membership advantages and testimonials · 2019-06-18 · membership advantages and testimonials...
TRANSCRIPT
Membership Advantages and Testimonials
Presented by:
Bob Solarz, Executive Director
Carol Bigham, Director of Member Services
Ric Schultz, Principal Consultant, Insurance Buyers’ Council
June 21, 2019
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 2
Elected officials, especially newly elected ones, are asking Managers and Finance Directors for an overview of the Delaware Valley Trusts.
They want to know what’s behind the DVT budget line items and why it’s advantageous for their public entity to be in the Delaware Valley Trusts.
This presentation is specifically designed to help members educate their elected officials on the membership advantages of the Property & Liability Trust.
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 3
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 4
• DVPLT is an alternative to commercial
insurance coverage for qualified, PA local
governmental entities.
• DVPLT was formed in 1989 as a trust under the
PA Intergovernmental Cooperation Law.
• DVPLT’s trust structure is:
• Non-profit and tax exempt
• Member-owned and controlled
What is DVPLT
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 5
• DVPLT coverage is tailored to manage the
unique exposures of public entities
• DVPLT operates solely for the benefit of its
membership (local governmental entities).
• 2019 - 63 members in seven PA counties
• Stable rates often well below those offered by
the commercial market
What is DVPLT
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 6
• Liability reinsurance through Government
Entities Mutual (GEM). DVPLT is a part owner
of GEM along with 16 other risk pools across
the US.
• Property reinsurance is provided through Alliant
Insurance’s Public Entity Property Insurance
Program which covers public entities and pools
across the US.
• Group purchasing power of 63 members –
economies of scale realized in annual expense
budget and members’ annual contributions.
What is DVPLT
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 7
• DVPLT holds a significant long term net cost
advantage to commercial insurance.
• Strong surplus offers many significant
advantages, including stability and investment
income.
• Excess funds returned to members through:
Cash Dividends
Multi-trust Discounts
Rate Stabilization Fund Allocations
Loss Control Grants
What is DVPLT
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 8
Sample # 1 - Medium Size; Long-Term Member
Item TY 2009 TY 2010 TY 2011 TY 2012 TY 2013 TY 2014 TY 2015 TY 2016 TY 2017 TY 2018 Totals
RSF as of
1/1/2019
Premium
Contributions 182,129 187,433 181,298 192,222 196,105 195,028 188,326 190,320 178,961 178,931 1,870,753
RSF Avail.
Balance
Multi-Trust
Discounts 5,464 5,623 5,439 5,767 7,844 7,801 7,533 7,613 8,849 8,860 70,793 50,277
RSF Amounts
Taken 50,644 41,504 53,589 50,849 54,501 0 112,884 40,029 31,913 0 435,913
RSF
Remaining
Dividends 51,095 80,695 59,535 53,200 58,270 50,510 51,095 47,970 59,935 35,550 547,855 20,183
Safety Grant
Allocations 2,946 3,482 3,482 3,658 3,658 3,825 3,825 3,805 3,805 3,537 36,023 Percent Net
Net Cost of
Membership 71,981 56,129 59,253 78,748 71,832 132,892 12,989 90,903 74,459 130,984 780,170 42%
Sample # 2 - Medium Size; Recent Member
Item TY 2009 TY 2010 TY 2011 TY 2012 TY 2013 TY 2014 TY 2015 TY 2016 TY 2017 TY 2018 Totals
RSF as of
1/1/2019
Premium
Contributions 96,225 165,256 174,142 435,623
RSF Avail.
Balance
Multi-Trust
Discounts 2,887 6,448 6,740 16,075 2,243
RSF Amounts
Taken 0 0 0 0
RSF
Remaining
Dividends 0 0 3,290 3,290 1,700
Safety Grant
Allocations 1,500 1,500 3,222 6,222 Percent Net
Net Cost of
Membership 0 0 0 0 0 0 0 91,838 157,308 160,890 410,036 94%
Net Cost of Membership – 10 Years
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Net Cost of Membership – 10 Years
Sample # 3 - Medium Size; Long-Term Member
Item TY 2009 TY 2010 TY 2011 TY 2012 TY 2013 TY 2014 TY 2015 TY 2016 TY 2017 TY 2018 Totals
RSF
as of
1/1/19
Premium
Contributions 123,862 127,732 134,103 147,442 158,503 171,057 176,354 180,407 190,233 192,645 1,602,338
RSF Avail.
Balance
Multi-Trust
Discounts 3,716 3,832 4,023 4,423 6,340 6,842 7,054 7,216 9,320 9,459 62,225 54,553
RSF Amounts
Taken 0 50,000 20,000 35,000 40,000 40,000 54,000 57,537 40,000 20,000 356,537
RSF
Remaining
Dividends 11,920 18,765 13,575 14,560 13,205 18,130 27,950 19,100 36,160 24,635 198,000 15,049
Safety Grant
Allocations 2,280 2,368 2,368 2,706 2,706 3,092 3,092 3,563 3,563 3,726 29,464 Percent Net
Net Cost of
Membership 105,946 52,767 94,137 90,753 96,252 102,993 84,258 92,991 101,190 134,825 956,112 60%
Entire Trust
Item TY 2009 TY 2010 TY 2011 TY 2012 TY 2013 TY 2014 TY 2015 TY 2016 TY 2017 TY 2018 Totals
RSF
as of
1/1/19
Premium
Contributions 8,513,895 8,151,810 8,143,392 8,759,232 9,157,574 9,469,515 9,585,841 9,807,590 11,082,772 11,809,755 94,481,376
RSF Avail.
Balance
Multi-Trust
Discounts 211,865 209,496 218,526 236,056 334,038 353,201 370,737 381,745 496,728 532,606 3,344,999 2,433,217
RSF Amounts
Taken 1,597,723 1,568,305 2,186,069 1,945,008 2,212,978 2,201,673 1,974,599 1,731,072 1,630,115 1,109,125 18,156,667
RSF
Remaining
Dividends 1,566,630 2,545,660 2,034,940 2,059,395 2,013,960 2,008,265 1,971,245 1,997,415 2,529,365 2,029,355 20,756,230 999,416
Safety Grant
Allocations 152,727 165,181 166,681 169,731 171,231 188,376 188,376 205,639 213,139 228,166 1,849,247 Percent Net
Net Cost of
Membership 4,984,950 3,663,168 3,537,176 4,349,042 4,425,367 4,718,000 5,080,884 5,491,719 6,213,425 7,910,503 50,374,233 53%
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 10
• $10 million in liability limits for General, Auto,
Law Enforcement and Public Officials.
• Real and personal property limit of $1 billion per
occurrence.
• Flood $150,000,000 annual aggregate for all
Trust participants with sublimit of $75,000,000
annual aggregate for Zones A, AE, V and all 100
year floodplains. Earthquake $50,000,000
annual aggregate for all Trust participants.
DVPLT Coverage
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• Boiler $100,000,000 each accident.
• Crime: Public employee dishonesty $2 million
each loss.
• Cyber coverage (third party and first party) with
overall limits of $3 million each claim, $3 million
aggregate.
DVPLT Coverage
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DVPLT Coverage is a Better Fit for Municipal Risk
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 13
DVPLT Commercial Insurance
Property
$1 Billion Overall Per Occurrence LimitBlanket limit equal to Total Values or limits by
location
Extra Expense limit of $50M Often low sublimits of $100,000 or less
Sewer Back Up - No Sublimit Often low sublimits of $100,000 or less
Flood - $150M Annual Aggregate
for all Trust members
Usually excluded but will sometimes provide low
aggregate limits such as $1M, $2M excess of
NFIP
Zone A Flood - $75M Annual Aggregate
for all Trust membersUsually excluded, period
Earthquake - $50M Annual Aggregate
for all Trust members
Usually excluded but will sometimes provide low
aggregate limits such as $1M, $2M
Deductible - combined for property damage
and time element
Often separate; inland marine stacking
deductibles on top of property deductibles
Mobile (contractors) Equipment - covered on
replacement cost basis under Property program
limits
Covered on ACV basis subject to limit
per item as scheduled
Mobile (contractors) Equipment –
Unscheduled items coveredScheduled items only
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 14
DVPLT Commercial Insurance
Crime
Limits of $2M
Low limits of $100,000 or less; does not
recognize cumulative nature of dishonesty
losses
Computer Fraud and Funds Transfer Fraud
includedOften Not Covered
Coverage excess of individual bond req's.No coverage for those required to be individually
bonded
Liability
Total limits of $10M ($2M primary with $8M
excess)
For smaller and medium size prospects, limits
total less than $10M; usually $4M or $6M
Abuse or molestation covered without sublimits
Low sublimits usually $1M or less – Important
given parks and recreation exposures with
children
Sewer back up covered without sublimits Low sublimits of usually $500,000 or less
Circuses, carnivals or fairs covered (including
amusement rides)
Excluded or restricted, especially on umbrella
policies
Athletic participation coveredExcluded or restricted, especially on umbrella
policies
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 15
• In-house claims adjudication & litigation
management
• Customized loss control services
• Exclusive value-added services including
best-in-class training programs
On-site
DVT Online University
DVD Lending Library
Advantages of MembershipValue-Added Benefits
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 16
• NFPA Fire & ICC International Building E-Codes
• PA motor vehicle record checks
General employment
Annual US DOT checks for CDL drivers
• PA criminal background checks
General employment screening
Required by the PA CPSL
Advantages of MembershipValue-Added Benefits
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 17
• Police pre-hire psychological evaluations
• Pre-employment assessment testing
• Law Enforcement Policy Management
• Boiler and machinery inspections
• Local Government IT Services
Advantages of MembershipValue-Added Benefits
Member Testimonials
“A key component of the
Trusts is the expert
guidance they provide
addressing our specific
municipal government
issues. In addition,
continual and pertinent
training provided by the
Trusts keeps us apprised
of trends and issues.”
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 18
Donald D. Delamater, ManagerLower Providence Township
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 19
Member Testimonials
“I have worked with several other Trusts in other communities, and can unequivocally say that the combination of low costs and excellent service really separates DVPLT (and DVTrusts) from the others.”
Jon Hammer, Manager
Franconia Township
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 20
Member Testimonials
“The loss control grants have been highly valuable
as a way of funding our safety committee’s
recommendations. Since these items are usually
above what was budgeted for, it is good to give
our safety committee the power to move forward
with projects/products to safeguard our Borough’s
assets and employees.”John Ramsey, Finance DirectorLansdale Borough
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 21
Member Testimonials
“The DVT Online University
is more than a valued
added service, it’s actually
a gold mine of learning
opportunity. The hidden
treasure is the ability to
customize administrative
controls and establish a
learning curriculum by
departments or job types to
ensure comprehensive
training to all departments.”Mark Santoleri, Risk Control ManagerLower Merion Township
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Member Testimonials
“The Trust’s value-added programs such as
training, legal guidance and loss control resources
are more than just benefits – they set the Trusts
apart from any other liability coverage provider!”
John Davis, ManagerDoylestown Borough
©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 23
Member Testimonials
Stephanie Cecco, ManagerConshohocken Borough
“To say it is a privilege to be part of theDelaware Valley Trusts is an understatement.As a municipality, the health and safety ofresidents, businesses, and visitors areparamount. Additionally, we are also chargedwith the fiscally responsible utilization oftaxpayer dollars. In other words, it is our dutyto provide the best services at the best price.Membership in the Delaware Valley Trustsprovides the tools, services, coverage, andresources needed to not only reach but alsoexceed this goal. As elected officials andadministrators, we benefit greatly. Moreimportantly, our taxpayers benefit.”
Thank you.