Download - Liability Rating Plan
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SCORE
Liability Rating Liability Rating PlanPlan
What is it? How does it work?
Presented ByJackie Parker
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Today’s OutlineToday’s Outline Members in Liability What is the Rating Plan? SCORE’s Liability Program CJPRMA Layer Shared Risk Layer Banking Layer SCORE Administrative Costs Breakdown of SCORE Liability
Layers
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Who’s in the Liability Program?
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What is the Rating What is the Rating Plan?Plan?The Rating Plan is a method for
equitably allocating premium amongst SCORE member cities for:
Bodily InjuryProperty DamagePublic Officials Errors & Omissions
The Rating Plan uses risk sharing concepts and techniques.
The Rating Plan allocates all program costs to members.
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A Look at the SCORE A Look at the SCORE Liability ProgramLiability Program
California Joint Powers Risk California Joint Powers Risk Management Authority (CJPRMA)Management Authority (CJPRMA)
$500,000 to $40,000,000 per $500,000 to $40,000,000 per occurrenceoccurrence
SCORE Shared Risk LayerSCORE Shared Risk Layer$25,000 to $500,000 per occurrence$25,000 to $500,000 per occurrence
SCORE Banking LayerSCORE Banking Layer$25,000 per occurrence$25,000 per occurrence
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Total “Voting” Members = 22
Total City Members = 9305/06 Member Contrib. =
$16,397,844
CJPRMA member since 198722% of Total City Members05/06 SCORE Contrib. =
$211,712 (1.3% of CJPRMA Total Contributions)
CJPRMACJPRMA$500,000 to $40,000,000 per occurrence$500,000 to $40,000,000 per occurrence
SCORE
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Fort Jones $3,511 Loomis $18,208 Dorris $3,950 Ione $20,616 Loyalton $4,672 Live Oak $22,833 Montague $6,864 Williams $26,863 Isleton $9,643 Weed $41,089 Biggs $9,814 Mt. Shasta $45,055
Etna $10,252 Crescent City $66,717
Colfax $12,785 Yreka $82,064 Portola $13,908 Susanville $90,472 Rio Dell $14,202 Shasta Lake $99,814 Dunsmuir $14,939 TOTAL: $618,271
SCORE Shared Risk LayerSCORE Shared Risk Layer$25,000 to $500,000 per occurrence$25,000 to $500,000 per occurrenceMember Contributions (FY 05/06)Member Contributions (FY 05/06)
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SCORE Shared Risk LayerSCORE Shared Risk Layer$25,000 to $500,000 per occurrence$25,000 to $500,000 per occurrence
Actuarial Funding RatesFY 2005-2006
Recommended RangeExpecte
d70%
CL75%
CL80%
CL85%
CL90%
CL$1.99 $2.42 $2.65 $2.95 $3.31 $3.80
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SCORE Shared Risk LayerSCORE Shared Risk Layer$25,000 to $500,000 per occurrence$25,000 to $500,000 per occurrence
Deposit Premium = Actuarial Rate @ 80%* Confidence Level x Member Estimated Payroll Adjusted by their Experience Modification FactorExperience Modification Factor = Relative Loss Rate x Credibility Factor
Relative Loss Rate = Individual Member Loss Rate ÷ by Total Loss Rate for all members* Minimum Governing Documents Require. Recommendation of 85% Confidence Level for 2007/2008 Budget.
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SCORE Shared Risk LayerSCORE Shared Risk Layer$25,000 to $500,000 per occurrence$25,000 to $500,000 per occurrence
Credibility Factor =Individual Members Payroll divided by (Total Members Payroll + Constant)
The Credibility Factor is applied to members payroll to create a more equitable distribution of payrolls.
Loss Rate = Individual Member Losses Past Five Years (2001-2006) ÷ Individual Member Payroll Past Five Years (2001-2006)
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Isleton $6,736 Fort Jones $14,828Biggs $7,422 Ione $15,062Etna $8,003 Live Oak $16,193Colfax $8,788 Williams $17,569Montague $9,590 Mt. Shasta $33,613Rio Dell $9,606 Weed $33,947Portola $10,155 Crescent City $42,431Dunsmuir $12,032 Susanville $58,553Loyalton $12,995 Yreka $61,131Loomis $13,320 Shasta Lake $84,671Dorris $14,245 TOTAL: $490,889
SCORE Banking LayerSCORE Banking Layer$0 to $25,000 per occurrence$0 to $25,000 per occurrence
Member Contributions (FY 05/06)Member Contributions (FY 05/06)
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SCORE Banking LayerSCORE Banking Layer$0 to $25,000 per occurrence$0 to $25,000 per occurrence
Member Contributions (FY 05/06)Member Contributions (FY 05/06)
Actuarial Funding RatesFY 2005-2006
Recommended RangeExpect
ed70%
CL75%
CL80%
CL85%
CL 90% CL
$1.65 $1.98 $2.14 $2.32 $2.56 $2.88
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Deposit Premium = Actuarial Rate @ 80%* Confidence Level x Member Estimated Payroll Adjusted by their Experience ModificationMinimum deposit premium of $20,000
3 member cities currently pay the minimum Maximum deposit premium of $250,000.
2 member cities are close to paying the maximumExperience Modification = Relative
Loss Rate x Credibility Factor
SCORE Banking Layer SCORE Banking Layer (Same as (Same as Shared Layer)Shared Layer)
$0 to $25,000 per occurrence$0 to $25,000 per occurrence
* Minimum Governing Documents Require. Recommendation of 85% Confidence Level for 2007/2008 Budget.
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Credibility Factor =Individual Members Payroll divided by (Total Members Payroll + Constant)
The Credibility Factor is applied to members payroll to create a more equitable distribution of payrolls.
Loss Rate = Individual Member Losses Past Five Years (2001-2006) ÷ Individual Member Payroll Past Five Years (2001-2006)
Relative Loss Rate = Individual Member Loss Rate ÷ by Total Loss Rate for all members
SCORE Banking Layer SCORE Banking Layer (Same as (Same as Shared Layer)Shared Layer)
$0 to $25,000 per occurrence$0 to $25,000 per occurrence
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Member Entity
DE6 Payroll Inflated
Percentage of Total
Expense Allocated
By Payroll
Cost Allocat
edEqually
Liability Admin
CostsBiggs $284,120 1.35% $1,619 $5,691 $7,310Colfax $460,964 2.20% $2,627 $5,691 $8,318Crescent
City $2,708,364 12.91% $15,433 $5,691 $21,124Dorris $127,551 0.61% $727 $5,691 $6,418Dunsmuir $390,996 1.86% $2,228 $5,691 $7,919Etna $276,802 1.32% $1,577 $5,691 $7,268Fort Jones $118,832 0.57% $677 $5,691 $6,368Ione $691,831 3.30% $3,942 $5,691 $9,633
Isleton $327,438 1.56% $1,866 $5,691 $7,557Live Oak $813,938 3.88% $4,638 $5,691 $10,329Loomis $604,396 2.88% $3,444 $5,691 $9,135Loyalton $159,377 0.76% $908 $5,691 $6,599Montague $232,589 1.11% $1,325 $5,691 $7,016Mt. Shasta $1,502,827 7.17% $8,564 $5,691 $14,255Portola $452,951 2.16% $2,581 $5,691 $8,272Rio Dell $530,598 2.53% $3,024 $5,691 $8,715Shasta
Lake $2,486,180 11.85% $14,167 $5,691 $19,858Susanville $3,848,292 18.35% $21,929 $5,691 $27,620
Weed $1,077,260 5.14% $6,139 $5,691 $11,830Williams $1,095,599 5.22% $6,243 $5,691 $11,934Yreka $2,781,609 13.26% $15,851 $5,691 $21,542Total: $20,972,515 100.00% $119,509 $119,511 $239,020
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Breakdown of SCORE Breakdown of SCORE Liability LayersLiability Layers
CJPRMA$40 Million Limit21 Participating Cities$211,712 Premium (05/06 FY)>2% of Program Costs
SCORE Shared Layer$150,000 Limit$913, 328 Premium (05/06 FY)>3% of Program Costs
SCORE Banking Layer$25,000 Limit$649, 401 Premium (05/06 FY)>17% of Program Costs