divider page 5 18 16 - NJSIG...May 17, 2017 · Rev.: 5/17/17 BOARD OF TRUSTEES MEETING Wednesday,...

NJSIG

Board of Trustees Meeting

May 17, 2017

New Jersey Schools Insurance Group 6000 Midlantic Drive, Suite 300 North

Mount Laurel, New Jersey 08054 (609) 386-6060 • FAX (609) 386-8877

www.njsig.org

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Revised: 11/17/16

2016/2017 NJSIG Board of Trustees

Irene Le Febvre Chairperson v2016-2019

North Board Member

180 South Terrace Boonton, NJ 07005 (Boonton Town BOE)

O: (973) 614-8585x3811 F: (973) 614-1334 C: (973) 513-2772

H: (973)335-3382 [email protected] Committees: Claims, Policy

Christopher Russo, Ed.D. Vice-Chairperson v2016-2019

South Business Administrator

1310 Mallard Lane Millville, NJ 08332 (Delran BOE)

O: (856) 461-6800x1006 F: (856) 461-6125 C:

H: (609) 694-1505 [email protected] Committees: Claims, Personnel

Thomas F. Connors, Ph.D. Trustee

v2015-2018 Central Board Member

10 Seward Ave Piscataway, NJ 08854 (Piscataway Twp BOE)

O: F: C: (732) 491-3248

H: (732) 463-3230 [email protected] Committees: Finance

James J. Jencarelli, Jr. Trustee

v2015-2018 North Superintendent

2 Mill Creek Road Sparta, NJ 07871 (Morris Hills Regional)

O: (973) 664-2291 F: (973) 627-6588 C: (201) 320-7049

H: (201) 320-7049 [email protected] Committees: Personnel

Joseph Meloche, Ed.D. Trustee

v2016-2019 South Superintendent

45 Ranoldo Terrace Cherry Hill, NJ 08034 (Cherry Hill Public Schools)

O: (856) 429-5600x4309 F: (856) 616-9647 C: (856) 229-4318

H: (856) 906-5523 [email protected] Committees: Personnel

Steven K. Robinson Trustee

v2015-2018 North Business Administrator

5 Rodin Lane Marlboro, NJ 07746 (Livingston Twp. BOE)

O: (973)535-8000x8009 F: C: (973) 476-1046

H: (732) 617-1219 [email protected] Committees: Finance

Dana Sullivan Trustee

v2016-2019 Central Business Administrator

302 Elm Street, Room 101 Westfield, NJ 07090 (Westfield BOE )

O: (908) 789-4414 F: (908) 789-4180 C: (201) 803-2028

H: (973) 884-1737 [email protected] Committees: Claims, Policy

Gerald North Trustee

v2016-2019 Central Superintendent

117 Evergreen Road New Egypt, NJ 08533 (Plumsted Twp. BOE)

O: (609)758-6800x4206 F: (609)758-6808 C: (609)209-5018

H: [email protected] Committees: Finance, Policy

Vacant Trustee

v2014-2017 South Board Member

O: F: C:

H: Committees:

William Mayo Executive Director

6000 Midlantic Drive, Suite 300 North Mt. Laurel, NJ 08054

O: (609) 386-6060x3039 F: (609) 386-8877 C: (609) 500-4787

H: (609) 217-4845 [email protected]



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2016/2017 NJSIG Sub Fund Liaisons

Rev: 2/23/17

Frank Domin

BACCEIC Sub Fund Liaison

v

Berlin Borough 215 South Franklin Ave Berlin, NJ 08009

O: (856)767-0129 F: (856)767-2465 C: (609)405-1018

[email protected]

Barbara Prettyman

CAIP Sub Fund Liaison

v

Hammonton BOE 566 Olds Forks Road PO Box 631 Hammonton, NJ 08037

O:(609)567-7000 x353 F: (609)561-3567

[email protected]

Thaddeus Thompson

ERIC North Sub Fund Liaison

v

South Brunswick BOE P.O. Box 181 Monmouth Junction, NJ 08852

O: (732)297-7800x5105 F: (732)297-8448

[email protected]

Gene Mercoli ERIC South

Sub Fund Liaison v

Cumberland Cnty. Voc. 601 Bridgeton Avenue Bridgeton, NJ 08302

O: (856) 451-9000 F: (856) 451-8487

[email protected]

Vincent A. Gonnella

ERIC West Sub Fund Liaison

v

Kenilworth Public Schools 426 Boulevard Kenilworth, NJ 07033

O: (908)276-1644x1550 F: (908) 709-7315

[email protected]

Loretta Hill MOCSSIF

Sub Fund Liaison, v

Belmar BOE 1101 Main Street Belmar, NJ 07719

O: (732)681-8888 F: (732)681-8709

[email protected]

Anthony Dragona

NJEIF Sub Fund Liaison

v

Union City BOE 3912 Bergen Turnpike Union City, NJ 07087

O: (201) 348-5677 F: (201) 223-0471

[email protected]



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Meeting Dates 2016/2017

September 21, 2016

NJSIG Mount Laurel Office

October 25, 2016 Caesars Hotel, Palladium A,

2100 Pacific Avenue, Atlantic City, NJ 08401

November 16, 2016 NJSIG Marlboro Office

January 12, 2017, 5:30 p.m. NJSIG Mount Laurel Office

March 15, 2017


May 17, 2017 NJSIG Marlboro Office

June 21, 2017


All meetings will begin at 4:00 p.m. unless otherwise noted.



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Rev.: 5/17/17

BOARD OF TRUSTEES MEETING Wednesday, May 17, 2017

500 Campus Drive, Suite 100, Marlboro, NJ Meeting 4:00 p.m. Dinner 5:00 p.m.

MAY AGENDA

PUBLIC SESSION

ITEM #

*1 Call to Order:

In accordance with the Sunshine Law, due notice of all pending meetings was given to the Atlantic City Press, Newark Star Ledger, and Trenton Times on January 6, 2017. Copies of these notices are on file with the New Jersey Secretary of State.

*2 Roll Call:

Thomas F. Connors, Ph.D. Gerald North James J. Jencarelli, Jr. Steven K. Robinson Irene Le Febvre Christopher Russo, Ed. D Joseph Meloche, Ed. D Dana Sullivan

*3 Acceptance of the Public and Executive Session Minutes for March 15, 2017. *4 Public Participation - Opportunity for Public to address the NJSIG Trustees regarding specific

agenda items. Each person will have five minutes to speak. *5 Sub Fund Liaisons - Reports/Comments *6 Reports:

A. Executive Director’s Report William Mayo B. Comptroller’s Report Michele Carosi C. Client Relations and Underwriting Report Kelly Machu D. Safety & Risk Control Report Tony Jones E. Claims Report Tony Ruggeri F. Information Technology Report Jeff Cook

*7 Discussion Items:

A. 2017/2018 Draft Budget William Mayo B. 2017/2018 Draft Plan of Risk Management William Mayo



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Rev.: 5/17/17

Board of Trustee Meeting – May 17, 2017 Agenda Pg. 2

*8 Action Items:

A. Contracts: 1. Temporary Staffing Direct Hire and Recruiting William Mayo B. Competitive Contracting: 1. Property Appraisal William Mayo C. Investors Bank William Mayo D. Checking Accounts & New Claims Ratification William Mayo

*9 New Business: *10 Executive Session:

EXECUTIVE SESSION

EXECUTIVE SESSION RESOLUTION

WHEREAS, N.J.S.A. 10:4-6 et. seq., (“the Open Public Meetings Act”), authorizes public entities to meet in executive session under certain circumstances; and WHEREAS, the Open Public Meetings Act requires that the Group adopt a resolution at a public meeting to go into private session; now, therefore, BE IT RESOLVED by the Board of Trustees of the New Jersey Schools Insurance Group that it is necessary to meet in executive session to discuss certain items involving: 10A. Litigation 10B. Attorney client privilege BE IT FURTHER RESOLVED that any discussion held by the Board of Trustees which need not remain confidential will be made public as soon as feasible. The minutes of the executive session will not be disclosed until the need for confidentiality no longer exists. FURTHER RESOLVED that the Board of Trustees will not return to open session to conduct business at the conclusion of the executive session.

New Jersey Schools Insurance Group 6000 Midlantic Drive Suite 300 North

Mount Laurel, New Jersey 08054 (609) 386-6060 FAX (609) 386-8877

www.njsig.org

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5/9/17

Board of Trustees Meeting of May 17, 2017 Board of Trustees Meeting Minutes of March 15, 2017

New Jersey Schools Insurance Group’s (NJSIG) Board of Trustees Meeting of March 15, 2017 at NJSIG’s Mount Laurel office. ATTENDEES Trustees: Thomas F. Connors, James J. Jencarelli, Jr., Irene Le Febvre, Joseph Meloche,

Christopher Russo, and Dana Sullivan Participants: David Rapuano, Esquire representing Archer & Greiner, Dave Ritch representing Willis Re. NJSIG Staff: William Mayo, Executive Director; Michele Carosi, Comptroller; Jill Deitch, Chief Legal Officer;

Stephen Tucker, Assistant General Counsel; Sameer Sarfraz, Senior Safety and Risk Control Consultant; Kelly Machu, Underwriting/Client Relations Manager; Anthony Ruggeri, Claims Manager; and Renee Johnson-Payne, Executive Assistant.

ITEM #1 CALL TO ORDER

With a quorum present, the meeting was called to order at 4:07 p.m. In accordance with the Sunshine Law, due notice of all pending meetings was given to the Atlantic City Press, Newark Star Ledger, and Trenton Times on January 6, 2017. Copies of these notices are on file with the New Jersey Secretary of State.

ITEM #2 ROLL CALL

Thomas F. Connors, Ph.D. √ Gerald North A James J. Jencarelli, Jr. √ Steven K. Robinson A Irene Le Febvre √ Christopher Russo, Ed. D √ Joseph Meloche √ Dana Sullivan √

ITEM #3 ACCEPTANCES OF THE PUBLIC AND EXECUTIVE SESSION MINUTES OF

NOVEMBER 16, 2016 AND JANUARY 12, 2017. Action Taken: M (Connors)\ S (Russo)\ Carried (Affirmative Votes Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to accept the November 16, 2016 and January 12, 2017 Public and Executive Session Board of Trustees Meeting Minutes.

ITEM #4 PUBLIC PARTICIPATION There was no public participation.



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Board of Trustees Meeting Minutes of March 15, 2017 Pg. 2

ITEM #5 SUB-FUND LIAISONS – Reports/Comments There were no Sub-Fund liaison reports or comments. ITEM #6 REPORTS A. Executive Director’s Report William Mayo, Executive Director, gave a brief overview of the Office of Legislative

Services (OLS) meeting held on March 9, 2017. During the meeting, OLS raised fundamental questions regarding their results prior to writing their report. Their questions were answered thoroughly and appropriately. OLS was critical of NJSIG’s previous contracting practices, which have since been brought into compliance. They also raised commentary regarding extraordinary NJSIG employee remuneration, which referred to a bonus program and the Health Reimbursement Arrangement (HRA) both programs have been eliminated. OLS seems to be satisfied with our current state of affairs. The final issue is they question broker remuneration. We engaged in an in depth discussion as to why eliminating brokers would not be feasible. We should receive their written report by mid-April we then have three weeks to respond in writing to their report lastly the report becomes public information and proceeds to the legislature of the Governor’s office.

B. Comptroller’s Report Comptroller, Michele Carosi, expounded on her written report. In November, fraudulent

checks and Automatic Clearing House (ACH) transactions were created by an individual in excess of $500,000 from the NJSIG claims account. Due to the Accounting Department’s systematic and manual internal control processes, they were able to stop any money from coming from our account and recover any money that was temporarily dispersed through an ACH transaction. We have administered blocks and filters with TD Bank’s Treasury Management Department on all of our accounts, so nothing like this could ever happen again. We also have Positive Pay system with TD Bank’s Treasury Management Department. We filed a report with the Mount Laurel Police Department with no response as of today. The assailant also attempted to steal significant money from other public entities and purchase New York Lottery tickets. New York Lottery Commission as well as the Federal Bureau of Investigations (FBI) are also involved in the investigation. NJSIG did not suffer any financial hardship due to this attempted fraud.

Michele Carosi, Comptroller, disclosed and explained in detail the Accounting

Department’s reorganization.



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C. Client Relations/Underwriting Report Kelly Machu, Client Relations and Underwriting Manager, reported the Third Annual

Brokers’ Meeting held on March 10, 2017, was well attended with about ninety Brokers in attendance despite the weather. NJSIG Managers did a tremendous job presenting about their departments. Alex Ricardo, NJSIG’s Beazley Cyber Liability Underwriter, presented, and answered questions about the cyber liability coverage. Brokers were very pleased to learn this year’s cyber liability coverage will include more robust limits with no rate increase. Overall, the Brokers’ Meeting was a success and the feedback was all positive.

Kelly Machu, Client Relations and Underwriting Manager, announced the renewal

applications have been posted to the NJSIG website today, so our Brokers can begin sending in their renewal and new business submissions. We are looking to hire an Assistant Underwriter temporary data entry employee for renewal season.

William Mayo, Executive Director, commended Kelly Machu on earning her Certified

School Risk Manager (CSRM) designation. D. Safety and Risk Control Report

Sameer Sarfraz, Safety and Risk Control Consultant, conveyed we are still accepting generic email addresses. He reported the Safety Grant portal is operational and the deadline for the Safety Grant applications is May 31, 2017.

E. Claims Report

Tony Ruggeri, Claims Manager, reported there have been some key additions to the staff which have helped the Claim Department run more smoothly.

Jill Deitch, Chief Legal Officer, discussed going out for Request for Qualifications (RFQ) for Outside Counsel to broaden our defense panel. Many responses were received. Designation of a firm as approved outside counsel does not guarantee the firm assignments, it means NJSIG is able to forward matters to them. We have been working with our current defense panel in terms of strengthening our motions to provide the Members the best defense and reviewing their billing. Steve Tucker, Assistant General Counsel, and Jill Deitch have also been reviewing every writing that goes to court. Jill Deitch spoke about a matter that NJSIG took up to the Supreme Court of New Jersey for a matter that could really change things going forward for public entities.



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5/9/17


William Mayo, Executive Director, reported Jill Deitch and Steve Tucker have been developing a Legal Brief Library, NJSIG will not pay outside counsel to write duplicate briefs and this will reduce legal expenses bills somewhat. NJSIG counsel has taken a more aggressive approach to litigation in terms of ferreting out the cases that should be settled out of court and those that should be taken to court.

ITEM #7 DISCUSSION ITEMS:

A. Proposed Meeting Dates 2017-2018 Executive Director, William Mayo, reviewed the proposed meeting. Vice-Chair, Chris Russo requested changing the June 20, 2018 meeting date to June 27, 2018. The updated proposed 2017/2018 Meeting Dates will appear on the June 21, 2017 agenda.

B. NJSBA New Board Member Retreat 2018

William Mayo, Executive Director, explained NJSIG sponsored and presented at the

weekend NJSBA New Board Member Retreat. NJSIG presented information regarding making sound contracting decisions and addressed specific contemporary issues like defending employment practice claims. This retreat gave NJSIG a new platform to communicate with decision makers. William Mayo recommends participation in NJSBA New Board Member Retreat 2018. Irene Le Febvre, Chair, fully supported NJSIG’s participation in the NJSBA New Board Member Retreat 2018.

C. Office of Legislative Services (OLS)Audit Status

OLS audit status was discussed during the Executive Director’s report.

D. Contracting

William Mayo, Executive Director, explained in detail NJSIGs efforts to maintain compliance with Public School Contract Law (PSCL). NJSIG has engaged The Canning Group as the Qualified Purchasing Agent (QPA) to assist with complying with PSCL and provide guidance. This contracting transitional compliance period will last approximately one year.



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ITEM #8 ACTION ITEMS:

A. Reinsurance Action Taken: M (Russo)\ S (Connors)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve the renewal of reinsurance coverage at a cost not to exceed $33,438,847 based on expiring exposure data. Further, the Board of Trustees authorizes the Executive Director to renew with alternative responsible carriers if the terms and conditions offered by those carriers provide a clear advantage in Member pricing or coverage terms.

B. Request for Qualifications (RFQs): 1. Financial Auditor RFQ

Action Taken: M (Russo)\ S (Meloche)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve the contract for financial auditing professional services be awarded to Nisivoccia, LLP based on the results of the committee’s evaluation.

2. Outside Counsel RFQ

Action Taken: M (Russo)\ S (Sullivan)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve the firms identified on the attached resolution be designated as outside counsel in the respective areas.

C. Contracts: 1. Proposal to Extend Sub-Fund Contracts


Le Febvre, Meloche, Russo, Sullivan) to approve the Educational Risk & Insurance Consortium (ERIC) North and Monmouth Ocean County Shared Services Insurance Fund (MOCSSIF) Sub-Fund administration contracts be extended for a period of one year expiring June 30, 2018, under the existing terms and conditions so as to align the expiration dates of all Sub-Fund administration contracts.



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2. Newspaper and Bid Threshold


Le Febvre, Meloche, Russo, Sullivan) to approve the official newspaper of NJSIG for the publication of notices related to procurement is the Star-Ledger for the purposes of complying with N.J.S.A. 18A:18A-2(u); and, all contracts that are in the aggregate less than 15 percent of the bid threshold may be awarded by the purchasing agent without soliciting competitive quotations for the purposes of complying with N.J.S.A. 18A:18A-37(c).

3. Investor’s Bank


Le Febvre, Meloche, Russo, Sullivan) to approve Investor’s Bank as a permissible depository for NJSIG funds, affirm that the Executive Director has the authority to conduct transactions and adopt the five Investor’s Bank resolutions.

4. FSA and HRA Plan Adoption Action Taken: M (Russo)\ S (Sullivan)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve the employee Flexible Spending Account plan documents and the retiree Health Reimbursement Arrangement plan documents.

5. Cash Management Plan Action Taken: M (Russo)\ S (Connors)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve the attached cash management plan.

D. Second Policy Reading 1. Outside Employment and Business Interests Policy 6170

Action Taken: M (Sullivan)\ S (Russo)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve the Outside Employment and Business Interests Policy 6170 as a second reading.



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2. Contracting Policies and Procedures Policy 6171

Action Taken: M (Connors)\ S (Russo)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve the Contracting Policies and Procedures Policy 6171 as a second reading.

E. Checking Account & New Claims Ratification Action Taken: M (Russo)\ S (Connors)\ Carried (Affirmative Votes = Connors, Jencarelli,

Le Febvre, Meloche, Russo, Sullivan) to approve and ratify the checks and new claims which have been issued from accounts XXXX392 (operating account) and XXXX555 (claim account) for the period of 11/1/2016 to 2/28/2017 as shown in the online (Microscribe) version of the meeting package

ITEM #9 NEW BUSINESS There was no new business. ITEM #10 EXECUTIVE SESSION

EXECUTIVE SESSION

EXECUTIVE SESSION RESOLUTION

WHEREAS, N.J.S.A. 10:4-6 et. seq., (“the Open Public Meetings Act”), authorizes public entities to meet in executive session under certain circumstances; and

WHEREAS, the Open Public Meetings Act requires that the Group adopt a resolution at a public meeting to go into private session; now, therefore,

BE IT RESOLVED by the Board of Trustees of the New Jersey Schools Insurance Group, that it is necessary to meet in executive session to discuss certain items involving:

10A. Litigation; BE IT FURTHER RESOLVED that any discussion held by the Board of Trustees which need not remain confidential will be made public as soon as feasible. The minutes of the executive session will not be disclosed until the need for confidentiality no longer exists. FURTHER RESOLVED that the Board of Trustees will return to open session to conduct business at the conclusion of the executive session.



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Action Taken: M (Connors)\ S (Russo)\ C (Affirmative Votes = Connors, Jencarelli, Le Febvre,

Meloche, Russo, Sullivan) to make a motion to close open session at 5:16p.m. and move meeting into executive session.

Action Taken: M (Russo)\ S (Connors)\ C (Affirmative Votes = Connors, Jencarelli, Le Febvre,

Meloche, Russo, Sullivan) to adjourn meeting at 5:55 p.m. William Mayo William M. Mayo, CPCU, ARM Executive Director



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Board of Trustees Meeting of May 17, 2017 Executive Director’s Report

Congratulations to Trustee and Vice-Chair Chris Russo on being named New Jersey Business Administrator of the Year. This is certainly a well-deserved recognition, and NJSIG is fortunate to great leaders like Chris govern the organization. Tonight you will consider the 2017-2018 budget. The main components of the budget are claims and claims expenses, reinsurance, and anticipated operating costs. Actuary Towers Watson provides estimated expected losses, the reinsurance component is now known with certainty, and the Finance Committee reviewed operating costs with management. The proposed budget is balanced. The budget is developed with input from each department manager. The budget includes provision to fill certain vacant positions, to add entry-level staff, and to make necessary promotional salary adjustments recommended by salary consultant Hay Group.

NJSBA will nominate a Southern Business Administrator Trustee after learning that proposed nominee Peter Lawlor will be unable to serve. Joe Meloche and Chris will meet with the nominee to discuss Board service for NJSIG. Filling this Trustee position brings the Board to full compliment.

I would like to recognize the efforts of NJSIG staff and management. Claim Manager, Tony Ruggeri has been serving as Claim Manger while still retaining most of the duties of his former job as Claim Supervisor. NJSIG is fortunate to welcome Sherwin Archibald as the new Claim Supervisor reporting to Tony. Jill Deitch and Stephen Tucker have worked tirelessly on RFPs, RFQs, policies & procedures and most recently on the proposed Plan of Risk Management. They have assumed oversight of the Human Resource function, completed the re-establishment of NJSIG’s defense panel, and have arranged various compliance trainings for staff and management. NJSIG is a very different organization than it was two years ago thanks to their efforts. Underwriting Manager, Kelly Machu and her team are in the midst of a busy renewal process that includes an increased number of new business opportunities. The new business and certain renewals increase the inspection burdens for Tony Jones and the Safety and Risk Control Team. Tony is working closely with management to best transition Safety and Risk Control in anticipation of his retirement. We will certainly miss Tony, but he leaves a well-trained and capable staff to carry on the mission. I.T. Manager, Jeff Cook has worked closely with Comptroller, Michele Carosi on internal control improvements and the transition to Investors Bank from TD Bank. I.T. is also in the process of implementing a new claim system scheduled to go live on July 1st. I.T. and Accounting are partnering in an intensive training program to bring programming skills in-house for the PeopleSoft financial management system. It seems the entire staff has been working in overdrive for months, and it is important to recognize their significant efforts.



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Executive Director’s Report May 17, 2017 Page 2

I am sad to report the loss of two long-time staff Members. Marsha Temple, Senior Claims Representative and Catherine Evans, Underwriting Processor, succumbed to illness this Spring. Both loved and respected Members of the NJSIG team will be missed, and we are grateful for their service. Over the past few years, NJSIG Members have sustained a small number of large losses for pollution incidents. In particular, polluted athletic fields claims have surfaced. The result is that claims costs are much higher than the premiums charged. After an extensive search in alternative markets, NJSIG is recommending renewing the incumbent carrier, Zurich, in spite of increased premiums and higher claim retentions. Zurich offers coverage for “existing pollution conditions” without a retroactive date. That means that there is no limitation of coverage for events that may have started years earlier. This is a unique and important coverage for Members. Zurich proposes raising the deductible from $25,000 to $250,000. Zurich has agreed to drop the deductible to $100,000 per claim after NJSIG has incurred $1 million in deductibles during the policy period. It is suggested that Member deductibles be held to $100,000. NJSIG will absorb the next $150,000 of the loss, subject to a maximum of $600,000 for the year. Zurich also agrees to re-visit the retention level if warranted by NJSIG’s loss experience in the future. Respectfully Submitted, William Mayo William Mayo, CPCU, ARM Executive Director



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Revised: 5 9 17

Board of Trustees Meeting of May 17, 2017 Comptroller/Financial Reporting Report

The following are updates to and/or new accounting issues (if applicable) since the last Board Package. Ø ACCOUNTING DEPARTMENT PROCESSES:

(1) Billing & Accounts Receivable Processes: The NJSIG Accounting Department has

processed $129.9 million of 2016/2017 renewal gross premiums, and endorsements in our Billing Module as of the date of this report (05/01/2017). The Accounting Department is current with all business that has been bound and exported from the Underwriting system. In addition, the Accounting Department continues to invoice our customers in our Billing system for monthly Workers’ Compensation installments, 2016/2017 Renewals (off 07/01/2016), miscellaneous endorsements as we receive the billing data from the Underwriting Department. The Accounting Department has collected and applied $124.1 million of premium deposits (to date) for the 2016/2017 fiscal year. Collections of NJSIG premiums are kept current with the Accounting Department’s issuance of our color-coded NJSIG Customer Statements on the 15th of each month.

(2) Accounts Payable: All Accounts Payable vouchers and payments are current. The Accounting Department has processed $12.3 million of broker commissions as part of the Direct Bill procedures during the 2016/2017 fiscal year.

Ø FINANCIAL REPORTING ISSUES 2016/2017:

Please find the attached final financial reports for 02/2017 and 03/2017. I have also included the most current Investment/Cash report. I am currently working on the third quarter reconciliations. I will report on any material findings at our meeting.

Ø SPECIAL PROJECTS: In addition to my standard responsibilities, I have also been working on the following special projects since our last board meeting:



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Revised: 5 9 17

Comptroller’s Report – May 17, 2017 Page 2

(1) Investors Bank Contracts and Implementation: I am the project leader for the transition from TD Bank to Investors Bank. With the Information Technology (IT) Department’s assistance we have implemented and tested all of Investors Bank on-line applications, the remote deposit capture equipment and process, and the wiring fund processes. We are on schedule to transfer funds from TD Bank to Investors Bank and “go live” with Investors Bank on Monday (05/08/17)- pending Investors Banks confirmation of their Positive Pay testing of our files. I will report on this implementation at our meeting.

(2) Wilmington Trust (Financial Advisors) Contracts and Implementation – I am also the

project leader for finalizing all Wilmington Trust contracts and documents. Please note that there are two resolutions in the “Action Items” section of the report that will need your approval to move forward with this implementation. After the 05/17/17 Board Meeting, William Mayo and I will be meeting with Wilmington Trust to discuss their action plan for financial advisory/investment service. We will notify the Finance Committee of this meeting for their option to participate.

(3) 2017/2018 Budget: - I have compiled the data and prepared the 2017/2018 budget for your review and discussion. The draft of the budget is included in the “Discussion Items” section of this report. Bill and I also met with the Finance Committee on 04/28/17 to review the budget. The Finance Committee’s revisions are reflected on the enclosed budget draft.

(4) Payroll and Employee Benefits – I continue to work with our Payroll Specialist to audit payroll reporting, coding and/or recordkeeping matters. Our Payroll Specialist has assumed the administration of many of the other current employee benefit programs through the third party providers. She has also prepared “new employee packages” and “medical leave/FLMA” packages. She is a critical resource to all NJSIG employees.

(5) Payroll Provider RFP – NJSIG currently has an active RFP for NJSIG’s payroll services. Proposals are due to NJSIG on 05/05/17. We will be presenting NJSIG recommendation for these services to you at the (06/21/17) board meeting.

Please contact me if you have any questions or concerns (email is [email protected] and cell number is 609-949-1973.

Michele Carosi

Michele Carosi, Comptroller

5/1/20175:33 PM

N J S I G

DATE 5/1/2017

U.S. TREASURIES & AGENCIESINTEREST

DATE MATURITY NO OF PURCHASE RATE @ VALUE AT INVESTMENT DAYS TO

AQUIRED DATE DAYS PRICE PURCHASE MATURITY TYPE MATURITY

========= =========== ============ ================ =========== =========== ================ =====================

Totals at: 5/1/2017 0 0

CERTIFICATES OF DEPOSIT

DATE MATURITY NO OF INTEREST DAYS TO NAME OF money

ACQUIRED DATE DAYS AMOUNT RATE MATURITY BANK from

========= =========== ============ ================ =========== =========== ================ =====================

Totals at: 5/1/2017 0

WITH DEAN WITTER

LIMITED PARTNERSHIPS

& STOCK

LATEST SHARES OR NAME OF

QUOTE UNITS VALUE PARTNERSHIP

========= =========== ============ ================ ===========

60 1 CEN PEN INC XXIV

878 1 D W REALTY III

Totals at: 5/1/2017 2

GRAND TOTAL 2

1

5/1/20175:33 PM

N J S I G

SUMMARY OF CASH AND INVESTMENTS

CASH

AS OF 3/31/2017

CASH MGT STATE 324,984

CLAIMS TD BANK (2,729,483)

TD WEALHT MGT - NJ Trst Fnd 0

LOCK BOX TD BANK (196,259)

PAYROLL TD BANK 0

OPERATING #2 TD BANK (137,587)

FSA/DCA TD BANK 0

Concentration TD BANK 335,441,771

Petty Cash 277

TOTAL CASH AS OF 3/31/2017 332,703,703

CERTIFICATES OF DEPOSIT & U.S. TREASURIES AND AGENCIES

AS OF 5/1/17

MATURITY CLAIM PAYOUT

AMOUNT % OF INVESTMENTS PATTERN

0 TO 12 MONTHS 0 0.00% 0%

12 TO 24 MONTHS 0 0.00% 0%

24 TO 36 MONTHS 0 0.00% 0%

36 TO 48 MONTHS 0 0.00% 0%

48 TO 60 MONTHS 0 0.00% 0%

OTHER 2 100.00% 100%

TOTAL OF CD'S & U.S. TREAS. AND AGENCIES

AS OF 5/1/17 2 100.00% 100%

TOTAL CASH AS OF 3/31/2017 = 332,703,703

TOTAL CD'S & US TREAS/AGENCIES AS OF 5/1/17 = 2

TOTAL = 332,703,705

2

NJSIG

Balance Sheet

For the Period Ended 3/31/2017

Current Balance Prior Year

Current Assets:

D.W. Active Assets 0.00 0.00

Petty Cash 277.30 115.93

Cash Mgmt. Fund - N.J. State 324,984.31 323,465.33

Operating Account (1st Union) 0.00 0.00

Concentration (1st Union) 0.00 0.00

Payroll (1st Union) 0.00 0.00

Claims (1st Union) 0.00 0.00

Legal Account (1st Union) 0.00 0.00

A.G. Edwards Cash 0.00 0.00

Concentration Acct (TD Bank) 335,441,770.85 161,130,984.24

Operating Acct (TD Bank) 0.00 0.00

Payroll Acct (TD Bank) 0.00 0.00

Claims Acct (TD Bank) (2,729,483.15) (2,573,425.73)

FSA/DCA Acct (TD Bank) 0.40 0.00

Lock Box Account(TD Bank) (196,259.36) (55,326.77)

Willis/NJSBAIG Cash (Commerce) 0.00 0.00

Cash Suspense 0.00 0.00

Tri-State Capital Bank Account 0.00 0.00

Beneficial Bank Accont 0.00 0.00

Operating Account (TD Bank2) (137,586.87) (217,228.68)

Concentration Acct (Investors) 0.00 0.00

Operating Acct (Investors) 0.00 0.00

Claims Acct (Investors) 0.00 0.00

Payroll Acct (Investors) 0.00 0.00

FSA/DCA Acct (Investors) 0.00 0.00

Assessmnt Collection Acct(INV) 0.00 0.00

CASH IN BANKS 332,703,703.48 158,608,584.32

Certificates of Deposit 0.00 142,882,253.21

Partnership Interests 2.00 2.00

U.S. Treasury Bills (A.G. Edw) 0.00 0.00

N.J. State Investment Fund 0.02 8,199,925.71

Investment Premiums (NJ Inv F) 0.00 0.00

Market Value Adjust (NJ Inv F) (0.02) (0.02)

Certificates of Deposit Suspns 0.00 0.00

MARKETABLE SECURITIES 2.00 151,082,180.90

Reinsurance Rebate Receivable 0.00 0.00

Reinsurance Recoverables 0.00 0.00

Reins. Recovery Receivable 0.00 0.00

Reins. Recovery 85/86 Recvb'l (36,223.49) (34,858.95) REINSURANCE RECEIVABLES (36,223.49) (34,858.95)

Interest/Divid Recvb'l-AG Ewds 0.00 0.00

NJSIG

Balance Sheet



Interest/Divid. Recvb'l-NJ Inv 0.02 0.02

Interest/Divid Recvb'l-CD's 0.00 0.00

Interest/Divid Recvbl-Ptnr Dst 0.00 0.00

INTEREST/DIVIDENDS RECEIVABLES 0.02 0.02

Misc. Accounts Receivable 0.00 0.00

Assessments Receivable 0.00 0.00

Legal Settlement Recvb'l 100.00 100.00

Seminar/Training Academy Rec 0.00 0.00

Retro Premium/Service Recvbl 0.00 0.00

Retro Audit Receivable 0.00 0.00

Retro Endorsement Receivable 0.00 0.00

Retro Add'l Servcs Recvb'l 0.00 0.00

MISC ACCOUNTS RECEIVABLES 100.00 100.00

Audit Premium Receivable 0.00 0.00

Premium Recvb'l Installments 9,716,711.34 9,591,526.82

Premium Recvb'l Prebill 0.00 0.00

Premium Receivable 1,828,036.96 1,956,649.18

Commission Recvbl Control Acct 0.00 0.00

Allowance of Doubtful Accts 0.00 0.00

A/R Maintenance Control Acct. 0.00 0.00

Asset Transfer Control Acct. 0.00 0.00

Agent Commission Receivable 0.00 0.00

PREMIUM RECEIVABLES 11,544,748.30 11,548,176.00

TOTAL Current Assets 344,212,330.31 321,204,182.29

F&F Original Value 1,693,729.71 1,870,538.00

Accumulated Depreciation (828,661.39) (1,012,147.54)

Leasehold Improvements 0.00 0.00

Accumulated Amortization 0.00 0.00

TOTAL FIXED ASSETS 865,068.32 858,390.46

Other Assets:

Prepaid General Insurance 116,278.04 113,257.57

Prepaid Crime Insurance 15,997.85 14,065.61

Prepaid General Expenses 132,930.95 152,198.41

Prepaid TPA Expenses (0.12) 168,749.88

PREPAID ASSETS 265,206.72 448,271.47

Unearned M&M Fees 0.00 0.00

Unearned Marsh Reins Exp 0.00 0.00

Unearned Marsh Ag Comm 0.00 0.00

NJSIG

Balance Sheet



Unearned Willis Fees 0.00 0.00

Unearned Reins Exp 651,390.18 578,013.38

Unearned Agent Comm. 199,824.44 197,928.47

Unrn'd Cigna/Fireman's Reins. 0.00 0.00

Unrnd Cigna/Fireman's Ag. Comm 0.00 0.00

Retro Reinsurance Unearned 0.00 0.00

Retro Agent Comm Unearned 0.00 0.00

Retro M&M Fee Unearned 0.00 0.00

UNEARNED EXPENSES 851,214.62 775,941.85

Travel Advance 0.00 0.00

Deposits 0.00 0.00

OTHER ASSETS 0.00 0.00

GASB68-Defer Out-ChngInAssump 1,703,943.00 383,215.00

GASB68-DeferOut-ChngProportion 1,347,926.00 563,383.00

GASB68-DeferOut-ExpectvsActual 378,521.00 0.00

DEFERRED OUTFLOWS 3,430,390.00 946,598.00

TOTAL OTHER ASSETS 4,546,811.34 2,170,811.32

TOTAL ASSETS 349,624,209.97 324,233,384.07

A/P Module ADM01 0.00 0.00

Notes Payable 0.00 0.00

Accrued Expenses Payable 122,496.71 124,395.07

A/P Module INS01 (1,964.66) (29,181.10)

Safety Grant Payable 3,420,840.33 2,798,541.65

Reins Recov Paybl- XL Reins 0.00 0.00

Mngmt Maintenance Syst Paybl 0.00 0.00

Broker Refund Payable 0.00 0.00

Federal Income Tax W/H 0.00 0.00

FICA W/H Employee 0.00 0.00

FICA W/H Employer 0.00 0.00

FUI Taxes Payable 0.00 0.00

SUI Payable 0.00 0.00

State Income W/H-NJ 0.00 0.00

State Income W/H-PA 0.00 0.00

Garnishment Payable 0.00 0.00

Medicare - Employee 0.00 0.00

Medicare - Employer 0.00 0.00

Employee Savings Payable 0.02 0.02

Local Income W/H-Phila 0.03 0.03

FSA MED Payable (1,746.70) 0.00

FSA Depend Payable 2,528.00 0.00

NJSIG

Balance Sheet



Group Term Life Payable 0.00 0.00

TOTAL CURRENT LIABILITIES 3,542,153.73 2,893,755.67

Estimated Unpaid Losses 217,262,000.00 213,198,000.00

Reserve-Unalloc Loss Adjust 1,498,994.27 1,721,588.39

Unearned Premiums-Marsh 0.00 0.00

Aggregate Contingency Fund 0.00 0.00

Unearned Premiums 1,606,448.11 1,555,470.06

Unrn'd Cigna/Fireman's Premium 0.00 0.00

Unernd Willis Mgt Fees/Ret Prm 0.00 0.00

Post Retirement Bene Paybl 1,182,440.64 900,277.83


Rate Stabilization-ERIC North 593,362.40 593,362.40

Rate Stabilization-ERIC South 232,385.94 377,053.53

Rate Stabilization - ERIC West 197,760.85 216,760.85

Rate Stabilization - BACCEIC 290,564.19 290,564.19

Rate Stabilization - MOCSSIF 320,824.09 215,463.00

Rate Stabilization - NJEIF 437,559.63 704,753.39

TOTAL LONG TERM LIABILITIES 223,622,340.12 219,773,293.64

Employee Benefits Payable 0.00 0.00

Pensions Payable 40,160.18 3,846.51

GASB68-Pension Payable 15,866,572.00 12,186,706.00

DCRP Payable 1,079.41 0.00

Dividend Payable 0.00 0.00

403B/T. Rowe Price Payable 0.00 (43.09)

Colonial Life Payable 0.00 0.00

Retro Claims (Cash) 206,717.04 324,461.51

STARS Recon/Claims Liability 0.00 0.00

Return of excess subrogation 0.00 0.00

AFLAC Payable 0.00 0.00

Group Term Life Payable 15,803.84 2,086.78

Due to Retro Reinsurer 0.00 0.00

Retro Agent Comm Payable 0.00 0.00

M&M Retro Fee Payable 0.00 0.00

Retro Unearned Prem/Service 0.00 0.00

Marsh Due to Reinsurers 0.00 0.00

Marsh Ag. Comm. Payable 0.00 0.00

Due to Reinsurers (1,461,509.67) (1,890,373.97)

Agent Comm. Payable 725,077.17 799,476.40

Due To Reinsurers Installments 0.00 0.00

Due To Reinsurers Prebill 0.00 0.00

Ag Comm Paybl Installments 0.00 0.00

Ag Comm Paybl Prebill 0.00 0.00

TOTAL OTHER LIABILITIES 15,393,899.97 11,426,160.14

GASB68-DeferIn-DiffInInvest 255,104.00 726,261.00

GASB68-DeferIn-ChngIn Proport 0.00 0.00

TOTAL DEFERRED INFLOWS 255,104.00 726,261.00

NJSIG

Balance Sheet



TOTAL LIABILITIES 242,813,497.82 234,819,470.45

Retained Earnings Fund Balance 68,222,366.06 57,315,325.86

Year-to-Date Earnings 38,588,346.09 32,098,587.76

Total Capital 106,810,712.15 89,413,913.62

Total Liabilities and Capital 349,624,209.97 324,233,384.07

NJSIG

Income Statement

For the Period Ending 3/31/2017

Actuals YTD Budget YTD Actuals Month Budget Month

Income:

4103 Workman's Compensation 68,469,290.15 67,264,966.00 0.00 0.00

4104 Property 19,308,801.85 19,414,236.00 18,214.90 0.00

4105 Automobile Liability 6,769,929.98 7,110,715.00 (24,057.22) 0.00

4106 Automobile Phys. Damage 1,161,375.03 1,081,480.00 317.44 0.00

4107 General Liability 9,523,637.43 10,345,211.00 0.00 0.00

4108 Boiler 1,074,593.76 1,095,686.00 1,063.68 0.00

4109 Errors & Omissions 15,331,939.73 16,054,110.00 0.00 0.00

4110 Umbrella 4,625,848.29 4,910,169.00 0.00 0.00

4111 Crime 627,846.48 613,024.00 0.00 0.00

4113 Pollution Liability Income 55,152.72 0.00 0.00 0.00

4114 E.D.P. 902,397.81 886,593.00 2,320.84 0.00

4117 Retro Accounts Income 4,574.65 0.00 789.78 0.00

4122 Supplemental Indemnity 1,722,695.61 1,304,428.00 0.00 0.00

4123 Bond Premium 288,478.29 299,058.00 192.17 0.00

Premium Income 129,866,561.78 130,379,676.00 (1,158.41) 0.00

Retro Accounts Income 0.00 0.00 0.00 0.00

Total Income 129,866,561.78 130,379,676.00 (1,158.41) 0.00

Adjustments:

4301 Reinsurance Recoveries 10,095,041.79 1,576,000.00 158,777.41 0.00

4304 Subrogation Income 843,063.39 0.00 83,595.90 0.00

Recoveries & Subro Income 10,938,105.18 1,576,000.00 242,373.31 0.00

Revenue 140,804,666.96 131,955,676.00 241,214.90 0.00

Page 1 of 5

NJSIG

Income Statement



Expenses:

5102 Salaries-Temporary Employees 30,599.31 80,625.00 6,720.00 8,958.33

5103 Salaries 4,276,907.08 4,548,734.24 500,696.48 505,414.92

5104 Salaries-Overtime 0.81 2,250.00 0.00 250.00

5108 Payroll Tax Expenses 352,196.74 442,500.00 49,034.92 49,166.67

5109 Pension Expense 643,434.37 495,234.00 643,318.00 55,026.00

5111 Recruiting Costs 23,484.75 5,625.00 12,000.00 625.00

5112 Post Retirement Bene Exp 0.00 128,664.75 0.00 14,296.08

5113 Employee Medical Benefits 691,926.05 934,371.00 77,453.14 103,819.00

5114 Employee Dental Benefits 40,641.99 42,300.00 4,492.26 4,700.00

5115 Employee Vision Benefits 18,712.61 18,540.00 1,993.10 2,060.00

5116 EE HRA Benefits 120,937.27 256,500.00 0.00 28,500.00

5117 Employee FSA Benefits 19,251.73 24,750.00 0.00 2,750.00

5118 Employee ST Disab & Other Ins 37,968.50 56,250.00 10,495.61 6,250.00

5119 Defined Contrib Retirement Exp 7,572.53 0.00 1,963.26 0.00

Personnel Expenses 6,263,633.74 7,036,343.99 1,308,166.77 781,816.00

5203 Marketing Expenses 19,319.41 9,000.00 261.15 1,000.00

Member Services Dept Expenses 19,319.41 9,000.00 261.15 1,000.00

5227 Loss Prevention 109,859.24 131,550.00 12,378.44 14,616.67

Loss Control Dept Expenses 109,859.24 131,550.00 12,378.44 14,616.67

5252 Claims Audit Expense 0.00 9,000.00 0.00 1,000.00

5253 Claims Admin. Expenses (36.00) 0.00 (36.00) 0.00

Claims Dept Expenses (36.00) 9,000.00 (36.00) 1,000.00

5301 Accounting Fees 530.00 900.00 0.00 100.00

5303 Actuary Fees 98,198.05 135,000.00 0.00 15,000.00

5305 Mngmt Maintenance Syst Expense 24,209.99 67,500.00 0.00 7,500.00

5306 Legal & Professional Fees 114,679.47 225,000.00 11,482.28 25,000.00

5310 Third Party Admin.-Willis 337,500.00 506,250.00 0.00 56,250.00

Outside Service Fees 575,117.51 934,650.00 11,482.28 103,850.00

5309 MOCSSIF Agent Commission Exp. 0.00 0.00 0.00 0.00

5311 Agent Commission Exp 12,661,134.10 10,193,619.00 (292.33) 1,132,624.33

5312 NJEIF Agent Commission Exp. 0.00 0.00 0.00 0.00

Page 2 of 5

NJSIG

Income Statement



5315 ERIC North Agent Comm. Exp. 319,361.72 0.00 0.00 0.00

5316 ERIC South Agent Comm Exp 0.00 0.00 0.00 0.00

5318 ERIC West Agent Comm Exp 0.00 0.00 0.00 0.00

5319 BACCEIC Agent Commission Exp 0.00 0.00 0.00 0.00

5320 CAIP Agent Commission Expense 0.00 0.00 0.00 0.00

Total Agent Commission Expense 12,980,495.82 10,193,619.00 (292.33) 1,132,624.33

5401 Claims Expense 48,988,166.26 51,530,250.00 6,220,500.21 5,725,583.33

5404 NEPHA Deductible Reimb. Exp. 5,000.00 0.00 5,000.00 0.00

Claims Expenses 48,993,166.26 51,530,250.00 6,225,500.21 5,725,583.33

5505 Reinsurance Exp-District Bill 32,395,202.85 25,121,944.50 6,399.06 2,791,327.17

Reinsurance Expenses 32,395,202.85 25,121,944.50 6,399.06 2,791,327.17

5352 IT - Office Equipment Supplies 8,969.02 20,250.00 1,229.73 2,250.00

5353 Office Equipment Maintenance 17,232.28 29,550.00 0.00 3,283.33

5354 Computer Software Maintenance 231,279.85 222,570.00 27,308.38 24,730.00

Information Technology Dept Expenses 257,481.15 272,370.00 28,538.11 30,263.33

5702 Depreciation Expense 273,091.48 434,055.00 32,671.90 48,228.33

5703 Dues & Subscriptions 78,510.39 67,323.74 3,648.67 7,480.42

5704 Misc. Bank Fees 2,625.01 2,625.00 291.67 291.67

5708 Rent Expense 377,062.72 350,022.75 37,735.09 38,891.42

5709 Office Supplies 20,783.46 54,127.50 1,805.37 6,014.17

5710 Office Operating Expenses 46,744.33 46,183.50 6,052.81 5,131.50

5711 Office Leased Expenses 24,158.50 29,625.00 3,721.43 3,291.67

5712 Telephone Expense 0.00 1,875.00 0.00 208.33

5715 Group's Insurance Expense 146,770.14 168,750.00 16,400.54 18,750.00

5716 Group's Crime Insurance Exp. 29,315.51 15,000.00 3,400.17 1,666.67

5717 FSA Admin Fee 757.30 0.00 339.50 0.00

5723 Postage 37,662.26 47,625.00 5,697.33 5,291.67

5727 Employee Seminar Expenses 7,084.11 82,631.24 589.50 9,181.25

5728 Insurance Course Fees 2,663.65 5,999.99 1,523.00 666.67

5729 Tuition Reimursement 1,042.00 16,312.50 1,042.00 1,812.50

5730 Audit Fees (890.00) 18,750.00 0.00 2,083.33

5731 Consulting Fees 117,490.56 256,875.01 3,436.25 28,541.67

5732 Miscellaneous Expenses 1,101.38 5,587.50 148.38 620.83

5733 Disaster Recovery Expenses 79,298.30 85,807.49 8,882.62 9,534.17

5737 Cell Phone Expense 9,729.28 14,250.00 1,186.15 1,583.33

Page 3 of 5

NJSIG

Income Statement



5738 OPRA expenses 38,428.71 75,000.00 0.00 8,333.33

Business Operating Expenses 1,293,429.09 1,778,426.24 128,572.38 197,602.92

5201 Travel & Related Expenses 43,553.96 113,126.99 3,968.37 12,569.67

5851 Annual Meeting 47,444.97 37,950.00 133.75 4,216.67

5852 Trustee Meeting Expense 4,097.25 20,000.00 490.18 0.00

Conferences & Meeting Expenses 95,096.18 171,077.00 4,592.30 16,786.33

Total Expenses 102,982,765.25 97,188,230.72 7,725,562.37 10,796,470.08

Page 4 of 5

NJSIG

Income Statement



Other Revenue and Expenses:

4413 Interest-NJ St Inv Fund 139.64 193.50 0.00 21.50

4414 Interest-NJ Cash Mgmt Fund 1,198.93 168.00 168.84 18.67

4415 Interest-Commerce Concentr 721,027.45 114,000.00 143,251.04 12,666.67

4420 Interest - Certificate of Dep 37,754.36 56,250.00 0.00 6,250.00

Investment Income 760,120.38 170,611.51 143,419.88 18,956.83

Financial Income 0.00 0.00 0.00 0.00

4603 Miscellaneous Income 2,379.87 0.00 0.00 0.00

4605 Seminar Income 3,944.13 2,437.50 250.00 270.83

Other Revenues 6,324.00 2,437.50 250.00 270.83

Investment Expenses 0.00 0.00 0.00 0.00

Total Other Revenue and Expenses 766,444.38 173,049.00 143,669.88 19,227.67

Net Revenue 38,588,346.09 34,940,494.28 (7,340,677.59) (10,777,242.41)

Page 5 of 5

NJSIG

Balance Sheet



Current Assets:

D.W. Active Assets 0.00 0.00

Petty Cash 146.99 300.00

Cash Mgmt. Fund - N.J. State 324,815.47 323,367.79

Operating Account (1st Union) 0.00 0.00

Concentration (1st Union) 0.00 0.00

Payroll (1st Union) 0.00 0.00

Claims (1st Union) 0.00 0.00

Legal Account (1st Union) 0.00 0.00

A.G. Edwards Cash 0.00 0.00

Concentration Acct (TD Bank) 339,112,596.97 152,949,195.35

Operating Acct (TD Bank) 0.00 0.00

Payroll Acct (TD Bank) 0.00 0.00

Claims Acct (TD Bank) (3,479,240.89) (1,683,100.08)

FSA/DCA Acct (TD Bank) 0.40 0.00

Lock Box Account(TD Bank) (112,400.58) (1,489,050.90)

Willis/NJSBAIG Cash (Commerce) 0.00 0.00

Cash Suspense 0.00 0.00

Tri-State Capital Bank Account 0.00 0.00

Beneficial Bank Accont 0.00 0.00

Operating Account (TD Bank2) (69,174.11) (335,799.87)

Concentration Acct (Investors) 0.00 0.00

Operating Acct (Investors) 0.00 0.00

Claims Acct (Investors) 0.00 0.00

Payroll Acct (Investors) 0.00 0.00

FSA/DCA Acct (Investors) 0.00 0.00

Assessmnt Collection Acct(INV) 0.00 0.00

CASH IN BANKS 335,776,744.25 149,764,912.29

Certificates of Deposit 0.00 142,882,253.21

Partnership Interests 2.00 2.00

U.S. Treasury Bills (A.G. Edw) 0.00 0.00

N.J. State Investment Fund 0.02 8,199,886.28

Investment Premiums (NJ Inv F) 0.00 0.00

Market Value Adjust (NJ Inv F) (0.02) (0.02)

Certificates of Deposit Suspns 0.00 0.00

MARKETABLE SECURITIES 2.00 151,082,141.47

Reinsurance Rebate Receivable 0.00 0.00

Reinsurance Recoverables 0.00 0.00

Reins. Recovery Receivable 0.00 0.00

Reins. Recovery 85/86 Recvb'l (36,223.49) (34,858.95) REINSURANCE RECEIVABLES (36,223.49) (34,858.95)

Interest/Divid Recvb'l-AG Ewds 0.00 0.00

NJSIG

Balance Sheet



Interest/Divid. Recvb'l-NJ Inv 0.02 0.02

Interest/Divid Recvb'l-CD's 0.00 0.00

Interest/Divid Recvbl-Ptnr Dst 0.00 0.00

INTEREST/DIVIDENDS RECEIVABLES 0.02 0.02

Misc. Accounts Receivable 0.00 0.00

Assessments Receivable 0.00 0.00

Legal Settlement Recvb'l 100.00 100.00

Seminar/Training Academy Rec 0.00 0.00

Retro Premium/Service Recvbl 0.00 0.00

Retro Audit Receivable 0.00 0.00

Retro Endorsement Receivable 0.00 0.00

Retro Add'l Servcs Recvb'l 0.00 0.00

MISC ACCOUNTS RECEIVABLES 100.00 100.00

Audit Premium Receivable 0.00 0.00

Premium Recvb'l Installments 12,605,882.19 12,287,317.20

Premium Recvb'l Prebill 0.00 0.00

Premium Receivable 3,585,554.29 3,816,395.93

Commission Recvbl Control Acct 0.00 0.00

Allowance of Doubtful Accts 0.00 0.00

A/R Maintenance Control Acct. 0.00 (186.02)

Asset Transfer Control Acct. 0.00 0.00

Agent Commission Receivable 0.00 0.00

PREMIUM RECEIVABLES 16,191,436.48 16,103,527.11

TOTAL Current Assets 351,932,059.26 316,915,821.94

F&F Original Value 1,693,729.71 1,866,240.14

Accumulated Depreciation (795,989.49) (972,283.07)

Leasehold Improvements 0.00 0.00

Accumulated Amortization 0.00 0.00

TOTAL FIXED ASSETS 897,740.22 893,957.07

Other Assets:

Prepaid General Insurance 132,678.58 128,955.20

Prepaid Crime Insurance 19,398.02 17,241.36

Prepaid General Expenses 156,120.36 129,259.95

Prepaid TPA Expenses (0.12) (0.12)

PREPAID ASSETS 308,196.84 275,456.39

Unearned M&M Fees 0.00 0.00

Unearned Marsh Reins Exp 0.00 0.00

Unearned Marsh Ag Comm 0.00 0.00

NJSIG

Balance Sheet



Unearned Willis Fees 0.00 0.00

Unearned Reins Exp 651,390.18 578,013.38

Unearned Agent Comm. 199,824.44 197,928.47

Unrn'd Cigna/Fireman's Reins. 0.00 0.00

Unrnd Cigna/Fireman's Ag. Comm 0.00 0.00

Retro Reinsurance Unearned 0.00 0.00

Retro Agent Comm Unearned 0.00 0.00

Retro M&M Fee Unearned 0.00 0.00

UNEARNED EXPENSES 851,214.62 775,941.85

Travel Advance 0.00 0.00

Deposits 0.00 0.00

OTHER ASSETS 0.00 0.00

GASB68-Defer Out-ChngInAssump 1,703,943.00 383,215.00

GASB68-DeferOut-ChngProportion 1,347,926.00 563,383.00

GASB68-DeferOut-ExpectvsActual 378,521.00 0.00

DEFERRED OUTFLOWS 3,430,390.00 946,598.00

TOTAL OTHER ASSETS 4,589,801.46 1,997,996.24

TOTAL ASSETS 357,419,600.94 319,807,775.25

A/P Module ADM01 0.00 0.00

Notes Payable 0.00 0.00

Accrued Expenses Payable 122,496.71 124,395.07

A/P Module INS01 (14,706.86) (29,282.87)

Safety Grant Payable 3,420,840.33 2,798,541.65

Reins Recov Paybl- XL Reins 0.00 0.00


Broker Refund Payable 0.00 0.00

Federal Income Tax W/H 0.00 0.00

FICA W/H Employee 0.00 0.00

FICA W/H Employer 0.00 0.00

FUI Taxes Payable 0.00 0.00

SUI Payable 0.00 0.00

State Income W/H-NJ 0.00 0.00

State Income W/H-PA 0.00 0.00

Garnishment Payable 0.00 0.00

Medicare - Employee 0.00 0.00

Medicare - Employer 0.00 0.00

Employee Savings Payable 0.02 0.02

Local Income W/H-Phila 0.03 0.03

FSA MED Payable 64.22 0.00

FSA Depend Payable 1,836.00 0.00

NJSIG

Balance Sheet



Group Term Life Payable 0.00 0.00

TOTAL CURRENT LIABILITIES 3,530,530.45 2,893,653.90

Estimated Unpaid Losses 217,262,000.00 213,198,000.00

Reserve-Unalloc Loss Adjust 1,498,994.27 1,721,588.39

Unearned Premiums-Marsh 0.00 0.00

Aggregate Contingency Fund 0.00 0.00

Unearned Premiums 1,606,448.11 1,555,470.06

Unrn'd Cigna/Fireman's Premium 0.00 0.00

Unernd Willis Mgt Fees/Ret Prm 0.00 0.00

Post Retirement Bene Paybl 1,183,440.64 900,777.83


Rate Stabilization-ERIC North 593,362.40 593,362.40

Rate Stabilization-ERIC South 232,385.94 377,053.53

Rate Stabilization - ERIC West 197,760.85 216,760.85

Rate Stabilization - BACCEIC 290,564.19 290,564.19

Rate Stabilization - MOCSSIF 320,824.09 215,463.00

Rate Stabilization - NJEIF 437,559.63 704,753.39

TOTAL LONG TERM LIABILITIES 223,623,340.12 219,773,793.64

Employee Benefits Payable 0.00 0.00

Pensions Payable 40,295.20 42,463.96

GASB68-Pension Payable 15,866,572.00 12,186,706.00

DCRP Payable 1,079.41 0.00

Dividend Payable 0.00 0.00

403B/T. Rowe Price Payable 5,531.40 4,854.53

Colonial Life Payable 0.00 0.00

Retro Claims (Cash) 218,379.76 332,670.97

STARS Recon/Claims Liability 0.00 0.00

Return of excess subrogation 0.00 0.00

AFLAC Payable 0.00 0.00

Group Term Life Payable 15,731.96 4,306.67

Due to Retro Reinsurer 0.00 0.00

Retro Agent Comm Payable 0.00 0.00

M&M Retro Fee Payable 0.00 0.00

Retro Unearned Prem/Service 0.00 0.00

Marsh Due to Reinsurers 0.00 0.00

Marsh Ag. Comm. Payable 0.00 0.00

Due to Reinsurers (1,466,841.73) (1,898,562.96)

Agent Comm. Payable 1,178,488.63 1,055,338.76

Due To Reinsurers Installments 0.00 0.00

Due To Reinsurers Prebill 0.00 0.00

Ag Comm Paybl Installments 0.00 0.00

Ag Comm Paybl Prebill 0.00 0.00

TOTAL OTHER LIABILITIES 15,859,236.63 11,727,777.93

GASB68-DeferIn-DiffInInvest 255,104.00 726,261.00

GASB68-DeferIn-ChngIn Proport 0.00 0.00

TOTAL DEFERRED INFLOWS 255,104.00 726,261.00

NJSIG

Balance Sheet



TOTAL LIABILITIES 243,268,211.20 235,121,486.47

Retained Earnings Fund Balance 68,222,366.06 57,315,325.86

Year-to-Date Earnings 45,929,023.68 27,370,962.92

Total Capital 114,151,389.74 84,686,288.78

Total Liabilities and Capital 357,419,600.94 319,807,775.25

NJSIG

Income Statement



Income:

4103 Workman's Compensation 68,469,290.15 67,264,966.00 26,272.36 0.00

4104 Property 19,290,586.95 19,414,236.00 (456.00) 0.00

4105 Automobile Liability 6,793,987.20 7,110,715.00 15,208.86 0.00

4106 Automobile Phys. Damage 1,161,057.59 1,081,480.00 4,522.34 0.00

4107 General Liability 9,523,637.43 10,345,211.00 2,025.37 0.00

4108 Boiler 1,073,530.08 1,095,686.00 (42.49) 0.00

4109 Errors & Omissions 15,331,939.73 16,054,110.00 2,824.47 0.00

4110 Umbrella 4,625,848.29 4,910,169.00 581.77 0.00

4111 Crime 627,846.48 613,024.00 33.27 0.00

4113 Pollution Liability Income 55,152.72 0.00 0.00 0.00

4114 E.D.P. 900,076.97 886,593.00 28.54 0.00

4117 Retro Accounts Income 3,784.87 0.00 510.84 0.00

4122 Supplemental Indemnity 1,722,695.61 1,304,428.00 0.00 0.00

4123 Bond Premium 288,286.12 299,058.00 564.81 0.00

Premium Income 129,867,720.19 130,379,676.00 52,074.14 0.00

Retro Accounts Income 0.00 0.00 0.00 0.00

Total Income 129,867,720.19 130,379,676.00 52,074.14 0.00

Adjustments:

4301 Reinsurance Recoveries 9,936,264.38 1,576,000.00 1,377,739.18 0.00

4304 Subrogation Income 759,467.49 0.00 134,306.34 0.00

Recoveries & Subro Income 10,695,731.87 1,576,000.00 1,512,045.52 0.00

Revenue 140,563,452.06 131,955,676.00 1,564,119.66 0.00

Page 1 of 5

NJSIG

Income Statement



Expenses:

5102 Salaries-Temporary Employees 23,879.31 71,666.66 4,278.00 8,958.33

5103 Salaries 3,776,210.60 4,043,319.33 482,429.11 505,414.92

5104 Salaries-Overtime 0.81 2,000.00 0.00 250.00

5108 Payroll Tax Expenses 303,161.82 393,333.34 48,620.72 49,166.67

5109 Pension Expense 116.37 440,208.00 0.00 55,026.00

5111 Recruiting Costs 11,484.75 5,000.00 8,954.50 625.00

5112 Post Retirement Bene Exp 0.00 114,368.66 0.00 14,296.08

5113 Employee Medical Benefits 614,472.91 830,552.00 77,795.88 103,819.00

5114 Employee Dental Benefits 36,149.73 37,600.00 4,603.86 4,700.00

5115 Employee Vision Benefits 16,719.51 16,480.00 1,890.91 2,060.00

5116 EE HRA Benefits 120,937.27 228,000.00 6,098.61 28,500.00

5117 Employee FSA Benefits 19,251.73 22,000.00 0.00 2,750.00

5118 Employee ST Disab & Other Ins 27,472.89 50,000.00 3,037.94 6,250.00

5119 Defined Contrib Retirement Exp 5,609.27 0.00 0.00 0.00

Personnel Expenses 4,955,466.97 6,254,527.99 637,709.53 781,816.00

5203 Marketing Expenses 19,058.26 8,000.00 199.00 1,000.00

Member Services Dept Expenses 19,058.26 8,000.00 199.00 1,000.00

5227 Loss Prevention 97,480.80 116,933.34 10,980.94 14,616.67

Loss Control Dept Expenses 97,480.80 116,933.34 10,980.94 14,616.67

5252 Claims Audit Expense 0.00 8,000.00 0.00 1,000.00

Claims Dept Expenses 0.00 8,000.00 0.00 1,000.00

5301 Accounting Fees 530.00 800.00 270.00 100.00

5303 Actuary Fees 98,198.05 120,000.00 2,993.33 15,000.00

5305 Mngmt Maintenance Syst Expense 24,209.99 60,000.00 470.14 7,500.00

5306 Legal & Professional Fees 103,197.19 200,000.00 75,370.99 25,000.00

5310 Third Party Admin.-Willis 337,500.00 450,000.00 0.00 56,250.00

Outside Service Fees 563,635.23 830,800.00 79,104.46 103,850.00

5309 MOCSSIF Agent Commission Exp. 0.00 0.00 0.00 0.00

5311 Agent Commission Exp 12,661,426.43 9,060,994.66 4,443.15 1,132,624.33

5312 NJEIF Agent Commission Exp. 0.00 0.00 0.00 0.00

5315 ERIC North Agent Comm. Exp. 319,361.72 0.00 0.00 0.00

Page 2 of 5

NJSIG

Income Statement



5316 ERIC South Agent Comm Exp 0.00 0.00 0.00 0.00

5318 ERIC West Agent Comm Exp 0.00 0.00 0.00 0.00

5319 BACCEIC Agent Commission Exp 0.00 0.00 0.00 0.00

5320 CAIP Agent Commission Expense 0.00 0.00 0.00 0.00

Total Agent Commission Expense 12,980,788.15 9,060,994.66 4,443.15 1,132,624.33

5401 Claims Expense 42,767,666.05 45,804,666.66 6,346,472.35 5,725,583.33

Claims Expenses 42,767,666.05 45,804,666.66 6,346,472.35 5,725,583.33

5505 Reinsurance Exp-District Bill 32,388,803.79 22,330,617.34 5,668.58 2,791,327.17

Reinsurance Expenses 32,388,803.79 22,330,617.34 5,668.58 2,791,327.17

5352 IT - Office Equipment Supplies 7,739.29 18,000.00 1,567.85 2,250.00

5353 Office Equipment Maintenance 17,232.28 26,266.66 0.00 3,283.33

5354 Computer Software Maintenance 203,971.47 197,840.00 24,877.53 24,730.00

Information Technology Dept Expenses 228,943.04 242,106.66 26,445.38 30,263.33

5702 Depreciation Expense 240,419.58 385,826.66 29,599.30 48,228.33

5703 Dues & Subscriptions 74,861.72 59,843.33 3,384.53 7,480.42

5704 Misc. Bank Fees 2,333.34 2,333.34 291.67 291.67

5708 Rent Expense 339,327.63 311,131.34 37,735.09 38,891.42

5709 Office Supplies 18,978.09 48,113.34 506.38 6,014.17

5710 Office Operating Expenses 40,691.52 41,052.00 6,111.51 5,131.50

5711 Office Leased Expenses 20,437.07 26,333.34 1,580.95 3,291.67

5712 Telephone Expense 0.00 1,666.66 0.00 208.33

5715 Group's Insurance Expense 130,369.60 150,000.00 26,203.46 18,750.00

5716 Group's Crime Insurance Exp. 25,915.34 13,333.34 3,364.17 1,666.67

5717 FSA Admin Fee 417.80 0.00 417.80 0.00

5723 Postage 31,964.93 42,333.34 716.76 5,291.67

5727 Employee Seminar Expenses 6,494.61 73,449.99 269.50 9,181.25

5728 Insurance Course Fees 1,140.65 5,333.33 215.00 666.67

5729 Tuition Reimursement 0.00 14,500.00 0.00 1,812.50

5730 Audit Fees (890.00) 16,666.66 0.00 2,083.33

5731 Consulting Fees 114,054.31 228,333.34 13,275.00 28,541.67

5732 Miscellaneous Expenses 953.00 4,966.66 332.13 620.83

5733 Disaster Recovery Expenses 70,415.68 76,273.33 8,858.76 9,534.17

5737 Cell Phone Expense 8,543.13 12,666.66 1,185.90 1,583.33

5738 OPRA expenses 38,428.71 66,666.66 3,074.50 8,333.33

Business Operating Expenses 1,164,856.71 1,580,823.32 137,122.41 197,602.92

Page 3 of 5

NJSIG

Income Statement



5201 Travel & Related Expenses 39,585.59 100,557.33 3,264.85 12,569.67

5851 Annual Meeting 47,311.22 33,733.34 (1,961.35) 4,216.67

5852 Trustee Meeting Expense 3,607.07 20,000.00 0.00 0.00

Conferences & Meeting Expenses 90,503.88 154,290.66 1,303.50 16,786.33

Total Expenses 95,257,202.88 86,391,760.64 7,249,449.30 10,796,470.08

Page 4 of 5

NJSIG

Income Statement




4413 Interest-NJ St Inv Fund 139.64 172.00 0.00 21.50

4414 Interest-NJ Cash Mgmt Fund 1,030.09 149.34 140.66 18.67

4415 Interest-Commerce Concentr 577,776.41 101,333.34 130,118.98 12,666.67

4420 Interest - Certificate of Dep 37,754.36 50,000.00 0.00 6,250.00

Investment Income 616,700.50 151,654.67 130,259.64 18,956.83

Financial Income 0.00 0.00 0.00 0.00

4603 Miscellaneous Income 2,379.87 0.00 0.00 0.00

4605 Seminar Income 3,694.13 2,166.66 0.00 270.83

Other Revenues 6,074.00 2,166.66 0.00 270.83

Investment Expenses 0.00 0.00 0.00 0.00

Total Other Revenue and Expenses 622,774.50 153,821.34 130,259.64 19,227.67

Net Revenue 45,929,023.68 45,717,736.70 (5,555,070.00) (10,777,242.41)

Page 5 of 5



www.njsig.org

1-888-NJ Pool 1

Rev.: 5/3/17

Board of Trustees Meeting of May 17, 2017 Client Relations and Underwriting Report

NJSIG and Willis Towers worked together diligently and were pleased to be in a position to release the following information to our broker partners last month:

LINE OF COVERAGE NJSIG RATE RENEWAL

GENERAL LIABILITY Decrease - 5% Note: Premium calculation based upon loss experience and exposures (student count).

AUTO LIABILITY & AUTO PHYSICAL DAMAGE

Decrease - 5% Note: Premium calculation based on loss experience and exposure base (vehicle count & type).

PROPERTY

Decrease - 5% Note: Minimum square footage allowance has increased to $204 per square foot. Please refer to your most recent appraisal for replacement cost valuations.

ERRORS & OMISSIONS

Increase + 5% except on *specified accounts – (*Brokers have been notified). Note: Premium calculation based upon student count and loss ratio.

EXCESS

Decrease - 5%

SUPPLEMENTAL INDEMNITY

Flat Note: Premium calculation based upon total payrolls provided.

WORKERS’ COMPENSATION

Note: 17/18 NJ Professional Rate: $1.62 and 17/18 NJ Non-Professional Rate: $11.80. The 17/18 Sub-fund deviations were released to each Sub-fund Administrator in February. Modification factors were released in early February as well. Contact your respective Sub-fund Administrator or Client Relations Representative should you have any questions relating to these factors.

The NJSIG Underwriters began releasing quote proposals on May 1st. To date, we received approximately 200 renewal application and 40 new business submissions.



www.njsig.org

1-888-NJ Pool 1

Rev.: 5/3/17

Client Relations and Underwriting Report May 17, 2017 Page 2

The NJSIG Client Relations staff, along with our Sub-fund Administrators, have successfully provided our annual training day events for our Member Business Administrators and Broker partners. These trainings included pertinent education sessions relative to key issues in our school districts. I would be happy to answer any questions you may have. Thank you, Kelly A. Machu Kelly A. Machu, CSRM Client Relations and Underwriting Manager



www.njsig.org

1-888-NJ Pool 1

Revised: 5/3/17

Board of Trustees Meeting of May 17, 2017 Loss Control Report

Inspections Over the last two months, the Safety and Risk Control Department completed over forty playground inspections. In addition, the staff completed a large number of property inspections and re-inspections. SafetyNet Newsletter The Safety Theme for May is Sports Safety Tips. The article provided helpful hints for people who exercise and important information on how to protect your skin. The Safety Workplace article was Job Descriptions: An Employers Best Defense. The article outlines the importance of having accurate job descriptions to defend employment claims. Again this summer, the Safety and Risk Control Department will conduct six defensive driving classes at the Mount Laurel office. In addition, we will be conducting two classes in the Marlboro office. The deadline for Safety Grants is May 31, 2017. We included a reminder in this month’s SafetyNet. Members also receive reminders via email every two weeks. In addition, the Customer Care staff is following up with Brokers and the Safety and Risk Control staff is reaching out to Members. A copy of the SafetyNet is included with this report. Tony Jones Tony Jones Safety and Risk Control Manager

A job description is a document stating the essential functions of a job and the required skills and knowledge necessary to perform those functions. Beyond the definition, an accurate job description can be an employer’s most valuable risk management tool, and is beneficial in several employment areas including recruiting, hiring, managing, disciplining, and defending an EEO claim. Effective job descriptions start with the purpose of the job and how it relates to other positions in the organization. It should outline the essential functions of the job, the percentage of time spent on each function, and any performance standards or expectations. Each job description should also identify any credentials, training certificates, or specific education required; necessary languages, spoken or written; and any physical requirements. In addition, a job description should detail the workplace environment (working indoor/outdoor, alone or with others, required travel) as well as the mandatory work hours, like evenings or weekends. The following suggestions concerning reasonable accommodations can help reduce your risk of a disability discrimination claim:

Train managers and supervisors to listen for informal requests for reasonable accommodation.

Make sure they know how to address the request or who to refer the request to in your

organization.

Allow a person with a disability to provide a list of reasonable accommodations that could allow

him or her to perform the job.

Engage in an interactive process to discover what accommodations would be appropriate and

reasonable. Consider recommendations provided by the individual's health care provider.

Once accommodations are in place, follow-up with the employee to determine whether the

accommodation is effective, or if additional accommodations are needed.

Written exclusively for My Community Workplace for Government

December 8, 2016

Job Descriptions: An Employer's Best Defense?

May 2017 New Jersey Schools Insurance Group

New Jersey Schools Insurance Group is offering summer Defensive Driving Classes. This six hour training class was developed by the National Safety Council.

Upon successful completion, participants will receive a certificate to be submitted to their insurance carrier, which may entitle them to a 5% reduction in their personal automobile liability insurance premium. In addition, if participants have points against their NJ Drivers license, they may apply to the Department of Motor Vehicles for a possible two-point reduction.

Training Location:

6000 Midlantic Ave Suite 300 North Mount Laurel, NJ 08054

Time:

9:00 am to 3:00 pm

July 11, 2017

July 19, 2017

July 27, 2017

August 8, 2017

August 16, 2017

August 24, 2017

2017 Defensive Driving Classes

Dates:

You must be pre-registered to attend the

Defensive Driving Class.

Please contact Joanne Gunter at 609-386-6060 x3021 or via email at [email protected]. Please bring a check payable to:

New Jersey Schools Insurance Group.

Class size limited: 20 per class

Instructor: Stephen Williams, NJSIG Safety & Risk Control Supervisor

Employees who drive for their district: No Charge

All other employees, spouses and age appropriate children: $10.00

*Please bring your lunch to the class*

NJSIG - Mount Laurel, NJ Office

Register Today!

New Jersey Schools Insurance Group

Phone: 609-386-6060

Fax: 609-386-8877 www.njsig.org

mailto:[email protected]

Reminder: The 2017 New Jersey Schools Insurance Group's (NJSIG)

Online Safety Grant Application will be open until 11:59 p.m. on May 31, 2017.

NJSIG's Safety Grant application process is faster and more user friendly than last year. The

entire process should take no more than a few minutes of your time and you can be on your

way to receiving your Safety Grant.

Do not forget to provide us with a generic email address so that you receive all of our Safety

Grant reminders.

Questions?:

If you have any questions regarding the 2017 Online Safety Grant Application, please email [email protected].

mailto:[email protected]



www.njsig.org

1-888-NJ Pool 1

Revised: 4/30/17

Board of Trustees Meeting of May 17, 2017 Claims Report

v March 1, 2017 to April 30, 2017 CLAIM ACTIVITY

Workers' Compensation Total pending work comp cases as of March 1, 2017 2570 New work comp cases months from March 1, 2017 to April 30, 2017 1973 Total work comp cases months from March 1, 2017to April 30, 2017 4436 Total closed work comp cases from March 1, 2017to April 30, 2017 (1866)

Total Pending Work Comp Cases as of April 30, 2017 2656

Property / Liability

Total new property-liability reports as of March 1, 2017 640 New property-liability cases from March 1, 2017 to April 30, 2017 370 Total property-liability cases from March 1, 2017 to April 30, 2017 1010 Total closed property-liability cases from March 1, 2017 to April 30, 2017 (365)

Total Property-Liability Cases as of April 30, 2017 645

Office Totals

Total pending cases as of March 1, 2017 3210 Total new reports from March 1, 2017 to April 30, 2017 1554 Total cases from March 1, 2017 to April 30, 2017 4764 Total closed cases from March 1, 2017 to April 30, 2017 (1463)

Total Pending Cases as of April 30, 2017 3301 nPENDING BY ADJUSTER TITLE

Job Title April Claim Representatives 9 1255 Legal Claim Examiners 1 175 Claim Examiner 9 1252 Senior Claim Representatives 4 619 Totals 3301



www.njsig.org

1-888-NJ Pool 1

Revised: 4/30/17

Claim Report – May 17, 2017 Page 2

Work Load Standards Property/Liability Claim Representatives to 150 files Senior Claim Representatives to 175 files Claim Examiners to 200 files Workers’ Compensation Claim Representatives to 150 files Senior Claim Representatives to 175 files Claim Examiners to 200 files nMARCH - APRIL – CLAIMS ACTIVITY The total number of new claims for this period was 1554. The two month average of 777 is up from totals in February (627) and November 2016 (631). The new claims volume is in line with results in previous years for the late winter, early spring months. The overall pending 3301 is up 3% from the prior month 3210, which was the total in February 2017. Workers’ compensation incoming was 592 on average over the last two months, which is up over 20% from the November - February monthly average of 494. Property liability claims averaged 185 per month, which on average, is up 27% from the November - February average of 134. This result appears to be driven, as expected, with being in the midst of the most active time in the school year. The property liability pending count contains one Hurricane Sandy claim, which is in litigation. nCLAIMS PERSONNEL Maureen Dempsey, previously a Claim Representative, was promoted to Senior Claim Representative. There is currently an opening to fill Maureen’s vacated position. Joanne Carlo started on March 16th as the new Bill Processor.



www.njsig.org

1-888-NJ Pool 1

Revised: 4/30/17


nSELECTED SELF-AUDIT RESULTS

RATING

PERCENT Satisfactory Unsatisfactory

Reporting & Communication 221 29 88%

Direction 374 43 90%

48 Hour Contact 207 31 87%

Investigation 107 13 89% TOTALS 909 116 89%

The preceding results are reflected in the overall claims analysis report for 18 individuals. Individual results were 84%, 89%, 84%, 90%, 85%, 70%, 92%, 97%, 97%, 88%, 87%, 90%, 94%, 93%, 99%, 89%, 94%, and 93%. Notable improvements were made in the areas of 48 Hour Contacts and Investigation. nFRAUDULENT CHECK A review of 50 checks was completed for the months of March and April to determine if any were fraudulent. No internal or external problems were found. nACCOUNT VISITATIONS AND INSTALLATIONS March 2 -3, 2017 ERIC North and MOCSSIF Sub Fund Meetings attended by

Tony Ruggeri, Claims Manager March 8, 2017 MunichRe completed a Claims Review at the NJSIG Mount Laurel office. Belleville Workers’ Compensation install completed by Connie Rogers,

Claims Supervisor March 10, 2017 NJSIG Brokers’ Meeting attended by Tony Ruggeri, Claims Manager March 22, 2017 South Jersey Claim Association Meeting attended by Tony Ruggeri, Claims

Manager, Neil Marek and Bill Miller, Claim Examiners March 23, 2017 Seminar held for WC Med and Temp by the law firm of Brown and

Connery at the NJSIG Mount Laurel office. March 29-30, 2017 Kick off to the 2017 Claims Internal Audit was held. April 4, 2017 Meet & greet with newly appointed defense attorneys hosted by

Tony Ruggeri, Claims Manager and Jill Deitch, Chief Legal Officer at the NJSIG Mount Laurel office.



www.njsig.org

1-888-NJ Pool 1

Revised: 4/30/17


April 5, 2017 Meet & greet with newly appointed defense attorneys hosted by

Tony Ruggeri, Claim Manager and Jill Deitch, Chief Legal Officer at the NJSIG Marlboro office.

April 20, 2017 Seminar held at NJSIG Mount Laurel office on Subrogation Recovery by the firm of Methfessel & Werbel.

April 27, 2017 Nurses meeting held by Ron Henry on Workers’ Compensation at the Matawan – Aberdeen BOE.

April 28, 2017 ERIC West Sub-Fund Meeting attended by Tony Ruggeri, Claims Manager nEDUCATION AND TRAINING On March 23, 2017, a seminar was held for WC Med and Temp by the law firm of Brown and Connery in our office in Mount Laurel.

On April 20, 2017, a seminar was held in the Mount Laurel office on Subrogation Recovery by the firm of Methfessel & Werbel. This seminar was held for the Entire claims staff. nLITIGATION There are two upcoming trials scheduled for June. There was one case submitted to the claims subcommittee during the month of April as there was no board meeting held. A copy of that report is attached. nMISCELLANOUS/ CLAIMS AUDIT On March 8, 2017, MunichRe came to our office for purposes of doing a claims review. A list of cases MunichRe was monitoring was reviewed with the reinsurer claims representatives. All claims have been properly reported to MunichRe within guidelines. INTERNAL CLAIMS AUDIT The firm conducting our 2017 Internal Claims Review, MCM CPAS and Advisors of Louisville, Kentucky, completed their first round of reviews in our office on March 29-30, 2017. The auditors examined our office procedures, conducted interviews with our personnel and reviewed the claims processes. Claim sampling was completed. Files are being audited remotely at this time. We expect results of the internal claims audit by June 2017.



www.njsig.org

1-888-NJ Pool 1

Revised: 4/30/17


AUTOMATED CLAIMS REPORTS The automation of the Claims Production report has been completed. We are also providing final feedback to IT in order to finalize the automation of the quality claim analysis report (Spot Check Review report). These automated reports should save a significant amount of time and effort as well as ensuring reporting accuracy. GOOD NEWS – favorable claims outcomes We received favorable outcomes through the efforts of our Claims Staff and Defense Counsel with the assistance of NJSIG legal. The cases are listed below:

• March 2017 - Ken Welsh v. Warren County Spec Services - our motion for summary judgment filed on behalf of Warren County Special Services was granted. No appeal.

• April 2017 - Evans v. Plainfield Board of Education, et al sexual assault case - our motion

for summary judgment filed on behalf of Plainfield Board of Education was granted. No appeal thus far.

• April 2017 - Tracey Fernandez vs Perth Amboy BOE - our motion for summary

judgment filed on behalf of Perth Amboy BOE was granted. No appeal thus far.

• April 2017 - Appellate division win! Published case! Bryce Patrick v. Elizabeth BOE - City and Board of Education Found Immune from Liability for School Child Struck by Car Crossing Road Near School - our motion for summary judgment filed on behalf of Elizabeth BOE was granted.

• April 2017 - Cezanne Czworowski v. Cape May County Vocational Board of Education

Facial disfigurement case Petition for Late Notice denied by the court. The case is now over.

Tony Ruggeri Anthony Ruggeri, AIC, ARM, INS Claims Manager



www.njsig.org

1-888-NJ Pool 1

Board of Trustees Meeting of May 17, 2017 Information Technology Report

Ø Origami Upgrade (Claims Management Software)

The Origami implementation is ongoing and is on schedule for the July 1st go live date. We were notified about a change Origami made with their FROI/SROI reporting entity. We were told they are changing vendors because of reporting and support issues they saw with their previous vendor. This change will not affect NJSIG much since we just started the FROI/SROI conversion process. The NJSIG legal team will review this change with Origami. On a positive note, Origami making such a bold change reveals that they do not stand around when there are issues; they do what they need to do to get things resolved. The claims staff continues to be heavily involved in the development of the new system. The super users listed below have been involved in many of the implementation meetings with Origami and have relayed ideas from the claims staff that have been implemented into the new system. The claims staff’s input and direction will hopefully provide a more adjuster friendly and streamline some of the current process.

Claims Super User Group Mike Weiner Eric Franklin Theresa Brewer Joan Madden

Ø Banking Change TD Bank to Investors Bank The IT Department has been working with the Accounting Department to ensure there is a smooth transition to the new bank Investors. We have updated the PeopleSoft System and Claim Management Systems with the new bank information. The wire information has been setup and tested with Investors. We have submitted Positive Pay files to Investors for both the Claims Management System and PeopleSoft. Although we received a verbal confirmation, we are waiting for a written acceptance letter. The electronic check deposit scanners have been setup, tested and the procedures have been reviewed by both the Accounting and IT Departments. I have been designated as the administrator of the banking software. I will assign the security roles to the Accounting Department staff as needed for scanner and approvers. Jeff Cook Jeff Cook, Information Systems Manager



www.njsig.org

1-888-NJ Pool 1

Board of Trustees Meeting of May 17, 2017 Discussion Item

2017/2018 Budget The 2017/2018 NJSIG budget is required to be submitted to the Department of Banking and Insurance (DOBI) each year. The attached draft is for discussion this month and is considered the first reading of the budget. The 2017/2018 final NJSIG budget will be on the June agenda as an action item for Trustee approval to submit to DOBI. Attached please find 2017/2018 draft NJSIG budget worksheet. Michele Carosi Michele Carosi Comptroller

NJSIG KEY:

Income Statement A8 - 8 months actual

For the Periods Ending: E12 - Estimate based on A7

B17 - Budgeted 2017 amount


FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018

06/30/2015 06/30/2016 06/30/2016 8 MONTHS 8 MONTHS 12 MONTHS 12 MONTHS PROJECTED 06/30/2018

Account Department Description Actuals YTD Budget YTD Actuals YTD Budget YTD Actuals YTD Budget YTD PROJECTED Variance Budget YTD

Income:

4101-4131 Premium Income 123,157,772.10 130,175,197.62 124,012,334.08 130,379,676.00 129,867,720.19 130,379,676.00 129,869,613 (510,063) 131,180,680

Total Income 123,157,772.10 130,175,197.62 124,012,334.08 130,379,676.00 129,867,720.19 130,379,676.00 129,869,613 (510,063) 131,180,680

Adjustments:

4301 Reinsurance Recoveries 12,954,141.75 0.00 21,016,979.81 1,576,000.00 9,936,264.38 1,576,000.00 9,936,264 A8 8,360,264 0

4302 Reins Recovery W/C 85/86 (34,329.65) 0.00 (1,364.54) 0.00 0.00 0.00 0 0 0

4303 Accrued Reins Recoveries 1,892,475.39 0.00 (1,892,475.39) 0.00 0.00 0.00 0 0 0

4304 Subrogation Income 1,127,723.08 0.00 1,237,058.32 0.00 759,467.49 0.00 759,467 A8 759,467 0

4306 Reinsurance Rebate Income 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Recoveries & Subro Income 15,940,010.57 0.00 20,360,198.20 1,576,000.00 10,695,731.87 1,576,000.00 10,695,732 9,119,732 0

Revenue 139,097,782.67 130,175,197.62 144,372,532.28 131,955,676.00 140,563,452.06 131,955,676.00 140,565,344 8,609,668 131,180,680

Expenses:

5102 Salaries-Temporary Employees 253,864.98 118,999.99 127,323.38 71,666.66 23,879.31 107,500.00 35,819 E12 (71,681) 112,520

5103 Salaries 5,472,796.80 6,002,794.37 5,391,689.51 4,043,319.33 3,776,210.60 6,064,978.99 5,664,316 E12 (400,663) 6,450,037

5104 Salaries - Overtime 20,195.37 3,000.00 3,843.13 2,000.00 0.81 3,000.00 1 A8 (2,999) 5,000

5108 Payroll Tax Expenses 451,129.41 526,788.00 466,532.88 393,333.34 303,161.82 590,000.00 454,743 E12 (135,257) 558,110

5109 Pension Expense 551,767.00 606,960.00 622,937.00 440,208.00 116.37 660,312.00 660,312 B17 0 745,215

5109-68 GASB68-Pension Expense 193,243.00 0.00 724,917.00 0.00 0.00 0.00 0 0 0

5110 Employee Benefits Expense (1,268.41) 0.00 0.00 0.00 0.00 0.00 0 0 0

5111 Recruiting Costs 5,447.45 10,000.00 10,753.50 5,000.00 11,484.75 7,500.00 23,485 A9 15,985 30,670

5112 Reiree Med Bene Exp 77,943.00 78,000.00 288,182.81 114,368.66 0.00 171,553.00 171,553 B17 0 182,402

5113 Employee Medical Benefits 859,315.26 1,149,720.00 884,408.38 830,552.00 614,472.91 1,245,828.00 921,709 E12 (324,119) 1,219,320

5114 Employee Dental Benefits 51,577.18 54,954.00 50,881.41 37,600.00 36,149.73 56,400.00 54,225 E12 (2,175) 65,602

5115 Employee Vision Benefits 21,131.34 24,000.00 21,202.43 16,480.00 16,719.51 24,720.00 25,079 E12 359 28,334

Page 1 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018



5116 EE HRA Benefits 204,229.21 342,000.00 118,204.60 228,000.00 120,937.27 342,000.00 120,937 A8 (221,063) 0

5117 Employee FSA Benefits 45,182.58 33,000.00 13,987.23 22,000.00 19,251.73 33,000.00 33,000 B17 0 0

5118 Employee Short Term Disability & Other Ins 57,283.57 75,000.00 55,328.99 50,000.00 27,472.89 75,000.00 75,000 B17 0 82,000

5119 Defined Contribution Retirement Expense 0.00 0.00 0.00 0.00 5,609.27 0.00 11,219 A8 11,219 6,722

Personnel Expenses 8,263,837.74 9,025,216.36 8,780,192.25 6,254,527.99 4,955,466.97 9,381,791.99 8,251,397 (1,130,395) 9,485,931

5202 Newsletter Expenses 3,348.23 0.00 0.00 0.00 0.00 0.00 0 0 0

5203 Marketing Expenses 25,677.09 12,000.00 19,053.17 8,000.00 19,058.26 12,000.00 28,587 E12 16,587 8,450

Member Services Dept Expenses 29,025.32 12,000.00 19,053.17 8,000.00 19,058.26 12,000.00 28,587 16,587 8,450

5227 Loss Prevention 153,669.54 160,300.00 156,926.39 116,933.34 97,480.80 175,400.00 175,400 B17 (0) 174,600

5228 Office Equipment Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0 0

5229 Computer Software Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Loss Control Dept Expenses 153,669.54 160,300.00 156,926.39 116,933.34 97,480.80 175,400.00 175,400 (0) 174,600

5252 Claims Audit Expense 8,471.18 7,600.00 14,867.59 8,000.00 0.00 12,000.00 12,000 B17 0 16,000

5253 Claims Admin. Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Claims Dept Expenses 8,471.18 7,600.00 14,867.59 8,000.00 0.00 12,000.00 12,000 0 16,000

5301 Accounting Fees 1,210.00 1,187.00 1,140.00 800.00 530.00 1,200.00 1,200 B17 0 1,100

5303 Actuary Fees 148,269.66 160,000.00 114,520.74 120,000.00 98,198.05 180,000.00 180,000 B17 0 220,000

5305 Mngmt Maintenance Syst Expense 54,470.76 65,000.00 71,083.73 60,000.00 24,209.99 90,000.00 90,000 B17 0 90,000

5306 Legal & Professional Fees 179,710.86 300,000.00 171,570.59 200,000.00 103,197.19 300,000.00 300,000 B17 0 250,000

5310 Third Party Admin.-Willis 506,250.00 675,000.00 675,000.00 450,000.00 337,500.00 675,000.00 675,000 B17 0 675,000

Outside Service Fees 889,911.28 1,201,187.00 1,033,315.06 830,800.00 563,635.23 1,246,200.00 1,246,200 0 1,236,100

5309 MOCSSIF Agent Commission Exp. 344,570.00 398,646.48 344,138.16 0.00 0.00 411,216.00 411,216 B17 0 447,080

5311 Agent Commission Exp 12,825,878.22 12,879,905.02 12,605,095.06 9,060,994.66 12,661,426.43 13,591,492.00 12,661,426 A8 (930,066) 12,673,259

5312 NJEIF Agent Commission Exp. 456,864.00 492,058.76 520,435.52 0.00 0.00 506,030.00 506,030 B17 0 557,183

5315 ERIC North Agent Comm. Exp. 500,000.00 500,000.00 378,385.20 0.00 319,361.72 500,000.00 500,000 B17 0 500,000

5316 ERIC South Agent Comm Exp 239,872.00 248,267.96 217,837.24 0.00 0.00 256,823.00 256,823 B17 0 255,659

5318 ERIC WEST AG. COMM EXP 371,535.00 297,254.87 359,710.01 0.00 0.00 306,376.00 306,376 B17 0 323,958

5319 BACCEIC Agent Commission Exp 201,505.00 208,537.94 160,830.12 0.00 0.00 215,508.00 215,508 B17 0 229,131

5320 CAIP Agent Commission Expense 168,022.56 132,255.44 88,928.83 0.00 0.00 136,582.00 136,582 B17 0 130,127

Total Agent Commission Expense 15,108,246.78 15,156,926.47 14,675,360.14 9,060,994.66 12,980,788.15 15,924,027.00 14,993,961 (930,066) 15,116,396

5401 Claims Expense 79,557,899.87 68,502,032.00 68,439,096.09 45,804,666.66 42,767,666.05 68,707,000.00 68,707,000 B17 0 69,071,521

5402 Change in Claims Reserves (184,000.00) 0.00 4,064,000.00 0.00 0.00 0.00 0 0 0

Page 2 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018



5403 Change in Claims Reserves for ULAG (66,496.62) 0.00 (222,594.12) 0.00 0.00 0.00 0 0 0

5404 NEPHA Deductible Reimb. Exp. 0.00 0.00 0.00 0.00 0.00 0.00 5,000 A8 5,000 0

Claims Expenses 79,307,403.25 68,502,032.00 72,280,501.97 45,804,666.66 42,767,666.05 68,707,000.00 68,712,000 5,000 69,071,521

5502 Reinsurance Exp (Group/Flat) 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5505 Reinsurance Exp-District Bill 29,021,094.05 33,486,128.80 32,334,931.57 22,330,617.34 32,388,803.79 33,495,926.00 32,388,804 A8 (1,107,122) 32,968,039

5507 Reinsurance Exp-NJSBAIG Paid 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Reinsurance Expenses 29,021,094.05 33,486,128.80 32,334,931.57 22,330,617.34 32,388,803.79 33,495,926.00 32,388,804 (1,107,122) 32,968,039

5352 IT - Office Equipment Supplies 11,672.12 22,000.00 13,483.97 18,000.00 7,739.29 27,000.00 27,131 131 29,000

5353 Office Equipment Maintenance 15,192.00 44,400.00 23,000.56 26,266.66 17,232.28 39,400.00 39,400 B17 0 39,900

5354 Computer Software Maintenance 195,587.00 240,760.00 170,754.41 197,840.00 203,971.47 296,760.00 305,957 E12 9,197 275,056

Information Technology Dept 222,451.12 307,159.99 207,238.94 242,106.66 228,943.04 363,160.00 372,488 9,328 343,956

5702 Depreciation Expense 369,371.35 489,855.00 469,735.89 385,826.66 240,419.58 578,740.00 578,740 B17 0 606,611

5703 Dues & Subscriptions 28,172.17 30,499.99 40,700.00 59,843.33 74,829.14 89,764.99 112,244 E12 22,479 100,337

5704 Misc. Bank Fees 3,232.36 3,500.00 3,500.03 2,333.34 2,333.34 3,500.00 3,500 E12 0 37,860

5708 Rent Expense 193,191.29 323,510.00 301,575.19 311,131.34 339,327.63 466,697.00 508,991 E12 42,294 471,391

5709 Office Supplies 29,630.80 41,940.00 41,929.00 48,113.34 18,978.09 72,170.00 72,170 B17 (0) 70,670

5710 Office Operating Expenses 85,515.03 86,003.00 97,148.61 41,052.00 40,691.52 61,578.00 61,037 E12 (541) 92,984

5711 Office Leased Expenses 31,599.87 29,100.00 30,000.39 26,333.34 20,437.07 39,500.00 39,500 B17 (0) 39,500

5712 Telephone Expense (2,735.59) 4,900.00 199.00 1,666.66 0.00 2,500.00 2,500 B17 0 1,000

5713 Employee Internet Reimbursmt 1,839.03 0.00 0.00 0.00 0.00 0.00 0 0 0

5714 Utilities 31,071.52 33,200.00 21,542.26 0.00 0.00 0.00 0 0 0

5715 Group's Insurance Expense 194,352.20 223,000.00 183,014.89 150,000.00 130,369.60 225,000.00 225,000 B17 0 250,000

5716 Group's Crime Insurance Exp. 35,832.04 47,000.00 37,562.01 13,333.34 25,915.34 20,000.00 38,873 E12 18,873 40,000

5723 Postage 59,908.79 62,000.00 50,525.63 42,333.34 31,964.93 63,500.00 63,500 B17 (0) 62,000

5727 Employee Seminar Expenses 23,427.84 60,000.01 26,609.69 73,449.99 6,494.61 110,174.99 9,742 E12 (100,433) 126,500

5728 Insurance Course Fees 1,087.24 7,500.00 2,292.10 5,333.33 1,140.65 7,999.99 7,215 B17 (785) 12,000

5729 Tuition Reimursement 3,930.00 16,889.00 4,224.00 14,500.00 0.00 21,750.00 1,563 E12 (20,187) 6,000

5730 Audit Fees 119,927.00 45,000.00 47,773.00 16,666.66 (890.00) 70,500.00 45,500 (25,000) 60,000

5731 Consulting Fees 284,114.83 266,000.00 195,189.31 228,333.34 114,054.31 342,500.02 342,500 B17 (0) 355,000

5732 Miscellaneous Expenses 33,550.19 65,750.00 36,159.06 4,966.66 953.00 7,450.00 1,430 E12 (6,020) 6,200

5733 Disaster Recovery Expenses 40,756.37 118,840.00 84,628.50 76,273.33 70,415.68 114,409.99 114,410 B17 0 123,696

5734 Building Appraisal Fees 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5735 DOBI Audit Fees 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5737 Employee Cell Phone Expense 13,864.00 17,560.00 16,721.47 12,666.66 8,543.13 19,000.00 12,815 E12 (6,185) 20,250

5738 OPRA expenses 0.00 100,000.00 33,770.90 66,666.66 38,428.71 100,000.00 57,643 E12 (42,357) 100,000

Page 3 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018



5807 Ins. Write-off Exp 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

5809 Safety Grant Distribution Exp 2,200,000.00 0.00 3,000,000.00 0.00 0.00 0.00 0 0 0

Business Operating Expenses 3,781,638.33 2,072,047.02 4,724,800.93 1,580,823.32 1,164,406.33 2,416,734.98 2,298,873 (75,505) 2,582,000

5201 Travel & Related Expenses 156,150.99 173,000.00 118,333.36 100,557.33 39,585.59 150,835.99 52,422 E12 (98,414) 114,288

5851 Annual Meeting 63,783.93 47,600.00 45,991.43 33,733.34 47,311.22 50,600.00 47,311 A8 (3,289) 53,400

5852 Trustee Meeting Expense 16,283.91 24,000.00 9,136.88 20,000.00 3,607.07 20,000.00 5,411 E12 (14,589) 10,000

Conferences & Meeting Expenses 236,218.83 244,600.00 173,461.67 154,290.66 90,503.88 221,436.00 105,144 (116,292) 177,688

Total Expenses 137,021,967.42 130,175,197.63 134,400,649.68 86,391,760.64 95,256,752.50 131,955,675.96 128,584,854 (3,328,465) 131,180,681

Page 4 of 5 5/4/2017 12:41 PM

NJSIG KEY:





FY 2014/2015 FY 2015/2016 FY 2015/2016 02/28/2017 02/28/2017 06/30/2017 06/30/2017 06/30/2017 FY 2017/2018




4405 Partnership Distributions 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

4413 Interest-NJ St Inv Fund 148,514.08 258.00 782.52 172.00 139.64 258.00 140 A8 (118) 0

4414 Interest-NJ Cash Mgmt Fund 206.25 224.00 786.82 149.34 1,030.09 224.00 1,545 E12 1,321 224

4415 Interest-Commerce Concentr 162,758.69 171,548.00 308,075.28 101,333.34 577,776.41 152,000.00 577,776 A8 425,776 578,269

4419 Interest - Operating Account 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

4420 Interest - Certificate of Dep 762,608.96 616,388.00 538,751.20 50,000.00 37,754.36 75,000.00 37,754 A8 (37,246) 0

4421 Tri-State Capital Intrst Inc 0.61 0.00 0.00 0.00 0.00 0.00 0 0 0

4422 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Investment Income 1,074,088.59 788,418.01 848,395.82 151,654.67 616,700.50 227,482.01 617,216 389,734 578,493

4501 Gain on Securities (109,794.40) 0.00 0.00 0.00 0.00 0.00 0 0 0

Financial Income (109,794.40) 0.00 0.00 0.00 0.00 0.00 0 0 0

4603 Miscellaneous Income 11,438.56 0.00 1,579.01 0.00 2,376.00 0.00 2,376 A8 2,376 0

4605 Seminar Income 3,865.00 3,250.00 9,910.00 2,166.66 3,694.13 3,250.00 3,694 A8 444 8,750

4609 Willis Change in Unrnd Ag Comm (24,791.50) 0.00 1,895.97 0.00 0.00 0.00 0 0 0

4610 Willis Change in Unrnd Reins (78,830.10) 0.00 73,376.80 0.00 0.00 0.00 0 0 0

4620 Legal Settlement Income 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Other Revenues (88,318.04) 3,250.00 86,761.78 2,166.66 6,070.13 3,250.00 6,070 2,820 8,750

5901 Amortization of Inv. Premiums 32,810.60 0.00 0.00 0.00 0.00 0.00 0 0 0

5902 Investment Costs 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0

Investment Expenses 32,810.60 0.00 0.00 0.00 0.00 0.00 0 0 0

Total Other Revenue and Expenses 843,165.55 791,668.01 935,157.60 153,821.34 622,770.63 230,732.00 623,286 392,554 587,243

Net Revenue 2,918,980.80 791,667.99 10,907,040.20 45,717,736.70 45,929,470.19 230,732.04 12,603,776 12,373,044 587,243

Page 5 of 5 5/4/2017 12:41 PM

New Jersey Schools Insurance Group 6000 Midlantic Drive

Mount Laurel, New Jersey 08054

(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

PREMIUM INCOME

Account # 4105 – 4118 Budget: $ 131,180,680

GROSS PREMIUM

Estimated at current levels

Workers’ Compensation $ 70,526,032

Property $ 18,602,082

Auto Liability $ 6,064,955

Auto Physical Damage $ 1,391,342

General Liability $ 9,047,456

Boiler $ 1,215,963

E&O $ 16,251,856

Excess Liability $ 4,533,332

Crime $ 627,846

Pollution $ 0

E.D.P. $ 857,278

Retro Income $ 0

Builders Risk $ 0

Workers’ Compensation Supplemental Indemnity $ 1,774,376

Bond $ 288,162

TOTAL $ 131,180,680

http://www.njsig.org/



(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

SALARIES TEMPORARY EMPLOYEES

Account # 5102 Budget: $ 112,520

Claims $ 70,000

Information Technology $ 10,000

Underwriting/Client Relations $ 6,000

Administrative $ 26,520

TOTAL $ 112,520




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

SALARIES

Account # 5103 Budget: $ 6,450,037

PERSONNEL SALARY EXPENSE

500 – Claims $ 2,427,287

510 – Loss Control $ 623,415

530 – Legal $ 249,153

540 – Administrative $ 579,375

550 – Accounting $ 550,265

560 – Underwriting $ 1,131,311

570 – Information Technology $ 889,231

All increases scheduled for 9/1/2017.

TOTAL $ 6,450,037




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OVERTIME


Information Technology $5,000

TOTAL $ 5,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

PAYROLL TAXES


Social Security

Unemployment tax $ 558,110

TOTAL $ 558,110




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE PENSION EXPENSE


Pension Expense - Estimated $ 745,215

Defined by the State of New Jersey actuary

Based on employer appropriation.

TOTAL $ 745,215




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

RECRUITMENT



TOTAL $ 30,670


New Jersey Schools Insurance Group 450 Veterans Drive

Burlington, New Jersey 08016

(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

RETIREE MEDICAL BENEFITS


This funds the retiree medical benefits account. The NJSIG will reimburse

$500/month for medical benefits to retired employees that have accumulated

25 years of service and reached a minimum age of 60 at retirement.

The annual budget amount is determined by an independent actuary study.

The program is administered by an outside vendor.

TOTAL $ 182,402




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE MEDICAL BENEFITS

Account # 5113 Budget: $ 1,219,320

Assumed 5% increase @ 2017/2018 $ 1,219,320

TOTAL $ 1,219,320




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE DENTAL BENEFITS


Assume 5% increase @ 2017/2018 $ 65,602

TOTAL $ 65,602




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE VISION BENEFITS


Assume 5% increase @ 2017/2018 $ 28,334

(82 employees)

TOTAL $ 28,334




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EE SHORT TERM DISABILITY BENEFITS


Based on 82 employees

TOTAL $ 82,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

ER Defined Contribution Retirement Expense


DCRP $4,979

Group Term Life $1,228

Long Term Disability $ 515

Based on 3 eligible employees @ 2017/2018

TOTAL $ 6,722




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

MARKETING/ADVERTISING EXPENSE


Miscellaneous brochure folders

training materials and advertising expenses $8,450

TOTAL $ 8,450




www.njsig.org

1-888-NJ Pool 1

Rev.: 4/12/17

2017/2018 Budget LOSS PREVENTION MISCELLANEOUS EXPENSE Account # 5227 Budget: $ 174,600 Training Academy Expenses Food for 20 classes @ $150 each $ 3,000 150 folders for classes $ 200 NJ Safety Council – DDC

500 Books @ $13.50 per student $ 6,750 500 Certification @ $10 per student $ 5,000 Instructor Certification $ 800 NJSIGtrain.org $10,000 First Aid/CPR/AED Training $ 1,500 First Aid/CPR/AED Instructor Certification $ 500 CPI Books & Certificates & Instructor Certification $ 2,000 Safety Materials Video $ 200 Family Safety Magazine $ 600

Top Health Newsletter $ 600

Safety Awards 45 @ $100 each $ 4,500 Safety Calendars 600 @ $3.25 $ 1,950 Safety Committee Recognition $ 1,000

Awards/Poster/Frames WeTip (discretionary) $ 1,000 Dupont/Coastal/Video Stream $ 2,000 Safe School Online Training $ 125,000 Boiler Seminar $ 8,000 TOTAL $ 174,600



(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CLAIMS AUDIT


Claim Audit $ 16,000

Independent auditor reviews claim operation

TOTAL $ 16,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

ACCOUNTING FEES


Accounting Fees $ 1,100

(To support monthly closing)

TOTAL $ 1,100




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget ACTUARIAL FEES


Two reserve studies, one rating study, and

miscellaneous services performed $ 220,000

by independent actuary.

TOTAL $ 220,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget MANAGEMENT MAINTENANCE SYSTEM EXPENSE


School Dude reimbursements are made to members

that have maintenance direct (MD) and scored $ 90,000

a minimum of two from School Dude.

TOTAL $ 90,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

LEGAL AND PROFESSIONAL FEES


TOTAL $ 250,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

THIRD PARTY ADMIN FEE


Broker Fees $ 675,000

Provide retail and reinsurance brokerage services - Willis

TOTAL $ 675,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

AGENT FEES

Account # 5309-5320 Budget: $ 15,116,396

Auto Liability & Physical Damage $1,054,550

General Liability $ 1,299,162

Property $ 2,651,332

EDP – Electronic Data Processing $ 123,000

Boiler & Machinery (equipment breakdown) $ 170,961

Auto Liability/General Liability Excess $ 650,316


Errors & Omissions $ 2,326,784

Crime $ 91,887

Bond $ 41,462

Workers’ Compensation Supplemental Indemnity $ 175,595

Pollution $ 0

Sub Fund Agent Commissions $ 2,443,137

TOTAL $ 15,116,396




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CLAIMS EXPENSE

Account # 5401 Budget: $ 69,071,521

CLAIMS EXPENSE

From Actuary Pricing Study $ 69,071,521

TOTAL $ 69,071,521


New Jersey School Insurance Group 6000 Midlantic Drive, Suite 300 North


(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

REINSURANCE EXPENSE

Account # 5505 Budget: $ 32,968,039

NET REINSURANCE

Auto Liability $1,014,800

General Liability $ 978,147

Property $ 9,052,915

E.D.P $ 123,469

Boiler $ 971,851

Excess Liability $ 3,732,479


E&O $ 14,008,857

Crime $ 111,782

Bond $ 51,622

Workers’ Compensation Supplemental Indemnity $ 1,379,287

TOTAL $ 32,968,039




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

INFORMATION TECHNOLOGY OFFICE SUPPLIES

Account # 5352 Budget: $29,000

CD Copies $ 4,000

Cintas Paper Shredding @ 100 per month $ 6,000

Kodak Scanner Supplies $ 1,500

Miscellaneous Expenses $ 10,000

Pitney Bowes Supplies $ 4,000

Shredder Supplies $3,500

TOTAL $ 29,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OFFICE EQUIPMENT MAINTENANCE


Avalanche (ML350) 1yr 13x5x4 Support $ 1,000

Dresx1 (Mt. Laurel) DL 380 G5 $ 1,000



DR Backup (Mt. Laurel) DL 380 G5 $ 1,000

DR San 4300 (DRISCSI 1) $ 2,800

DR San 4300 (DRISCSI 2) $ 2,800

DR Cisco Router 2901 (DRISCSI 2) $ 800

ESX1 DL380 G6 $ 1,000

ESX2 DL380 G6 $ 1,000

ESX3 DL380 G6 $ 1,000

ISCSI1 SAN 4500 $ 3,000

ISCSI2 SAN 4500 $ 3,000

ISCSI3 SAN 4500 $ 3,000

Kodak Scanner Support $ 4,500

Misc. Hardware Support $ 10,000

Backup $ 1,000

ImageRight Full Text DL 380 G4 $ 1,000

TOTAL $ 39,900




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget COMPUTER SOFTWARE MAINTENANCE

Account # 5354 Budget: $ 275,056 1099Pro $ 1,000

Brook Trout Fax Board Software $ 1,000

Cisco Support $ 1,600

Comcast Internet/TV $ 3,000

Escrow Tech for NavRisk $ 1,000

Ethernet 40MB Broadview (Data/Phone) $ 56,496

Go To Meeting $ 700

ImageRight $ 52,800

ImageRight (After 9-5) Support $ 2,000

Micro Scribe (Paperless Board Package) $ 2,360

Microsoft Web Mail $ 5,800

Misc. Software Support/Licensing $ 5,000

Misc. Software Cal. Licensing $ 10,000

NavRisk Programming Projects $ 10,000

eFax (Cloud Faxing) $24,000

SSL VPN $ 9,000

Origami Programming Projects $ 10,000

Trend Micro Client/Server Protection $ 4,200

Veeam $ 2,700

VmWare (upgrade 5.1 to 6.1) $10,000

Watchguard (Mt. Laurel/Marlboro) $ 10,000

Windows Server 2012 $ 5,000

Zetafax $ 1,800

Constant Contact Software $ 1,000

Crystal Reports $500

ISO Data Analytics $25,000

Adobe Creative Cloud $2,000

ShareFile $15,300

SHI Asset Management $700

IOS/Mac Apps Development $350

AD Audit Plus $750

TOTAL $ 275,056




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

DEPRECIATION


1401 Capital

Monitors 22” LCD Flat Screen $250/each $ 5,000

Desktop Workstations/Thin Clients $1,250/each $ 25,000

All in One Printers (9 Road Personnel) $130/each $ 650

HP Laptop (Upgrades) $1,800/each $ 7,200

Laserjet Printers $2,000/each $ 4,000

LCD Projector $1,800/each $ 3,600

Oragami Risk $ 199,150

PeopleSoft (Oracle) $ 16,000

NavRisk $ 77,500

2 Desktop Scanning $200/each $ 600

60 VM Ware View Desktops $200/each $ 12,000

SSL Certs $ 7,000

ImageRight Upgrade $100,000

HP Storageworks $ 26,000

Office Furniture $ 25,000

Subtotal of Capital – Carry Forward $ 508,700

Continued on next page




www.njsig.org

1-888-NJ Pool 1

Rev.: 5/17/17

2017/2018 Budget DEPRECIATION Account # 5702 1401 Capital

Subtotal of Capital – from Previous Pages $ 508,700 Total Capital 2017/2018 $ 508,700 Total 2017/2018 Depreciation Expenses Budgeted $ 206,680

+ Carried forward Depreciation Expenses from previous years $ 399,931 Budget plus Carry Forward = 2017/2018 Depreciation Budget $ 606,611

TOTAL Depreciation Budget= $ 606,611



(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

DUES & SUBSCRIPTIONS


Claims $ 25,000

Loss Control $ 2,500

Legal $4,912


Underwriting $5,650

TOTAL $ 100,337




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

MISCELLANOUS BANKING FEES


Miscellaneous Banking Fees $ 37,860

TOTAL $37,860




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

RENT EXPENSE


Rent and Fees – Mt. Laurel Office $ 471,391

TOTAL $ 471,391




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OFFICE SUPPLIES


Office Supplies

Administrative $68,670

Underwriting $2,000

TOTAL $ 70,670




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OFFICE OPERATING EXPENSES


UAS – Monthly $160 $ 2,400

Coffee Services (ML & DR) $ 4,000

Water Services (ML & DR) $1,000

Payroll $ 80,000

Mt Laurel Fire License $400

Verizon Wireless Tablets $5,184

TOTAL $92,984




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

LEASE PAYMENTS


Lease Payments $ 32,000

(copiers, fax machine and Pitney Bowes)

Pitney Bowes Postage Machine $7,500

TOTAL $39,500




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

TELEPHONE EXPENSE


Including long distance & fax lines $ 1,000

TOTAL $1,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

GROUP’S INSURANCE


Property/Liability $ 250,000

Workers’ Compensation

Errors & Omissions

Data Breach

TOTAL $ 250,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CRIME INSURANCE


Crime Coverage $ 40,000

TOTAL $40,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

POSTAGE


Federal Express Postage $10,000

Pitney Bowes - Administrative $50,000

Pitney Bowes Pre-Sort – IT $2,000

TOTAL $ 62,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

EMPLOYEE SEMINAR EXPENSE


Claims $ 12,000


Legal $8,500


Accounting $ 7,500

Underwriting $ 24,500


TOTAL $ 126,500




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

INSURANCE EDUCATION


Claims $ 5,000


TOTAL $ 12,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

TUITION REIMBURSEMENT


Loss Control $3,000

Accounting $3,000

TOTAL $ 6,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

FINANCIAL AUDITS


Fiscal Year End Audit $ 60,000

TOTAL $ 60,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CONSULTING FEES


Consultants for Information Technology, Accounting,

Loss Control and Administration

Loss Control

WeTip and property Inspection $ 40,000

Accounting

PeopleSoft $ 35,000



CBIZ

Retreat

Korn Ferry/Hay Group

Legal One

ISO

Watson Consulting

Echo Group

Canning Group

TOTAL $ 355,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

MISCELLANEOUS


Claims $1,000

Underwriting

Storage Facility Files $2,200

Administrative

Miscellaneous $1,000

Petty Cash Reimbursements $2,000

TOTAL $6,200




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

DISASTER RECOVERY


Disaster Recovery

Information Technology – Site Costs $ 109,108

Rent $ 58,308

Analog Phone Line $ 3,600

Ethernet Line $ 34,200

ADT – Alarm System $ 2,400

PSE&G $ 5,400

Postage $ 1,200

Comcast/Verizon $ 3,000

Misc. Annual Fees $ 1,000

Administrative – Site Costs $14,588

Cleaning Service $ 4,000

Copier Maintenance $ 4,800

CAM Costs $ 5,788

TOTAL $ 123,696




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

CELL PHONES


$ 19,250

Data & International Package Annual Fee $ 1,000

TOTAL $ 20,250




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

OPEN PUBLIC RECORDS ACTS (OPRA) EXPENSES


Miscellaneous Administrative Expenses $ 100,000

related to OPRA requests.

TOTAL $ 100,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget TRAVEL AND RELATED EXPENSE


Claims $ 13,000


Legal $ 2,500


Accounting $ 1,000


Information Technology $ 0

TOTAL $ 114,288




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

ANNUAL MEETING

Account #5851 Budget: $ 53,400

Hotel & Meeting Rooms Expenses $ 6,600

Booth Storage and Freight $ 3,000

NJSIG Booth Space $ 30,000

Union Labor & Booth Furniture $ 3,500

Convention Handouts/Materials $ 3,000

Badges $ 300

Annual Meeting and Luncheon $ 7,000

Total $ 53,400




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

BOARD OF TRUSTEES MEETINGS

Account# 5852 Budget: $ 10,000

$ 10,000

TOTAL $ 10,000




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

INVESTMENT INCOME

Account # 4406 - 4420 Budget: $ 578,493

Estimated Investment Income $ 578,493

TOTAL $ 578,493




(609) 386-6060 FAX (609) 386-8877 www.njsig.org

2017/2018 Budget

SEMINAR INCOME

Account # 4605 Budget: $8,750

Defensive Driving $250

Training Academy $1,000

Boiler Seminars $7,500

TOTAL $8,750


Rev.: 5/8/17

New Jersey Schools Insurance Group

PLAN OF RISK MANAGEMENT 2017/2018

Rev.: 5/8/17

TABLE OF CONTENTS Page INTRODUCTION - Mission Statement 1 Coverage Provided, Limits of Liability, Self-Insured Retentions and Deductibles 2

General Property Equipment Breakdown

Comprehensive General and Automobile Liability

2 3 3 3

Workers’ Compensation and Employers Liability 4

School Leaders Errors and Omissions Liability 4

Reinsurance 4

Operational Philosophy 5 General/Sub-Fund 5 Premium Contribution 5 Brokers 6 Claims Response and Reserving 6-7 Standards of Performance 7 General Liability/Automobile Liability 7-8 Workers’ Compensation and Employers Liability 8-10 Property 10-11 Productivity/Pending Standards 11

Rev.: 5/8/17

TABLE OF CONTENTS Continued Page Legal Claim Handling 12 Claim Payment Procedures 12 Incoming/Outgoing Correspondence 12 Outside Independent Assignments 12 Reporting Guidelines - Workers’ Compensation 12

Reporting Guidelines - General Liability/Automobile

12-13

Reporting Guidelines - Property 13 Rehabilitation - Administrative Controls 14 General Comments 14 Discretionary Settlement Authority 14-15

Claims Committee

Financial Management

15-16

16 Safety and Loss Prevention 16 Standards of Participation 16

1 Rev.: 5/8/17

NEW JERSEY SCHOOLS INSURANCE GROUP PLAN OF RISK MANAGEMENT The mission of New Jersey Schools Insurance Group (“NJSIG"), a school insurance pool, is to ensure the availability of insurance to New Jersey public school districts and charter schools by offering the best coverage at the lowest possible cost while providing risk management education, training and services. I. INTRODUCTION NJSIG is a joint insurance fund formed under the provisions of N.J.S.A. 18A: 18B-1 et. seq. NJSIG’s membership is comprised of public school districts and charter schools. NJSIG commenced operations in October 1983.

NJSIG’s objectives include the following:

A. Providing eligible school districts and charter schools with a long-term alternative to the conventional insurance market as a means of stabilizing the otherwise cyclical nature of insurance expenditures;

B. Maintaining proactive safety and loss prevention programs specific to issues inherent in

public schools;

C. Aggressively evaluating, defending and/or settling claims made against Members which fall within the defined coverages afforded through NJSIG;

D. Maintaining a responsible funding posture in an effort to ensure long-term

financial security for NJSIG and, by extension, the membership.

2 Rev.: 5/8/17

II. COVERAGE PROVIDED, LIMITS OF LIABILITY, SELF-INSURED RETENTIONS AND DEDUCTIBLES A. GENERAL

NJSIG offers coverage to its Members through one or more of the following vehicles:

• Pooled self-insurance • Excess insurance • Reinsurance • Individual contracts

NJSIG offers its Members the following coverages:

1. Workers’ Compensation and Employers’ Liability

2. Automobile Liability,

3. General Liability

4. Property

5. Equipment Breakdown

6. Automobile Physical Damage

7. School Leaders Errors and Omissions Liability

8. Crime and Bonds

9. Electronic Data Processing

10. Excess Liability

11. Supplemental Indemnity

12. Breach Response

13. Environmental Liability

The specific limits of coverages afforded by NJSIG incorporate individual Member deductibles, funded self-insured retentions and various jointly purchased conventional and excess/reinsurance policies. Unless specifically stated to the contrary, limits shown in the following sections shall be considered to be inclusive of applicable pooled self-insured retention.

3 Rev.: 5/8/17

NJSIG also provides for aggregate excess insurance where applicable. B. PROPERTY

1. Limit of liability $500,000,000 per occurrence

2. NJSIG self-insured retention (SIR) $1,000,000 per occurrence

3. Member deductible $1,000 to $50,000

4. Perils included see policies “Appendix A”

C. EQUIPMENT BREAKDOWN

1. Limit of liability $100,000,000 per loss

2. NJSIG self-insured retention $0

3. Member deductible 12 hours/$1,000 - $10,000

4. Policy conditions refer to specific policy language D. COMPREHENSIVE GENERAL AND AUTOMOBILE LIABILITY

1. Limit of liability between $1,000,000 and $31,000,000 per occurrence

2. NJSIG self-insured retention (SIR): $500,000 per occurrence

3. Member deductible liability options $0-$50,000 except $1,000 employee benefits

4. Insuring agreement provides coverage for bodily injury, property damage and personal injury liability arising out of the business activities of the Member. See specific policy language.

4 Rev.: 5/8/17

E. WORKERS’ COMPENSATION

1. Limits of liability: (a) Workers’ Compensation statutory (b) Employers Liability $2,000,000 per occurrence

2. NJSIG specific self-insured retention (a) Workers’ Compensation $1,000,000 (b) Employers Liability $1,000,000

3. Member deductible none F. SCHOOL LEADERS ERRORS & OMISSIONS LIABILITY

1. Coverage A Limits of liability between $1,000,000 and $31,000,000 per

occurrence/aggregate, per member. Limit chosen by district may be subject to retro-active dates. Refer to specific policy language.

2. Coverage B $100,000/$300,000 or $50,000/$150,000 3. Member deductible: between $5,000 to $250,000 Coverage A and B 4. Insuring agreements: refer to specific policy language.

5. NJSIG self-insured retention $0 G. REINSURANCE

1. NJSIG may purchase reinsurance or excess insurance, which is subject to the terms and

conditions of the specific excess or reinsurance carrier agreements. NJSIG purchased reinsurance for the following:

(a) Property: NJSIG cedes 100% net loss per occurrence in excess of $1,000,000 to

a maximum of $500,000,000.

(b) Comprehensive General Liability and Automobile Liability: NJSIG cedes 100% net loss per occurrence in excess of $500,000.

(c) Workers’ Compensation and Employers Liability: NJSIG places excess statutory

limits of liability and employers’ liability in excess of $1,000,000 per occurrence.

2. The cost of reinsurance is variable depending on Member exposure. The final number will be determined by audit at year-end. Based upon known exposures the total

5 Rev.: 5/8/17

reinsurance cost is estimated to be $33,500,000. III. OPERATIONAL PHILOSOPHY

A. SUB-FUNDS

NJSIG organized the state into seven (7) predominately geographical groups known as Sub-Funds. There is also an eighth group consisting of non-geographical members. Eligible NJSIG Members are assigned to a geographic Sub-Fund. Continued membership in the Sub-Fund is predicated on Members meeting the minimum standards of participation and maintaining the required loss profile as defined by the eligibility requirements. These Sub-Funds have no decision making authority relative to the operation of NJSIG. Sub-Fund governing documents do not supersede any governing documents of NJSIG. Each Sub-Fund is individually analyzed and priced by NJSIG’s actuary for workers’ compensation based on that particular Sub-Fund’s loss experience, size and premium volume. Each of the seven geographical Sub-Funds has a Sub-Fund Administrator. The Sub-Fund Administrator is an insurance broker with demonstrated school board risk management expertise and a contract with NJSIG. Members may be removed from a Sub-Fund if they do not meet the eligibility requirements.

B. PREMIUM CONTRIBUTION

1. Each year, the actuary shall compute the probable net cost for the upcoming

year by line of coverage.

2. The annual premium of each Member shall be its share of the probable net cost for the upcoming year based upon exposures, loss portfolio and experience modifiers.

3. A Member’s right to continue membership in a particular Sub-Fund for the full

term of its commitment is contingent upon meeting the eligibility requirements.

4. The calculation of premium for each Member shall be based on the overall annual budget. Premiums may be modified to reflect the loss history or underwriting data of the individual Member.

5. NJSIG’s Board of Trustees votes and approves the budget at least one (1)

month prior to the beginning of the next fiscal year.

6. The annual premium shall be paid in one (1) installment, except Workers’

6 Rev.: 5/8/17

Compensation, where Members may request up to a maximum of twelve (12) monthly installments.

C. BROKERS

Members are required to retain the services of a broker. Service expectations of brokers include, but are not limited to the following: 1. The Broker retained must be licensed by the State of New Jersey.

2. The Broker shall be paid commission by NJSIG as defined in the standard

commission policy. 3. The Broker’s specific responsibilities shall include but not be limited to:

(a) Annual evaluation of the Member’s exposures, policies and risk portfolio.

(b) Expert knowledge and guidance with respect to coverages, limits and

deductibles applicable to the Member’s individual exposures. (c) Preparation and completion of reports, applications, statements of

values, schedules and other required Underwriting documentation to obtain coverage terms.

(d) Review of Member’s insurance costs in preparation of the Member’s

insurance budget.

(e) Review of the Member’s loss experience, engineering reports and participation in the Member’s safety committee meetings.

(f) Assist and guide in the claims process, as necessary.

(g) Attendance at their Member’s respective Sub-Fund meetings.

4. The broker shall be a New Jersey licensed Property/Casualty Insurance

Producer who has demonstrated and provided proof of prior experience in the management of public entity insurance risks. The broker shall maintain at least a $5,000,000 per claim errors & omissions insurance limit and provide evidence of coverage to NJSIG prior to binding. Brokers earning less than $30,000 of annual NJSIG commission may request an annual exemption for the $5,000,000 errors and omissions insurance minimum requirement. Such requests must be submitted to the Underwriting Manager in writing 60 days prior to renewal.

D. CLAIMS RESPONSE AND RESERVING

1. CLAIM DEPARTMENT STATEMENT

(a) Customer Service

7 Rev.: 5/8/17

NJSIG is committed to partnering with member districts to provide extraordinary claim service to all members.

(b) Quality Services

Departmental procedures have been developed to meet the present and future needs of Members. Achieving consistently favorable results is a clear measure of sustained quality service.

IV. STANDARDS OF PERFORMANCE

A. GENERAL LIABILITY/AUTOMOBILE LIABILITY

1. Coverages

Claims will be promptly reviewed for coverage. If there is a question concerning coverage, the issue(s) will be documented and reviewed. If issues of coverage remain, the matter will be referred to coverage counsel with a request for a timely determination. Excess and/or reinsurance carriers will be informed as required. Upon determination of coverage, any remaining questions or issues will be documented and communicated with a reservation of rights letter.

2. Initial Technical Processing New losses are assigned promptly, reserved and entered into the claim system within one business day of receipt. Appropriate matters are centrally index to cross reference prior claims. An acknowledgement letter is sent to the Member when the file is set up, with a copy to the broker.

3. Insured/Claimant Contact

(a) All insureds must be contacted within two business days of assignment.

(b) All claimants will be contacted within two business days of assignment. If verbal contact is not made, written correspondence will follow.

4. Investigation

(a) Investigation of claims will be guided by the adjuster assigned.

5. Reporting and Communication

(a) The claim file will be documented detailing all developments.

Correspondence will be addressed and answered timely, as necessary.

(b) All reserves will be reviewed and, as necessary, approved by a supervisor and/or Claims Manager.

8 Rev.: 5/8/17

(c) Claims that are 50% of NJSIG’s retention, catastrophic losses or that meet

the criteria under any reinsurance or excess reporting guidelines, shall be reported to the reinsurer/excess carrier immediately.

(d) All files are reviewed on a periodic and as needed basis by the claims adjuster and supervisor.

6. Recovery/Subrogation/Contribution

(a) Claims with subrogation recovery and/or contribution potential shall be

recognized, investigated and documented.

(b) If recovery, subrogation and/or contribution is to be waived or compromised, it must be approved by the Claims Manager.

7. General

(a) Loss Control will be notified as to conditions which may require corrective measures. Loss Control will contact the Member and ensure the condition is given appropriate attention.

(b) For all physical damage automobile losses, the vehicle must be inspected

by an independent auto appraiser within five business days of assignment and concluded within ten business days. If damages are less than $2,000, two estimates may be reviewed by the claims adjuster in lieu of a physical inspection.

(c) Centers for Medicare and Medicaid Services (CMS) reporting complied with in all cases involving bodily injury.

B. WORKERS' COMPENSATION

1. Coverages

Claims will be promptly reviewed for coverage. If there is a question concerning coverage, the issue(s) will be documented and reviewed. If issues of coverage remain, the matter will be referred to coverage counsel with a request for a timely determination. Excess and/or reinsurance carriers will be informed as required. Upon determination of coverage, any remaining questions or issues will be documented and communicated.

2. Initial Technical Processing

New losses are assigned promptly, reserved and entered into the claims system within one business day of receipt. Appropriate matters are centrally indexed to cross reference prior claims. An acknowledgement letter is sent to the Member when the file is set up, with a copy to the broker.

9 Rev.: 5/8/17

3. Insured/Claimant Contact

All insureds and claimants must be contacted within two business days of assignment for lost time cases.

4. Investigation

(a) The claimant should be interviewed or a statement obtained for all claims involving questionable and/or serious exposure when appropriate.

(b) A detailed investigation shall be conducted for all claims commensurate

with the potential exposure.


(a) The claim file will be documents detailing all significant developments. Correspondence will be addressed and answered timely, as necessary.

(b) All reserves will be reviewed and, as necessary, approved by a supervisor

and/or Claims Manager. (c) Claims that are 50% of NJSIG’s retention, catastrophic losses or that

meet the criteria under any reinsurance or excess reporting guidelines shall be reported to the reinsurer/excess carrier immediately.

(d) All files are reviewed on a periodic and as needed basis by the claims

adjuster and supervisor. 6. Recovery/Subrogation/Contribution

(a) Claims with subrogation recovery and/or contribution potential shall be recognized, investigated and documented.

(b) If recovery, subrogation and/or contribution is to be waived or

compromised, it must be approved by the Claims Manager.

7. General

(a) Loss Control will be notified as to conditions which may require corrective measures. Loss Control will contact the Member and ensure the condition is given appropriate attention.

(b) Compensability analysis shall be in accordance with New Jersey law.

(c) Initial indemnity payment on all loss time cases shall occur within

twenty-one (21) business days of receipt of loss.

(d) Medical bills should be process/paid within ten (10) business days of

10 Rev.: 5/8/17

receipt.

(e) Lost wages and permanency claims are to be properly calculated based on current New Jersey law and disability chart. The disability chart is updated by the State of New Jersey annually.

(f) Physician contact and control is completed based on the treatment plan established by the claims adjuster along with the managed care provider.

(g) Centers for Medicare and Medicaid Services (CMS) reporting complied

with in all cases involving bodily injury. The First Report of Injury (FROI) and the Subsequent Report of Injury (SROI) are complied with in accordance with New Jersey law.

C. PROPERTY

1. Coverage

Claims will be promptly reviewed for coverage. If there is a question concerning coverage, the issue(s) will be documented and reviewed. If issues of coverage remain, the matter will be referred to coverage counsel with a request for a timely determination. Excess and/or reinsurance carriers will be informed as required. Upon determination of coverage any questions or issues will be documented and communicated.

2. Initial Technical Processing

New claims are assigned promptly, reserved and entered into the claims system within one business day of receipt. Appropriate matters are central indexed to cross-reference prior claims. An acknowledgement letter is sent to the Member when the file is set up, with a copy to the broker.

3. Insured Contact

All insureds must be contacted within two (2) business day of assignment. If verbal contact is not made, written correspondence will be sent.

4. Investigation

A NJSIG claims adjuster, along with a designated property appraiser, if necessary, will be assigned to verify damages, cause of loss and provide an appraisal/estimate for needed repair or replacement. If a physical inspection is necessary, it will be completed within three (3) business days of assignment. If no inspection is warranted, receipts, purchase orders, or other substantiated documentation will be obtained to verify and pay the loss. All claims with significant subrogation potential will be assigned to subrogation counsel, as necessary.

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(a) The claim file will be documented detailing all developments. Correspondence will be addressed and answered timely, as necessary.

(b) All reserves will be reviewed, and as necessary, approved by a claims supervisor and/or Claims Manager.

(c) Claims that are 50% of NJSIG’s retention, catastrophic losses or that

meet the criteria under reinsurance or excess reporting guidelines shall be reported to the reinsurer/excess carrier immediately.

(d) All claims are reviewed on a periodic and as needed bases by the claims

adjuster and supervisor.

6. Recovery/Subrogation

(a) Claims with subrogation recovery and/or contribution potential shall be identified, investigated and documented.

(b) If subrogation, recovery and/or contribution is to be waived or

compromised, it must be approved by the Claims Manager. 7. General

(a) Loss Control will be notified of conditions which may require corrective measures. Loss Control will contact the Member and ensure the condition is given appropriate attention.

(b) A proof of loss will be required on all property claims. The proof of loss

must be signed and notarized by the school business administrator. D. PRODUCTIVITY/PENDING STANDARDS

1. The guidelines below indicate the number of files each claims adjuster should

handle by position.

Property/Liability claim representative to 150 senior claim representative to 150 claim examiner to 150

Workers Compensation claim representative to 175 senior claim representative to 180 claim examiner to 185

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Claims supervisors shall have claims adjusters under their direct supervision, reviewing all files on a scheduled and as needed basis.

2. Productivity Guidelines

(a) The goal is for all claims adjuster to close one file for every file that is

opened.

E. LEGAL CLAIM HANDLING 1. Counsel Billing (a) Counsel bills must be submitted for each matter, adhering to NJSIG’s

litigation guidelines. Itemized bills should contain a description of each charged activity, date of service and time allocated for each activity. The bills must indicate total time spent and total charges. The claims adjuster is expected to audit each bill and communicate with counsel on questionable charges.

2. Legal Handling

(b) Counsel should perform only legal work. Investigative activities should be conducted by the claims adjuster. The claims adjuster and counsel should work together to determine who is appropriate to handle negotiations All negotiations shall be documented in the file and confirmation of that authority shall be provided to counsel.

F. CLAIM PAYMENT PROCEDURES

1. Once a medical, legal, or service bill is verified, the claims adjuster shall highlight the amount to be paid. The claims adjuster shall initial the bill, date it, indicate the payment and coverage type, and forward it to the bill processor for payment. The bill processor must verify the payment. Bills are to be paid within ten (10) calendar days of receipt, unless further clarification is necessary.

G. INCOMING/OUTGOING CORRESPONDENCE

1. All incoming mail is date stamped on the same day it is received and tasked to the

respective claim adjuster. Prior to close of business, the claims adjuster will process the task and determine if it is a priority or scheduled activity for a later date.

2. Any correspondence without an addressee or claim number will be brought to the

attention of a claims supervisor for further action.

H. OUTSIDE INDEPENDENT ADJUSTERS ASSIGNMENTS

1. The claims adjuster maintains control of any investigation. Should the services of an independent appraiser or adjuster become necessary, their activities and direction are guided by the NJSIG claims adjuster.

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I. REPORTING GUIDELINES WORKERS’ COMPENSATION

A summary report will be completed within ten (10) business days by the claims adjuster. The contents of that report shall include:

1. Occurrence/accident description 2. Compensability acceptance/denial – if denied explanation 3. Injury 4. Subrogation 5. Action plan 6. Reserve

The above information shall be added as an entry into the claims file. This information should be brief with an explanation in each category. An annual report is to be done one year from the date the file was assigned, as well as each year the file remains open.

J. REPORTING GUIDELINES - GENERAL LIABILITY/AUTOMOBILE LIABILITY

A summary report will be completed within fifteen (15) business days by the claims adjuster. The contents of that report shall include:

1. Description of loss/occurrence

2. Liability 3. Damages 4. Action plan 5. Reserves

The above information shall be added as an entry into the claims file. This information should be brief with an explanation in each category. An annual report is to be done one year from the date the file was assigned, as well as each year the file remains open.

K. REPORTING GUIDELINES - PROPERTY

A summary report will be completed within fifteen (15) business days by the claims adjuster. The contents of that report shall include:

1. Description of loss/occurrence 2. Coverages 3. Scope of damages 4. Action plan 5. Reserve

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The above information shall be added as an entry into the claims file. This information should be brief with an explanation in each category.

An annual report is to be done on year from the date the file was assigned, as well as each year the file remains open.

L. REHABILITATION GUIDELINES - ADMINISTRATIVE CONTROLS

1. The following criteria shall be used when a claim is to be referred for medical rehabilitation.

(a) The following injuries are to be immediately referred:

- Spinal cord injuries - Serious head injuries - Amputations - Severe burn - Crush injuries - Heart Problems - Stress-related disorders - Serious eye injuries - Complex regional pain syndrome (RSD)

(b) Other possible referrals, post initial injury, could include:

- Herniated disc - Multiple fractures - Exacerbation of pre-existing condition - Exacerbation of congenital condition - Extensive over-treatment for a soft tissue injury

V. GENERAL COMMENTS

A. DISCRETIONARY SETTLEMENT AUTHORITY

Pursuant to a school’s workers’ compensation policy, NJSIG will pay medical and loss wage benefits when such payments are warranted, legal or as ordered by a court. There may be some claims however, where either liability or amount of benefit due is contested. The Board of Trustees approved the following authority for the settlement of contested workers’ compensation claims:

Settlement Authority

$1—$500 bill processor

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$501 - $60,000 claim representative and senior claim representative

$60,001 - $120,000 claim examiner $120,001 - $200,000 claim supervisor $200,001 - $300,000 claim manager $300,001 – Up Board of Trustees The Claim Manager shall have discretion to adjust any individual’s authority under $300,000. All lines of coverage, other than workers’ compensation, are subject to the following settlement authority:

Settlement Authority $1—$5,000 bill processor $5,001 - $35,000 claims representative and senior claims

representative $35,001-$60,000 claims examiner $60,001-$90,000 claims supervisor $90,001-$200,000 claims manager $200,001-$300,000 claims manager and chief legal officer $300,001-above Board of Trustees

The Claim Manager shall have discretion to adjust any individual’s authority under $200,000. NJSIG recognizes that there may be instances where the Board of Trustees has approved authority and facts arise that indicate more settlement authority is required. It may be impossible to reconvene the Trustees timely to consider the matter further. The Trustees authorize the Claims Manager, Chief Legal Officer and one member of the NJSIG claims committee for the purpose of extending additional authority on such cases, in an amount not to exceed 120% of the original extended authority. Should this occur, the Claims Manager shall report it to the Trustees at the next regularly scheduled Board of Trustee meeting.

B. CLAIMS COMMITTEE

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In the event that settlement authority is required before the next regularly scheduled meeting, the Claims Committee shall be convened. The claims committee is comprised of the Claims Manager, the Chief Legal Officer and up to three (3) Board of Trustee Members. The Claims Committee shall have authority to approve claims, provided that the amount is recommended by both the Claim Manager and the Chief Legal Officer. All three Trustee participants will be notified of all meetings, however, only one Trustee is required to participate in order to extend settlement authority, in addition to the Claim Manager and Chief Legal Officer. Agreement by a simple majority of attendees, along with the recommendation of the Claim Manager and Chief Legal Officer, shall be sufficient to establish settlement authority.

C. FINANCIAL MANAGEMENT

All actuarial, investment and banking functions of NJSIG are outlined in NJSIG’s policies, cash management plan, procedures and bylaws.

D. SAFETY AND LOSS PREVENTION

In an effort to identify and prevent loss, NJSIG will implement safety and risk control programs and procedures intended to reduce and eliminate conditions or practices which may lead to loss.

E. STANDARDS OF PARTICIPATION

The following are the eligibility requirements for participation as approved by the Board of Trustees:

1. The Member’s five (5) year claims history, policies and risk management philosophy should demonstrate safety performance consistent with NJSIG’s requirements.

2. A safety inspection and evaluation, where required, conducted by NJSIG’s

Safety and Loss Control department to confirm that the Member meets NJSIG’s safety standards.

3. Members must develop a safety committee and actively participate in NJSIG

sponsored safety programs and trainings.

4. Members must be in compliance with all Federal and New Jersey Statutes governing the operations of public schools and the accompanying regulations.

5. Member must promptly pay all premiums or other obligations arising out of or

related to the Member’s participation in NJSIG.

6. Actively participate in all NJSIG sponsored or directed meetings, programs or activities to ensure the continued successful operation of NJSIG.

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NJSIG’s will notify the Member of any eligibility concerns as outlined above. In each case, NJSIG will work with the Member to address and correct, as necessary, the concerns. Continued improvement with safety and loss control programs, as guided by a member of the NJSIG Safety and Risk Management team, will be required to remain eligible. Should a Member fail to work with NJSIG in addressing any eligibility concern, NJSIG may seek termination of membership as outlined in the NJSIG Bylaws.



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Board of Trustees Meeting of May 17, 2017 Action Item

Temporary Staffing Direct Hire and Recruiting As a part of New Jersey Schools Insurance Group (NJSIG)’s efforts to maintain compliance with the Public School Contracts Law (PSCL), NJSIG issued requests for proposals for temporary staffing, direct hire and recruiting services. It was necessary to solicit proposals for these services because NJSIG has budgeted up to $112,520 for temporary staffing and direct hire services, and up to $30,670 for recruiting services for the 2017/2018 fiscal year. As a result of this solicitation, NJSIG received proposals from qualified vendors. These proposals were evaluated by reference to price, and as to whether the proposers are responsible, and submitted responsive proposals that meet all requirements of this request. We recommend that the Board designate a Primary, Secondary and Tertiary award to the vendors identified in the attached resolution in the event that a single vendor is unable to provide a candidate as a result of a search request. Recommended Resolution: the Board designate a Primary, Secondary and Tertiary award to the vendors identified in the attached resolution in the event that a single vendor is unable to provide a candidate as a result of a search request. William Mayo William Mayo, CPCU, ARM Executive Director



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Resolution Authorizing the Execution of Contracts Pursuant to the Public School Contracts Law

WHEREAS, the New Jersey Schools Insurance Group (“NJSIG”) is

authorized by N.J.S.A. 18A:18B-1, et seq. to provide insurance coverage for its

members;

WHEREAS, NJSIG requires temporary staffing, direct hire and recruiting

services;

WHEREAS, NJSIG has engaged in a fair and open competitive contracting

process, pursuant to which proposals were solicited; and,

WHEREAS, NJSIG has evaluated all proposals submitted.

NOW THEREFORE, BE IT RESOLVED, on this 17th day of May, 2017 that:

1) NJSIG awards the contracts for temporary staffing, direct hire and recruiting

services to the following responsible proposers who have submitted responsive

proposals that meet all requirements of this solicitation as to each respective

area, and based on cost criteria, and:

a. Temporary staffing and direct hire service (C-2017-0008):

i. Primary vendor: Noor Associates, Inc.;

ii. Secondary vendor: DAWG, Inc, d/b/a TheBestIRS; and,



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iii. Tertiary vendor: CareersUSA, Inc.

b. Recruiting services (C-2017-0009):

i. Primary vendor: Horizon Staffing Resources Corp.;

ii. Secondary vendor (tie): CareersUSA, Inc.; and,

iii. Secondary vendor (tie): Noor Associates, Inc..

2) The Executive Director is hereby authorized to execute contracts with the

above-referenced service providers;

3) This designation is in accordance with the Public School Contracts Law,

N.J.S.A. 18A:18A-1, et seq.;

4) A notice of this action shall be published once in the official newspaper

designated by NJSIG, and is on file and available for public inspection at the

office of NJSIG.

I certify that the foregoing is a true copy of a Resolution passed by the New

Jersey Schools Insurance Group at the meeting duly held on the 17th day of May,

2017.



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New Jersey Schools Insurance Group By: _________________________________________ Irene Le Febvre, Chairperson

Board Secretary Use Only

DATE: MOVED BY: SECONDED BY: VOTE:



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Property Appraisal As a part of New Jersey Schools Insurance Group (NJSIG)’s efforts to maintain compliance with the Public School Contracts Law (PSCL), the Board must authorize the use of competitive contracting for specific goods or services prior to this method of procurement being used. This resolution authorizes NJSIG to procure both real and personal property appraisal services via the competitive contracting process. Recommended Resolution: to approve this resolution that authorizes NJSIG to procure both real and personal property appraisal services via the competitive contracting process. William Mayo William Mayo, CPCU, ARM Executive Director



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Resolution Authorizing the Acquisition of Goods and Services Through the Competitive Contracting Process

WHEREAS, the New Jersey Schools Insurance Group (“NJSIG”) is

authorized by N.J.S.A. 18A:18B-1, et seq. to provide insurance coverage for its

members;

WHEREAS, NJSIG has a desire to provide for specialized services and goods

in accord with the tenets of N.J.S.A. 18A:18A-4.1;

WHEREAS, NJSIG desires to use the competitive contracting method of

procurement in lieu of public bidding for the below listed goods and services in

accord with the allowable procurements as set forth in N.J.S.A. 18A:18A-1, et seq.:

1. Real and personal property appraisal services.

WHEREAS, NJSIG desires to enter contracts for these services as allowable

under the Public School Contracts Law, N.J.S.A. 18A:18A-1, et seq. for the terms as

defined therein.

NOW THEREFORE, BE IT RESOLVED, on this 17th day of May, 2017 that:

1) NJSIG is hereby authorized to engage in the competitive contracting process

for the above-named specialized goods and services;



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Resolution Authorizing the Acquisition of Goods and Services Through the Competitive Contracting Process

I certify that the foregoing is a true copy of a Resolution passed by the New

Jersey Schools Insurance Group at the meeting duly held on the 17th day of May,

2017.

New Jersey Schools Insurance Group By: _________________________________________ Irene Le Febvre, Chairperson

Board Secretary Use Only

DATE: MOVED BY: SECONDED BY: VOTE:



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Investors Bank In conjunction with the implementation of NJSIG’s new banking services, Investors Bank has requested the adoption of an additional resolution permitting Investors Bank to accept electronic and facsimile signatures from NJSIG. To this end, it is proposed that the Board adopt the attached Investor’s Bank resolution. Recommended Resolution: to approve the attached Investor’s Bank resolution. William Mayo William Mayo, CPCU, ARM Executive Director

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FACSIMILE SIGNATURE AGREEMENT Agreement Regarding Facsimile Signatures (Signature Stamps)

___________________________________________________ ________________________ Customer Account Number

________________________ Account Number

Investors Bank and the Customer named above agree as follows: 1. Investors Bank may, but is not obligated to, honor checks drawn on Customer’s above-described

account(s) (“Checks”) when the items bear or appear to bear the facsimile signature of any of the following persons:

____________________________ ________________________ _____ Print Name Facsimile Signature (stamp) Title

____________________________ ________________________ _____ Print Name Facsimile Signature (stamp) Title ____________________________ ________________________ _____ Print Name Facsimile Signature (stamp) Title 2. Investors Bank may honor and charge Customer for Checks regardless of by whom or by what means

the actual or purported facsimile signature has been made, provided the facsimile signature resembles the signature or the facsimile specimen Customer has filed with Investors Bank.

3. All previous authorizations for the signing and honoring of Checks are continued in full force and effect. 4. Investors Bank shall have no liability to Customer or any third party under any circumstances for any

losses or damages related in any way to Customer’s failure to use reasonable care to secure the signature stamps noted above. Customer further agrees that in no event shall Investors Bank be liable for punitive, special, incidental, exemplary, consequential or other indirect damages arising out of or relating in any manner to this Agreement under any cause of action, including, without limitation, damages for business interruption, loss of use, revenue or profit, even if such damages were foreseeable or the parties have been advised of the possibility of such damages. The provisions of this section shall survive any termination of this Agreement.

5. Customer agrees to indemnify and hold harmless Investors Bank from and against any and all losses,

claims, demands, liabilities, costs or expenses (including reasonable in house and outside attorneys’ fees and costs) relating in any way to this Agreement or resulting from Investors Bank’s actions or inactions in relation to this Agreement, including but not limited to Investors Bank acting upon authorizations Investors Bank reasonably believes to have come from the Customer. The provisions of this section shall survive any termination of this Agreement.

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6. Investors Bank may terminate this Agreement at any time with or without cause or prior notice. 7. Investors Bank reserves the right to close the Account at any time with or without notice and to exercise

its right of setoff with respect to the Account. 8. Notwithstanding anything contained to the contrary in this Agreement, Customer reserves to Investors

Bank all rights and remedies available to the bank under the Uniform Commercial Code and all applicable state and federal laws.

9. The individual signing this Agreement on Customer’s behalf has the requisite corporate or other

governing authority and power to make, enter into and bind Customer and make any further agreement necessary or desirable in order to achieve the above stated purposes. Customer affirms none of its operating agreements, partnership agreements, certificates or articles of incorporation, bylaws, resolutions or any other organizational document governing Customer (collectively, “Governing Documents”) prohibits any of the actions, covenants or warranties stated in this Agreement. Customer further affirms it has consulted with all of its respective members, partners, officers, shareholders or others, as the case may be, as may be required by its Governing Documents and has received the necessary approvals from such individuals to enter into this Agreement.

10. This Agreement is binding upon the undersigned, its successors and assigns. 11. This Agreement may be executed in two or more counterparts, each of which shall constitute an original.

When taken together, the counterparts shall constitute one agreement and any of the parties may execute this Agreement by signing any such counterpart. This Agreement may be executed and delivered by facsimile, scan or other electronic means. Any such scanned signature shall be treated as and have the same force and effect as an original signature for all purposes.

12. This Agreement represents the entire understanding of the parties and supersedes all prior

communications, agreements, and understandings relating to the subject matter hereof. The provisions of this Agreement may not be modified, amended, or waived, except by a written instrument duly executed by the party against whom enforcement of such modification, amendment or waiver is sought. This Agreement may not be assigned by any party without the prior written consent of the other party. This Agreement is made subject to and shall be construed under the laws of the state of New Jersey without reference to the provisions thereof regarding conflicts of law. No failure or delay by any party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege under this Agreement. All provisions of this Agreement that by their nature are intended to survive the expiration or termination of this Agreement, whether expressly so stated or not, shall survive and remain in full force and effect.

Dated: _________________ , 20 ____ By:___________________________________ Authorized Signature Title: _________________________________

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COMPANY CERTIFICATION

(By limited liability company) I certify that: I am a managing member of the Company name above; The following resolution is a complete and accurate copy of a resolution duly adopted by the managing

members of the Company:

“RESOLVED: Any managing member is authorized to enter into Facsimile Signature Agreements with Investors Bank on behalf of this Company. FURTHER RESOLVED: This authorization is in addition to any other authorizations in effect and shall remain in effect until Investors Bank receives written notice of its revocation at each office where this Company’s accounts are maintained.”

This resolution is now in full force and has not been revoked or changed in any way.

Dated: __________________, 20 ____ ___________________________________________ Signature of managing member

CORPORATE CERTIFICATION

I certify that: I am the Secretary, Assistant Secretary or other duly authorized officer of the Corporation name above; The following resolution is a complete and accurate copy of a resolution duly adopted by the

Corporation’s Board of Directors:

“RESOLVED: The President, any Vice President, the Secretary or Treasurer of this Corporation is authorized to enter into Facsimile Signature Agreements with Investors Bank on behalf of this Corporation. FURTHER RESOLVED: This authorization is in addition to any other authorizations in effect and shall remain in effect until Investors Bank receives written notice of its revocation at each office where this Corporation’s accounts are maintained.”

This resolution is now in full force and has not been revoked or changed in any way.

Dated: __________________, 20 ____ ___________________________________________ Signature of Secretary, Assistant Secretary or other duly authorized officer

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AUTHORIZATION

(By Partnership, Lodge, Society or Unincorporated Association) By signing below, you certify and agree that: 1. If Customer is a partnership, the persons signing below as partners constitute all of the general partners of

the partnership, and authorize the person signing above to enter into Facsimile Signature Agreements with Investors Bank

2. If the Customer is a lodge, society or unincorporated association, the persons signing below are officers of

Customer and are authorized to enter into Facsimile Signature Agreements with Investors Bank. 3. This Authorization is in addition to any other authorization in effect and shall remain in effect until

Investors Bank receives written notice of its revocation at each office where Customer’s accounts are maintained.

Dated: _______________________ 20 ____ By: ____________________________________ By: _____________________________ Partner or Officer Partner or Officer By: ____________________________________ By: _____________________________ Partner or Officer Partner or Officer



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Checking Accounts and New Claims

Attached are the check registers for March and April 2017. In addition, attached is a list of all new claims. The claims list has been provided to coincide with the check registers. The list includes all new claims for March and April 2017. This report shows the nature and financials for each claim. Recommended Resolution: Approve and ratify the checks and new claims which have been issued from accounts XXXX392 (operating account) and XXXX555 (claim account) for the period of 3/1/2017 to 4/30/2017 as shown in the online (Microscribe) version of the meeting package. William Mayo William Mayo, CPCU, ARM Executive Director

divider page 5 18 16 - NJSIG...May 17, 2017 · Rev.: 5/17/17 BOARD OF TRUSTEES MEETING Wednesday,...

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