey in Portland, Oregon, said the findings show tsunami risks are a public health issue as well as an emergency preparedness issue. Promoting healthy lifestyles that help people walk faster would save lives.

TEACHER PENSION LAW UPHELD IN MICHIGAN SUPREME COURT The Michigan Supreme Court, rejecting arguments from unions, has upheld a 2012 state law requiring teachers and other school employees to put more of their pay toward their pension plans or face cuts to benefits such as post-retirement health care, reports the Detroit Free Press.

The 6-0 ruling upheld a January 2014 ruling by the Michigan Court of Appeals and an earlier ruling by an Ingham County Circuit Court judge. Only the court's newest member, Justice Richard Bernstein, did not participate in the decision.

“We hold that the act does not violate any provision of either the Michigan constitution or the United States Constitution,” wrote Justice Stephen Markman.

The law, backed by Gov. Rick Snyder and the Republican-controlled Legislature, was intended to cut an estimated $45-billion unfunded liability in the Michigan Public School Employees Retirement System by more than $15 billion.

Under the law, school employees hired before 1990—who were paying nothing toward retirement—must contribute 4 percent of their pay or have their benefits cut. Those hired from 1990 to June 2010 must pay 7 percent to keep their pensions intact. Previously, they paid 3 percent to 6.4 percent.

Those hired since the middle of 2010 are in a 401(k)-type pension plan and aren't affected by the law.

In 2012 lawmakers also ended employer-provided health care for new hires, and instead gave them a match of up to 2 percent in their 401(k), plus a lump sum upon retirement to pay for health insurance. Current retirees must pay at least 20 percent of their medical premiums.

The American Federation of Teachers and the Michigan Education Association unions argued the law impaired contracts and amounted to uncompensated takings of pension benefits.

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CELLPHONES AS EARTHQUAKE EARLY WARNING DEVICES? SCIENTISTS HOPE SO Add this to your smartphone’s many functions: in the near future it could help save lives by warning that a powerful, distant earthquake is about to shake the ground, reports the San Francisco Chronicle.

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he ton at t Hous 6 2 n #5 ei oth ferenc o b n t us a al Co See Annu 5 201

Earthquake scientists are proposing that “crowdsourcing” hundreds or even thousands of volunteers with their highly sensitive mobile phones could create a seismic early warning system to alert users of oncoming seismic shocks.

Seismologists in Menlo Park and UC Berkeley are testing the phones and foresee them as particularly useful in developing regions, like Southeast Asia and parts of Africa, that are prone to large and often devastating earthquakes but where more sophisticated warning systems don’t exist.

Simplifying saving lives worldwide.

A study led by scientists at the U.S. Geological Survey found that networks of today’s smartphones could alert the onset of ground-shaking from earthquakes of magnitude 7 or larger. Such a network, however, would be ineffective—at least for now—for smaller quakes that can often be just as damaging as more powerful ones when they hit in crowded cities.

Benjamin A. Brooks, who led the study with USGS colleague Sarah E. Minson, said the team has received a $250,000 grant from the U.S. Agency for International Development to run an early study involving 250 smartphone detectors in Chile, where quakes of magnitude 7 or larger strike every year or two.

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MAY/JUNE 2015 | PUBLIC RISK

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ARIZONA RISK MANAGER BECOMES PRIMA'S PRESIDENT

MEET DEAN COUGHENOUR

By Jennifer Ackerman, CAE

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n Houston, PRIMA will not only host its 2015 Annual Conference, but the association will welcome its 2015 president, Dean Coughenour, risk manager for the City of Flagstaff, Ariz.

Coughenour has been the risk manager in Flagstaff since 2013. Prior to his tenure in “Flag,” Coughenour spent 11 years as the risk manager for the City of Goodyear, Ariz.

Coughenour not only brings a passion for risk management to the role of president, but also years of experience in leadership positions with PRIMA, as well as with his local chapter and pool.

“Dean brings great energy and a `can do' attitude,” said outgoing president, Regan Rychetsky, ABCP. “I have not only served on the PRIMA board with Dean, but also on committees, and he is always thorough and fair in his deliberations. Dean will be an outstanding leader for PRIMA, and I am excited to see him in this new role.”

As president, Coughenour will help shape the future of the association, including its partnership with PERI, which was cemented in 2013.

“I am looking forward to working closely with Dean in his capacity as president,” said PRIMA Executive Director Marshall Davies.

“Dean’s knowledge and participation with the PERI board will help us continue to leverage our partnership with that organization.

Dean understands and fully supports PRIMA’s goal to be the primary source for public risk management education and resources.”

As he prepares for his June 10 inauguration, Coughenour discusses his thoughts on the public risk management profession and his new role with PRIMA.

PUBLIC RISK: HOW DID YOU BECOME A RISK MANAGER? Few risk management professionals, when asked what they want to be when they grew up, answered, “I want to be a professional risk manager.” If we had, I am sure our parents would have immediately taken us to be evaluated!

Like many in our profession, how I became a risk manager evolved over time. In the private sector in the mid-1980s, the cost associated with our employee injuries and liability claims eroded our ability to maintain margins, make a profit and successfully stay in business. Out of that business necessity, a new fledgling risk manager, Dean, was born, which is how I began this wonderful journey.

PR: HOW LONG HAVE YOU BEEN INVOLVED WITH PRIMA? I moved from the “Dark Side” private sector in February of 2003. I knew there was going to be a BIG learning curve for me so I sought out the most professional, education-based organization I could find, PRIMA. It was absolutely the right choice, and I have been a member ever since.

PR: TELL ME ABOUT YOUR CURRENT JOB AND ENTITY. What a joy it is to be where I am, the City of Flagstaff. I have been with the City for less than two years and it is as

if I have died and gone to risk management heaven. The employees truly want to do things right and want to be engaged. I have gained support throughout the organization from the top down and the bottom up. I have the privilege of taking all elements of a risk management program, from litigation management, workers’ compensation, employee safety, contract review, leadership and motivation training, building new training programs and then taking them to the employees in the field. Together, we at the City of Flagstaff have achieved incredible results in such a short period of time. I am simply the “Risk Management Consultant” and I congratulate the 800 risk managers at the City of Flagstaff on their achievements to date.

I have had the privilege to work for several wonderful entities in my career. Flagstaff is where I love to be; for the impact programs have made, the opportunity to serve, the engaged citizens, the approachable city council and most importantly the employees. I am a lucky man.

PR: WHAT IS THE BIGGEST BENEFIT OF BEING INVOLVED WITH PRIMA? People. It seems simple enough, but for me it has been the sharing of challenges, thoughts and experience from and with others that has been an incredible benefit to me.

After 30 years in risk management, I continue to learn things I did not know, or gratefully receive confirmation of what I thought I knew is what I know. The overwhelming willingness to help out and the sharing from my fellow professionals has been a key to my success.

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Meet Dean Coughenour

PR: WHAT ARE YOUR GOALS FOR THE TERM OF PRESIDENCY? There is little that one can do to make changes in a national organization in a 12-month timeframe. The short answer is “don’t break it.” On a more serious note, it would be to move us closer to a feeling that we are all in this together, that we can count on each other, and that together we can build a stronger more energized organization and profession.

“

“

After 30 years in risk management, I continue to learn things I did not know, or gratefully receive confirmation of what I thought I knew is what I know. The overwhelming willingness to help out and the sharing from my fellow professionals has been a key to my success.

PR: WHAT ARE SOME OF THE BEST THINGS PRIMA OFFERS MEMBERS? HELP! None of us know it all, and few of us know a great deal about everything we touch. But together through education, networking, PRIMAtalk, PRIMA Institute and more, we grow in knowledge of our profession and certainly become more valuable to our own organizations.

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PRIMA Institute, talking to your peers through chapter meetings, attending your national educational conference, committee engagement, podcasts, online training and the like, clearly the more you will get out of PRIMA. Many of these opportunities are for little or no money and I would argue that all bring a substantial financial benefit back to your entity that far outweighs the cost of attendance.

PR: WHAT SKILLS DO RISK MANAGERS NEED TODAY THAT THEY DID NOT NEED IN THE PAST? Soft skills. Our ability to move from the transactional to the transformational is becoming increasingly critical to our mission and success as risk managers. To lead, motivate, inspire and engage our employees at all levels and to guide them to think of “themselves” as THE risk managers for the organization will be essential moving forward. This may be difficult for many of us.

By offering training in these areas, PRIMA is readily available today for meeting those needs over the coming years.

PR: WHAT CAN PRIMA DO TO SUPPORT THE NEW CHALLENGES RISK MANAGERS FACE?

PR: WHAT IS THE ONE THING PRIMA OFFERS THAT ITS MEMBERS DO NOT TAKE ENOUGH ADVANTAGE OF?

This is where PRIMA shines. These are the educational sessions at our Annual Conference and the newly revitalized PRIMA Institute. PRIMA Institute is an intensive training course specifically designed to give a jump-start to the new risk manager, while offering the latest innovations and ideas to seasoned professionals—presented by practitioners and thought leaders throughout the public entity risk management universe.

Engagement. The more you put into a thing, the more you get out. So, the more you put into PRIMA and the more you engage in all the things PRIMA has to offer, like PRIMAtalk,

On the horizon, there is a sunset on some of the traditional thoughts and views of what risk management is and a bright

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“If you do nothing, you will get nothing. But if you share your experience with others, attend educational offerings, participate in podcasts and online trainings and just share your stories, the value you see in PRIMA will expand exponentially. I assure you that you will learn something that you did not know, or will discover an approach you did not think of, that will enhance the effectiveness of your program and increase the love you have for our profession.”

sunrise on what it is to become. PRIMA can be a critical tool in helping to bridge the transition.

PR: WHAT PRIMA BENEFITS HAVE YOU TAKEN ADVANTAGE OF? WHAT HAS BEEN THE MOST HELPFUL?

afternoons at my desk. Truly there can be no greater legacy than to have built such a strong culture that it survives and thrives long after I am gone.

Coughenour will be sworn in on Wednesday, June 10, during PRIMA’s annual membership luncheon.

The more we participate, the greater the rewards. Since I first transitioned to the public sector, I have attended Annual Conference each year, I have been extremely active in local chapter both serving on the board and speaking, I have spoken and moderated at the Annual Conference, been on the Leadership Development Committee, Finance Committee, participated in PRIMAtalk and have engaged at as many points as I could. Of all of this however, the most helpful has been the interaction with you, our membership. The most helpful has been gaining new knowledge, new insight and the joy of friendships. It is these things that have made me effective at risk management and have fueled my passion for what we do, help people.

PR: WHAT CAN PRIMA MEMBERS DO TO GET THE MOST OUT OF THEIR PRIMA MEMBERSHIP? Engage—both nationally and locally. If you do nothing, you will get nothing. But if you share your experience with others, attend educational offerings, participate in podcasts and online trainings and just share your stories, the value you see in PRIMA will expand exponentially. I assure you that you will learn something that you did not know, or will discover an approach you did not think of, that will enhance the effectiveness of your program and increase the love you have for our profession.

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PR: WHERE DO YOU SEE YOURSELF IN FIVE YEARS? Here, at the City of Flagstaff, having built a self-sustaining risk management “culture” and taking long naps in the

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AUTONOMOUS TRANSIT: Taking Shape and Reducing Risk

By Jeffrey Meyers and John Willemsen

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n the not so distant future, cars will drive people autonomously—simply climb into the car, program your destination and leave the rest up to technology. Most consumer auto manufacturers are exploring autonomous vehicle development and many already have prototypes for testing. This technology will also have application to public transportation in the future.

THE TECHNOLOGY Autonomous vehicles use a combination of sensors, cameras, GPS, radar and Lidar. One of the more expensive components, Lidar, projects 3D imaging of its surroundings to an on-board computer. The data from these devices is fed into an on-board computer that controls the various functions of the car. As humans, our field of vision is limited to what we can see in front of us with some peripheral vision. With this technology, vehicles can see in full view—360 degrees and with a further line of sight.

According to the National Highway Traffic Safety Administration, there are five levels of vehicle automation.

Level 0 The human driver is in complete control of all functions of the car.

Level 1 One or more functions is automated, but under human control (e.g., electronic stability control or precharged brakes).

More than one function is automated at a the time, but the driver remains attentive (adaptive cruise control in combination with lane centering technology).

Level 3 Driving functions are sufficiently automated under certain traffic or environmental conditions; the driver can safely engage in other activities, but is expected to be available for occasional control (Google car).

Level 4 The vehicle is self-driving for the entire trip; no human control required.

Levels 1 and 2 are already in production and available.

Levels 3 and 4 are being tested by a number of manufacturers. Manufacturers from Hyundai to Mercedes are already in various stages of development and testing along with non-traditional auto companies such as Google.

Prototypes are popping up at car shows and other events.

We may see these cars on the road in as little five years.

RISK EXPOSURE In 2013, the National Highway Traffic Safety Administration reports that there were 5.68 million motor vehicle accidents, 2.3 million injuries and 32,719 fatalities in the United States, with 95% of road accidents caused due to human error. By reducing the risk of human error, autonomous vehicles will help reduce the number of accidents.

Last fall, Princeton University, School of Engineering & Applied Sciences, and Munich Reinsurance America, Inc., hosted New Jersey's first summit meeting on creation of a center for research, certification and commercialization of automated vehicle technology.

A major focus of the summit was automated collision avoidance for public transportation. Dr. Jerome Lutin, former senior director of statewide and regional planning for NJ TRANSIT told the participants that casualty and liability claims had cost the public transit bus industry more than $4 billion over the past ten years.

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Autonomous Transit: Taking Shape and Reducing Risk

Reducing the number of accidents both in consumer and public transit as a result of intelligent and autonomous vehicles will, over time, change both the commercial insurance industry as well as have a huge impact on public entity risk management.

VEHICLE EVOLUTION/ RISK EVOLUTION Until recently most of the technology in vehicles was designed to protect drivers and passengers during a collision.

Today, technology has been developed that could prevent the collision.

Reducing the number of accidents both in consumer and public transit as a result of intelligent and autonomous vehicles will, over time, change both the commercial insurance industry as well as have a huge impact on public entity risk management.

Autonomous vehicles in a public transportation environment will not appear for quite some time and will vary based on population density and demand.

However, current trends point to a more intelligent system for moving people. Intelligent vehicles in many forms already exist today. The bus transit industry is on the brink of active safety being implemented on public transit systems—sensors that will warn the driver of potential accidents. Most active safety systems have focused on forward facing sensors. For public transit, there is a need for sensors on the sides of buses that will address left and right turns so the bus can avoid striking pedestrians and bicyclists.

Fully automated vehicles, those that will drive by themselves, will allow for more flexible travel options for the elderly as well as for those with physical and mental disabilities. These are two groups that currently utilize public transit for much of their transportation needs. If automated vehicles can perform this task, how will this impact public transit demand in the future?

A few companies have developed prototypes for autonomous passenger shuttles to be used in large pedestrian areas, such as university campuses, military bases, hospitals and theme parks. These autonomous shuttles include a built-in touch screen to select destinations.

Right now, the possibilities seem endless. One thing is for sure, technology is constantly changing and developing. Autonomous vehicle technology is a potential game changer for how we will move from placeto-place. The public transit system of tomorrow will be more autonomous than it is today—and the intent is it will be safer.

Jeffrey Myers is vice president, western region, and John Willemsen is a business development manager, specialty markets for Munich Reinsurance America.

Advancements in technology that could impact bus transit in the near future are: • adaptive cruise control • blind spot monitoring • driver fatigue and attentiveness monitoring • lane keeping assistance • rear collision warning

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ARE YOUR EMPLOYMENT PRACTICES ABOUT TO GO

By Sarah R. Schmitz, Esq.

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eeling a bit “hazy” about the status of marijuana legalization and its impact on the workplace? You are not alone. As a risk manager, recent legislation may be raising several questions within your public entity. If you receive notice of a failed drug screen and your employee presents a medical marijuana card, do you know what to do? If the employee is considered

disabled, do you need to reasonably accommodate this disability? Such questions are difficult to answer and, in many cases, the answers are not clear.

None of the new marijuana laws, either recreational or medical, appear to require employers to allow a “high” employee to continue working. Most statutes expressly prohibit this conduct. But what about levels of marijuana use that do not substantially impair the employee, but appears on the drug screen? In the four states—Colorado, Washington, Alaska and Oregon (and the District of Columbia)—that have approved both medical and recreational marijuana use, the state statutes provide no protection for workers. However, the Colorado Supreme Court is currently reviewing the application of the Off-Duty Legal Activities statute in Coats v. Dish Network, LLC to see if it protects employees who fail drug screens due to the presence of marijuana. This is a case to watch in 2015.

Of the growing number of states (23 states and the District of Columbia) that have legalized medical marijuana, only a handful have specifically enacted statutes that discuss protections for employees. While medical marijuana is similar in its chemical makeup to street marijuana, it is regulated and patients may receive approval from their physician if they have an enumerated ailment to qualify as a medical marijuana license-holder. It is estimated by ProCon.org, that on average, only 7.7 individuals in every 1,000 will qualify for a medical marijuana card, and only a fraction of that number will be active in the workplace.

However, that one employee may be on your payroll.

First and foremost, marijuana remains illegal and is classified by the Controlled Substances Act as a Schedule I

drug under federal law. For that reason, employees cannot find federal protection for medical marijuana use under the Americans with Disabilities Act, which has an exception for “illegal drug use.” However, public opinion has shifted and more Americans favor the legalization of marijuana in some form. Recent communications from the United States Attorney General have indicated that federal officials will no longer prosecute medical marijuana use that is allowed by state law. As a result, almost half of the states have legalized either medical or recreational use and additional states are considering the issue in 2015. Even the U.S. Senate is looking at a bill that would legalize medical marijuana on a federal level.

In light of this changing environment, states have taken four different paths with respect to this issue. First, some states, like Texas, have not addressed the issue at all.

Use and/or possession of marijuana remains a criminal offense under state law while medical and recreational use is prohibited.

Second, several states have decriminalized possession of small amounts of marijuana, opting to treat it in a manner similar to a minor traffic offense. If you are in a state that falls under one of these two categories,

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Are Your Employment Practices About to Go ‘Up in Smoke?’

Medical marijuana approval states fall into two categories: those that affirmatively protect registered users in their jobs (either through discrimination protection, drug testing protection, or both) and those that do not (or fail to address it). Medical marijuana legislation enacted prior to 2010 is less likely to have such employee protections.

you have some time to prepare. You should be reviewing drug testing and personnel policies and consulting with counsel to ensure you have a plan in place when and if your state enacts legislation on this issue, as the chances are good it will. Additionally, the PRIMA Cybrary at primacentral.org may include sample policies that risk managers can refer to as a resource. Third, a handful of states have legalized recreational marijuana for those over age 21. Although in the minority, some of these states have set up state-controlled retail stores to dispense the marijuana product. Last, many states have legalized or are considering legalizing medical marijuana.

Medical marijuana approval states fall into two categories: those that affirmatively protect registered users in their jobs (either through discrimination protection, drug testing protection, or both) and those that do not (or fail to address it). Medical marijuana legislation enacted prior to 2010 is less likely to have such employee protections. Eight states,—Arizona, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New York, and Rhode Island—have recently enacted legislation that expressly addresses medical marijuana in the workplace. Most of these states have afforded protection for employees by prohibiting discrimination based upon either (1) failed drug screen and/or (2) status as a medical marijuana card holder.

Minnesota, Maine, Illinois and Arizona have enacted language that prohibits an employer from refusing to employ or penalizing a person “solely for his or her status as a registered qualifying patient.” Nevada added new language in 2014, amending its already existing medical marijuana law, which prohibits employers from discriminating against medical marijuana card holders.

It does not affirmatively require an employer to modify the job or working conditions, but “the employer must attempt to make reasonable accommodations for the medical needs of an employee who engages in the medical use of marijuana…” New York’s statute amends the definition of “disabled” in its Human Rights act to include a card-holding medical marijuana patient, which might trigger the interactive process, and potential reasonable accommodations, such as a modified work environment, flexible-time, and other work place changes. Exactly what

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PUBLIC RISK | MAY/JUNE 2015

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Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers.

Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. © Copyright 2015 Berkley Public Entity Managers – A W. R. Berkley Company. All rights reserved.

Are Your Employment Practices About to Go ‘Up in Smoke?’

With medical marijuana laws so state specific, what are public sector employers and human resource professionals to do? First, determine the status of any medical marijuana legislation in your state and analyze whether it addresses the role and responsibilities of employers. Next, re-examine your policies on drug testing, drug-free workplace, any connection to federal grants or oversight, and identify which positions are safety-sensitive positions and whether your state has an off-duty legal conduct statute.

is a “reasonable accommodation”—allowing consumption on work-sites, additional break time or flexible shifts to allow for consumption during typical working hours—has yet to be determined.

Even more complex than the individual state approaches are the differing exceptions for each state. To date, only Illinois has addressed the issue with respect to safety-sensitive positions. Its law prohibits the use of medical marijuana by “an active duty law enforcement officer, correctional official, correctional probation officer or firefighter.” However, other safety-sensitive positions may be excluded from medical marijuana protection under each state-specific law. The interaction between legal state activities and illegal federal activities is codified in many of the state statutes, such as Maine, which allows for termination of medical marijuana card holder employees if it would place the employer in violation of federal law or cause it to lose a federal contract. On-site usage is prohibited in some states, like Minnesota, as well as on-site possession in certain facilities such as schools and correctional facilities, which may affect jailors and school-liaison officers. Most statutes do allow

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the employer to terminate any employee who is under the influence during working hours or who operates a motor vehicle under the influence.

With medical marijuana laws so state specific, what are public sector employers and human resource professionals to do? First, determine the status of any medical marijuana legislation in your state and analyze whether it addresses the role and responsibilities of employers.

Next, re-examine your policies on drug testing, drug-free workplace, any connection to federal grants or oversight, and identify which positions are safety-sensitive positions and whether your state has an off-duty legal conduct statute. Always include your legal counsel in this review, including the process of instituting a plan to address issues before you receive your first failed drug test from one of your employees. Finally, when you decide on the plan that is right for your public entity ensure consistency by publicizing the adoption of all marijuana-related policies in your personnel manual or employee handbook.

Sarah R. Schmitz, Esq., is a claims examiner for OneBeacon Government Risks.

W W W.PRIMACENTRAL .ORG

Stop by booth #520 at the Annual PRIMA Conference in Houston to learn more.

partnership. you expect. we deliver.

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PREDICTIVE ANALYTICS A Workers’ Compensation Game Changer

By Brian Billings

M

uch has been written about the subject of integrating predictive modeling into the workers’ compensation claims-handling process. Industry news is replete with examples of carriers and vendors leveraging workers’ compensation data to predict claim outcomes. Certainly, early identification of high-risk claims represents a huge oppor-

tunity for the industry. However, high-risk claim identification is only the first step in delivering value.

Once identified, successful intervention strategies are required to ultimately impact a claim’s outcome.

It is the combination of claim prediction and intervention that leads to the realization of value—a better claim outcome. In this article, we discuss one example of how predictive analytics has been integrated into the claims-handling process in the effort to achieve better outcomes through early identification and successful intervention strategies.

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While this article covers predictive models, we will not explore how they are created other than to mention a key component—the data. Here, we focus on the path from prediction to desired business outcome. To start, we examine how early identification and successful intervention work together to achieve positive claim outcomes.

A claim that is predicted to exceed the current total incurred is an obvious target for early identification and intervention. The earlier a claim can be identified, the earlier that the proper experts can formulate and execute intervention strategies to mitigate claim costs. In many cases, early identification can occur at points well below the ultimate exposure. Such a situation is a perfect opportunity for the claim- handler to execute possible interventions on these complex claims. If caught early and the appropriate inventions implemented, a claim’s potential exposure can be dramatically reduced.

INTERVENTION STRATEGIES Combining high-risk claim predictions with appropriate intervention strategies demands careful consideration.

Risk mitigation requires understanding claim dynamics in great detail. A claim-handler must unpack the complexity of a claim, into its component parts, to understand what is driving a claim’s costs. In addition to a risk score, a predictive model should give an indication of risk factors driving that score so that the claim-handler can quickly identify and research potential claim issues. Once the issues are identified, the appropriate intervention strategies can be formulated and deployed.

Two recurring themes, seen in large loss claims, are chronic pain cases (including Complex Regional Pain

FIGURE 1: EARLY IDENTIFICATION OF HIGH RISK CLAIMS $90,000

90

$80,000

80

$70,000

70

$60,000

60

Prediction Lead Time $50,000

50

$40,000

40

$30,000

30

$20,000

20

$10,000

10

$0

RISK SCORE

If you believe that early intervention can lead to a positive claim outcome, then a predictive model should address early identification of those high-risk claims. Arguably, early identification permits the claim-handler to implement the appropriate intervention before a claim spirals out of control. Early identification of high-risk claims is certainly possible (see Figure 1). However, what about a viable intervention strategy for those identified high-risk claims? Is this not equally important? For without an intervention, you have identified a claim that cannot be acted upon. Thus, for the claim-handler to “get ahead” of a potential high-risk claim both early identification by the predictive model and a viable intervention strategy are necessary. Understanding how the predictive model fits into the business process is a critical part of the implementation and should not be an afterthought.

Syndrome and Reflex Sympathetic Dystrophy) and Failed Back Syndrome. These claims most often include a regime of opioids. In addition, the claimant is frequently prescribed medication to counteract the side effects of long term opioid use—constipation and drowsiness. Other problematic medical treatments, on these claims, include injections and spinal cord stimulators. A predictive model should alert the claim-handler to the presence or potential of these and other medical related issues.

AMOUNT

EARLY IDENTIFICATION, INTERVENTION AND OUTCOMES

0 6

7

8

9

10

11

12

13

14

15

MONTHS FROM ACCIDENT Claim Total Incurred

Claim Total Paid

Risk Score

Above is a real example of where a predictive model identified a claim as High Risk at 6 months of age.

The Total Paid and Total Incurred at the time of identification is less than $10k. This particular model is used to identify claims likely to exceed $50k in Total Paid. The Total Paid hits $50k at about the 15 month mark. (Note: a Risk Score greater than 50 is considered High Risk)

So what are the steps in formulating an intervention strategy? In the case of chronic pain and Failed Back Syndrome claims, the first step is typically a Drug Utilization Review to understand the efficacy of the current drug regime and to identify specific cost drivers and opportunities for mitigation. An independent medical examination or peer review may also be necessary to determine if the best course of treatment is currently being employed. A pharmacy benefit manager or another pharmacy intervention vendor can contact the physician to try to change the pain management regimen. Finally, Cognitive Behavioral Therapy or

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23

Predictive Analytics Functional Restoration may be considered to help the claimant better cope with the pain and return to a more productive lifestyle.

INTEGRATING INTO THE CLAIMS MANAGEMENT PROCESS A critical component of any predictive model project is integration with the business process. Not only is claims expertise a critical part of the predictive model development, but it is also critical to establish a feedback loop with the claim experts post implementation. For example, the claim’s department should have online access to the most current predictions for all open claims. This permits a claim-handler to review individual predictions to reevaluate potential exposure. For those claims that warrant additional attention, a medical professional can be utilized to prepare a plan of corrective action. The claim-handler should implement the plan to mitigate exposure.

predictive models in the claims-handling process… To achieve the desired business outcomes, a feedback loop must be established involving both claim experts and the predictive modeling team.

Lastly and most importantly, claim-handlers must explore

“

“

Early adopters are already seeing the positive impacts of utilizing

innovative ways of successfully resolving complex workers’ compensation cases identified by the predictive models.

Every month, the predictive analytics team should meet with the claim’s department to discuss claims that were reviewed based on the predictions. This feedback loop serves as an invaluable tool to help optimize the process of high-risk claim identification. For example, there may be claims where the model technically “gets it wrong” with respect to the prediction. However, the claims department deems the claim worthy of review for potential exposure.

An example of this situation would be a claim that involves subrogation. Ultimately, predictive models should be used in a way that serves the needs of the business. The feedback loop enables evolution of the process to achieve the desired business outcomes.

issues in the workers’ compensation system is arguably the single greatest opportunity for improvement in modeling claim outcomes and analyzing claim risk factors. Data is the fuel necessary to operate a predictive analytics engine.

In workers’ compensation, this obviously includes the data captured in a claims management system. However, other sources of data are equally important. When considering what data is relevant to a predictive modeling effort, it helps to explore the various parties that interact with the claimant during the life of the claim. Hospitals, doctors, and pharmacies immediately come to mind.

One challenge with utilizing third-party data comes in linking the data to the appropriate claim. Given varied computer systems, linking the data can prove difficult.

If done incorrectly, you end up with erroneous data regarding the claim. This can be disastrous for trying to accurately predict claim outcomes and can erode trust in the analytics.

The workers’ compensation system needs to dramatically improve its data collection, data quality, and data reporting processes. Using the example above, standard data exchange protocols should define exactly how data matching is accomplished. Thus, workers’ compensation desperately needs a national standard for Electronic Data Interchange similar to what exists today in group health claims adjudication.

Early adopters are already seeing the positive impacts of utilizing predictive models in the claims-handling process. For starters, predictive models enable identification of problematic claims much earlier in their lifecycle.

To be successful, processes must be established to review the high-risk claim predictions and to formulate appropriate intervention strategies. To achieve the desired business outcomes, a feedback loop must be established involving both claim experts and the predictive modeling team. Lastly and most importantly, claimhandlers must explore innovative ways of successfully resolving complex workers’ compensation cases identified by the predictive models.

Brian Billings is the director of business analytics for Midwest Employers Casualty Company.

IMPROVING CLAIM PREDICTION AND ANALYTICS It is imperative to discuss one major obstacle in the path of success—the data. Solving data collection and aggregation

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GETTING STARTED WITH ENTERPRISE RISK MANAGEMENT:

STEPS TO SUCCESS

By Carrie Frandsen and Lisanne Sison

What is Enterprise Risk Management (ERM)? ERM is the discipline, culture and structure an organization has in place to continuously improve its risk management capabilities in a changing environment. ERM offers a framework to manage uncertainty that enables an organization to identify emerging risks, respond to risks as they arise, and to test key assumptions to organizational strategies.

As you may know, ERM isn’t easy to effectively implement. It is not uncommon to hear of ERM approaches that are unfocused, severely resource-constrained, and pushed down so far into the organization that the risk management activities become completely separated from business strategy and leadership visibility. Mindful of these common pitfalls, below are some simply stated and straight-forward steps to guide you through your ERM implementation. Though these steps don’t guarantee success, they outline the key characteristics of a successful ERM journey.

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Acquire commitment: If you don’t already have it, get the green light from top management begin integrating an enterprise risk management framework into your organization’s governance, functions and processes. Be sure to arm yourself with information on what value such an approach can provide, and what can happen if nothing changes.

CALENDAR OF EVENTS

Learn risk functions: Engage colleagues who are familiar with the organization’s strategies, policies, and culture. Choose those in central risk functions such as risk management, environmental health & safety, audit, compliance, and financial controls, and explore opportunities to collaborate on risk activities. Educate yourselves on enterprise risk management.

PRIMA’s calendar of events is current at time of publication. For the most up-to-date schedule, visit www.primacentral.org.

Evaluate current risk framework: How is your organization currently managing risk? Evaluate current risk management policies, procedures, accountability and reporting mechanisms; take into account specific regulatory or legal requirements. Evaluate enterprise risk management standards and best practices and adopt one to model your framework upon.

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Perform a gap analysis: Perform a gap analysis to your chosen enterprise risk management standard or best practice, and identify where your organization’s current enterprise risk framework and processes could be strengthened. Do current processes provide decision makers with the risk information they need to make quality decisions? Does the current approach address the interrelated, dynamic nature of risks?

Develop a plan: Identify which current risk management aspects shall be continued, enhanced, or discontinued. Develop an enterprise risk management implementation plan with a defined scope, objectives, and timeframe. When defining the risk management framework, keep things as simple as possible and leverage existing processes, tools and reporting mechanisms. Envision how risk management will integrate with core management activities such as strategy-setting, performance management and budgeting. Effective integration can result in risk management becoming more aligned with the rhythm of the organization so that it can make value-added contributions.

Commit to the plan: Commit personnel, training, and technology resources to build a foundation for a successful and sustainable enterprise risk management program. Establish communication and reporting mechanisms, and define risk management accountability.

Lead the change: Persuasively communicate the reasons for adopting a new approach to managing risks, the benefits of successful implementation, as well as the details of the change (when? who is involved? etc.) Deliver training on ERM and the elements of the plan.

Launch the plan: Transition your organization to a culture that communicates openly, shares best practices, & promotes transparent risk reporting that facilitates the integration of risk management into daily decision making and management processes. Continue to align the risk management focus on strategic issues.

Monitor and review: Develop an enterprise risk maturity workplan with reasonable milestones to be able to measure your success over time. Monitor and report on enterprise risks and management activities—emerging risks, changes in risks and controls, and key risk and performance indicators. Keep risk information fresh and don’t get bogged down with quantifying risks—let the risk registers be flexible tools to inform decisions.

Aim for continuous improvement: Assess how well the organization is adapting to the enhanced risk management framework and processes. Fine tune the enterprise risk management plan as required. Draw on the experience of similar organizations, and keep current with risk management thought leadership.

• September 16 – Social Media Horror Stories: Don’t Become One! • November 18 – Employment Practices Liability: Mitigating Risks

PRIMA ANNUAL CONFERENCES June 7–10, 2015 PRIMA 2015 Annual Conference Houston, TX George R. Brown Convention Center June 5–8, 2016 PRIMA 2016 Annual Conference Atlanta, GA Hyatt Regency Atlanta June 4–7, 2017 PRIMA 2017 Annual Conference Phoenix, AZ Phoenix Convention Center June 3–8, 2018 PRIMA 2018 Annual Conference Indianapolis, IN Indiana Convention Center

ENTERPRISE RISK MANAGEMENT: APPLYING THE ISO 31000 STANDARD Intro Workshop Dates & Locations July 15 – Reno, NV September 29 – Savannah, GA Implementation Workshop Dates & Location August 10 & 11 – Reno, NV November 18 & 19 – Savannah, GA

MAY/JUNE 2015 | PUBLIC RISK

27

Everyone else is doing it. WHY AREN’T YOU?

Enterprise risk management is everywhere we turn these days.

Universities are using it. Corporations are using it. And now, more and more public entities are embracing ERM. PRIMA’s new training will teach you to implement an enterprise-wide approach to risk in your entity using the ISO 31000 standard. This three-part training will be held in cities across the United States.

For more information, visit primacentral.org/ermtraining.

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ANNUAL CONFERENCE PREVIEW

In June, more than 1,000 public risk professionals will gather in Houston for PRIMA’s 2015 Annual Conference. This annual event is the ONLY conference dedicated to risk management in the public sector. What’s on tap for this year’s conference?

THE LONG AND SHORT OF IT This year’s educational sessions fit your learning style. Want more in-depth information on a topic? PRIMA’s conference has 2.5 hour sessions that provide detailed information on what attorneys want from risk managers, for example. For quick “bites” of learning, PRIMA introduces 30-minute “cram” sessions. These quick learning labs give you enough information to make a difference when you head back to the office.

Thank you to our generous sponsors for their continued support of public sector risk managers.

PLATINUM

WALK WITH THE DINOSAURS Every year, PRIMA offers a memorable, one-of-a-kind social event to cap the second day of the conference. This year, we’ll be walking with the dinosaurs at the Houston Museum of Life Science. Attendees can grab a drink and tour the museum before getting down to a live band. It’s always the highlight of the conference!

GOLD

EYE-OPENING GENERAL SESSIONS Each morning kicks off with engaging general sessions from speakers who understand risk managers and the challenges of their jobs. This year’s sessions include Charles Leitch, who will discuss the threats and challenges of social media and digital technology in risk management today. On Tuesday, PRIMA welcomes David Loyd, the chief of the safety and test operations division at NASA’s Johnson Space Center.

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As always, PRIMA’s conference will offer engaging topics from industry experts. It’s the can’t-miss event for public entity risk practitioners.

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SEE YOU IN HOUSTON! 30

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Advertiser Index

ADVERTISER INDEX AED Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 5 Berkley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 19 Genesis Underwriting Management Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front Cover HCC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 29 Midlands Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 9 Munich Reinsurance America.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 15 Old Republic Insurance Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover One Beacon Government Risks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 10 POMS and Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 2 States Self-Insurers Risk Retention Group, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Back Cover Travelers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 25 York Public Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 21

Has your entity launched a successful program? An innovative solution to a common problem? A money-saving idea that kept a program under-budget?

Each month, Public Risk features articles from practitioners like you. Share your successes with your colleagues by writing for Public Risk magazine!

For more information, or to submit an article, contact Jennifer Ackerman at jackerman@primacentral.org or 703.253.1267.

FIND US ON FACEBOOK!

Keep up with what’s happening at PRIMA and connect with your risk management peers!

Visit us at www.facebook.com/primacentral.

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Member Spotlight

KANSAS CITY PLAYS IT SAFE WHILE DRIVING Each month, Public Risk features a member who has gone above and beyond in a feature column titled “Member Spotlight.” Do you know someone who deserves recognition, has made a contribution or excelled in their profession?

If so, we’d like to hear from you for this exciting column, as PRIMA shines the spotlight on its members.

To be considered for the Member Spotlight column, contact Jennifer Ackerman at jackerman@primacentral.org or 703.253.1267.

E

very public entity with a fleet, no matter the size, faces the significant risks associated with cell phone and texting while driving. Reducing or eliminating this behavior and result in reductions in multiple vehicle collisions and associated claims, single vehicle collisions and workers’ compensation claims.

The city safety team for the City of Kansas City, Mo., developed the Play It Safe While Driving program to educate employees on the risks associated with the use of cell phones while driving.

“The program follows the team’s safety philosophy of changing our safety culture through education before enforcement,” said Eric Hallerud, corporate safety and risk manager for the city. “During normal business hours on a given day, the City of Kansas City can have as many as 1,000 vehicles on the streets. Given the National Safety Council’s stats on risks associated with the use of cell phones while driving, I felt I was imperative to take a proactive approach to address this issue.”

The program started as a campaign aimed at the head and the heart, designed to carry a message about making safe personal choices.

“This concept forms the philosophical core of the division’s approach to employee education and empowerment,” said Kristin Danner, assistant corporate safety manager. “The approach focuses on ‘explaining why’ instead of ‘telling what to do’ when it comes to safety behaviors.”

“We provided an opportunity for pledgers to dedicate their pledge to a loved one to help underscore that there I someone in their life that is counting on them to come home every day,” said Hallerud.

Hallerud said the tangible benefits are difficult to quantify, the intangible benefits are significant. The program allowed risk management to spend face time with all members of labor and management on an issue the affects every person, both at work and at home. To date, more than 1,000 employees have signed the pledge. The program also brought positive attention to the corporate safety and risk management division, culminating in a City Council resolution that named June 25 as the start of No Cell Phone While Driving Week in Kansas City.

The total investment was $5,000, including $4,000 for the purchase of the cell phone bags. Hallerud stresses that the program could be easily transferred to any public entity without significant modifications.

For more information on the Play It Safe While Driving program, contact Eric Hallerud at eric.hallerud@kcmo.org.

The program follows the team’s safety philosophy of changing our safety culture through education before enforcement.

“

“

A multimedia presentation, designed in-house, was given to employees in small work group settings. Afterward, participants were given an opportunity to sign a pledge to not use a cell phone while driving. Those who signed the pledge received a zippered cell phone bag to assist them in changing their behavior.

Eric Hallerud, corporate safety and risk manager for the city

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AND

MEMBER-OWNE

“STATES’

PHILOSOPHY

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ITS MEMBER-OWNERS IS WHAT STATES DOES BEST AND ELEVATES US ABOVE THE REST. AS PART OF THE

TEAM, YOU CAN MAKE PIVOTAL CHANGES TO

YOUR COMPANY. YOU HAVE A VOICE. THIS IS THE POWER OF STATES.” MIKE LOMBARDO risk manager

city of newport news, va

STATES OFFERS YOU:

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IN BOOTH #439

US AT PRIMA

• A BROADLY INTERPRETED EXCESS LIABILITY COVERAGE FORM THAT IS SECOND TO NONE IN THE INDUSTRY. • PREMIUM STABILITY AND SOUND FINANCIAL RESULTS FOR OUR PARTNER MEMBERS – MEMBER PREMIUMS ARE INVESTMENTS IN THEIR OWN COMPANY. • EXCELLENT CLAIMS AND LOSS CONTROL SUPPORT, INCLUDING ON-SITE. • SPECIALIZED PUBLIC ENTITY-ORIENTED SERVICES FROM EXPERIENCED, SERVICE-DRIVEN PROFESSIONALS.

FOR INFORMATION CONTACT: STATES SELF-INSURERS RISK RETENTION GROUP, INC. AT 1-800-640-0345, EXTENSION 3310, OR VISIT OUR WEBSITE AT WWW.STATESRRG.COM

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BITCO Insurance Companies1 Old Republic Aerospace2

Specialized Offerings and Public Entity Expertise.

Old Republic Insurance Group specializes in the Property & Casualty marketplace. We specialize by type of insurance coverages, as well as by industries.

PMA Management Corp.

Collectively we offer a full suite of risk management and insurance solutions, as well as Third Party Administration (TPA) services.

For more information, please visit our website: www.oldrepublicinsurancegroup.com

Insurance contracts are underwritten and issued by: 1. BITCO General Insurance Corporation and BITCO National Insurance Company; 2. Old Republic Insurance Company; 3. Pennsylvania Manufacturers’ Association Insurance Company, Manufacturers Alliance Insurance Company, Pennsylvania Manufacturers Indemnity Company.

Old Republic Specialty Insurance3