3.5. SR 09-23-2002TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and City Council
Lori Johnson, Finance Director
September 23, 2002
Worker's Compensation Insurance Renewal
**Item 3.5. **
Attached is the proposed renewal from the League of Minnesota Cities Insurance Trust for
the city's worker's compensation insurance for the period of October 1, 2002 through
September 30, 2003. The quote is based on an experience modification factor of .79, a slight
improvement over last year's experience modification factor of .81. This is a very good
experience modification factor which reflects well on us, the safety program, and everyone's
commitment to employee safety.
As in the past, the city will continue to elect the manage care option and as a result, will
receive a $16,262 premium discount. Last year the Council approved increasing the deductible
from $5,000 to $10,000. This deductible yields an additional credit of $24,403. Overall, most
of the rates increased between 5 - 10%. Those rate increases, along with increased payroll
estimates, have caused the total premium to increase approximately 15%.
Action Requested
The City Council is asked to approve the worker's compensation insurance renewal with the
League of Minnesota Cities Insurance Trust effective October 1, 2002 through September 30,
2003, with a 3% managed care credit and a $10,000 deductible.
League of Minnesota Cities Insurance Trust
Group Self-Insured Workers~ Compensation Plan
145 University Avenue West
St. Paul, MN 55103-2044
(651)215-4173
The "City"
ELK RIVER, ELK RIVER UTILITIES ,HRA
PO BOX 490,13065 ORONO PARKWAY
ELK RIVER MN 55330
EDA
Agreement No.: 0200051317
Agreement Period From: 10/01/2002
To: 10/01/2003
REMUNERATION RATE
441100.
108020.
993950.
182350.
145640.
POP 20062.
1639360.
285320.
125470.
1528820.
62600.
199500.
406370.
660500.
30300.
87360.
4 40
2 41
3 30
3 06
4 01
39 21
3 01
I 49
3 27
42
3.68
1.93
2.61
1.08
.40
.40
CONTINUATION SCHEDULE FOR QUOTATION PAGE
CODE DESCRIPTION
5506
7520
7539
7580
7706
7708
7720
8017
8227
8810
9015
9016
9102
9410
9411
9411
STREET CONSTRUCTION
WATERWORKS
ELECTRIC & STEAM PLANT
SEWAGE DISPOSAL PLANT
FIREFIGHTERS(NOT VOLUNTEER)
FIREFIGHTERS (VOLUNTEER)
POLICE
OFF SALE LIQUOR STORE
CITY SHOP & YARD
CLERICAL OFFICE EMPLOYEES NOC
BUILDINGS-OPER BY OWNER
SKATING RINK OPERATION
PARKS
MUNICIPAL EMPLOYEES
ELECTED OR APPOINTED OFFICIALS
BOARDS AND COMMISSIONS
Manual Premium
EST. PREM
19408.
2603.
32800.
5580
5840
7866
49345
4251
4103
6421
2304
3850
10606
7133
121
349
162580.
Agent: 416021790
00575: FIRST NATIONAL INSURANCE AGCY
716 MAIN STREET STE 107
ELK RIVER MN 55330
9/10~2002 LM 4680(8/99)
League of Minnesota Cities Insurance Trust
Group Self-Insured Workers' Compensation Plan
145 University Avenue West St. Paul, MN 55103-2044 Phone (651)215-4173
Notice of Premium Options for Standard Premiums of $100,000-$150,000
ELK RIVER, ELK RIVER UTILITIES ,HRA
PO BOX 490,13065 ORONO PARKWAY
ELK RIVER MN 55330
EDA
Agreement No.: 0200051317
Agreement Period: From: 10/01/2002
To: 10/01/2003
Enclosed is a quotation for workers' compensation deposit premium.
ESTIMATED
PAYROLL DESCRIPTION CODE RATE PAYROLL
SEE ATTACHED SCHEDULE FOR DETAILS
DEPOSIT
PREMIUM
Manual Premium
Experience Modification .79
Standard Premium
Deductible Credit 0%
Premium Discount
Net Deposit Premium
162580.
128438.
12409.
116029.
MANAGED CARE CREDIT
Cities that enroll with a state-certified managed care organization(MCO) receive a 3 % premium credit on
their work comp coverage.
Standard Managed Care Net Deposit
P~mium Credit P~mium
128438. 3% 112176.
OPTIONS
Please indicate below the premium option you wish to select. You may choose only one option and
cannot change options during the agreement period.
NET DEPOSIT PREMIUM
1. Regular Premium Option 116029.
or, with 3% Managed Care Credit: 112176.
LM 4514(3/02)
Deductible Premium Option
Deductible options are available in return for a premium credit applied to your estimated standard
premium of $ 128438. The deductible will apply per occurrence to paid medical costs only.
There is no aggregate limit.
Deduct~le Premium Credit NET DEPOSIT PREMIUM
per Occurrence Credit Amount with MCO Cre~t without
$250 3.00% 3853. 108323. 112176.
$500 4.50~ 5780, 100390, 11024~,
$1,000 6.502 8348. 103828. 107681.
$2,500 10.50% 13486. 98690. 102543.
$5,000 14.00% 17981. 94195. 98048.
$10,000 19.00% 24403. 87773. 91626.
Retrospective Rates Premium Option
Re~o-Ra~d Est.Minimum Retro-Ra~d Est.Maximum
MiffimumFactor Premium Maximum Fac~r Premium
· 579% 72135. 1.300% 161961.
· 474% 59053. 1.500% 186878.
· 335% 41736. 2.000% 249170.
This quotation is for a deposit premium based on your estimate of payroll and selected options. Your final
actual premium will be computed after an audit of payroll subsequent to the close of your agreement year
and will be subject to revisions in rates, payrolls and experience modification. While you are a member of
the LMCIT workers~ Compensation Plan, you will be eligible to participate in divident distributions from
the Trust based upon claims experience and earnings of the Trust.
If you desire the coverage offered above, please return this signed document and your check for the net
deposit premium option you have selected (made payable to the LMCIT) to:
League of Minnesota Cities Insurance Trust
Workers' Compensation Department
P.O. Box 581517
Minneapolis, MN 55458-1517
This quotation should be signed by an authorized representative of the city requesting coverage.
Signature Title Date
LM 4513(3/02)