TEXAS MUNICIPAL LEAGUE

INTERGOVERNMENTAL RISK POOL

Underwriting and Claims Committee

Embassy Suites, Majestic A

125 E. Houston, San Antonio

January 20, 2012

Trustees Present / Staff Present
Don Henderson, Chair / Carol Loughlin
Kevin Caddell / Mike Bratcher
Larry Gilley / Scott Epperson
John Monaco / Les Horne
Peter Vargas / Matt Jordan
Trustees Absent / Mike Rains
John Fullen / Debbye Mangum
Cindy Arce-Shaddix
Connie Higdon

Don Henderson called the meeting of the Underwriting and Claims Committee of the Texas Municipal League Intergovernmental Risk Pool to order at 3:35 p.m. on Friday, January 20, 2012.

Election of committee chair and vice-chair, if the committee so desires

Don Henderson stated that he did not wish to be reelected as Chair of the Underwriting and Claims Committee due to health issues.

MOTION by Kevin Caddell, seconded by Peter Vargas, to elect Larry Gilley as chair of the Underwriting and Claims Committee. Motion carried with unanimous approval.

MOTION by Larry Gilley, seconded by Peter Vargas, to elect Kevin Caddell as vice-chair of the Underwriting and Claims Committee. Motion carried with unanimous approval.

Consideration of minutes of October 28, 2011 committee meeting (Tab 12)[1]

MOTION by Kevin Caddell, seconded by Peter Vargas, to approve the minutes of the Underwriting and Claims Committee meeting on October 28, 2011, as written under Tab 12. Motion carried with unanimous approval.

Update regarding Property Fund’s 9/30/11 Available for Equity Returns (Tab 6)

Carol Loughlin presented the update under Tab 6 regardingthe amount available in the Property Fund for an equity return. The auditors made an adjustment for reinsurance expenses that were charged to the Property Fund and received by the Reinsurance Fund. As a result, there will be an additional $578,622 available for an equity return, which at the October 29, 2011, Board meeting was deferred to the April 2012 Board meeting.

Consideration of next steps regarding purchase of claims processing software and authorization of related contracts (Tab 9) (Finance to report)

Carol Loughlin asked the committee if there were any questions regarding the claims processing software presentation from the 3:00 p.m. Board meeting. She stated that no action was necessary from the Underwriting and Claims Committee since the item was going to be presented by the Finance Committee. Mr. Caddell wanted the committee to show their support for the claims processing software and made a motion as such.

MOTION by Kevin Caddell, seconded by Peter Vargas, to recommend to the Board the approval of the contract with Perr & Knight, Inc. for phase two of the consulting services for the claims processing software in an amount not to exceed $300,735. Motion carried with unanimous approval.

Significant Cases and Legal Developments Impacting the Pool (Tab 13)

Mike Rains reported on significant cases and legal developments impacting the Pool under Tab 13.

Report regarding Hurricane Ike claim of the City of Pasadena (Tab 14)

Mike Rains reported on the Hurricane Ike claim of the City of Pasadena under Tab 14.

Report regarding status of Pasadena as a pool member (Tab 15)

Mike Rains presented the status of the City of Pasadena as a pool member under Tab 15. He reported that the Pool staff has a good working relationship with the City in the Liability and Workers’ Compensation programs and was recommending that no action be taken at this time to change the status of the City of Pasadena in the liability and workers’ compensation programs.

MOTION by Peter Vargas, seconded by Kevin Caddell, to recommend to the Board that no action be taken at this time regarding the City of Pasadena’s participation in the liability and workers’ compensation programs. Motion carried with unanimous approval.

Update on losses caused by Hurricane Ike (Tab 16)

Mike Rains presented the update on losses caused by Hurricane Ike under Tab 16.

Liability and Property Claims Report on claims that have reserves exceeding $150,000 and consideration of settlement authority in cases excess of $500,000 (Tab 17)

Mike Rains presented the Liability and Property Claims report under Tab 17.

Request for authority to settle Calvert v. Johnson (Capital Metro, First Transit Driver) (Tab 18)

Mike Rains presented the requestfor authority to settle Calvert v. Johnson (Capital Metro, First Transitdriver) under Tab 18 in the amount of $1,425,000 resulting in a complete dismissal of all plaintiff’s claims with prejudice.

MOTION by Don Henderson, seconded by Kevin Caddell, to recommend to the Board the authority to settle Calvert v. Johnson(Capital Metro, First Transit Driver) claimin the amount of $1,425,000 as set forth under Tab 18. Motion carried with unanimous approval.

Workers’ Compensation Claims Report, including (1) new claims that have reserves exceeding $150,000, (2) fatality claims, (3) presumption claims, (4) catastrophic losses, (5) update on the Workers’ Compensation Alliance and (6) report regarding proposed commutation of Workers’ Compensation Excess Coverage Contracts with Transamerica (Tab 19)

Mike Bratcher presented the workers’ compensation claims report under Tab 19.

Underwriting Reporton underwriting results and loss ratios, including the Quarterly Report by Victor O. Schinnerer & Company, Inc. regarding revenues received and contract activities (Tab 20)

Matt Jordan reported underwriting results and loss ratios, including updates on the workers’ compensation payroll audits and the Coastal Storm Fund. A report from Victor O. Schinnerer & Company, Inc. regarding revenues received and contract activities was noted under Tab 20.

Loss Prevention Report on member surveys, training, and property valuations conducted (Tab 21)

Les Horne presented the Loss Prevention report under Tab 21.

Field Services Report on Pool membership growth (Tab 21)

Scott Epperson presented the Field Services report under Tab 22.

Mr. Gilley adjourned the Underwriting and Claims Committee meeting at 4:55 p.m.

Approved by the Underwriting & Claims Committee

______, 2012

______

Carol A. Loughlin, Deputy Director

1

[1] All references to “Tabs” in these minutes are references to the Tabs in the Board of Trustees Agenda packet for the January 20-21, 2012, meeting.