DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Update Policy 2200 Liability Loss Reserve Policy And Amended Delegation Of Claims Approval Authority
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PURPOSE/ACTION REQUESTED
Authorize updates to Policy 2200 Liability Loss Reserve Policy and Amend Delegation of Claims Approval Authority.
SUMMARY
It is the policy of Dakota County to establish and implement guidance for the administration of the Dakota County liability loss reserve fund. The Dakota County liability loss reserve fund is established to provide funding for deductible expenses on certain lines of insurance coverages, to self-insure certain areas of liability where losses are predictable or non-insurable, and to pay for certain claims, for cause, financial savings, or other acceptable reasons.
The Dakota County liability loss reserve fund is managed by the Office of Risk Management in partnership with Finance. Reserve balances are managed with the assistance of an actuarial analysis completed every three years which provides confidence models for funding based on prior years claims paid, pending claim reserves, and incurred but not yet reported claim projections.
To ensure financial prudence and regulatory compliance, staff routinely conduct a review of our liability loss reserve policy. After careful analysis and consultation, staff propose changes to the delegation of claim authority levels which will enhance our ability to manage future liabilities more efficiently.
The proposed changes allow for greater efficiencies in exposure control and claim management. Amended delegation of claims approval authority recommendations are as follows:
* Claims not exceeding ten thousand dollars ($10,000) are jointly authorized by both the Risk Manager and the County Attorney's Office Civil Director.
* Claims greater than ten thousand dollars ($10,000) and not exceeding one hundred thousand dollars ($100,000) are jointly authorized by both the County Manager a...
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