Members present: Ms. Joswiak, Mr. Kante, Ms. McKinzie, Ms. Neuman and Mr. Wittry
Absent:
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 9:15 A.M. in conformance with Wisconsin’s open meeting law.
Open session
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 December 4, 2007 regular meeting were reviewed, and approved as written.
Assessement refunding. Mr. Moreth distributed a summary of the amounts
assessed and refunded for defaults by AR Accessories and Evans Products. In
total, nearly 70% of the assessed $682,000 was returned to self-insured
employers. Mr. Tomsyck was recognized for the effort to gather the necessary
data, and to locate many former self-insurers, as refunds were not contemplated
during the assessment and claims payment process. Nearly $94,000, representing
interest on the assessment balances over the last few years, remains in the
account and will be available to handle any small claim that arises, eliminating
the administrative burden that would otherwise be necessary to collect a small
assessment. This interest balance is retained as it is not feasible to determine
the amount that would be refundable to individual assessed employers.
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.
Open session
The Council returned to open session, and made the following recommendations:
Changes to specific excess insurance and/or security requirements.
Georgia-Pacific – approved request to lower bond to $1.5 million from $3
million.
Johnson-Diversey -. denied request to reduce surety bond.
Kmart - approved request to reduce surety bond to $1 million from $3 million.
Kohl’s Food Stores – approved request to lower bond to $500,000 from $1.5
million.
Ralcorp – denied request to reduce the surety bond.
Tyco International – denied request to reduce $500,000 bond, but agreed to
accept another request after 12 year statute of limitations has run.
United Hospital System - approved request to increase excess retention from
$250,000 to $500,000.
Miscellaneous
Ms. Neuman announced that she would decline another appointment to the Council,
as her employment with a self-insured employer will end in June 2008. Mr. Moreth
reported that no nominations (other than the single response reported at the
previous meeting) have been received for appointments to the Council. The
appointment of Mr. Garrett of Dairyland Power to succeed Ms. Neuman will be
effective July 1, 2008. Another letter will be sent seeking volunteers. Mr.
Wittry reiterated the value of diversity in industry and geographic
representation.
Ms. Joswiak reported that the excess insurance market for utilities remains
stable, but that licensed excess coverage remains unavailable.
Mr. Moreth gave an update of the previously discussed WCAC loggers committee.
Work continues on efforts to assist the industry, but the department still
opposes creation of group self-insurance.
Mr. Moreth reported that the Atchison escrow account has grown to nearly
$131,000, and remains available solely for Atchison claims.
Next meeting. Mr. Moreth will poll the members in the summer for
acceptable dates for a fall 2008 meeting, as applications or conditions warrant.
Mr. Wittry, who is retiring from his position with Rockwell, was presented with
a plaque in appreciation for his nearly 18 year service to the Self-Insurers
Council. Ms. Neuman was also presented with a plaque in appreciation for her 9.5
year tenure on the Council. DWD staff and the other Council members expressed
their gratitude for the collective wisdom and experience that these experts
generously brought to the Council, in betterment of the self-insurance program.
Messrs. Krueger and Moreth also presented Mr. Wittry and Ms. Neuman with framed
drawings of the Wisconsin State Capitol, as reminders of their time in volunteer
service of the people of Wisconsin while serving on the Self-Insurers Council.
The meeting was adjourned at 12:45 PM