TEXAS RISK & INSURANCE MANAGEMENT SERVICES P.O. Box 61893 San Angelo, Texas 76906 611 S. Irving, Suite C San Angelo, Texas 76902 Phone: 800 956 4553 or 915 655 9440 Fax: 915 658 1701 EMaiL• kathleen@txrisk.com August 27, 2001 The Honorable H.A. "Buster" Baldwin Kerr County Courthouse 700 Main St. Kerrville, Texas 78028 Dear Commissioner Baldwin, I am pleased to enclose a small brochure outlining some of the services my firm provides, my personal resume and Certified Insurance Counselor brochures which will outline my experience in the field of insurance. I worked with TAC for approximately 2 'h years, from March 1989 through mid August 1991, which was right after I sold my independent insurance agency. I learned to enjoy working with counties during that time and I recognized a tremendous need in counties for an unbiased, independent consultant to help them sort through the complicated proposals they receive for insurance. I established my consulting firm August 19, 1991 and moved to San Angelo from Austin in July 1992. I currently have a staff of seven. I have enclosed a Summary of Performance that I prepared for one of my clients, West Texas Rural Counties Association Risk Management Pool. As you can see, the hands on risk management and safety attention provided through my contract with this client is exceptional. The pool was established January 1, 1995 and has experienced minimal increase in cost since that time. This year, we asked the members of to budget a 15% rate increase for all lines of coverage; however, we expect the actual increase to be around 10%. Commissioner Baldwin, the information enclosed will give you an idea of the broad range of services offered by Texas Risk & Insurance Management Services. I would like to stress, we do not think all counties are created equal; therefore, the projects will vary greatly from county to county, based on the individual needs of the county. We have never, in the ten years we have been in business, charged a client more for our serv-ice/s, than they haves ved on the cost of their insurance. Sincertld CCa~leen Hicks Miller, CIC, LRM KATHLEEN H. MILLER, CIC, LRM Chief Executive Officer TEXAS RISKAND INSURANCE MANAGEMENT SERVICES 611 S. Irving, Suite C San Angelo, Texas 76903 Phone: Office: 1-800-956-4557 or (915) 655 9440 Mobile (915) 277-1262 PROFESSIONAL EXPERIENCE: An insurance professional with more than 34 years ojexperience in the fteld ojinsurance and risk management. Earning the Certified Insurance Counselor designation required a demonstration of professional competence in three important ways: (a) through actual experience, (b) by completing over 100 classroom hours of formal training, and (c) by passing frve rigorous written examinations. Placed in the top 1 % of educated insurance professionals in 1978 after successful completion of the program. The continued annual commitment of 20 hours of classroom education required to requalify has been fulfilled. Beginning as an accounting clerk for a major insurance company and achieving partnership level in an independent insurance agency in 1976, experience in the field of insurance and risk management has been from the "ground up". Changing focus in 1988, from insurance sales and service to representing the client in matters of insurance and risk management as a consultant. The current family business was established in 1991 and houses approximately IS staff members. SIGNIFICANT PROFESSIONAL ACCOMPLISHMENTS 1967 Entered the field of insurance. 1974 Became a Licensed Insurance Agent. 1976-1978 Certifed Insurance Counselor Institute University of Texas, Austin, Texas 1978 Obtained Certified Insurance Counselor designation. 1991 Became a Licensed Risk Manager. 1978-1979 Charter Board Member, Correspondence Secretary Pro(essiona/Insurance Agents o(Houston 1979-1981 Vice President, Pro(essiona[ Insurance Agents o(Houston 1978-1980 Charter Board Member Societe o(Certi~ed Insurance Counselors Page I 1978-1981 Board of Directors Professional Insurance Agents of Texas The second women in history to hold this position. 1985-1987 Executive Committee -Board olDirectors Professional Insurance Agents of Texas 1980-1982 Co-founder and first Director The Professional Insurance Agents of Texas Basic /assurance School The first program in Texas to provide an organized and structured approach to education specifteally designed for insurance agency staff. 1980-1986 Instructor Professional Insurance Agents of Texas Basic Insurance School 1979-1981 Instructor Professional Insurance Agents Video Learning Series Instructor on two videos, including the first video produced by PIA. 1985-1987 Board Member The Hartford's Agent's Advisory Committee 1978-81 Insurance Agent and Consultant to Lubrilon, who produced the first Teflon coating for automobile engines. Secured the first products liability coverage for a product of this type 1981 Insurance Consultant, Sherwood Enterprises, Pasadena, Texas, better known as GILLEY'S. Secured some of the earliest liability coverage for the vastly popular mechanical bulls, as well as arranging coverage for the entire operation. 1986 Risk Manager, Farm Aid III, held in Austin, Texas, July 4, 1986. 1987 Risk Manager, Willie's July 4th Celebration, held in Carl's Corner, Texas. 7986-1988 Risk Management Consultant, Austin Opera House productions. 1986-1988 Risk Management Consultant, Pace Concert's production of the Houston and Austin Freedom Festivals. 1988-1991 Insurance Team Member, Attorney Generals Office, State of Texas Page 2 1994-2001 Educational Director, West Texas Rural Counties Association Annual Professional Education Conference, providing 16 hours continuing education for County Commissioners, which is mandatory to hold offece in the State of Texas, in cooperation with Texas A & M University 1995-1998 and Angelo State University 1999-2001 as Educational Sponsors. 1994-2001 Risk Manager and Director of Pool Administration West Texas Rural Counties Association (Intergovernmental Self- Insurance Pools) 1991-2001 Independent Risk Management and Insurance Consu/taut specializing in local government risks, such as counties, school districts and cities. COMMUNITY SERVICE 1998-2000 Board Member, San Angelo Civic Ballet 1999-2000 Board President, San Angelo Civic Ballet 1998-2001 Adopt the Children's Shelter at Christmas Have taught Sunday School and Youth Groups at church. Served as Den Mother, Cub Scouts ofAmerica. Support many Law Enforcement Family Aid Groups. Support many community food drives, shelter programs, the Salvation Army, and other local charities. Provide Scholarship Funds for students, San Angelo Civic Ballet, and support many Junior Livestock Shows and other youth groups. Provide after sc/:oo! and summer jobs to staff's children. Allow mothers to bring newborns to work. Support fancily interaction in the work place. Attend Emmanuel Episcopal Church. Page 3 ~~~ ~ ~~~~e ~eoctet of L b~ ert~ftea ~~ °.~u~ur~uce ~~ ~~ouxt~e~or~ `Prese~tts to ~.~~~X.eext ~.. ~tX.C~x, ~~ ~ `l`eis `lestimon.ial ~°'~~n recognition of more. than fifteen years of steadfast commitment to lea.dersNip and excellence through continuing insurance education, which corrunitment has beep maniFested in outstanding individual achievement, and in the highest level of professional competence encompassing the major fields of insurance, insurance managemxnt and agency operations. ~ ~ - ~_ WilliamT }f01Q, CIC 1993 President ~`~°' •n b ~ ° cn ~ ~ ~~ c g. a. n e~ ~' n o ° b n N ~ v o a .. 9 ~°. ' - - - ~ ~ ~ ~ ~ . n h rv A n ~ .. ~ ~ n ° 3 r E a N c ~ ^ a A n ... ~ ,e ~ (l h co ~ o. d n ' y ,~ ° °- ~ a ° oo H 1p A 3 ° a , T n ~ n o ma f° „ , . ~ ~ ~' ~ o ~ ~ m o t ST N 3- a g H c ~ r • ~ a N n ~ a S ~ z . m ~ a ~ ~ n ~ n ~ o SS Op F Ct ~ ~ ip' a ti ~ c 3 G a O~ `C C n N o n + '° ~ n ~ ~ . S N ~ ~ q ~ C ~ A N q. 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Oy `C .C•. 71 W 9 r N ry ~ O ~~ •~+ ~ ~ O m O° m v N ~ ~• WEST TEXAS RURAL COUNTIES ASSOCIATION RISK MANAGEMENT POOL OCTOBER 1, 1999/2000 ANNUAL REPORT COMPARISON In an effort to provide a meaningful report on the status of the fund, we have compared WTRCA results with those reported by Texas Association of Counties in their 1999-2000 Member Report. As members of TAC, the reports are available to each of you. The report focuses on the position of the association and includes summarized reports on the funds. Utilization of the data contained in this report allows us to compare WTRCA members with the majority of the counties in the state. TAC WTRCA WORKERS COMPENSATION Number of Members: 299 18 Claims Paid & Reserved: $22,800,000. $ 183, 973. Average $'s Per Claim: Not shown $ 3,538. Average Claims $'s Per Member: $ 76,254. $ 10,220. Number of Claims: Not shown 52 Average Claims Per Member: Not shown 2.88 AUTOMBILE LIABLITY Number of Members: 179 18 Claims Paid & Reserved: $2,980,000. $ 5,500. Average $'s Per Claim: $ 7,028. $ 1,833. Average Claims $'s Per Member: $ 16,648. $ 305. Number of Claims: 424 3 Average Claims Per Member: 2.37 .17 GENERAL LIABLITY Number of Members: 148 Claims Paid & Reserved: $1,0: Average $'s Per Claim: $ Average Claims $'s Per Member: $ Number of Claims: 450 Average Claims Per Member: 3.04 18 50,000. $ 22,400. 2,333. $ 2,800. 7,094. $ 1,244. 8 .44 PUBLIC OFFICIALS LIABLITY Number of Members: 171 18 Claims Paid & Reserved: $2,500,000. $No Claims Average $'s Per Claim: $ 32,895. $No Claims Average Claims $'s Per Member: $ 14,620. $No Claims Number of Claims: 76 0 Average Claims Per Member: .44 0 Prepared by Kathleen Hicks, CIC, LRM, Texas Risk & Insurance Management Services For: West Texas Rural Counties Association Members June 13, 2001 EVERY EFFORT HAS BEEN MADE TO BE ACCURATE. ERRORS W/LL BE CORRECTED IF IDENTIFIED. TAC WTRCA LAW ENFORCEMENT LIABLITY Number of Members: 132 18 Claims Paid & Reserved: $2,825,000. $No Claims Average $'s Per Claim: $ 30,706. $No Claims Average Claims $'s Per Member: $ 21,402. $No Claims Number of Claims: 92 0 Average Claims Per Member: .70 0 PROPERTY AND AUTOMOBILE PHYSICAL DAMAGE Number of Members: 129 Property 18 155 APD 18 Claims Paid & Reserved: $2,000,000. $ 58,500. Average $'s Per Claim: $ 23,316. $ 2,543. Average Claims $'s Per Member: $ 7,042. $ 1,625. Number of Claims: 76 23 Average Claims Per Member: .27 .64 COMBINED PROGRAM RESULTS Average Number of Members: 173 18 Claims Paid & Reserved: $34,155,000. $ 270,360. Average $'s Per Claim: $ Unknown $ 3,144. Average Claims $'s Per Member: $ 197,428. $ 15,020. Number of Claims: Unknown 86 Average Claims Per Member: Unknown 4.77 STAFFING COMPARISON Field Services 17 2 Member per Field Staff 10 9 Administration including employees (Self-insurance funds only) $6,500,000. $ 589,191. Average Administration Cost Pcr Mcmbcr $ 37,572. $ 32,732. THE BOTTOM LINE ................. WTRCA average claims experience is 13 TIMES BETTER! WTRCA administration cost is 13% LESS!! Prepared by Kathleen Hicks, CIC, LRM, Texas Risk & Insurance Management Services 2 For: West Texas Rural Counties Association Members June 13, 200/ EVERY EFFORT HAS BEEN MADE TO BE ACCURATE. ERRORS W/LL BE CORRECTED /F /DENTIF/ED. Fund Performance (by Fund or Pool) t, f i' JI' W O R K E R S C O M P E N S 4 T I O N The Texas Association of Counties Workers' Compensation Self-Insurance Fund has been providing cost-effective workers' compensation wverage to Texas counties since July 1, 1974. The Fund's primary purpose is to function as the administrative agenry providing a fund for members to self-insure their work- ers' compensation coverage and for the provision of workers' compensation benefits to injured employees. Its second purpose is to assist members in controlling cost by providing specialized govenlmental risk management services and systems, including a safety program. During the past year, 209 of Texas' 254 counties, as well as 90 other political sub-divisions obtained the required workers' compensation insurance for their employees through this Fund. Members' contributions, or premium, to the Fund for all of 1999 was $12,599,1 .Price, Waterhouse, Coopers L.L.P, the Funds actuarial co u ant, estimates that member employee claims cost for 1999 will a $22.8 million. he $10.2 million difference between the cost claims and at members con- tributed to the Fund, as well as a Fund's ope tional expense, are very definite savings that each member enjoys. Since tf Fund's inception, members have realized workers' compensatio program savings in the form of reduced premiums of over $21 million. These savings are possible because of lower claims costs lower administmtive costs and interest earnings on retainer member equity and on the financial reserves held to pay futurr claims costs, as those costs become due. At the end of 1999, member equity in the Fund was approximately $73 million and reserves held for claims we 56.1 million. In addition to these ve substantial savi s, Fund members also benefit from a wid ray of safety an oss control services, designed specifically r Texas wunties. a Association employs 12 highly qualif safety specialist to deliver the loss control services need by this Fund's tubers and by members of the other Ass ration sponsored sk-sharing pools- Assisting mem- bers in ntrolling losses ' he primary reason the Fund has been able o provide cover eat prices that have consistently been to er than cover provided by the commercial market. rYle lYir~kers' C ~~ ~ / i~G~%L2_ ~C'~.tZQ~¢,~ huge Rrali~e ~~~~ ~~~~~~ tai ~~r fd fl? ~! 3/~~/~~ I'~/v//'r//`r~ ! I~ TAC WC Yearty Member Savings (Total Bar Represents State $IanEi1E Rate) S E L F- I N S U R g N C E F U N D ^ =Savings (State-TAC) ^ = 1999 7AC Contributioi n C' y t~ ~ ~yb ~ ~j ~ ~ ~ ~• O C i ~ y ~ z ~ ~ m ~, '~1 ~ .. ~ ' '0 ~ M ~ ~ „ d ~„ h , ~ p ~ C/1 ~" : ~ ~ ~ n a r b0 ~ v ' : 7 ~ + ~ k ~ ~ k p * ~ * f1 ^~1 p b 00 ~p ~ ~7 FPM n ~ Y ( ~l1 V~1 V~1 w ~ C~ ^ , w n ~ ~ W O ~ C~ • • • • • • • • • • • • • • A 6 2 y `a' rmi m e, m A Qo A .. '°+ A A p m A < r~ ~ O C m ~~ a A ~a 000 ~r ~ W ^°+y ~~ m H ~ ~ m ~' ~ 17.', ~~~~, mm em y°~ 6'V e~~ nV em ~er aa~ -fDi~ 0 3 m V '~.JI Vn ~ m n C ~ y w s, t .. .. A c .°. ~ =' e ~ n H a g, ~ e E w C p A 5 ~ ~" a y ^ a ~ ~ ~ b ~+' A rC '~] to ~ O ufDa ~~ K ~ O ~ ~ ~ ~ ~ y va 0 ti ~ ~ a CAD ~ ~ a' h~ [s7 ~" ~ ~ ~ ~ R ~ ~ ~ y ~' ~ g ~• ._ o a e b~ n ~f° ~ ~ p ~ o ~ t~ n ~ ~ ~ ro co ca ~~c~,o~,y c