Washington Counties Risk Pool
From WCRP Executive Director Vyrle Hill
he presentation of this 2009 Annual Report of the
Joint Self-Insurance Liability Program: The Pool
has been providing its membership with occurrence-
based, joint self-insured coverage for 3rd-party
liabilities since October 1, 1988. Coverage limits have
grown over time, from the $1 million limit that existed
during the initial two months, to $5 million, then $10
million and on to $15 million before reaching the $20
million limit that has existed the past six years. (Note:
$5 million additional limits were available several
years as individual county options.)
TWashington Counties Risk Pool (“the Pool” or
“WCRP”) represents the formal conclusion of the
Pool’s 21st operating year; that is, except for resolving
some lingering cases. It has been my distinct
pleasure to have been a part of this fine service
organization throughout those years.
The Pool was created when a Steering Committee
formed by the Washington State Association of
Counties adopted a resolution and approved a motion
during a meeting held August 18, 1988. 15
Washington counties were recognized as the Pool’s
initial voting members. Membership grew to 19
counties during the first year of operation, and
continued to grow – reaching the present 28 member
counties mark six years ago. We’re hopeful that
recent marketing efforts will result in even more of
Washington State’s 39 counties becoming members of
the Washington Counties Risk Pool over the course of
the next few years.
With the 966 cases submitted in Py2009, a total of
16,471 third-party liability claims and lawsuits have
been reported to and handled by the Pool during its
first 21 years in operation (October 1988 through
September 2009). 492 remained “open” at the end of
Py2009, but independent actuarial estimates suggest
that another 533 claims will ultimately be filed for
occurrences from all Pool years through September
30, 2009. Nearly $168 million has been paid-to-date
by the Pool addressing these cases, and another $35
million is reserved to address the open cases. That
includes nearly $79 million in reimbursements for
member deductibles, insurance recoveries of more
than $70 million, and nearly $55 million in “pooled”
funds for the Pool’s share of the cases.
The Pool’s success in part has resulted from the
combined efforts of the professionals – actuaries,
auditors, brokers and insurers – the Pool’s board of
directors has employed, and to its professional and
highly dedicated staff. Still, the contributions and
involvement of the member counties’ elected and
appointed officials and their employees serving as
directors and alternate directors, officers and
Washington Counties Property Program:
26 member counties participated in the property
program during Py2009 with covered properties
totaling $2.45 billion. Since October 2005 when the
Pool began offering this optional, jointly-purchased
property insurance coverage, participation has more
than doubled and the total value of covered properties
has grown by two-thirds. And with the inclusion of the
Historic Properties Valuation Amendment in Py2008,
reproduction coverage is now available to cover
participating members’ historic properties.
committeepersons has been the key to the Pool’s
success, and it is this attribute that sets the
Washington Counties Risk Pool apart from most of the
other municipal pools. We would like to recognize and
extend our special thanks to the longer-tenured board
members still serving EOPy2009, along with their
counties () of appointment. With at least…
20 Years: Marge Upham (Clallam), Rose Elway
(Grays Harbor), Marilyn Butler (Skamania), and
Steve Lowe (Franklin/Benton);
Financial Position: The following are some
highlights from Fiscal (and Policy) Years 2009, along
with some 5-year comparables:
15 Years: Jay Winter (Walla Walla/WCRP/Lewis),
Betty Kemp (Island), and Melina Wenner (Benton);
Operating Income of $1.15 million was experienced, a
40% improvement from the prior year. Another
2.75% reduction in the estimates for claims
reserves ($7.09 vs. $7.29 million) by the
independent actuary contributed to the
improvement. During the 5-year window, claims
reserves were reduced 38%, more than $4.25
million from Fy2004’s $11.35 million in total claims
reserves.
10 Years: Claire Hauge (Cowlitz), Randy Watts
(Whatcom), Dean Burton (Garfield), Clyde
Carpenter (Cowlitz), and Tammy Devlin (Thurston/
Lewis); and
5 Years: Linda Reimer (Adams), Harry Green (Lewis),
Mark Abernathy (Kitsap), Keith Goehner and
Cathy Mulhall (Chelan), Steve Clem and Thad
Duvall (Douglas), Bryan Harrison (Pacific), Billie
Kadrmas (Skagit) and Rob Binger (Spokane).
Interest Income slipped 65% to just $0.22 million due
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