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Home My WebLink AboutDocumentation_Regular_Tab 16I2_4/13/2000 Memo This document contains time-sensitive information. Please read immediately and respond as specified. (� To Village Council From Kim Bodiniao, Personnel Specialist Date/Time April 6, 2000 Subject Consideration of Contracting with Insurance Servicing & Adjusting Company (ISAC) for Providing Workers' yC.) Compensation Claims Services on GRIT Claims On March 17, 2000, Governmental Risk Insurance Trust (GRIT), the Village's former workers' compensation insurance carrier filed Chapter I I Bankruptcy (see attached). Consequently, all claims adjusting and defense activities have ceased on GRIT claims. The Village of Tequesta has two (2) open claims with GRIT which are affected by the bankruptcy filing,as follows: Claimant Claim No. Date of Accident Michael Morrill 930024807 1 1/03/93 Raymond Small 950002921 07/28/95 Per the attached correspondence from Insurance Servicing & Adjusting Company (ISAC) of Altamonte Springs, Florida, !SAC will provide all aspects of claims handling to conclusion on these two (2) open claims for a flat fee of $100.00 per claim, per month. These services include but are not limited to litigation management, medical .011r Ec.:; bill review, evaluation/exposure reports, loss runs and vouchers for each open claim. In light of the GRIT Chapter II Bankruptcy, it is recommended that the Village Council approve contracting with ISAC to provide claims ;•: ,�. services to the Village of Tequesta on the above referenced two (2) ;s ' open GRIT claims. Thank you for your consideration. /krb Attachments wordpro\insurace\isac 250 Tequesta Drive Suite 300 Tequesta,Florida 33469 561-575-6209 561-575-6203 Fax .,.._._._._._._____ , . Insurer's bankruptcycould affect Former ' GRIT local clients injured local workers These are the 18 local governments and a encies that government g once bought their workers compensation insurance through the The Government Risk Insurance former employee hurt on the job about five Sarasota-based Government Risk Insurance Trust. Trust at one time provided years ago. The bankruptcy filing is creating problems Highland Beach workers compensation for 18 for other injured workers, as well, es ciall Indian Trail Improvement District local governments and agencies. those who ight be too hurt to work and face Jupiter hefty medical bills, said Joseph Vassallo of the Jupiter Island By David Sedore Palm Springs firm of Vassallo &Bilotta.Vassal- Lake Worth Drainage District Palm Beach Post Staff Writer to represents the Palm Beach Gardens worker Loxahatchee Groves Water Control District The bankruptcy filing of a Sarasota-based and two others — one who was employed by Mangonia Park self-insurance pool is leaving some Palm Beach the Indian Trail Improvement District, the oth- Palm Beach County Health Care District County and Treasure Coast governments and er by Palm Tran, Palm Beach County's public Palm Beach Gardens their injured workers falling into a financial transit system. Palm Springs . hole with no safety net. GRIT,as it's known,filed for reorganization Palm Tran "A mess.That's a good descriptive word for under federal bankruptcy law in Tampa on Port of Palm Beach • it," said Andrew Piniero, a lawyer with Watter- March 17. Federal bankruptcy Judge C. Timo- St. Lucie County Fire Control District son Hyland and Klett, which represents Palm thy Corcoran III ordered the pool to stop pay- Seacoast Utility Authority Beach Gardens. ing claims, leaving injured workers in limbo. Solid Waste Authority of Palm Beach County The city is one of 18 local governments that About 660 injured employees statewide are be- South Central Regional Wastewater Treatment and Dispos- once bought workers compensation coverage lieved to have open claims against the fund, al Board through the Government Risk Insurance Trust. said Department of Insurance spokesman Don South County Mental Health Center It could be liable to pay a $180,000 settlement Tequesta for medical treatment and lost wages of a Please see INSURANCE,5B TUESDAY, APRIL 4, 2000 ' . Some insurance pool funds bound by few regulations lations INSURANCE cy judge lifts his order halting From 4B payment of benefits. Palm Tran is paying claims Wide. through the county's self- Though none of GRITs one insurance fund. "We're taking time local members had cover- steps to see they don't suffer age with the pool at the time of economic loss or lack of medical the bankruptcy filing, they still care," said Carol Zoeller, the could be liable for any workers county's director of risk manage- compensation claims their em- ment ployees made with the pool. ■ david sedore@pbpost corn The insurance department hits little regulatory authority _ over these types of pools. To pake things worse, there is no guaranty association, or back-up }d, to cover the claims when t ey go insolvent. Legally, the -paols are required to have rein- surance to bolster their ability to pay claims, but GRIT didn't buy the coverage until July 1998. The state was not aware of any problem with GRIT until the trust filed its annual financial statement in June, showing a 1$6.2 million deficit,Pride said. GRIT settled the claim with !the injured Palm Beach Gardens i worker for $180,000 just before the bankruptcy filing. But while GRIT signed off on the deal, the city had not. "We're in a situation where this was left on our lap," Piniero said. Palm Beach Gardens is de- termining what its responsibili- ties are vs. GRIT's, but Vassallo .said the city should pay now and figure that later. Some workers are better po- i .sitioned than others to get their claims paid. • The reinsurance GRIT bought in 1998 should ensure k that workers hurt after that date [get paid,assuming the bankrupt- rPrir EDWARDS, COHEN, JACOBS & HARAMIS, .MAR , ATTORNEYS&COUNSELORS AT LAW I '` POST OFFICE BOX 1538 ar rrrr�r JACKSONVILLE,FLORIDA 32201 TELEPHONE(800)226-4399 March 17,2000 Re: Chapter 11 Filing of Governmental Risk Insurance Trust Dear Member: This firm has been retained by Governmental Risk Insurance Trust("GRIT')to advise and represent GRIT with regard to potential and actual bankruptcy proceedings. As you are aware, on July 1, 1999, GRIT reported an approximate Six Million Two Hundred Thousand Dollar ($6,200,000.00) members' deficit as of year-end 1998, based upon its audited financial statements and actuarial estimates for that period. Since that time,GRIT has cooperated with the Florida Department of Insurance ("the"Department")and provided continuous updates on its financial status and efforts to fund the member's deficit. The Department has closely monitored GRITs efforts to resolve its financial difficulties. Despite its efforts to fund Workers' Compensation claims against GRITs members,as well as its other • liabilities, GRITs financial situation has continued to deteriorate. GRIT has carefully considered the options available to it and has determined that,despite its attempts to cure the deficit,GRIT is unable to continue to fund its liabilities indefinitely without the protections inherent in a Chapter 11 Bankruptcy proceeding. The Board of the Fund voted unanimously to advise the Department of the situation and requested the Department to determine under the circumstances if a Florida Statute Chapter 631 proceeding was appropriate as opposed to a bankruptcy proceeding. The Department replied,declining a Chapter 631 proceeding and expressly informing that it would not oppose a filing by GRIT in the Bankruptcy Court. Consequently,on March 17,2000, at GRIT's direction,we filed a voluntary petition under Chapter 11 of the Bankruptcy Code, in the United States Bankruptcy Court for the Middle District of Florida,Tampa Division. More information will be forthcoming from both this firm and the United States Bankruptcy Court as to the progress and procedure of GRIT, its members,and creditors under the relevant bankruptcy code and rules. We appreciate your cooperation in this matter and look forward to providing GRIT, its members and creditors with a resolution for its financial situation. Very truly yours, Jason B. Burnett JBB/dr r 04/05i00 10:24 ISAC 4 15615756203 NO.209 P002 i . j �,• ,ce...f�dj ,,.,,:',:r S �,; r` 'r,�y., .[nurane Servicing & Adjusting Company 1. O I Box l6EA 5 'Altamonte Springs, 1132716 600ti \` %A' 'ca.j� ; rfioi>w:40-032-1900•WArS:N00-237-66 i 7•FAX:401.682-6850 i,,''t�ef raae%Xg °veto 4 ,faar..J 41... 14,i 7e 1 I A April 5, 2000 Ms. Kim Bodinizzo Vill.ige of Tt qucsta Post Office Box 32731 I . • Tequesta, Flarida 3344G9; �1 Re. GRIT i Dear kiln: i' This will coirfirm our Ooraversation today regarding the open GRIT files. It is understood • that the Villige of Tequesta has approximately 2 open claims that are currently with GRIT. ISAc is willir ,to handle these claims to conclusion for a fee of$100.00 per open claim, per month. The monthly fee includes all aspects of claims handling including hut not limited to: litigation management, medical bill review, evaluation/exposure reports, it loss runs and vouchers %Ii ' As you are aware,IS/NC has been performing professional claim services in Florida for over Forty-four years. We currently provide workers' compensation claim services to over one hundred muniscipalities in the state of Florida- We are dedicated to providing the best.quality i laims;a istration program to our clients and their employees. Please be at vised that IISAC receives no other monetary compensation, rebates, corninissions and /or other incentives from the use, recommendation, assignment or provision of any outside service including but not limited to; managed care, surveillance, transports 'e• rehabilitation, expert witnesses and mediators- 4 '!I• , Si lees I, ., 'i �: p in Cothilon i !i i l ii, • • "41 i • r :( Multiline lridependeal4ljr}sters•Risk Manager::•Third Party Administrators•Health Management Services