Getting to Know WMMIC

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1. Overview: Types of Pools2. WMMIC Specifics

◦ Primary objectives◦ Financial overview◦ Regulatory and governance overview◦ WMMIC organizational chart◦ Staff organizational chart◦ WMMIC.com – Our front yard

3. Liability Claims Administration◦ Guiding principles◦ Liability claims flow chart (distributed)◦ RiskMaster – Your RMIS

4. Jefferson County Informationº Current risk management structureº What’s in store, and Q&A

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Association Sponsored vs. Independent

Membership in, for example, the WI County Association is not a prerequisite for membership.

Participation in WMMIC is voluntary.

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Capitalized vs. Non-Capitalized

Each member initially contributes equity equal to the risk of shared (pooled) losses it brings to the program.

Initially required due to mutual insurance company structure.

Additional members are required to contribute equity.

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Contributed $783,000 in 2008

2.34% equity stake in WMMIC

Range of members’ equity is 17% (City of Madison) to 2.77% (Eau Claire County)

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Cash Flow vs. Fully Funded

Members fund their expected losses to a 95% confidence level.

WMMIC does not rely on this year’s premium income to pay last year’s claims.

Necessary due to statutory accounting requirements of the WI insurance commissioner.

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Assessable vs. Non-Assessable

WMMIC members are not jointly and severally liable for other members’ liabilities.

Wisconsin Insurance Security Fund is available to claimants should WMMIC not meet its obligations

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Pools vs. Mutual

WMMIC is regulated by the state insurance commissioner. Wisconsin is one of the very few states that require group self-insurers to operate as insurance companies.

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Excess Insurance vs. Reinsurance

WMMIC issues an insurance policy and is liable to each member for the full limits provided. WMMIC is the insurer.

Claims are not passed on to an excess insurer for handling.

Despite each Member’s self-insured retention, WMMIC operates as a primary, not an excess, insurer.

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Statewide vs. Regional

Multiple coverage vs. Single Coverage

Multiple-Type Entity vs. Single-Type Entity

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WMMIC’s primary objectives are:

Provide a stable, reliable source of liability insurance for its members

Safety of each members’ equity contribution

Return on investment through dividend distributions

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$3,683,194 written premium (2009 liability only)

$12,794,731 total liability loss reserves $23,197,934 paid and contributed surplus,

plus $11,528,941 unassigned surplus 6.57 contributed surplus-to-premium ratio. A- (Excellent) with a stable outlook, per A.M.

Best Financial size category is VI on scale of XV

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$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

2008 at September 30

Premium

Loss Reserves

Surplus

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WI insurance commissioner (OCI) audits WMMIC every 3 – 5 years

OCI, NAIC and A.M. Best require quarterly financial reporting

Independent financial audit and actuarial review performed annually

Subject to WI open meetings law. Transparent operations

Board of Directors, three standing committees and numerous work groups ensure member involvement

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Pursue conservative growth that is mutually beneficial to WMMIC and the Member

Analyze and improve the services we provide and products we offer to our members

Expand services and/or products to members within our vision and mission

Provide the best customer service in the industry

Provide a supportive working environment for staff with competitive salary and benefits package for long term commitment to WMMIC.

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Currently a functional web site, most often used as:

An entryway to RiskMaster WMMIC contact information Risk management resources and links Agendas, minutes and more

Improvements are planned in 2009

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WMMIC Phone: 608-246-3336 4785 Hayes Road Madison, WI 53704 Fax: 608-246-3338

Name Phone E-Mail

● Kevin Murphy (608) 246-3336 kmurphy@wmmic.com Executive Director ● Dean Boes (608) 246-3336 dboes@wmmic.com Operations Manager ● Brenda Schelman (608) 242-7215 bschelman@wmmic.com Claims Representative Fax (877) 285-6915 ● Kimmer Price (608) 245-6892 kprice@wmmic.com Claims Representative Fax (877) 285-6917 ● Jan Clingman (608) 246-3336 jclingman@wmmic.com Systems Support

Kimmer Price is Jefferson County’s primary contact:

Joined WMMIC in April, 2007 Experience as an account executive, claims

analyst and adjuster with American Family, Humana, Inc. and Royal and Sun Alliance Insurance.

Experienced in both liability and property Pursuing Associate in Claims designation

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Our guiding principles are

1.Promptly and fairly pay what is owed2.To the fullest extent reasonably possible,

use governmental immunities and tort caps available to members

3.No “economic reason” payments

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Recommended Procedure Follow 893.80 closely. Default option is to

disallow a claim. WMMIC contact claimant with verbal/

written denial, alerting them of forthcoming disallowance letter from County.

Allow WMMIC the option of denying small PD claims subject to your approval.

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Distribute hard copy of flow chart

Brand name product used by numerous public entity pools

Accessed at http://www.wmmic.com/4members.html

Claims information and reports are available to approved users in real time

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$5,000,000 Orange = WMMIC Responsibility Blue = Jefferson County Retention WMMIC Responsibility (with reinsurance support)

$1,000,000 Jefferson County Annual Aggregate WMMIC Retention Retention (Member funded) $525,000 $150,000 SIR

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Total Auto Allocation Gen Liab All Other Confirm TotalMember Name Allocation Allocation less Auto Allocation Allocation Allocation

Brown $337,374 $83,839 $253,535 $63,384 $190,151 $337,374Chippewa $123,047 $42,883 $80,164 $20,041 $60,123 $123,047Dane $377,101 $85,321 $291,780 $72,945 $218,835 $377,101Dodge $223,697 $45,155 $178,542 $44,636 $133,907 $223,697Eau Claire City $99,642 $61,590 $38,052 $9,513 $28,539 $99,642Eau Claire County $163,334 $30,776 $132,558 $33,140 $99,419 $163,334Kenosha $316,441 $66,233 $250,208 $62,552 $187,656 $316,441La Crosse $202,377 $46,094 $156,283 $39,071 $117,212 $202,377Madison $343,261 $202,848 $140,413 $35,103 $105,310 $343,261Manitowoc $160,743 $45,708 $115,035 $28,759 $86,276 $160,743Marathon $134,970 $86,904 $48,066 $12,017 $36,050 $134,970Outagamie $218,920 $65,230 $153,690 $38,422 $115,267 $218,920Rock $183,527 $67,277 $116,250 $29,062 $87,187 $183,527St. Croix $172,203 $62,569 $109,634 $27,408 $82,225 $172,203Waukesha $295,992 $91,255 $204,737 $51,184 $153,553 $295,992Walworth $184,988 $43,509 $141,479 $35,370 $106,110 $184,988Totals $3,537,615 $1,127,191 $2,410,426 $602,606 $1,807,819 $3,537,615Per cent of total 31.9% 17.0% 51.1% 100.0%

Brown County Stad Auth $20,479 $20,479 $20,479Jefferson County $125,100 $39,907 $85,193 $21,267 $63,926 $125,100Total 2009 WMMIC liability premium $3,683,194

A new look and feel for WMMIC, beginning with a web site redesign

Improved strategic planning process Our newest equity member – Jefferson

County Improved liability claims administration Professional development for staff

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