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CAPRI <br />BOARD OF DIRECTORS AGENDA <br />August 16, 2017 <br />Agenda Item 8.1) <br />DISCUSSION/ACTION ITEMS <br />SUBJECT: WC Program — Conejo Recreation and Park District <br />BACKGROUND AND STATUS: <br />Conejo Recreation and Park District is completely self-insured for their Workers' Compensation <br />program. They have requested quotes several times to join our Worker's Compensation <br />Program, but they have good loss experience for a large Recreation and Park District that it <br />hasn't made sense to join the program and drop all the way down to fully insured (first dollar). <br />Jim Friedl is concerned about being completely self-insured because of the catastrophic loss <br />potential which could put a financial strain if one were to occur (i.e. the Riverside shooting <br />which is reserved in excess of $35 million or the Cordova quadriplegic claim which has had <br />reserves in excess of $11 million). <br />Jim and I have discussed getting them into our program numerous times, but it hasn't worked out <br />yet. We have been brainstorming and have come up with a possible solution by obtaining a <br />quote to add Conejo to our Workers' Compensation Program at the $350,000 self-insured <br />retention (SIR), which is our SIR for the EIA. Conejo would be joining our WC Program at the <br />$350,000 SIR and not playing in our pooled layer and go directly to the ETA's excess layer. We <br />would charge Conejo, the excess premium charged to us by the EIA plus an Administrative <br />charge to cover administration of claims, training, etc. This option is made easier by the fact that <br />Conejo's Third Party Administrator is now York Insurance Services (CAPRI's TPA). <br />It is staffs recommendation that we explore this option for Conejo which will include: 1) <br />obtaining a quote from EIA for WC coverage at the $350,000 SIR; 2) working with York to <br />work out the administrative details and claim handling when a claim from Conejo reaches the <br />$350,000 SIR; and 3) to determine an appropriate Administrative charge to handle our costs. <br />RECOMMENDATION: <br />To approve providing Conejo with i quote to join our Workers' Compensation program at the <br />$350,000 self-insured retention. <br />REFERENCE MATERIALS ATTACHED: <br />None <br />Page 20 of 95 <br />