Worker's Compensation Self-Insurers Council Minutes
February 14, 2007
Members present: Ms. Joswiak, Mr. Kante, Ms. McKinzie, Ms. Neuman and Mr. Wittry
Staff present: Ms. Huntley-Cooper, Mr. Krueger, Mr. Moreth and Mr. Tomsyck
Call to order. The meeting was called to order by the Chair, Mr. Wittry at 9:45 A.M. in conformance with Wisconsin’s open meeting law.
Introduction of new Council member. Ms. Christine McKinzie replaced Ms. Hudson effective July 1, 2006. Ms. McKinzie is employed by self-insurer Kwik Trip, and has extensive experience in safety, loss control, and administration of regulatory compliance functions. The department and other Council members welcomed Ms McKinzie to the Council.
Review and approval of the minutes of the previous meeting. Minutes of the May 22, 2006 regular meeting were reviewed, and approved as written.
Closed session review reports of self-insured employers. In accordance with s. 19.85(1)(f) the council convened in closed session to review financial, loss experience, safety and other information of employers presently or previously exempt from the duty to insure. Some of the companies’ specific financial or other business information may be confidential and not subject to public disclosure.
Closed session Joy Global/Beloit Corporation presentation. In accordance with s. 19.85(1)(f) the council convened in closed session to review financial, loss experience, safety and other information of Joy Global and its former subsidiary Beloit Corporation. Some of the companies’ specific financial or other business information may be confidential and not subject to public disclosure.
Closed session Allis-Chalmers claim. In accordance with s. 19.85(1)(f) the council convened in closed session to review financial, loss experience, safety and other information of Allis-Chalmers. Some of the company’s specific financial or other business information may be confidential and not subject to public disclosure.
The Council returned to open session, and made the following recommendations:
Changes to specific excess insurance and/or security requirements.
Dollar General – approved request to increase excess retention from $500,000 to $1 million.
Cherry Corporation - approved request to increase excess retention from $300,000 to $350,000.
Eaton Corporation - denied request to reduced surety bond.
Federal Companies - denied request to return current $250,000 escrow deposit.
Georgia-Pacific – Agreed to offer one $3 million bond covering all subsidiaries versus current 2 bond situation totaling $3.5 million.
Gerber Products – approved request to lower bond from $250,000 to $100,000.
Kmart – defer decision on bond reduction request pending updated loss runs, including individual claim detail, including any claims into excess.
Tyco – denied request to reduce current $500,000 bond.
Joy Global/Beloit Corporation – approve request to eliminate Beloit bond contingent upon existing Joy bond accept Beloit liability.
Ms. Joswiak reported that the excess insurance market for utilities remains stable, but that licensed excess coverage remains unavailable.
Mr. Tomsyck reported that work continues on the assessment refunding process for AR Accessories Group and Evans Products.
Mr. Moreth reported that no new claims have been reported for Atchison Casting, and that the escrow has grown to about $123,000 with interest.
Mr. Moreth reported that the WC Advisory Council established a working group to study the group self-insurance issue raised by the Assembly Forestry Committee. The WCAC logging committee has met several times to explore options, including group self-insurance, to assist employers in high-cost class code occupations.
Council terms for Ms. Joswiak and Mr. Kante expire June 30, 2007. Both members agreed to accept appointment for another term.
Mr. Moreth handed out expense voucher forms to the Council members. The members are entitled to reimbursement of expenses in the same manner as a State employee.
Mr. Moreth noted that the Moody’s Bond Record service has drastically reduced coverage of self-insured employers. The subscription to this service, about $900/year, will not be renewed.
Next meeting. Mr. Moreth will poll the members for acceptable dates in mid-2007, as applications or conditions warrant.
The meeting was adjourned at 2:15 PM