Spring-Summer 2013

The RISC Report is an e-newsletter that is distributed to League pool administrators and subscribed staff members. The RISC Report contains news of interest to state league intergovernmental risk pools, such as highlights from pool publications, activities at NLC-RISC, and articles on important and timely pooling topics. The current edition of the RISC Report newsletter:

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Spring - Summer 2013

Public Risk Pools and the Office of Foreign Assets Control

RISC Resource: Claire Reiss

All U.S. Persons, including public risk pools, are subject to the economic sanctions programs administered by the Office of Foreign Assets Control (“OFAC”), which is an office within the U.S. Department of Treasury. OFAC enforces programs created by enabling law, regulation or executive order to advance U.S. government national security and foreign policy objectives. These programs vary in their details, but generally prohibit trade with program “targets” and transfer to targets of assets under U.S. jurisdiction. Each program has its own target: a country, organization, individual or activity with which the U.S. prohibits economic transactions.

OFAC focuses on financial institutions and insurers with international operations, but all U.S. Persons are subject to penalties for even inadvertent noncompliance. U.S. Persons include U.S. citizens and permanent resident aliens wherever located, all persons and entities within the U.S., and all U.S. incorporated entities. Penalties are usually financial, but in very severe cases unlikely to be encountered by risk pools, criminal prosecution is possible.

Public risk pools that insure local governments are less likely to encounter OFAC targets than are large commercial insurers. However, a pool could encounter OFAC targets as:

  • Workers’ compensation and liability claimants

  • Employees or consultants

  • Vendors providing services to support the pool’s operations or to claimants

  • Additional insureds on pool coverage documents

  • Reinsurers

  • Banks through which payments are processed

Some targets will be encountered only one time, but others may receive multiple or ongoing payments that expose the pool to an ongoing noncompliance if not detected.

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Healthcare Reform and Small Cities - What You Need To Know

RISC Resource: Erin Rian

The Affordable Care Act (ACA) was passed in 2010 and since then a number of provisions have gone into effect, however some of the more significant provisions of the ACA are scheduled to take effect beginning in 2014. Federal agencies continue to issue and clarify guidance through rules and regulations. While not all of these regulations are final and are subject to change, it’s important to consider which of these provisions may impact municipal employers and where you may need to focus your compliance efforts.

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Pools In The Spotlight

This section of the RISC Report provides highlights from recent NLC-RISC member publications. With the publishing pool's permission, these reprints will showcase the pools' expertise and services allowing RISC member pools to learn from and build upon each other's efforts.  If RISC is not currently on your newsletter distribution list, please consider providing us with either a hard copy or electronic version of  your newsletter.

RISC Resource: Claire Reiss

Health Reform Guidance: Am I a Large or Small Employer?

(Reprinted with permission from CIS in Oregon. The following article was featured in the first edition of the CIS ACA Matters newsletter in June 2013.)

January 1, 2014 is a key date in the implementation of the federal Affordable Care Act (ACA), particularly as it applies to employer sponsored medical coverage. But before you can make any decisions about how your entity will comply with the ACA, you need to answer one basic question: am I a small or large employer? The answer affects compliance requirements, and the penalties for non-compliance.

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Guns in schools: the risks of arming teachers to respond to crisis

(Reprinted with permission from MASC Risk Management Services. The following article was written by Luke Summers, partner of Maolone, Thompson, Summers & Ott LLC in Columbia, South Carolina and was featured in the Spring 2013 edition of the Risk Letter.)

In the aftermath of the horrific events at Sandy Hook Elementary School in Newtown, Connecticut, a national debate has ensued. Citizens and advocacy groups have called upon national and state officials to enact more restrictive firearms legislation. Others have called upon the same officials to, among other things, enact legislation to put more law enforcement officers in schools as well as allow educators to carry firearms while fulfilling their classroom duties.

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Active Shooter: What You Can Do

(Reprinted with permission from TML-IRP. The following article was written by Ronnie Sexton and was featured in the Summer 2013 edition of the Membership Matters newsletter.)

With a number of active shooter situations occurring across the nation, it is important for employees to know how to react appropriately if confronted by an active shooter. Since these incidents evolve rapidly, quick decisions could mean the difference between life and death. If employees are in harm’s way, they will need to decide swiftly what the safest course of action is.

Preparedness and awareness are the keys to protecting you, your co-workers, and any citizens or visitors if an incident occurs.

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Municipalities advised against providing vehicle records

(Reprinted with permission from MASC Risk Management Services. The following article was written by David Morrison, Attorney in Columbia, South Carolina and was featured in the Spring 2013 edition of the Risk Letter.)

The federal Driver’s Privacy Protection Act was adopted to protect the privacy of personal information collected and maintained by each state’s motor vehicle agency. The Act prohibits any state department of motor vehicles from disclosing personal information in connection with a motor vehicle record with certain exceptions, none of which pertain to vehicle history reporting services.

Over the years, vehicle reporting services have turned directly to municipalities to obtain accident reports. It has been a way to get information faster and a way to circumvent the state and federal laws that prevented the states from providing the data.

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How Much Weight is Too Much to Lift?

(Reprinted with permission from Minnesota Cities, a publication of the League of Minnesota Cities, copyright 2013)

There is no specific Occupational Safety and Health Act (OSHA) rule that tells us how much is too much to lift.  There are, however, specific guidelines that exist.

Here are the numbers to key in on: 71 pounds, according to the American College of Governmental Industrial Hygienists (ACGIH); 50 pounds, according to the National Institute for Occupational Safety and Heatlh (NIOSH); and 35 pounds, according to NIOSH, if the lift involves a person; and only under "ideal conditions."

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Information & Resources

Member Engagement the Focus of RISC Board in 2013

RISC Resource: Claire Reiss

Over the past six months, your RISC Board has been deliberating the next steps to make RISC an even more valuable resource for its members. The Board recognizes that RISC’s greatest strength lies in its members, which collectively possess unmatched expertise in public risk pooling. We thus concluded that the next steps should focus on increasing and supporting member engagement in RISC for the purpose of collaborating on matters of common interest, allowing pools to gain strength from each other in a non-competitive environment.

The collaboration will take place within issue groups formed by the Board around specific topics of interest. Issue groups will consist of pool staff with an interest or expertise in the area. Each issue group will produce one or more tangible deliverables for the benefit of all RISC members, such as a paper, a program, or a vendor relationship.

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Agility Update: MIIA is 10th Agility Participant

RISC Resource: Claire Reiss

The Massachusetts Interlocal Insurance Association has joined Agility Recovery Solutions. That makes ten NLC-RISC member pools that are using Agility to provide expedited and cost effective disaster recovery services to their members. Agility members now have the opportunity to participate in the shared simultaneous declarations group program, which provides access to more declarations at a lower cost. Additional details will be coming soon.

NLC-RISC Board Nomination Process Underway

RISC Resource: Claire Reiss

NLC-RISC is accepting nominations for a new member of the NLC-RISC Board of Directors. One vacancy will occur on the Board in October 2013 as a result of a member reaching term limits. The NLC-RISC bylaws require this vacancy to be filled by a pool administrator.

The Board of Directors consists of four League Executive Directors and four Pool Administrators. Each member of the Board of Directors must be an employee of a member state municipal league or a pool that has been a member of RISC for at least three years. No two Board members can be from the same state or province. Board members serve two-year terms, with a maximum of three consecutive terms.

The nomination process takes place through a committee, as required by the bylaws. The 2014 nominating committee members are Dennis Tweedale (Wisconsin), Miriam Hair (South Carolina), Carol Loughlin (Texas) and Don Zimmerman (Arkansas).

Please submit nominations by July 31, 2013 to Claire Reiss at creiss@nlcmutual.com. Include a brief bio of the nominee.

Cyber Risk and Privacy Liability

RISC Resource: Claire Reiss

The fourth annual Cyber Risk and Privacy Liability Conference took place in Philadelphia on June 6-7. The conference was organized by Net Diligence and featured speakers and attendees from major carriers and brokers that work in cyber risk and privacy liability.

The presenters discussed a number of themes that apply to pools and their members. Hackers and criminals are increasingly targeting smaller organizations because traditional targets like banks have hardened their security. Pools and their members are among the potential targets because they have a data rich environment full of personally identifiable information. Pools should carefully analyze how potential actions could come their way from breach of their members’ systems, because there are some theories under development that may erode the barriers and possibly result in coverage where none is expected. Pools should also consider their own vulnerability, because their claims systems could be very attractive.

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2013 NLC-RISC Staff Conference to be held in Portland, Oregon - Hotel reservations now available!

RISC Resource: Erin Rian

The fall Staff Conference will be held in Portland, Oregon on October 21-23 at The Nines in the heart of downtown Portland.  The conference will begin on Monday, October 21st and go through Wednesday, October 23rd.  An agenda and topics will be available soon.

In the meantime, hotel reservations are now being accepted at The Nines.  The group rate is $179 per night.  Pre- and post conference dates at the group rate are subject to availability.  October is a beautiful and very busy time to be in Portland, so make your reservation now!

NLC-RISC Trustees Conference held in Denver, Colorado

RISC Resource: Erin Rian

Approximately 230 trustees, pool staff and guests representing 27 member pools attended the 2013 NLC-RISC Trustees Conference in Denver, Colorado from May 16-18.  Some of the highly rated sessions included:

  • New Trustees Orientation

  • Marketing & Communications: Creating Brand Ambassadors

  • Understanding the Financial Impacts of Higher Workers' Compensation Retention

  • Basics in Financial Management

  • State of the Insurance Market

  • Managing Catastrophic Events

  • Emerging Social Media Risks

  • Employment Claim & Litigation Trends

  • Long Range Capital Planning for Mature Pools

  • Planning for the Future of Pooling & The Next Generation of Pool Leaders

All conference materials are now available on the  2013 NLC-RISC Trustees Conference webpage

NLC-RISC hosts Marketing Workshop with Bechamps & Associates in Denver

RISC Resource: Erin Rian

NLC-RISC and  Bechamps & Associates held a joint marketing workshop in Denver, Colorado from May 15-16.  Approximately 25 pool staff from 15 member pools convened in Denver to learn, share and discuss tools pools can use to rediscover their competitive advantage, reevaluate their marketing strategy execution and effectiveness, and reengage with their current and prospective members in innovative ways.  Topics discussed include:

  • Build Brand Loyalty in an Ever-Changing Market

  • Effectively Use Qualitative Research to Supplement Quantitative Data

  • Develop Integrated Marketing Campaigns

  • Use Mobile Technology and Social Media to Engage Your Membership Effectively

  • Go Beyond Customer Service and Discover How to Sell Your Product Successfully

  • Shape Your Long-Term Execution of Developed Marketing & Brand Strategies

Presenters are continuing the conversation on the Bechamps & Associates Blog.  In addition, NLC-RISC has also reactivated the Marketing Listserv to allow pool staff to continue networking and sharing ideas.  Please contact Erin Rian to be added to any of the NLC-RISC Listservs.

IT and Marketing Listservs Active

RISC Resource: Erin Rian

The NLC-RISC marketing and information technology listservs are active and open to anyone working in those fields for an NLC-RISC member pool. The listservs provide a perfect forum for networking and exchanging information with your peers in other RISC member pools. If you want to be added to any of our listservs (we also have claims, health & wellness, loss control and underwriting listservs) contact Erin Rian.

In This Issue

> Public Risk Pools and the Office of Foreign Assets Control

> Healthcare Reform and Small Cities - What You Need To Know

Pools In The Spotlight:

> Health Reform Guidance: Am I a Larger or Small Employer?

> Guns in school: the risks of arming teachers to respond to crisis

> Active Shooter: What You Can Do

> Municipalities advised against providing vehicle records

> How Much Weight is Too Much to Lift?

Information & Resources:

> Member Engagement the Focus of RISC Board in 2013

> Agility Update: MIIA is 10th Agility Participant

> NLC-RISC Board Nomination Process Underway

> Cyber Risk and Privacy Liability

> 2013 NLC-RISC Staff Conference to be held in Portland, Oregon - Hotel reservations now open

> NLC-RISC Trustees Conference Held in Denver

> NLC-RISC Hosts Marketing Workshop with Bechamps & Associates in Denver

> IT and Marketing Listservs Active

RISC eNews Blast:

Access the current edition of the RISC eNews Blast for June 21st.

Upcoming Events:

Western States Regional Loss Control Meeting: July 17-19, 2013 in Bend, Oregon

NLC-RISC 2013 Staff Conference: October 21-23, 2013 in Portland, Oregon

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