Annual Report 2013  
Silver Anniversary Edition  
www.wcrp.info  
On the front cover: Pacific County Courthouse, Cathy Russ Photography  
On the back cover: Franklin County Courthouse Dome  
Page 2  
Washington Counties Risk Pool  
Created by Counties for Counties  
Annual Report 2013  
CONTENTS  
Officers’ Messages . . . . . . . . . . . . . . . . . . . . . . . . .  
Executive Director’s Message . . . . . . . . . . . . . . . . .  
Membership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Organization Summary. . . . . . . . . . . . . . . . . . . . . .  
SAO/DES Financial Examinations. . . . . . . . . . . . . . .  
Operational Staff . . . . . . . . . . . . . . . . . . . . . . . . . .  
Liability Insurance Summary. . . . . . . . . . . . . . . . . .  
Property Insurance Summary. . . . . . . . . . . . . . . . .  
Claims Activities Summary. . . . . . . . . . . . . . . . . . .  
Member Services Activities Summary. . . . . . . . . . . .  
4
5
6
7
8-9  
10  
11  
12  
13  
14-15  
16-18  
Financial Summaries. . . . . . . . . . . . . . . . . . . . . . . . 19-22  
Claims Development . . . . . . . . . . . . . . . . . . . . . . .  
23  
Page 3  
From Mark Wilsdon, Py-2013 President  
It has been my honor and privilege this past year to serve as your President, especially given it was  
the Silver Anniversary for the WCRP. We had such a great team working to better the Pool; Tammy Devlin  
(Vice President), Steve Bartel (Secretary/Treasurer), and our Executive Committee, our Producer/Broker,  
Vyrle, Susan, and the rest of our WCRP staff – you were all great! We have accomplished so much, from the  
reduction in claims to the continuing improvement in our bottom line.  
Wow, what an interesting…well…challenging, uh okay, crazy year it’s been. To quote President Dwight  
D. Eisenhower, “Any man who wants to be President is either an egomaniac or crazy”. I know I’m not an  
egomaniac…..  
Our members are facing large uninsured losses from origins such as the “Innocence Project”. These  
are creating significant and complex issues for our member counties, and their respective legislative  
authorities and staffs alike. I believe these challenges will make us stronger, smarter and better poised to  
take these issues on as an organization. We are not crossing into areas this Pool has gone before, nor were  
these many different challenges contemplated when the Pool was formed. This actually makes for very  
interesting times, an opportunity to shine in adversity.  
As Tammy, Drew, and Keith, the 2014 officers, take over the WCRP reins; I wish them nothing but the  
best. May we be here to reminisce about these times 25 years from now when the WCRP celebrates its  
Golden Anniversary. I hope and pray that all of our future leaderships will continue to take us down the road  
to success. Through our members, we draw on our combined strength; and with this strength will endeavor  
to make 2014 a safe, secure, and profitable year for everyone.  
From Tammy Devlin, Py-2013 Vice-President and PY-2014 President  
It has truly been an honor to serve as the Vice President of the Washington Counties Risk Pool. The  
continued strength of this organization rests solely on the commitment of its membership. Think of it;  
through your efforts, past and recent, we just celebrated the 25th anniversary of this organization’s existence  
with a virtually flat (zero inflation) renewal from an insurance market that is increasing in complexity. The  
Risk Pool is reporting retained funding levels that will withstand at least a 1-in-50 loss year based upon a  
retention of $0.5M.  
Our membership remains strong with 27 member counties, but we must be mindful that we have  
many new directors and alternates that likely need our collective support to ensure this organization remains  
strong and withstands the next 25 years of tort claims and insuring challenges in Washington State. Whether  
you are a County Commissioner/Council Member, Risk Manager, Prosecuting Attorney or an appointee that  
has the pleasure of wearing many hats for your organization, we welcome and value your expertise.  
I am looking forward to the upcoming year as your President and hope that I can follow in the  
footsteps of our past presidents. There are many new challenges in store for the coming year, and I look  
forward to the challenge and working with all of you.  
From Steve Bartel, Py-2013 Secretary/Treasurer  
Thanks again for allowing me to serve as Secretary-Treasurer for Py2013, and for the opportunity to  
complete the “officer trifecta” – holding all three officer positions in consecutive policy years. The recently  
formed Investment Committee, which is chaired by the Secretary/Treasurer, made a significant impact upon  
the Pool’s investment returns and its financial standing in Py2013. The Committee, vested with the  
responsibility to seek the best investment strategies of Pool funds to increase investment returns while  
protecting our assets in our ever challenging financial environment, made major accomplishments during  
Py2013 including, but not limited to:  
Revised the Pool’s Financial Policy, adding an Investment Committee, and formatting the Investment  
Committee’s make-up, duties and responsibilities.  
Conducted the research to gain valuable financial investment information necessary to forward  
reasonable and safe investment recommendations for the membership.  
Increase investment returns over previous LGIP returns by nearly 250%, and creating revenues of nearly  
$150,000 for the Pool membership’s equity.  
Page 4  
Washington Counties Risk Pool  
From WCRP Executive Director Vyrle Hill  
To the Board of Directors and the Member Counties of the Washington Counties Risk Pool, and to  
the citizens of the state of Washington served by those Member Counties:  
The presentation of this year’s Annual Report of the Washington Counties Risk Pool (“Pool” or “WCRP”)  
represents a real milestone – the culmination of WCRP’s Silver Anniversary. Except for resolving the  
outstanding claims and lawsuits, 2012-13 (“Py2013”) is now history. For me, the Pool’s 25-year journey has included many  
learning experiences and some pleasant rewards to counter a fair number of obstacles that were encountered.  
Membership: Fifteen of Washington’s thirty nine counties were recognized as initial voting members when the WCRP was  
established in August 1988. Membership grew to nineteen during its first operating year, and then continued over the years  
with another eleven (county) additions, four departures, and one member returning. Membership has remained at 27  
counties since September 2010.  
Joint Self-Insurance Liability Program: The Pool has provided its member counties with occurrence-based, jointly self-  
insured and/or jointly purchased 3rd-party liability coverage since October 1, 1988. Coverage limits have grown from $1M  
(during the Pool’s initial two months) to $5M, then to $10M and onto $15M before reaching the $20M occurrence limit that  
has existed since Py2004. NOTE: Optional additional occurrence limits of $5M have been available for individual members  
since Py2006.  
616 third-party liability claims (and lawsuits) were reported to the Pool by its member counties and added to the Pool’s  
administrative database during Py2013. This represented a 3% reduction in year-over-year filings and a continuation of the  
decline in annual filings in recent years. The new filings raised the to-date total (Oct 1988 – Sep 2013) to 19,232. Total  
incurred losses (payments made plus reserve estimates for open claims) increased $8.1 million during Py2013 to $250.9  
million. The annual amount is 50% more than the corresponding Py2012 amount of $5.4M, but it represents just 51% of  
the Py2011 increase of $16.0M, 46% of the $17.8M in Py2010, and only 39% of the $20.8M annual average for Py2007  
through Py2009. Only 327 claims remained classified as ‘open’ at year-end.  
The independent actuary’s projection of total reserves for claims that are expected to be the Pool’s responsibility decreased  
slightly (-1%) from Py2012 to $14.6 million. This amount includes $3.4 million (-21% from Py2012) for losses within the  
Pool’s self-insured retention, $10.0 million (+7%) for losses subject to the “corridor” programs with the Pool’s reinsurers,  
$0.2 million for losses within the (10%) Py2013 quota-shared upper reinsured layer, and $1.0 million (+3%) for estimated  
unallocated loss adjustment expenses.  
Washington Counties Property Program: Beginning with Py2006 (October 1, 2005), WCRP added property insurance  
as a county-by-county option that is jointly-purchased from a consortium of higher rated commercial insurance carriers.  
Since that initial offering, both participation and the total values of covered properties have nearly doubled. Twenty six  
WCRP counties with covered properties totaling over $2.7 billion participated in the optional insuring program during Py2013.  
There were 15 claims filed by participating counties during Py2013 with loss estimates totaling $2.6 million and losses paid  
by fiscal year-end of $1.5 million. During its initial eight years as a WCRP optional insuring program, there have been 103  
WCPP claims filed with to-date incurred losses totaling $15.5 million and losses paid through fiscal 2013 of $8.9 million.  
Considering the fact that to-date WCPP premiums have totaled $22.2 million, the WCPP’s cumulative loss ratio is below 0.7.  
Financial: During fiscal 2013, Pool assets grew 11% (+$4.8 million) and liabilities by 3% (+$1.0 million). Its net (financial)  
position, which is commonly referred to as “net assets” and sometimes as “owners’ equity”, improved 30% (+$3.9 million)  
during the Pool’s Silver Anniversary year to $16.7 million as of September 30, 2013. Much of the net position is  
‘restricted’ ($12.5 million) to address the Board of Directors’ recently revised requirements in section D of its Underwriting  
Policy. NOTE: This policy revision resulted in the Pool’s own restriction increasing $7.5 million (+187%) and the unrestricted  
declining $3.8 million (-53%). The (State Risk Manager’s) solvency provisions in WAC 200.100.03001(3) required $0.9  
million for satisfaction, a year-over-year increase of $0.1 million (+15%). Another $0.9 million is invested in capital assets  
(net of debt). The remaining $3.3 million is unrestricted.  
$3.75 million in operating income was experienced during Py2013, an increase of 111% from Py2012. Operating revenues  
were ‘flat’, but expenses declined nearly $2.0 million (-15%). This reduction was in part due to even more favorable  
Continued on page 18  
Page 5  
Washington Counties Risk Pool  
Executive Committee Py2013  
(Term Ending 9/30/XXXX)  
2013  
Photo Not  
Available  
2014  
2015  
MEMBERSHIP Py2013  
Adams  
Benton *  
Chelan  
Clallam *  
Clark  
Columbia  
Cowlitz *  
Douglas  
Franklin *  
Garfield *  
Lewis *  
Mason *  
Okanogan  
Pacific *  
Pend Oreille  
San Juan  
Skagit  
Skamania *  
Spokane *  
Thurston *  
WCRP  
Members  
State  
% of State  
Grays Harbor * Walla Walla  
Island  
Jefferson *  
Kittitas  
Whatcom *  
Yakima  
Population  
2,855,055  
45,649  
6,882,400  
66,544  
39,232  
3,270  
N/A  
42%  
69%  
60%  
65%  
N/A  
Area (Sq. Miles)  
County Road Mileage  
# Bridges  
23,430  
* Founding Member  
2,111  
# Vehicles  
7,301  
# Worker Hours  
25,727,661  
N/A  
N/A  
Page 6  
GOVERNANCE  
WCRP Directors and Alternate Directors, Pool Year 2013  
ADAMS  
Jeffrey Stevens, Commissioner  
Linda Reimer, Clerk of the Board  
GRAYS HARBOR  
PEND OREILLE  
Wes Cormier, Commissioner  
Herb Welch, Commissioner  
Mike Wilson, Commissioner  
Terry Willis, Commissioner  
Dale Gowan, Director, Central Services  
Mike Lithgow, Director of Community Dev.  
Laura Merrill, Commissioner  
Teresa Brooks, Adm. Assistant to the Director  
Alan Botzheim, Sheriff  
BENTON  
Melina Wenner, HR Director/Risk Manager  
Bryan Perry, Safety/Training  
David Sparks, County Administrator  
SAN JUAN  
ISLAND  
Mike Thomas, County Manager  
Pamela Morais, Human Resources Manager  
Bob Jean, Interim County Administrator  
Stan Matthews, Dep. Dir., Administrative Svc.  
Kelly Emerson, Commissioner  
Angie Homola, Commissioner  
Elaine Marlow, Budget Director  
CHELAN  
Keith Goehner, Commissioner  
Cathy Mulhall, County Administrator  
JEFFERSON  
SKAGIT  
CLALLAM  
Philip Morley, County Administrator  
David Alvarez, Chief Civil DPA  
Jessica Neill Hoyson, HR Director/Risk Mgr.  
Arne Denny, Civil Deputy PA  
Tim Holloran, County Administrator  
Rich Sill, Code Enforcement Manager  
James Jones, County Administrator  
Mark Nichols, Chief Deputy Prosecutor  
KITTITAS  
Lisa Young, HR Manager  
Alan A. Crankovich, Commissioner  
Judy Pless, Budget & Finance Manager  
SKAMANIA  
CLARK  
Doug McKenzie, Commissioner  
Jim Richardson, Commissioner  
Scott Pineo, Risk Manager  
Mark Wilsdon, Risk Manager  
Mark McCauley, General Services Director  
Bronson Potter, Senior DPA  
Bernard Veljacic, Chief Civil DPA  
LEWIS  
F. Lee Grose, Commissioner  
Paulette Young, Safety Officer/RM  
Michael Strozyk, Central Services Director  
SPOKANE  
Steve Bartel, Risk Manager  
Rob Binger, Senior DPA  
COLUMBIA  
Andrew Woods, Public Works Director  
Dwight Robanske, Commissioner  
MASON  
THURSTON  
Tim Sheldon, Commissioner  
Terri Jeffreys, Commissioner  
Randy Neatherlin, Commissioner  
Steve Bloomfield, Commissioner  
Lynda Ring-Erickson, Commissioner  
Sandra Romero, Commissioner  
Tammy Devlin, Risk Manager  
Jon Tunheim, Prosecuting Attorney  
COWLITZ  
Clyde Carpenter, Risk Manager  
Claire Hauge, OFM Director  
WALLA WALLA  
Jesse Nolte, Deputy PA  
James K. Johnson, Commissioner  
DOUGLAS  
Steven Clem, Prosecuting Attorney  
Thad Duvall, Auditor  
OKANOGAN  
Sheilah Kennedy, Commissioner  
Andrew Lampe, Commissioner  
Nanette Kallunki, Administration Director  
Steve Bozarth, Chief Civil DPA  
Ken Stanton, Commissioner  
WHATCOM  
Karen Goens, HR Manager  
Randall Watts, Chief Civil DPA  
Daniel Gibson, Chief Civil DPA  
FRANKLIN  
Bob Koch, Commissioner  
Shawn Sant, Prosecuting Attorney  
Ryan Verhulp, Chief Civil DPA/Risk Manager  
PACIFIC  
Kathy Spoor, County Administrative Officer  
Lisa Ayers, Commissioner  
David Burke, Prosecuting Attorney  
YAKIMA  
James Hagarty, Prosecuting Attorney  
Larry Peterson, Senior DPA  
Terry D. Austin, Chief Civil DPA  
GARFIELD  
Dean Burton, Commissioner  
Wynne McCabe, Commissioner  
Robert K. Johnson, Commissioner  
We would like to acknowledge the Pool’s longer-tenured board members, and thank them for the remarkable service they have provided. Listed with the counties  
from which they are appointed in parentheses are the Pool directors and alternate directors with at least…  
15 Years: Melina Wenner (Benton), Claire Hauge (Cowlitz), Randy Watts (Whatcom), and Dean Burton (Garfield);  
10 Years: Clyde Carpenter (Cowlitz), Tammy Devlin (Thurston/Lewis), Linda Reimer (Adams), Keith Goehner (Chelan), Steve Clem and Thad Duvall (Douglas);  
5 Years: Cathy Mulhall (Chelan), Rob Binger and Steve Bartel (Spokane), Larry Peterson (Yakima), Andrew Woods (Columbia), David Alvarez (Jefferson), Bronson  
Potter and Mark Wilsdon (Clark), Lee Grose and Paulette Young (Lewis), Ryan Verhulp (Franklin), and Bryan Perry (Benton).  
Unfortunately, farewells were conveyed during the past year to some of the longer-tenured board members as they departed their respective counties. Our sincere  
thanks as well as good wishes are extended to all those serving the Pool. We especially want to recognize the following for serving at least five (5) years:  
Marge Upham (retired early 2013) – supported the WCRP Board as a “Founding Director” and continued for more than 24 years (1988 – 2012) as a director from  
Clallam County. During her WCRP tenure, she attended 57 Board meetings (62%). Marge was elected to serve as the Pool’s Operations Vice President/Secretary  
(10/90 – 02/92), then to a short and a full term on the present-day executive committee, when it was established, where she served for four (4) years. She also  
participated as a member of multiple standing committees and was a fixture with the Pool’s Personnel Committee.  
Randy Watts (retired February 2013) – supported the WCRP Board for nearly 18 years (1995 – 2012) as a director or alternate director from Whatcom County.  
During his WCRP tenure, he attended 49 Board meetings (83%). Randy was elected to and served three full terms (9 years) on the Executive Committee. He was  
also elected to preside over the Pool as the Py2006 President, which followed a year-long term as Secretary-Treasurer (Py2005). He also served on multiple  
standing committees and Co-chaired the Underwriting Committee where he was a mainstay for many years.  
Larry Peterson (departed December 2012) – supported the WCRP Board for 8½ years (2005 – 2012) as a director or alternate director from Yakima County. He  
attended 20 Board meetings (87%). Before his departure, Larry was elected and served a short stint on the Pool’s Executive Committee. He also served several  
years on the Underwriting Committee and a few years on the Finance Committee.  
Andy Lampe (departed December 2012) – supported the WCRP Board for more than 6 years (2006 – 2012) as a director from Okanogan County. He attended 18  
Board meetings (95%). During his WCRP tenure, Andy was elected to and served portions of two terms (3½ years) on the Executive Committee, and he was  
elected Vice President but decided not to assume the position before departing.  
Page 7  
Washington Counties Risk Pool  
Organization Summary 2013  
Washington Counties Risk Pool (“Pool” or “WCRP”) was formed August 18, 1988, via Interlocal  
Agreement signed initially by 15 of Washington’s 39 counties. Thirteen of the original members  
began utilizing the WCRP insuring program and services that October, while the other two and  
another four that joined the Pool later that first year began receiving coverage as their  
commercial insurance programs expired. Over its first quarter century of operation, the Pool has  
continued to grow and now serves 27 counties.  
The WCRP was established to provide its member counties with “joint” programs and services  
including self-insurance, purchasing of insurance, and contracting for or hiring of personnel to  
provide administrative, claims handling and risk management services. The WCRP operates  
under Washington’s “pooling” laws, specifically RCW Chapter 48.62 and WAC 200-100, and is  
overseen by the State Risk Manager with fiscal and accountability audits performed annually by  
the State Auditor.  
The WCRP mission:  
to provide comprehensive and economical risk coverage;  
to reduce the frequency and severity of losses; and  
to decrease costs incurred in the managing and litigation of claims.  
The Pool’s core values include:  
being committed to learn, understand and respond to member insurance needs;  
establishing working relationships with all members who identify business  
issues and jointly developing solutions; and  
allocating resources to risk management in their own member county  
operations.  
The Pool’s Board of Directors and staff share a commitment to manage the organization based  
on sound business principles, benchmarked industry standards and measurable outcomes;  
and to continuous planning and innovation in product development and service delivery.  
The enabling Interlocal Agreement was enhanced in 2000 with the addition of the Pool’s  
Membership Compact, a commitment to strengthen the Pool by helping its member counties  
implement local Risk Management Programs to reduce losses and support the best  
management of the WCRP and its resources. The Compact established obligations to support  
these goals through three major elements: membership involvement, risk control practices, and  
a targeted risk management program.  
Joint Self-Insurance Liability Program: WCRP members presently acquire $20 million  
(with a county-by-county option to $25 million) of joint liability coverage on a “per occurrence”  
basis for third-party bodily injury, personal injury, property damage, errors and omissions, and  
advertising injury. Members annually select an “occurrence deductible” of $10,000, $25,000,  
$50,000, $100,000, $250,000, or $500,000. The initial $10 million of coverage is jointly self-  
(Continued on page 9)  
Page 8  
(Continued from page 8)  
insured; however, reinsurance is acquired to protect the Pool directly and its members indirectly  
from large losses. The remaining insurance, up to $15 million, is acquired as “following form”  
excess insurance. There are no aggregate limits to the claims payments for any one member  
county or all member counties combined.  
Property Program and Other Coverages: Beginning with the 2005-06 policy year, the  
WCRP added fully-insured property coverage with limits of $500 million (normal) and $200  
million (catastrophic) as a member county option. Twenty-six counties presently purchase this  
coverage. Some members also use the Pool’s contracted insurance producer to secure  
insurance products, e.g. special events and concessionaires, environmental hazards, public  
official surety bonds, and airport, ferry and railroad operations coverages.  
The WCRP is governed by a Board of Directors consisting of one Director (and at least one  
Alternate Director) designated by each member county. The Pool’s Board, comprised of both  
elected and appointed county officials, meets three times a year with its Annual Meeting  
summer. The Board is responsible for determining the liability coverage being offered  
(approving the insuring agreement or coverage form), the reinsurance to purchase, the excess  
insurance(s) to be jointly purchased or offered for purchase, and for approving the Pool’s  
annual operating budget, its work programs and the member-assessment formulae.  
Regular oversight of the Pool is furnished by an 11-person Executive Committee, members of  
which are elected by the Pool Board from its membership to staggered three-year terms. The  
present make-up includes an average of 8.5 years experience working with the Pool. The  
Executive Committee meets several times throughout the year to approve all WCRP  
disbursements and examine the Pool’s financial health; to approve case settlements that  
exceed member deductibles by at least $50,000, and to review resolution strategies for all  
claims with incurred loss estimates exceeding $100,000. The Committee also evaluates the  
Executive Director and the Pool’s operations and program deliverables. Committee members  
also participate in the Board’s standing committees (Finance, Personnel, Risk Management  
and Underwriting) for development or review/revision of the organization’s policies and  
coverage documents.  
Six of the Pool’s ten-person staff handle and/or manage the several hundred liability cases  
submitted yearly. These claims professionals have nearly 100 years of combined claims  
handling experience. With the recently added resources, the “open” file count is declining,  
having been reduced to under 400. Other staff are responsible for supporting Pool  
administrative needs and providing member services that include assessments of risks,  
training, compliance auditing, coverage development and marketing.  
Other professionals from some of the most respected organizations worldwide are called upon  
regularly to address specific needs of the Pool: PricewaterhouseCoopers, LLP, furnishes  
independent actuarial services; Strategic Claims Direction, LLC, furnishes independent claims  
auditing services; Arthur J. Gallagher Risk Management Services, Inc., provides insurance  
producer (broker) and advanced loss control services. Also, claims audits are occasionally  
performed by the Pool’s insurers and reinsurers. These professionals are in addition to the  
many assigned defense counsel and the “pooling” oversight by the State Risk Manager and  
audits performed by the State Auditor’s office.  
Page 9  
FINANCIAL EXAMINATION AND REPORTS FROM THE STATE AUDITOR  
The State Auditor's Office is established in the state's Constitution as  
part of the executive branch of state government. Through statute  
established by the Washington State Legislature and more recently, by  
citizen initiative, the State Auditor has the statutory authority to audit  
every and all governments in the state. State law (Chapter 43.09 RCW)  
requires the State Auditor's Office to examine the financial affairs of  
local governments. The SAO reports objectively and directly to the taxpayers about all  
levels of government regarding their stewardship of public funds. The audits look at  
financial information and compliance with state, federal and local laws on the part of all  
local governments. They conduct a range of audits that include accountability and  
financial audits. This financial information is available on the State Auditor’s Office  
website for public use through the Local Government Financial Reporting System.  
The most recently published audit reports are available for viewing at www.sao.wa.gov  
Select the tab “Search Reports” and under search options enter: Washington Counties  
Risk Pool.  
OR… you can find them on the WCRP website at: http://www.wcrp.info/sao_reports.asp  
LOCAL GOVERNMENT SELF INSURANCE PROGRAM EXAMINATION  
The Department of Enterprise Services, through the Risk Management Division,  
Administers the Local Government Self-Insurance Program (LGSI). The program  
provides approval and oversight of joint self-insured local government property/liability  
programs under the provisions of Chapter 48.62 RCW and WAC 200-100.  
The mission of LGSI is to protect taxpayer resources by ensuring that local government  
self-insurers are informed about the program's financial condition, participate in  
decisions which affect insurance services for entities they represent, and ensure  
compliance with laws and regulations designed to foster financially sound management  
practices.  
The most recently published examination reports are available for viewing at: http://  
www.des.wa.gov/services/Risk/Self-Insurance/Pages/poolReports.aspx  
Page 10  
Washington Counties Risk Pool  
ADMINISTRATION  
MEMBER SERVICES DIVISION  
LOSS CONTROL  
COORDINATOR  
Jill Lowe  
ACCOUNTING  
OFFICER  
Sue Colbo  
EXECUTIVE  
DIRECTOR  
Vyrle Hill  
ADMIN  
ASSISTANT  
Stacey Spears  
SPECIALTY  
SERVICES  
David Goldsmith  
CLAIMS DIVISION  
CLAIMS  
MANAGER  
SR. CLAIMS  
CLAIMS  
SR. CLAIMS  
ANALYST  
CLAIMS  
ANALYST  
CLAIMS  
Susan Looker  
Lisa McMeekin  
Mike Cook  
Tammy Cahill  
Carli Easter  
PROFESSIONAL SUPPORT  
WCRP is backed by professionals with some of the best organizations worldwide:  
PricewaterhouseCoopers LLP, for independent actuarial services  
Kevin Wick, Managing Director, FCAS, MAAA  
Craig Scukas, Director, FCAS, MAAA  
Strategic Claims Direction, for independent claims auditing services  
Gary Jennings, Principal  
Arthur J Gallagher Risk Management Services, Inc., for insurance producer (broker)  
and advanced loss control services  
John Chino, Area Senior Vice President, Elizabeth Miser, Area Vice President & Darin Puryear, Area President  
Julie McCallum, Vice President, Risk Management Services & Tim Chace, Director of Risk Control  
DES Local Government Self Insurance Program - State of Washington  
Shannon Stuber, Program Administrator  
Auditor - State of Washington  
Hon. Troy Kelly  
Page 11  
Washington Counties Risk Pool  
SUMMARY OF 2012-13 LIABILITY INSURANCE PROGRAM  
The Washington Counties Risk Pool provides its member counties with tort liability limits of $20-$25  
million per occurrence. Subject to member-selected deductibles, this includes $10 million in joint (self-  
insured) financial protection plus $10-$15 million in "following form" excess coverage. Member  
counties select their occurrence deductibles each policy year from either $10,000, $25,000, $50,000,  
$100,000, $250,000 or $500,000 options. There are no annual aggregate limits to the payments the  
Pool might make for any one member county or all member counties combined.  
The coverage form for the Pool's joint self-insurance liability policy covers bodily injury, personal injury,  
property damage, errors and omissions, and advertising injury.  
$20 million  
$10 million  
JOINTLY PURCHASED ("following form" Excess Policy)  
$2 million  
$1 million  
JOINTLY FUNDED  
REINSURANCE PROGRAM  
$500,000  
(Loss Fund)  
$250,000  
$100,000  
$50,000  
"RISK SHARED"  
$25,000  
OCCURRENCE DEDUCTIBLES  
(Reimbursed by Member Counties)  
$10,000  
Page 12  
Washington Counties Risk Pool  
SUMMARY OF 2012-13 PROPERTY INSURANCE PROGRAM  
Participating Counties  
Adams  
Benton  
Chelan  
Clallam  
Clark  
PROPERTY -  
“All Covered Perils”  
Commercial Insurers  
Limit of Liability - $500 million  
Commercial Insurers  
Earthquake & Flood  
$200 million  
Columbia  
Cowlitz  
Douglas  
Franklin  
Garfield  
Deductibles - vary by county  
Program Limits  
Grays Harbor  
Island  
Total Insured Values  
Composite schedules total $2.75 billion.  
Jefferson  
Kittitas  
Covered Perils Include: Real and personal property, business  
interruption, extra expense rental value, demolition and increased cost  
of construction, valuable papers, accounts receivable, transit, EDP  
(Equipment/Media/Extra Expense), newly acquired property, course of  
construction, contractors equipment, errors and omissions, offsite  
storage and personal property of the insured’s officers and employees  
while on the premises of the insured. Endorsements are included for  
Green Construction Upgrades and for Reproduction Coverage for  
Historic Structures.  
Lewis  
Mason  
Okanogan  
Pacific  
Pend Oreille  
San Juan  
Skagit  
Limits of Liability  
$500 million - All covered Perils, excluding EQ & FL  
$200 million - Earthquake & Flood with:  
$25 million - Special Flood Hazard Areas  
$100 million - Equipment Breakdown / Boiler & Machinery  
$20 million - Terrorism  
Skamania  
Spokane  
Thurston  
Walla Walla  
Whatcom  
Deductibles  
All Covered Perils: $5,000 to $50,000 (county option). Earthquake and  
Flood deductibles vary with specific circumstances.  
Page 13  
Washington Counties Risk Pool  
From Claims Manager Susan Looker, AIC  
Member counties continue to monitor and manage their risks as they go about their day to day business.  
There are multiple departments that make up county government.  
In the automobile liability (AL) area,  
there are many county drivers including public works and sheriff deputies. In the general liability area,  
there are miles of county roads to design and maintain, permits regarding land use that are issued, jails  
that are operated, and executive decisions that are made. In the employment liability area (EL), there are  
unions, contracts, line and management employees, as well as elected officials.  
When claims are reported to WCRP, it is the job of claims staff to timely review each claim, determine  
coverage, investigate allegations, set appropriate reserves, report to proper authorities, and resolve the  
claim in a fair and cost effective manner. Performing these functions (April 2014) is a dedicated staff of  
six. Mike Cook (Senior Claims Analyst) began his career in insurance in 1982; Joe Campeau (Senior  
Claims Analyst) 1986; Holly Fierro (Claims Analyst) 1996; Lisa McMeekin (Claims Representative) 2008;  
and Leslie Lubrano (Claims Assistant) 2013. Combined with me (1989), there are a total of over 112  
years of claims/insurance experience addressing the member county claims.  
As noted earlier, 616 claims (and lawsuits) were added to the Pool’s claims database during Py2013 and  
raised the 25 years-to-date total of third-party liability claims submitted by WCRP member counties to  
19,232. The Pool paid $11.2 million in indemnity and expenses during Py2013. With 18,905 of the claims  
designated as closed, only 327 claims remained classified as open at year’s end. There were two open  
claims preceding Py2004 at the end of Py2013.  
96 of the 327 claims open at the end of Py2013 were valued at approximately $35.6 million. Two cases  
went to trial resulting in defense verdicts. Nine open cases were valued over $1 million; the collective  
value of these cases was $14.2 million. Of those nine cases, seven involve joint and several liability  
potentials.  
Even though nearly 40% of claims are resolved without any payments, $216.3 million has been paid  
addressing the Pool’s claims to-date. 40% of the amounts paid ($87.5 million) are deductibles reimbursed  
by the applicable member counties. 3% ($6.8 million) was covered under excess insurance policies and  
reimbursed by the applicable commercial insurers. The remaining 57% ($122.0 million) represents the  
“risk shared” portion of the joint self-insurance coverage paid from “pooled” funds—$55.9 million retained  
by the Pool itself and $66.1 million reimbursed by its commercial reinsurers.  
CASE DISTRIBUTION (Severity)  
Open Events as of 9/30/13  
Value Range (between)  
Count  
7,674  
9,730  
610  
407  
339  
264  
114  
55  
Percentage  
39.9%  
50.6%  
3.2%  
Pool Year  
Open Claims  
2
A-P (88-04)  
$0  
$0  
Q (04-05)  
R (05-06)  
S (06-07)  
T (07-08)  
9
5
$.01  
$10,000  
$25,000  
$50,000  
$100,000  
$250,000  
$500,000  
$1,000,000  
Over  
$10,000  
$25,000  
$50,000  
$100,000  
$250,000  
$500,000  
$1,000,000  
5
2.1%  
1.8%  
12  
1.4%  
U (08-09)  
V (09-10)  
W (10-11)  
21  
46  
45  
0.6%  
0.3%  
X (11-12)  
Y (12-13)  
Total Open  
52  
39  
0.2%  
130  
327  
Page 14  
Summarized Data of Third Party Liability Occurrences through Py2013  
Frequency  
Severity  
ALLOCATION OF INCURRED LOSSES by Claim Status, PTD through 9/30/13  
Status  
Incurred  
$ 32,881,206  
8,427,510  
Counties  
$ 13,288,000  
4,512,510  
WCRP SIR  
$ 2,123,500  
1,535,000  
Corridor  
$ 6,475,000  
2,030,000  
3,965,558  
277,424  
Total SIR  
$ 21,886,500  
8,077,510  
Insurers  
$ 10,994,706  
350,000  
Open Legal  
Open Claims  
Closed Legal  
Closed Claims  
175,615,658  
33,950,953  
59,024,954  
23,659,356  
43,897,909  
6,722,173  
106,888,421  
30,658,952  
68,727,236  
3,292,001  
TOTAL  
$ 250,875,327  
$ 100,484,820 $ 54,278,582  
$ 12,747,982 $ 167,511,383  
$ 83,363,943  
Page 15  
Washington Counties Risk Pool  
Member Services  
The Member Services Division includes operational support as well as loss control and other risk management  
activities. This includes marketing efforts, membership compact compliance, strategic plan administration, and  
other activities designed to assist Member Counties with administering their self-insurance and related risk  
management programs. The Pool is visible in members’ communities offering assistance with risk analysis and  
suggesting changes. Pool staff speak at conferences or provide speakers, and meet with county officials to  
provide insight regarding losses and what can be done to stop those losses.  
WCRP holds three conferences each year during which training is provided to assist Board members as well as risk  
managers, claims administrators and other county officials in performing their job duties. Because of the training  
topics offered and the valuable networking opportunities, the Pool experiences over a 95% rate of attendance by  
member counties at conferences.  
Membership Compact  
The Membership Compact is a commitment to strengthen the Washington Counties Risk Pool by helping its  
member counties implement local Risk Management Programs to reduce losses and support the best management  
of the WCRP and its resources. Another (triennial) Compact Compliance Audit was performed during 2012-13 by  
Jill Lowe, Loss Control Coordinator. Member counties must appoint a Pool director and alternate director, a Risk  
Manager and Claims Administrator.  
The County Risk Managers and Claims Administrators are expected to work with elected officials and other  
administrators to reduce risk. These appointees must meet specific certification requirements within two years of  
being appointed to their positions. Most Risk Managers and Claims Administrators serve in other capacities such  
as county attorneys, clerks of the Board, and budget and human resource officers. Certification includes passing  
AICPCU exams. Six County Risk Managers are currently taking or have been certified as Associates in Risk  
Management (ARM).  
David Goldsmith  
Jill Lowe  
Specialty Services  
Loss Control Coordinator  
Pool marketing efforts (internal and external),  
Strategic Plan administration, and other  
activities designed to assist the Pool’s Member  
Counties are included under this broad  
umbrella.  
The Pool, based in part upon recommendations from  
the Board’s Risk Management subcommittee, provides  
cutting edge training throughout the state based on  
loss trends. The Pool also offers scholarship and grant  
funds for training opportunities. Scholarships and grant  
funds are frequently used to address specific areas of  
concern and enable county employees to attend  
specialized liability related training in Parks and  
Recreation, Human Resources, Law Enforcement,  
Corrections and other areas of liability concern.  
County Visitations  
A cornerstone to the success of the WCRP is  
communication with and amongst its member  
counties’ leaderships. To this end, Executive  
Director Vyrle Hill and/or Member Specialty  
Services Representative David Goldsmith met  
with each of the member counties beginning in  
Loss Control works closely with the Claims Division and  
the Risk Management Committee to develop training,  
Continued on page 17  
Continued on page 17  
Page 16  
Washington Counties Risk Pool  
David Goldsmith, Continued from page 16  
Jill Lowe, Continued from page 16  
conduct site visits and offer loss control expertise that  
will positively impact Pool losses. Staff work with  
members to integrate innovative practices and to ensure  
positive loss control change.  
the spring and throughout the summer. The  
focus of these discussions was the Pool’s  
overall claims experience and subsequent  
costs for related insurances, the member  
county’s participation in the Pool’s claims  
experience, and the nature of membership in  
a “pooled” insuring environment.  
Loss Control Workshops offered in Pool Year 2013:  
Employment Law Related Claims - Employment law  
related claims, while relatively few in number, account  
for the highest average per claim cost. Staying Out of  
Court On Employment Claims training was offered in  
nine locations throughout Washington State. In  
addition, Conducting Difficult Conversations, Conducting  
Effective Performance Evaluations, and Management  
and Supervisory Training workshops were presented.  
Marketing/Partnerships  
Non-member counties were approached to  
solicit interest in joining the WCRP. Face to  
face meetings were held with Whitman,  
Wahkiakum and Klickitat Counties. Also, the  
Pool was represented at the Washington  
State Association of Counties and Washington  
Association of County Officials Annual  
Conferences to further the Pool’s presence as  
a resource and partner for county  
Cyber Security, Risk and Liability - Nine workshops  
on Cyber Security, Risk and Liability were offered. The  
first 90 minutes was intended to provide county officials  
with information on current cyber risk, the liability  
landscape and potential losses. The remainder of the  
class time provided IT officials with a deeper technical  
review and a three to five year roadmap for cyber  
security implementation.  
government.  
Organizational Development  
Organizational development revolved around  
three issues: succession planning for key  
Pool management positions, Board member  
development, and strategic planning. With  
the Executive Director approaching  
Other Loss Control Programs  
Risk Manager, Claims Administrator, Board  
retirement, efforts have begun to develop a  
succession plan for this and other key  
management positions. Due to the size of  
the organization and lack of management  
layers, the plan evolved into a business  
interruption and succession planning effort,  
and the resulting document addresses both  
the need for short term management  
structure and long term replacement. The  
document was adopted by the Board of  
Directors at the Annual Meeting.  
Members – The Pool Board meets three times during  
the year to discuss Pool business and receive training.  
Cyber Liability, Public Duty Doctrine, Legislative Issues  
and Contracts and Your Joint Self Insurance Coverage  
were topics presented to meeting attendees. The  
Washington State Patrol brought the newly purchased  
“Instructional Driving Simulator” to the autumn meeting  
and provided hands on, individual demonstrations. The  
summer meeting Roundtable included a full three hours  
dedicated to the sharing of challenges and achievements  
and short presentations made by scholarship recipients.  
Board Development  
Law Enforcement/Corrections – Seventeen member  
county law enforcement and corrections agencies  
participated in the Lexipol program. Law enforcement  
deputies receive daily training in low frequency and high  
severity issues. Lexipol released their Custody program  
and member counties found it valuable.  
The success of the Washington Counties Risk  
Pool is dependent on an informed, engaged  
and knowledgeable Board (of Directors). To  
this end, the spring conference emphasized  
the issue of effective Board participation.  
Board members are often required to wear  
multiple hats; that of their respective county,  
and that of a Pool Director. The question  
becomes how to balance competing  
Sample Policy Library, White Papers and  
Webinars – A search engine has been added to the  
Pool’s website due to the large number of sample  
policies and white papers available for member counties.  
Continued on page 18  
Continued on page 18  
Page 17  
Washington Counties Risk Pool  
David Goldsmith, Continued from page 17  
Jill Lowe, Continued from page 17  
responsibilities and to make a more effective  
Board member. The next issue explored was  
how to elevate the Board of Directors from  
that of fiduciary mode of governing to one  
that becomes the organization’s strategic and  
visionary partner. Participants had an  
WCRP is focusing efforts on recording training sessions  
and webinars for the website.  
HELPLine, Certified Public Officials Program and  
Labor Relations Institute – These programs provide  
additional resources specific to Washington State  
employment law and provide county officials the tools to  
enhance leadership and decision-making ability.  
opportunity to discuss and integrate these  
concepts in a facilitated discussion.  
2012-13 TRAINING SNAPSHOT  
Executive Director Vyrle Hill, Continued from page 4  
adjustments by the independent actuary, PricewaterhouseCoopers LLP (“PwC”), to the Pool’s claims-related reserves, and to the  
reduction (-26%) in the premiums to acquire the reinsurance, excess insurance and property insurance policies requested by the  
Board.  
More challenges remain, that we do know. But the Pool’s quarter-century journey thus far has provided those involved in its  
“pooling” concept with the opportunity to mature from the innocence of infancy to the awareness and wisdom that is customary  
of adulthood. The Pool continues on with greater optimism… its qualities, the insuring options it makes available for its  
membership, and its financial strength all combine to make the Washington Counties Risk Pool a very viable entity. I am most  
pleased to have been associated with this unique public service organization since its establishment many years ago.  
Page 18  
Washington Counties Risk Pool  
Comparative Summarized Balance Sheets  
Page 19  
Page 20  
Page 21