03-28-1990 Council Agenda - Laserfiche WebLink

Home Browse Search

Office of: JOEL R. HANSON, Administrator 515 Little Canada Road Little Canada, MN 55117 612.484 -2177 FAX: 612. 484.4538 March 23, 1990 CITY OF LITTLE CANADA RAMSEY COUNTY, MINNESOTA TO: Mayor Fahey and Members of the City Council FROM: Joel R. Hanson, City Administrator RE: Workers' Compensation Insurance MAYOR Michael Fahey COUNCIL Beverly Scalze Bill Blesener Rick Collova Jim LaValle Attached is our present billing for Work Comp insurance from our carrier, The State Mutual Fund Insurance Company. Also attached is a quote from Employee Benefit Administration (EBA) for the League of Minnesota Cities' insurance plan. (This is a self- insured trust made up of Minnesota cities.) You will note a difference in annual premium of $5,374. It should be noted that both companies have used the same payroll calculations to arrive at these premium figures. EBA has administered the work comp program for the League of Cities for 10 years. In my experience with them at Rush City, I found their rates to be virtually unbeatable, the audit process to be reasonable, and claims processing appropriately handled. Presently, 830 cities are enrolled in this specific program. (That is almost all of them!.) Obviously, there are no guarantees problems will not result in the future. Some concerns with this program are: *Legislative changes could renew State directed rates and benefits potentially eliminating cost advantages of this program. This would be dependent on the specific legislation. *The League's program is not covered by the Guarantee Fund. The Guarantee Fund covers claims should an insurance company go broke. (It was reported to me by Mr. Bob Clemens of EBA that the League's work comp program is very strong financially, and he doesn't foresee any problems.) *If the program developed financial problems, we could be in a difficult circumstance scrambling for coverage. However, reinsurance is purchased to protect against excessive losses. Pa,66",104 g-