Members present: Ms. Hudson, Ms. Joswiak, Mr. Kante, Ms. Neuman and Mr. Wittry
Staff present: Mr. Krueger, Mr. Moreth and Mr. Tomsyck
Call to order. The meeting was called to order by the Chair, Mr. Wittry at 9:50 A.M. in conformance with Wisconsin’s open meeting law.
Review and approval of the minutes of the previous meeting. Minutes of the November 13, 2002 meeting were reviewed, and approved as written.
Standards of acceptability of excess insurance carriers and surety bond issuers. A report showing the surety issuer and Best rating for each self-insurer was distributed and discussed. Because there is no recourse in the event of failure of a surety issuer, the Council determined that surety issuers should have a Best rating of A- or higher. There are two self-insurers using a surety that has recently been downgraded to less than the standard above, and these employers will be required to replace their bonds with an acceptably rated issuer.
With respect to excess insurance, the department will encourage self-insurers to move coverage from lower rated carriers. Having recourse to the Insurance Security Fund in the event of carrier failure removes substantial risk of resulting in an assessment against the group. It will be in the best interest of self-insurers to maintain their coverage with higher rated insurers, as the Insurance Security Fund will, in most cases, place a claim on the insured in the event that it pays on defaulted excess policies.
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.
Changes to Specific Excess Insurance and Surety Requirements.
The following self-insurer were approved:
Long standing self-insurers that had grandfathered sub-statutory indemnity limits will be notified of requirement to provide statutory limits at their next policy renewal date.
Next meeting. Mr. Moreth will poll the members for acceptable dates.
The meeting was adjourned at 12:50 PM