Provided to AGRIP 10-08-03 by Paul Miola of AJ Gallagher. Format modified to conserve file space.

ATLANTIC COUNTY MUNICIPAL JOINT INSURANCE FUND

(ACMJIF)

EXPRESSIONS OF INTEREST

(EOI)

Fund Attorney

Notice:

All questions relative to this EOI should be directed to:

Paul J. Miola, CPCU, ARM, Executive Director

Atlantic County Municipal Joint Insurance Fund

Phone: (609) 561-2600 X301

Fax: (609) 567-3576

E-mail:

The intent of this document is to solicit Expressions of Interest from qualified firms interested in providing administrative legal services to the ACMJIF. This document is intended to be construed in general terms. The information included herein is descriptive but is not intended nor shall it be construed as being all encompassing. The ACMJIF retains the right to modify the performance standards required of all Fund Professionals through appropriate process and in accordance with the needs or desires of the Fund as may be solely determined by the Executive Committee. Receipt of this document by a potential service provider shall not be construed as an offer of a contract or anything beyond a simple invitation to provide a written proposal for providing the services outlined herein.

EXPRESSIONS OF INTEREST

The Atlantic County Municipal Joint Insurance Fund (ACMJIF) is seeking professional service proposals from qualified firms to provide legal advice to the Fund Executive Committee/Commissioners and to the Fund Administrator as pertains to the documents, policies, procedures, contracts, and operation of the Fund.

I.General Background

The Atlantic County Municipal Joint Insurance Fund (hereafter referred to as ACMJIF) membership is derived from Atlantic, Cape May, Camden, Gloucester, and Cumberland Counties.

The ACMJIF commenced operations on January 1, 1987 with a membership of seven (7) municipalities. The Fund was formed as a self-insurance pool and operates under the authority of N.J.S.A. 40A: 10-6 et seq. and related regulatory authority of the New Jersey Department of Banking and Insurance, N.J.A.C. 11:15-2.1 et seq. The Fund has grown to forty-one (41) members today. The Joint Insurance Fund is subject to and must operate in compliance with the provisions of the “Local Fiscal Affairs Law” (N.J.S.A. 40A: 5-1 et seq.), the “Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.), regulations including but not limited to (N.J.S.A. 5:34) and the Open Public Meetings Act (N.J.S.A. 10:4-12).

The ACMJIF was formed as a long-term vehicle through which member municipalities seek to stabilize their insurance related expenditures through "pooling" and the application of various risk management techniques. These techniques include pooled retention of the working layer of claims, enhanced safety and loss prevention, and group purchase of necessary administrative services including claims administration and legal defense counsel.

Coverage afforded through the ACMJIF includes Property, General Liability (including Police Liability), Automobile Liability, and Workers Compensation. The ACMJIF retains the first $150,000 per General, Automobile and Workers’ Compensation claim and $50,000 per Property claim. The ACMJIF pools its resources with other New Jersey Joint Insurance Funds through an excess pool known as the Municipal Excess Liability Joint Insurance Fund (MEL) that provides coverage beyond the ACMJIF retention. The MEL also provides first dollar coverage for Public Official’s and Employment Practices Liability.

Of primary importance to the ACMJIF is a quality claims management program with particular emphasis on cost containment, litigation management and prevention. The Fund contracts with a full-time Executive Director/Administrator (Cashan & Company a Division of Arthur J. Gallagher & Company) to provide oversight on the administration of the program. The Executive Director directs the implementation of a variety of safety and claims management programs through other professionals contracted to the Fund and relies upon the Fund Attorney to steward the Fund’s Litigation Management Program.

II.Third Party Administrator

The Fund engages a claims service company to handle all claims. The performance of the claims adjusters is monitored by a Claims Review Committee, the Executive Director’s office, the Fund Attorney, the MEL (excess pool) attorney’s office, as well as the claims department of the MEL’s two major reinsurers (i.e. Munich-American Re for liability and Gen Re for workers’ compensation). The Fund periodically audits the claims service company through an independent claims audit and, every three years, the MEL’s internal auditors also conduct an audit.

In addition the Fund has adopted the following policies and/or procedures:

a.)Each member local unit appoints a Claims Coordinator and is provided with a claims reporting procedure and appropriate forms along with training in the reporting of claims.

b.)Each member local unit has adopted a Tort Notice Claims Procedure and accompanying forms by resolution.

c.)To provide for quality defense and control costs, the Fund has established a Litigation Management Program and uses an approved defense attorney panel with firms that specialize in Title 59 (NJ Tort Claims Act) matters. The performance of the defense attorneys is overseen by the Fund Attorney, as well as the various firms that audit the claims adjusters. A copy of the ACMJIF Litigation Management Program is enclosed.

The third party claims administrator for the ACMJIF is:

Scibal Associates

PO Box 500

Somers Point, NJ 08244

Over the past five years, Scibal has processed an average annual claims count of:

322 – General Liability (Including Police Professional)

122 – Automobile Liability

190 – Property

816 – Workers’ Compensation

They presently carry an open claim caseload of approximately:

274 – General Liability

46 – Automobile Liability

69 – Property

354 – Workers’ Compensation

Approximately 120 General and Automobile Liability cases are in litigation at any given time and require specialized monitoring as outlined in the Litigation Management Guidelines.

III.Fund Attorney

The Role of the Fund Attorney isto provide legal counsel to the Fund through:

  1. Research on topical issues
  2. Rendering legal opinions on Fund matters
  3. Review of litigation against Fund members and assignment to appropriate counsel
  4. Monitoring and management of the defense panel and litigation process

The Fund Attorney shall:

  1. Be admitted to the New Jersey Bar but shall not be a Fund Commissioner.
  2. Advise the Fund on legal matters and the appropriateness of claim settlements recommended by the Claims Administrator;
  3. Advise the Executive Committee on the selection of counsel to represent the Fund in the defense of claims. However, neither the Attorney nor any member of the Attorney’s law firm shall defend any claim which is the responsibility of the Fund unless directed to do so by the Executive Committee;
  4. Steward the Fund’s Litigation Management Program as adopted by the Fund’s Executive Committee.

IV.Minimum Services

Services requested include, but are not limited to, the following:

  1. Provide legal advice to the Fund Executive Committee/Commissioners and to the Fund Administrator as pertains to the documents, policies, procedures, contracts and operation of the FUND.
  2. Attend monthly meetings of the FUND Executive Committee, the Claims Review Committee, and special meetings as requested.
  3. Provide legal counsel, opinions, and reports to the FUND on such matters and at such times as the FUND may direct.
  4. Issue periodic legal bulletins/briefs on pertinent issues.
  5. Assist the Fund Administrator and the Claims Administrator in the analysis of claims to prevent future similar occurrences with periodic reports to the Fund Executive Committee/Commissioners with such recommendations as may, in the opinion of the FUND ATTORNEY, assist in the reduction of claims.
  6. Recommend to the FUND the names of attorneys/law firms to provide defense services pertaining to claims against the FUND or the member municipalities where the FUND is obligated to provide a defense and to supervise the work of said defense attorneys. The FUND ATTORNEY is prohibited from providing defense services on behalf of a member of the FUND.
  7. Coordinate the handling of litigated claims with the Claims Administrator and with attorneys approved by the FUND in accordance with the FUND’s Litigation Management Programs.
  8. Initiate effective corrective action when Litigation Management Guidelines are not being followed.
  9. Provide written appraisal of defense firms to Fund Administrator and Executive Committee prior to November 30 of each year.
  10. Provide Fund Administrator and Executive Committee periodic written reports/summaries on status of open claims meeting a predetermined threshold (dollar, age, etc.)
  11. Coordinate the defense attorney meeting between the defense panel and FUND members on an annual basis.
  12. Coordinate with the Superior Court of New Jersey in scheduling “Settlement Days” and appearing on behalf of the FUND to present litigated files to the Court for possible settlement.
  13. Counsel Fund Administrator and Executive Committee regarding alternative courses of action and make recommendations regarding the disposition of claims (e.g. alternative dispute resolution, etc.)
  14. The ATTORNEY acknowledges the legal requirement pertaining to examination of the FUND records by the Commissioner of the Department of Banking and Insurance and agrees to assist in any examination of the FUND by the Department.
  15. Perform such other duties as required by the FUND’s Bylaws, Risk Management Plan, N.J.S.A. 40A:10-36 or the regulations under N.J.A.C. 11:15-2 or as directed by the Executive Committee.
  16. Unless the Fund Commissioners otherwise permit, the ATTORNEY shall handle to their conclusion all claims and other obligations incurred during the terms of the contract.

In addition, the Fund Attorney shall be expected to subrogate claims requiring litigation against third parties, especially cases involving Motor Vehicle Law (Title 39).

The above listing represents some of the general duties of the Fund Attorney. Your Expression of Interest must demonstrate your understanding of the role by expanding on the above duties and describing other services that you will provide.

The ultimate effectiveness of the Fund Attorney will be measured through:

  1. The timeliness of response to inquiries.
  2. Reports on pending litigation and the results of completed litigation.
  3. Identification of exceptions to standard litigation management procedures in the defense of claims.

V.Proposals

Written proposals are being requested from firms qualified to perform all required services. Proposals should outline what the firm will do for the ACMJIF in all areas of service requested. All proposals should include, at a minimum, the following:

Knowledge of Statutes:

Describe your knowledge and experience with applicable statutes particularly:

  • Title 34
/
  • Title 40A

  • Title 39
/
  • Title 59

Experience:

Demonstrate familiarity with and knowledge with:

  • Public meetings
  • State and Federal Court proceedings
  • Defense and settlement of liability claims against public entities especially police professional liability

Qualifications:

Describe experience with similar engagements by the individual who will actually be serving the Fund. Include a resume of the individual indicating active membership in any professional organizations. Include a listing of clients with their contact names, addresses, and telephone numbers.

Contract Duration:

The Fund Attorney shall be considered an appointed official and shall serve until January 1 of the following year, or until a successor is duly appointed, however, the Fund shall have to right to cancel the contract with 30 days written notice.

Fees:

Fee arrangements shall be negotiated with the successful proposer. Appointed officials shall be compensated for their services pursuant to written fee guidelines submitted annually and approved by a majority of the Executive Committee. The written fee schedule shall be part of the official’s contract.

Insurance:

All proposals are required to provide evidence of errors and omissions insurance coverage with limits of $1,000,000 (N.J.A.C. 11:15-2.6(c)5).

Nine copies of your proposal must be submitted no later than 12:00 noon October 15, 2003 to the attention of:

Paul J. Miola, CPCU, ARM, Executive Director

Atlantic County Municipal Joint Insurance Fund

PO Box 12

Hammonton, NJ 08037

PRE-PACKAGED MARKETING MATERIALS SHALL NOT BE ACCEPTED IN LIEU OF A PROPOSAL ADDRESSING THE PARAMETERS OF THIS REQUEST

VI.Selection Process

The right is reserved to reject any or all proposals, to waive technicalities and to award a contract to the firm offering the most favorable terms in the opinion of the Atlantic County Municipal Joint Insurance Fund. This contract is for Professional Services and the contract will not necessarily be awarded to the firm with the lowest fee. All proposals will be evaluated on their total content and not on any one factor. Some of the items to be considered are:

  • References
  • Ability to perform
  • Qualifications and experience

At its sole discretion, the Fund may choose to interview some or all candidates by a Committee consisting of Fund Commissioners who will report their findings to the general membership in November. You should clearly set forth your credentials and describe your experience that qualifies you for this position.

VII.CONFLICT OF INTEREST

No official or employee of a participating local unit or any members of the family of such officials or employees, or any businesses in which such officials, employees or family members have a beneficial interest shall seek to obtain or participate in any contract to be entered into by the Fund for administration, loss control, investment, or depository services, insurance coverage or any other service, commodity, or material without first fully disclosing in writing the nature and extent of such interest, financial or otherwise, to the Executive Committee. It shall be the responsibility of the Executive Committee to determine if the interest so disclosed is such as to constitute an actual or potential conflict of such degree as to impair the ability of the officer, employee, family member, or business from fully and impartially performing the duties required by the Fund. If so, the officer, employee, family member, or business shall be prohibited from entering into such contract until the cause of such conflict is removed. All officials or employees of a participating local unit or any member of the family of such officials or employees shall comply with the “Local Government Ethics Law” pursuant to N.J.S.A. 40A:9-22.1 et seq. (N.J.A.C. 11:15-2.27).

Any contract entered into between the Fund and any individual, firm, corporation, or agency which fails to disclose an actual or potential conflict situation shall be void.

There shall be no collusion or evidence or appearance of collusion, between any official or employee of the members or employees of the Fund and any official or employee of any contractor, vendor, insurance company, bank, consultant, brokerage firm, or any other profit-making or non-profit firm attempting to solicit a contract with the Fund or awarded a contract by the Fund.

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