1. Risk Management User Group Thursday, August 18, 2005

2. WELCOME Michael L. Hay, CGFM, CPPM

3. Seminar Information Location of Exits Location of Assembly Area Location of Restrooms Location of Building Cafeteria Location of Nearby Restaurants (handout) Please Turn Off Cell Phones Evaluation Survey

4. MEETING AGENDA 8:15 – 8:45Legislative UpdateJonathan D. Bow 8:45 – 9:00IAQ SynopsisSam Arant 9:00 – 10:00Job Safety AnalysisMarsie De Olivera 10:00 – 10:15BREAK 10:15 – 10:45Claims UpdateTerry Myers 10:45 – 11:15AssessmentsStuart B. Cargile 11:15 – 11:45Safety Awards Mike Hay 11:45 – 1:00LUNCH

5. MEETING AGENDA 1:00 – 2:00Wellness ProgramMary Guzman 2:00 – 2:30Insurance UpdatesSally Becker 2:30 – 2:45SORM 200Jeff Cox 2:45 – 3:15REPS SystemMike Hay RMTSA Revisions

6. LEGISLATIVE UPDATE Jonathan D. Bow Executive Director

7. IAQ (Indoor Air Quality) SYNOPSIS Sam Arant Risk Management Specialist

8. Educational Seminar Objectives Review SB 599 Discuss the causes of poor air quality Discuss mycology (the study of fungi) Discuss indoor air quality testing Discuss the implementation of an indoor air quality management program

9. Questions?

10. JOB SAFETY ANALYSIS Marsie De Oliveira Principal Engineer Epsilon Systems Solutions, Inc.

11. BREAK See you in 15 minutes!

12. CLAIMS UPDATE Terry Myers Director of Claims Operations

13. Questions?

14. ASSESSMENTS Stuart B. Cargile Fund Accounting Director, CFO

15. Questions?

16. SAFETY AWARDS PRESENTATION Sustained Award Winners Advisory Comm. on State Emergency Communication TX Brd of Professional Geoscientists Board of Barber Examiners Board of Chiropractic Examiners Optometry Board Brd of Examiners of Psychologists Texas Cancer Council Brd of Veterinary Medical Examiners TX State University System Board of Regents University of North TX University System TX Commission of the Arts Board of Plumbing Examiners Credit Union Dept. TX Racing Commission State Pension Review Board

17. SAFETY AWARDS PRESENTATION Sustained Award Winners Legislative Reference Library Sunset Advisory Commission Supreme Court Board of Law Examiners Court of Criminal Appeals Commission on Judicial Conduct State Law Library State Securities Board Fire Fighters Pension Comm. Office of State - Fed. Relations Board of Tax Prof. Examiners TX Dept. of Aging TX Bond Review Board TX Incentive and Productivity Comm. TX Ethics Commission Office of Public Insurance Counsel TX Veterans Commission Comm. on Law Enforcement Officer Standards and Education Commission on Jail Standards TX Commission on Fire Protection Savings and Loan Dept.

18. SAFETY AWARDS PRESENTATION Bronze Award Winners Teacher Retirement System TX Animal Health Commission TX Workforce Commission Kerrville State Hospital Lamar University Port Arthur Department of Banking TX Dept. of Environmental Quality TX Rehabilitation Commission San Antonio State Hospital Dept. of Public Safety School for the Deaf Sam Houston State University Brenham State School TX Southern University TX Legislative Council TX Comm. on Alcohol & Drug Abuse University of Houston – Downtown Stephen F. Austin State University University of Houston Denton State School TX Education Agency Lufkin State School Adjutant Generals Dept.

19. SAFETY AWARDS PRESENTATION Silver Award Winners Alcoholic Beverage Comm. Terrell State Hospital General Land Office TX Dept. of Insurance Sul Ross State University TX Dept of Health San Angelo State School Dept. of Human Services Richmond State School Angelo State University State Preservation Board University of North TX HSC FT Worth TX Higher Education Coordinating Brd Univ. of North Texas TX State Technical College System TX Comm on the Arts

20. SAFETY AWARDS PRESENTATION Gold Award Winners House of Representatives Legislative Budget Board State Auditors Office Employees Retirement System TX Dept. of Housing & Comm. Affairs Public Utility Commission Board of Medical Examiners University of Houston System TX State Library & Archives Comm. Texas Senate Office of The Attorney General State Office of Risk Management TX Department of MHMR– Central Texas Workers Comp. Comm. TX Water Development Board Office of The Governor Texas Lottery Commission Dept. of Information Resources Dept. of Licensing and Regulation Texas Womans University

21. SAFETY AWARDS PRESENTATION Excellence Award Winner Congratulations!! Department of Licensing and Regulation

22. LUNCH BREAK Have a nice lunch!

23. WELLNESS PROGRAM Mary Guzman Wellness Coordinator Texas Department of State Health Services

24. Insurance Program Sally Becker CPCU, ARM Insurance Specialist

25. Statewide Programs Directors & Officers (Public Officials) Liability with Employment Practices Special Event General Liability Volunteer Insurance Automobile Insurance

26. Directors & Officers Liability Mismanagement or improper administration of funds, grants or budgets Improper zoning approvals or denials Denial of permits and First Amendment Constitutional claims Violation of employment law, discriminatory employment practices, sexual harassment, or failure to hire, promote or train employees Professional acts of employed accountants or attorneys can be added by endorsement

27. Directors & Officers continued Began 9/1/02 – Estimated Premium Savings - $225,087 Renewed contract effective 9/1/05 Arthur J. Gallagher of Texas – Dallas and American International Group (AIG) FY05 Facts – 20 Agencies Participate – $1,320,117 premium for FY05

28. Directors & Officers continued Flexible Program – Coverage limits - $1,000,000 to $25,000,000 – Retentions - $10,000 to $750,000 Premium Basis – Budget – FTEs – Student Enrollment (Educational) – Individual Claim Experience

29. Special Event General Liability Began 2/1/04 Southern Specialized Risk Options and Nationwide Insurance Company Provides General Liability coverage – For third party use of state facilities – For state use of third party facilities Coverage: – Liability limit - $1,000,000 per occurrence – No deductible

30. SEGL continued Premium bases – Type of event – Number of attendees Up to 10 days of coverage for one premium -1,500 or less attendance $383 -1,501 to 3,000 attendance $740 -3,001 to 6,000 attendance $1,479 -6,001 to 12,000 attendance $2,550

31. Volunteer Insurance Began 7/1/04 CIMA Companies, Inc. Coverages: – Excess Liability – $1,000,000 occurrence/$3,000,000 aggregate ($1.50) – Excess Automobile – $500,000 per occurrence ($5.25) – Excess Accident – $25,000 medical expense ($3.75) Participation for FY05 – 9 State Agencies – $55,507 Premiums – 20,296 Volunteers Insured

32. Automobile Began 6/1/04 Arthur J. Gallagher of Texas – Dallas and St. Paul Travelers Coverages: – $500,000 Combined Single Limit Option $1,000,000 CSL Option $10,000 or $25,000 deductible per occurrence – Physical Damage $1,000 deductible for vehicles <$100,000 value $10,000 deductible for vehicles >$100,000 value – Non-owned and Hired

33. Automobile continued Participation FY05 – 19 State agencies – $449,166 Premiums – $298,341 Savings Premium Basis – Vehicle Type Private Passenger Trucks/Vans/Mobile Equipment Busses – 15+ passengers

34. In the Works Statewide Property Program – Currently negotiating with proposers Medical Malpractice Athletic Accident

35. Questions?

36. State Office of Risk Management 200 (SORM200) Report Jeff Cox Risk Management Specialist

37. What Is The SORM200? Annual Reporting of Direct Risk Management Expenditures (the costs of controlling risk). Annual Reporting of Insurance Purchases, Bond Purchases, Notary Information, and Overall Loss Expenditures Detailed Property and Liability claims information (excluding WC, health, and life)

38. Why? Required by Texas Labor Code 412 – 412.032 BOARD REPORT TO THE LEGISLATURE – 412.041 DIRECTOR DUTIES – 412.053 ANNUAL REPORTING BY STATE AGENCY SORMs biennial report to the Legislature. Utilized when SORMs risk specialist visit agencies in reviewing health and safety programs. Assist state agencies Risk Managers – risk mgt. decisions/budgeting/forecasting/estimating.

42. Part 1 – Risk Management Expenditures Categories 1. Salary and Wages 2. Benefits 3. Travel 4. Training and Ed 5. Office Supplies and Consumables 6. Capital Outlays and Controlled Assets 7. Rentals & Leases 8. Telephone and Utilities 9. Other Operating Costs 10. Safety Supplies and Equipment 11. Professional, Consultant, Contracted Services 12. Other Services 13. Other Fees, Taxes, Expenses

44. Part 2/Section 1 – Insurance Loss Reporting Insurance Purchases – copies of all insurance policies excluding life and health Bond Purchases – copies of bonds Notaries at the Agency Loss expenditures

46. Part 2/Section 2 – Online Property Casualty Claims Collects detailed information on Property and Casualty Claims Available year-round for data submission or updating Summary based on the date of loss, and settlement amount of all open and closed, insured and uninsured claims.

49. Due Date Reporting for the fiscal year 2005, (9/1/04 to 8/31/05) due by October 30, 2005. Reference Title 28, Rule §252.203 of the Texas Administrative Code

50. Questions?

51. RMTSA, RMIS, and REPS Michael L. Hay, CGFM, CPPM

52. SORM Information Technology Update Risk Management for Texas State Agencies Risk Management Information System – Security Subsystem – SORM200 – On-line Property and Casualty System Risk Evaluation & Planning System

70. Questions?

71. Feedback Form Please complete the survey form at the end of your packet and turn it in before you leave. We value your comments.

72. Risk Management User Group Thank you for attending!