Annual Report 2014  
www.wcrp.info  
On the front cover (from left to right) : Pend Oreille County Courthouse, San Juan County Courthouse,  
Island County Courthouse, Kittitas County Courthouse, Skagit County Courthouse, Yakima County Courthouse,  
Adams County Courthouse, Cowlitz County Courthouse, Franklin County Courthouse, Garfield County Court-  
house, Mason County Courthouse, Thurston County Courthouse, and Whatcom County Courthouse  
On the back cover (from left to right): Benton County Courthouse, Grays Harbor County Courthouse,  
Spokane County Courthouse, Columbia County Courthouse, Clallam County Courthouse, Jefferson County Court-  
house, Chelan County Courthouse, Lewis County Courthouse, Okanogan County Courthouse, Pacific County  
Courthouse, Skamania County Courthouse, Douglas County Courthouse, and Walla Walla County Courthouse.  
Page 2  
Washington Counties Risk Pool  
Created by Counties for Counties  
Annual Report 2014  
CONTENTS  
Officers’ Messages . . . . . . . . . . . . . . . . . . . . . . . . .  
Executive Director’s Message . . . . . . . . . . . . . . . . .  
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Organization Summary. . . . . . . . . . . . . . . . . . . . . .  
SAO/DES Examinations. . . . . . . . . . . . . . . . . . . . . .  
Operational Staff . . . . . . . . . . . . . . . . . . . . . . . . . .  
Liability Coverage Summary. . . . . . . . . . . . . . . . . .  
Property Coverage 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 Tammy Devlin, Py-2014 President  
YES, we had another successful year! Thank you for the opportunity to serve as your President.  
2013-14 was a demanding year for the Risk Pool and for its organizational foundation. I believe our membership has  
learned and actually grown stronger due to the challenges of the litigation that it faced this past year. As members, you all  
rose to the challenge (very long and sometime tense meetings with some via phone) and your wishes were present and  
accounted for. The ability for the Risk Pool to continue to change and evolve during tough insuring times truly comes from the  
strength and vision of its Board of Directors; you.  
Drew, Lisa and Keith will be leading the Board through an Executive Director Recruitment process this coming year. This will  
continue to test and challenge the Pool’s principles and operating standards. I am confident that our membership will support  
a successful selection and hire a new leader that will inspire membership participation, fiscal stability and a renewed resolve  
for organizational strength.  
We are truly a team. Members, please take an opportunity to thank your fellow county members. Also take the time to thank  
the Risk Pool staff that support our vision and mission as well as our Gallagher partners, Liz Miser, Darin Puryear, John  
Chino and Tim Chase, and our PricewaterhouseCoopers Actuaries, both Craig Scukas and Kevin Wick. You are without a  
doubt the best in your field. Thank You!  
I am looking forward to 2014-15, let’s roll up our sleeves and let’s do it right!  
From Andrew Woods, Py-2014 Vice-President and PY-2015 President  
Being the Vice President of the Washington Counties Risk Pool has been a great honor. It is incredibly satisfying to be part  
of a personable, professional and knowledgeable team. This is exactly what we have with our staff, Board members and  
member counties. When you combine this with the great knowledge and support we receive from our broker, actuary and  
others, we are a great organization.  
This past year has not been without challenges. The troubles with our former member Clark County have been stressful and  
not without anguish. It is always difficult when a “divorce” like this takes place. At the time of my writing this, the Risk Pool  
has prevailed in a number of legal matters, and I am hopeful that we are closer to resolution of the matter. I want to thank  
the Board members and member counties for their support of the Risk Pool through this time. But more importantly, I want to  
thank the incredible staff that we have who shouldered the majority of the work, stress, anguish, anger, frustration, etc. for  
the rest of us. It really is the incredible team that we are all a part of that makes this organization the success that it is.  
I look forward to the upcoming year as your President. As we continue to work together on the challenges and enjoy our  
mutual successes, I know our wonderful organization will only continue to learn, grow, strengthen, and succeed in the  
important duties that we provide to our member counties, friends and partners across the great State of Washington.  
From Keith Goehner, Py-2014 Secretary/Treasurer  
In what was a year of change and challenge, the Pool emerged stronger as an organization and in its financial position. This past  
year brought a number of new individuals to the Board, and each one’s commitment to the Pool’s goals and purpose has ensured  
continued success for the Pool. Financially, we continue to see benefits from each county’s efforts to reduce risk as our ability to  
secure affordable coverages is enhanced. In making hard decisions in difficult circumstances, we have become more aware of  
each member’s worth to the Pool.  
The Pool, through the Investment Committee’s direction, has continued to build its reserves and has seen a good return on  
investment. We are primarily invested in Investment Pools, and shifted our funds from Clark County to the Spokane County  
Investment Pool to maximize our returns. We began to look for other longer term investment opportunities and strategies to  
strengthen our financial status.  
It is a pleasure to serve in such a great organization that has members and staff who are all committed to a stronger Pool and  
working to create a safer work environment and better relationships in their respective counties. In my experience as a Board and  
Executive Committee member and as an officer of the Pool, I have seen continued growth and expansion of the services provided  
for the Pool members. As we continue to work together, I am confident the Pool will experience continued success.  
Page 4  
Washington Counties Risk Pool  
From WCRP Executive Director Vyrle Hill  
To the Member Counties of the Washington Counties Risk Pool and the Board of Directors as  
well as the Washington citizens served by the Member Counties:  
Presenting each year’s Annual Report is the culmination of another operating year for the Washington Counties Risk  
Pool (“Pool” or “WCRP”). This Annual Report, which pertains to the twenty-sixth operating year, means Pool Year  
2013-14 (aka Py2014) is history; that is, except for resolving outstanding claims and lawsuits.  
The Pool was “Created by Counties for Counties” in August 1988 with fifteen of Washington’s thirty nine counties recognized as its  
initial voting members. Four more counties were quickly added (during the first operating year) and then the Pool’s membership  
just continued to grow – two counties joined during the fifth year, one each in years six and seven, and two in year eight – until it  
leveled off with twenty five members. One more county joined during Py2002 while another withdrew, and four counties were  
added in Py2003 when one withdrew. This left the WCRP membership at twenty eight. Another withdrawal after Py2010 and a  
membership cancellation this past April left twenty six Washington counties as WCRP’s membership at the conclusion of Py2014.  
WCRP members’ individual demographics vary immensely, yet diversity of WCRP’s membership strengthens the organization. And  
their collective/pooled stats are impressive. For instance, their individual member county census estimates varied between 2,250  
and 475,600, but the 2.65 million residents of WCRP member counties are nearly 40% of the state’s total population. Likewise,  
WCRP’s area (45,000 pooled square miles) represents nearly 70% of Washington, and the 23,000 pooled (WCRP) county centerline  
road miles are nearly 60% of those statewide. Its member counties and the membership and the Pool itself are truly impressive!  
The Pool’s governance, organization and coverages as well as various activities summaries are featured elsewhere in this report. So  
the remaining focus of this feature will be WCRP’s exceptional finances with emphasis upon Py2014. Assets grew 1% to $47.4  
million while liabilities were reduced 7% to $28.0 million. These combined to produce an “assets to liabilities” ratio of 1.69:1. For  
comparison, the Py2004 (ten years ago) ratio was 0.94:1 and would have been 0.74:1, except for the members’ reassessments  
receivables (“retroactive assessments”) that were part of the Py2004 assets. Net position (aka “net assets” or “owners’ equity”)  
improved 16% to $19.4 million (as of September 30, 2014), a 10-year improvement exceeding $20 million from the “negative” $0.7  
million at the end of Py2004. The “non-restricted” net position ($18.3 million) fully satisfies the State Risk Manager’s solvency  
provisions {WAC 200.100.03001(3)} and substantially satisfies the WCRP Board’s own sufficiency requirements {section D.2 of the  
Underwriting Policy}. The charts following depict graphically the improvement in WCRP’s financial status:  
Operating income of $1.7 million was realized in Py2014, lower year-over-year but still the fifth largest amount in recent years and  
12% above the past ten years’ (Pys2004 – 2013) average. And while revenues grew 7%, expenses increased 22% due in large  
part to actuarial adjustments to claims-related reserves and increased premiums for the reinsurance, excess liability insurance, and  
property insurance policies the Board of Directors decided to acquire.  
Reported liability claims (and lawsuits) declined 5.5%, a continuation of the downward trend experienced in recent years. Claims  
reserves were estimated (as of September 30, 2014) by the independent actuary – net reserves at $14.7 million, a modest 0.4%  
year-over-year increase; and gross reserves, with $18.0 million ceded to commercial insurers, declining 3.3% to $32.7 million.  
The net reserve estimates included $2.7 million for WCRP’s SIR, $10.8 million for the “corridor” program retentions, $0.1 million for  
WCRP’s 10% quota-shared (upper layer) losses, and $1.0 million for unallocated loss adjustment expenses (ULAE).  
For  
comparison, Py2004’s net reserves totaled $12.0 million but included only the Pool’s SIR ($11.4 million) and ULAE ($0.6 million)  
estimates. NOTE: The “corridor” programs began eight years ago with (occurrence) coverage maximums of $0.5 million during the  
first three years, $1.0 million during the next three years, and both $1.0 million and $2.0 million the past two years, and occurrence  
minimums remained throughout as the greater of the applicable (member’s) deductible or $100,000.  
(Continued on page 7)  
Page 5  
GOVERNANCE  
WCRP Directors and Alternate Directors, Pool Year 2014  
GARFIELD  
PEND OREILLE  
ADAMS  
1Dean Burton, Commissioner  
Wynne McCabe, Commissioner  
Robert K. Johnson, Commissioner  
Mike Lithgow, Director of Community Dev.  
Teresa Brooks, Adm. Assistant to the Director  
Alan Botzheim, Sheriff  
Jeffrey Stevens, Commissioner  
2Linda Reimer, Clerk of the Board  
Patricia Phillips, Clerk of the Board  
GRAYS HARBOR  
SAN JUAN  
Mike Thomas, County Manager  
Pamela Morais, Human Resources Manager  
BENTON  
1Melina Wenner, HR Director/Risk Manager  
3Bryan Perry, Safety/Training  
David Sparks, County Administrator  
Ryan Lukson, Deputy Prosecutor  
Herb Welch, Commissioner  
Wes Cormier, Commissioner  
3Dale Gowan, Director, Central Services  
SKAGIT  
ISLAND  
Jessica Neill Hoyson, HR Director/Risk Mgr.  
Arne Denny, Civil Deputy PA  
Tim Holloran, County Administrator  
Donnie LaPlante, Sr. HR/Risk Analyst  
Kelly Emerson, Commissioner  
Elaine Marlow, Budget Director  
Jill Johnson, Commissioner  
CHELAN  
2Keith Goehner, Commissioner  
2Cathy Mulhall, County Administrator  
JEFFERSON  
SKAMANIA  
Doug McKenzie, Commissioner  
Scott Pineo, Risk Manager  
CLALLAM  
3Philip Morley, County Administrator  
3David Alvarez, Chief Civil DPA  
Rich Sill, Code Enforcement Manager  
James Jones, County Administrator  
Mark Nichols, Chief Deputy Prosecutor  
KITTITAS  
SPOKANE  
CLARK (thru 4-28-14)  
3Lisa Young, HR Manager  
Judy Pless, Budget & Finance Manager  
3Steve Bartel, Risk Manager  
3Rob Binger, Senior DPA  
3Mark Wilsdon, Risk Manager  
Bernard Veljacic, Chief Civil DPA  
Mark McCauley, General Services Director  
Tom Mielke, Commissioner  
LEWIS  
THURSTON  
3F. Lee Grose, Commissioner  
3Paulette Young, Safety Officer/RM  
Michael Strozyk, Central Services Director  
3Sandra Romero, Commissioner  
1Tammy Devlin, Risk Manager  
Jon Tunheim, Prosecuting Attorney  
COLUMBIA  
3Andrew Woods, Public Works Director  
Dwight Robanske, Commissioner  
MASON  
WALLA WALLA  
Tim Sheldon, Commissioner  
Randy Neatherlin, Commissioner  
Terri Jeffreys, Commissioner  
Dawn Twiddy, HR/Risk Manager  
Jesse Nolte, Deputy PA  
James K. Johnson, Commissioner  
Lucy Schwallie, Personal/Risk Manager  
COWLITZ  
1Clyde Carpenter, Risk Manager  
1Claire Hauge, OFM Director  
WHATCOM  
Karen Goens, HR Manager  
Daniel Gibson, Chief Civil DPA  
DOUGLAS  
OKANOGAN  
2Steven Clem , Prosecuting Attorney  
2Thad Duvall, Auditor  
Sheilah Kennedy, Commissioner  
Nanette Kallunki, Administration Director  
Steve Bozarth, Chief Civil DPA  
Tanya Craig, Deputy Clerk of the Board  
Ken Stanton, Commissioner  
YAKIMA  
James Hagarty, Prosecuting Attorney  
Terry D. Austin, Chief Civil DPA  
Cindy Erwin, Paralegal  
FRANKLIN  
3Bob Koch, Commissioner  
PACIFIC  
Shawn Sant, Prosecuting Attorney  
3Ryan Verhulp, Chief Civil DPA/Risk Manager  
Timothy Dickerson, Civil DPA  
Kathy Spoor, County Administrative Officer  
Lisa Ayers, Commissioner  
David Burke, Prosecuting Attorney  
Pool’s longer-tenured board members:  
1 = 15+ years  
2 = 10+ years  
3 = 5+ years  
Unfortunately, farewells were conveyed during 2013-14 to eleven members of the Board of Directors as they departed their respective counties, which  
rendered them ineligible for further WCRP service. Our sincere thanks as well as good wishes are extended to all those serving the Pool, but we want  
to especially recognize those that served WCRP for at least five (5) years:  
Melina Wenner (departed April 2014) – supported the WCRP Board as a director from Benton County for more than 19 years (1995 – 2014) and  
attended 42 Board of Directors meetings (67%). Melina was also appointed by the Benton County Commissioners to serve as both the county’s claims  
administrator and its risk manager for WCRP relations. During her WCRP tenure, Melina was elected to and served a full (3-year) term on the Pool’s  
executive committee. She also served on multiple standing committees including the Personnel Committee.  
Linda Reimer (departed early 2014) – supported the WCRP Board as an alternate director from Adams County for more than 14 years (2000 – 2014)  
and attended 28 Board of Directors meetings (70%). She was also appointed by the Adams County Commissioners to serve as both the county’s claims  
administrator and its risk manager for WCRP relations. During her WCRP tenure, Linda served as a WCRP standing committee member.  
Mark Wilsdon (departed April 2014) – supported the WCRP Board as a director from Clark County for more than 7 years (2007 – 2014) and attended  
20 Board of Directors meetings (91%). He was also appointed by the Clark County Commissioners to serve as both the county’s claims administrator  
and its risk manager for WCRP relations. During his WCRP tenure, Mark was elected to and served two partial terms (4+ years) on the Pool’s executive  
committee. He was also elected to preside over the Pool as the Py2013 President, which followed being elected to and serving a year-long term as  
Secretary-Treasurer (Py2012) and preceded being elected to and serving a fraction of a year again as Secretary-Treasurer (Py2014). He also served on  
multiple standing committees and co-chaired the Risk Management Committee.  
Ryan Verhulp (departed April 2014) – supported the WCRP Board as an alternate director from Franklin County for more than 6 years (2007 – 2014)  
and attended 4 Board of Directors meetings (20%). He was also appointed by the Franklin County Commissioners to serve as both the county’s claims  
administrator and its risk manager for WCRP relations. During his WCRP tenure, Ryan served on multiple WCRP standing committees including several  
years on the Risk Management Committee.  
Page 6  
Washington Counties Risk Pool  
Executive Committee Py2014  
(Term Ending 9/30/XXXX)  
2015  
2016  
2014  
(Continued from page 5)  
The following charts depict WCRP revenues, expenses and operating income over the years:  
With extraordinary finances as well as the coverages, resources and services it provides for and to its  
membership, the Washington Counties Risk Pool continues to be a very viable entity. I am pleased to have  
been associated with this public service organization since its creation years ago, honored to have been  
selected to serve the past ten years as its Executive Director, and most importantly, to be able to share the  
ever-growing WCRP optimism.  
Page 7  
2558 RW Johnson Rd SW, Suite 106 Tumwater, WA 98512-6103  
Organizational Summary  
The Washington Counties Risk Pool (“WCRP” or “Pool”) was “Created by Counties for Counties” in  
August 1988 as an association of member counties independent of all other associations of which the  
counties are members. The foundational agreement authorized the Pool’s creation pursuant to  
Chapters 48.62 and 39.34 Revised Code of Washington (“RCW”) “to provide member counties  
programs of joint self-insurance, joint purchasing of insurance, and joint contracting for or hiring of  
personnel to provide risk management, claims handling, and administrative services.” Twenty seven  
Washington counties started 2013-14, this reporting year, as WCRP members. But the cancellation of  
one membership by the Board of Directors effective April 29, 2014 resulted in the year concluding with  
twenty six WCRP members.  
WCRP is not an “insurer” (RCW 48.01.050) or an insurance company, and it is not subject to the special  
laws and rules that govern insurers and insurance companies. Washington’s pools are risk-sharing  
entities that must first be approved by, and are thereafter overseen by and report to, the State Risk  
Manager. They are not regulated by the Office of the Insurance Commissioner. They operate under the  
state’s “pooling” laws and regulations, specifically RCW 48.62 and Washington Administrative Code  
(“WAC”) 200-100. Since they are public entities, pools are subject to audits at least annually by the  
State Auditor’s Office.  
The Pool’s mission is to:  
provide comprehensive and economical risk coverage;  
reduce the frequency and severity of losses; and  
decrease the costs incurred in the managing and litigation of claims.  
Its core values consist of commitments:  
to learn, understand and respond to members’ insurance needs;  
to establish a working relationship with all members that identifies business issues and  
jointly develops solutions;  
from its members to allocate necessary resources for risk management in their own  
operations;  
to manage the organization based on sound business principles, industry standards,  
and measurable outcomes; and  
to continuous planning and innovation in product development and service delivery.  
Except for the Membership Compact that was added as an addendum in 2000, the WCRP Interlocal  
(foundational) Agreement remains without change since it was initially approved by the members in  
1988. The Compact is a commitment to strengthen the Pool by helping members implement and/or  
enhance their local risk management efforts to reduce losses and support the best management of the  
Pool and its resources. Pool members are obligated under the Compact to support its goals in three  
ways – membership involvement, risk control practices, and a targeted risk management program(s).  
New WCRP memberships must be approved by majority votes of the Board however, the Board  
delegated its authority to the Executive Committee to approve the (membership) admission, fees and  
initial deposit assessments/contributions for counties with populations of less than 125,000. New  
members must make 60-month commitments when joining the Pool. After the initial commitment period,  
a member county may withdraw at the end of any WCRP fiscal year provided it has furnished the Pool  
written notice of its intent to withdraw at least twelve months in advance of the fiscal year-end.  
(Continued on page 9)  
Page 8  
(Continued from page 8)  
Joint Self-Insurance Liability Program (“JSILP”): The JSILP is the Pool’s original and predominant  
coverage. It consists of risk-shared (jointly purchased and/or jointly self-insured) and occurrence-based  
coverage for 3rd-party liability claims against the member counties. The JSILP includes coverage for bodily  
injury, personal injury, property damage, errors and omissions, and advertising injury. Further JSILP details  
are found on page 12.  
Washington Counties Property Program (“WCPP”): WCRP also provides administrative support for (1st-  
party) property coverages jointly-purchased through the insurance producer as member-by-member options  
from a consortium of higher-rated commercial carriers. All but one of WCRP’s 2013-14 membership  
participated, and the composite value of their covered properties totaled more than $2.7 billion. Further  
details of the WCPP are found on page 13.  
Other Coverages: Several members utilize the producer (broker) retained by WCRP to secure other  
(specialty) insuring products. Examples include crime, special events/concessionaires, underground storage  
tanks and other environmental hazards, even airport, ferry or railroad operations, as well as public officials  
surety bonds. Additionally, the Board of Directors decided to jointly-purchase cyber risk and security  
coverage from a higher-rated commercial carrier beginning with the 2014-15 policy year.  
Governance and Support / Oversight: The Pool is governed by a board of directors consisting of  
one director (and at least one alternate director) from each member county that represent their county and  
are appointed by their county’s legislative authority. The Board of Directors, which includes both elected  
and appointed officials, meets at least three times each year with the Pool’s Annual Meeting being held each  
summer. The Board’s responsibilities include: a) determining the risk-sharing extent of the 3rd-party self-  
insured liability coverage by approving the insuring document (coverage form), b) selecting the reinsurance  
(s) to acquire and the excess insurance(s) to jointly-purchase or offer for “member option” purchase, c)  
approving the Pool’s annual operating budget(s) and work program(s), and d) approving the members’  
deposit assessments and, when necessary, reassessments.  
The Board retains several professionals from some of the most respected organizations worldwide to  
address both regulatory requirements and specific needs of the Pool. PricewaterhouseCoopers, LLP  
furnishes independent rate-setting and reserving actuarial services; Strategic Claims Direction, LLC  
conducts independent claims auditing services; Arthur J. Gallagher Risk Management Services, Inc.  
provides both insurance producer (broker) and advanced loss control services; and J. William Ashbaugh of  
Hackett Beecher & Hart serves as coverage counsel. Note: Claims audits are occasionally performed by a  
commercial insurer(s).  
Ongoing oversight of the Pool is furnished by its 11-person executive committee elected by and from the  
Board to staggered, 3-year terms. The committee meets throughout the year to: a) approve all WCRP  
disbursements and monitor its financial health; b) approve case settlements exceeding the applicable  
member’s deductible by at least $50,000; c) review all claims with incurred loss estimates exceeding  
$100,000; and d) evaluate the Pool’s operations and program deliverables, as well as the Executive  
Director’s performance. Committee members are also expected to participate in the Board’s standing  
committees (finance, personnel, risk management, and underwriting) which develop or review/revise  
proposals for and/or recommendations to the Pool’s policies and coverages for formal Board consideration.  
Staffing and Support:  
The Board employs an Executive Director who is given the general  
administrative responsibility for the Pool’s activities including risk management, claims handling and  
administrative services. The Executive Director is the chief executive officer and administrator of the Pool  
and, in general: a) supervises and controls the Pool’s business and affairs, b) carries out the Board’s orders,  
c) is responsible to the Board for the efficient administration of the Pool’s affairs, and d) hires all necessary  
employees.  
A 10-person staff is authorized to support the Executive Director. Six handle and/or manage the several  
hundred liability cases annually filed upon and then submitted by the member counties for coverage  
consideration from the Pool’s risk-shared joint self-insurance liability program. There are also numerous  
attorneys/legal firms retained to defend covered cases that are assigned to them. The remaining staff  
supports the administrative needs of the Pool and the other coverages, or provide services including  
assessing the various risks of members and potential members, coordinating trainings, conducting  
compliance audits, developing coverage options and marketing the Pool’s coverage programs and services.  
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 statutes  
established by the Washington 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. The SAO conducts a range of audits that include accountability and  
financial audits. The audit 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 their resources by ensuring that local government self-  
insurers are informed about program's financial condition, participate in decisions which  
affect insuring 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  
Susan Looker  
SR. CLAIMS  
CLAIMS  
SR. CLAIMS  
ANALYST  
Mike Cook  
CLAIMS  
ANALYST  
Holly Fierro  
CLAIMS  
Joe Campeau  
Lisa McMeekin  
Jeri Woods  
PROFESSIONAL SUPPORT  
WCRP is supported by professionals from some of the better 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  
Elizabeth Miser, Area Vice President, John Chino, Area Senior Vice President & Darin Puryear, Area President  
Tim Chace, Director of Risk Control & Julie McCallum, Vice President, Risk Management Services  
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  
WCRP’s JOINT SELF-INSURANCE LIABILITY PROGRAM (“JSILP”)  
From the (Member) County’s Perspective  
Since October 1, 1988, the Washington Counties Risk Pool has furnished its member counties’ jointly purchased and/or jointly self-insured liability  
coverage for bodily injury, personal injury, property damage, errors and omissions, and advertising injury caused by a covered occurrence during an  
eligible period and occurring anywhere in the world. Total coverage limits per occurrence have grown from the $1 million existing during the Pool’s initial  
two months to $5 million, then to $10 million and onto $15 million before reaching the $20 million limit that has existed since October 2003. Additional  
$5 million limits were available during many recent years, including 2013-14, as individual county-by-county options.  
For 2013-14, the initial $10 million occurrence limits were in the form of jointly self-insured liability coverage which is “risk shared” amongst the  
membership and subject to the deductible amounts selected by the applicable member counties, either (in thousands) $10, $25, $50, $100, $250 or  
$500. The remaining JSILP occurrence limits (up to $15 million) were acquired as “following form” excess insurance policies from a superior-rated  
commercial insurance carrier. There were no aggregate limits to the payments the Pool might make for any one member county or for all member  
counties combined.  
What Protects the Pool and its Member Counties?  
The Pool’s Board of Directors again decided for 2013-14 to acquire reinsurance as added protection for both the Pool from the larger losses and the  
member counties from the contingent liabilities that would result otherwise from the risk-shared losses. The reinsurance agreements were written with a  
self-insured retention (“SIR”) equal to the greater of the claim’s deductible or $100,000. But the agreements also included “corridor retentions”  
effectively increasing the SIR with aggregated stop loss provisions. There were two (2) such “corridors” – the first raised the occurrence SIR to $1  
million and included an aggregated stop loss of $2.9 million. The other increased the SIR even further, to $2 million, and included an aggregated stop  
loss of $0.6 million.  
Page 12  
Washington Counties Risk Pool  
WCRP’s Washington Counties Property Program (“WCPP”)  
Starting with 2006-07, coverage for participating counties’ property losses was added to the Pool’s  
programs as a member-by-member option. It has been jointly-purchased from highly-rated commercial  
carriers. For 2013-14, the WCPP coverage was acquired from the following consortium of carriers:  
WCPP  
Participating  
Counties  
Adams  
Benton  
Chelan  
Clallam  
Clark  
Columbia  
Cowlitz  
Douglas  
Franklin  
Garfield  
Grays Harbor  
Island  
Program Elements  
Jefferson  
Kittitas  
Total Insured Values  
Composite total $2.7 billion.  
Lewis  
Mason  
Covered Peril: 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.  
Okanogan  
Pacific  
Pend Oreille  
San Juan  
Skagit  
Coverage Limits  
$500 million - All covered Perils, excluding EQ & FL  
$200 million - Earthquake  
$200 million - Flood with:  
$25 million Special Flood Hazard Areas  
Noted Sublimits:  
Skamania  
Spokane  
Thurston  
Walla Walla  
Whatcom  
$100 million - Equipment Breakdown / Boiler & Machinery  
$20 million - Terrorism  
Deductibles and Aggregated Limits  
All Covered Perils: Participating counties selected their occurrence deductible amounts from the  
following options (in thousands): $5, $25 or $50. Earthquake and Flood deductibles vary with specific  
circumstances as catastrophe losses were subject to higher deductibles. The AOP coverage limit  
applied to any occurrence regardless of whether losses affected one or multiple participating counties,  
and there were no annual aggregated limitations. Flood and Earthquake coverages had annual  
aggregate limits of $200 million each.  
Page 13  
Washington Counties Risk Pool  
From Claims Manager Susan Looker, AIC  
Member counties continue to manage their operations and risks as their resources and budgets get tighter. WCRP strives to  
support its members in as many ways possible. WCRP provides its members assistance through its pre-defense review  
program. This allows the counties access to resources or certain expertise that may not otherwise be available. This  
assistance occurs prior to actual claims being filed when certain criteria is met. Claims staff also provide various trainings  
and one on one consultations. We recently created a Contracts Manual, in conjunction with the pool’s broker, to assist  
counties in assessing their contracts’ adequacies, and then provided trainings on both the east and west sides of our state.  
There are multiple offices and departments that make up county government, each with risks. In the automobile liability (AL)  
area, there are many county drivers including public works personnel and sheriff deputies. In the general liability (GL) 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/public officials liability area (EL) (PO) there are unions, contracts,  
line and management employees, as well as elected officials.  
When claims are reported to WCRP, claims staff must timely review each claim and 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 is a dedicated staff of five. Mike Cook (Senior Claims Analyst) began his career in insurance in  
1982; Joe Campeau (Senior Claims Analyst) in 1986; Holly Fierro (Claims Analyst) 1996; and Lisa McMeekin (Claims  
Representative) 2008. Combined with me (1989), there are more than 114 years of claims/insurance experience addressing  
the member county claims.  
588 claims (and lawsuits) were added to the Pool’s claims database during Py2014 and raised the 26 years-to-date total of  
third-party liability claims submitted by WCRP member counties to 19,820. Four cases went to trial during PY2014, with two  
resulting in defense verdicts and two resulting in plaintiff verdicts. The Pool paid $12.6 million in indemnities and expenses  
during Py2014.  
With 19,461 designated as closed, only 359 claims remained classified as open at year’s end. Six of the open claims have  
loss dates preceding Py2004. 89 of the 359 claims open at the end of Py2014 were valued at approximately $38.1 million.  
Eight open cases were valued over $1 million; the collective value of these cases was $16.2 million. Of those eight cases,  
five involve joint and several liability potentials.  
Even though nearly 40% of submitted cases are resolved without any payments, $228.9 has been paid addressing the Pool’s  
claims to-date. 41% of the amounts paid ($93.7 million) were deductibles reimbursed by the applicable member counties.  
3% ($6.8 million) was covered under excess insurance policies and paid by the applicable commercial insurers. The  
remaining 56% ($128.4 million) represents the “risk shared” portion of the joint self-insurance coverage and paid from  
“pooled” funds—$61.6 million retained by the Pool itself and $66.9 million reimbursed by the commercial reinsurers.  
Open Events as of 9/30/14  
CASE DISTRIBUTION (Severity)  
Pool Year  
A-P (88-04)  
Q (04-05)  
R (05-06)  
S (06-07)  
T (07-08)  
U (08-09)  
V (09-10)  
W (10-11)  
X (11-12)  
Y (12-13)  
Z (13-14)  
Total Open  
Open Claims  
Value Range (between)  
Count  
7,905  
10,007  
645  
Percentage  
39.9%  
50.5%  
3.2%  
6
3
$0  
$0  
$.01  
$10,000  
$25,000  
$50,000  
$100,000  
$250,000  
$500,000  
$1,000,000  
Over  
2
4
9
11  
26  
34  
49  
68  
147  
359  
$10,000  
$25,000  
$50,000  
$100,000  
$250,000  
$500,000  
$1,000,000  
424  
2.1%  
353  
1.8%  
263  
1.3%  
124  
0.6%  
60  
0.3%  
39  
0.2%  
Page 14  
ALLOCATION OF INCURRED LOSSES by Claim Status, PTD through 9/30/14  
Status  
Incurred  
$ 34,328,954  
10,411,674  
Deductions  
$ 12,645,200  
6,404,174  
WCRP SIR  
$ 2,134,270  
1,072,500  
Corridor  
$ 6,846,718  
2,935,000  
7,215,447  
277,424  
Total SIR  
$ 21,626188  
10,411,674  
115,095,794  
31,600,809  
Insurers  
$ 12,702,766  
0
Open Legal  
Open Claims  
Closed Legal  
Closed Claims  
184,742,883  
35,101,207  
63,434,159  
24,476,626  
44,446,188  
6,846,759  
69,647,089  
3,500,398  
TOTAL  
$ 264,584,718  
$ 106,960,159 $ 54,499,717  
$ 17,274,589 $ 178,734,465  
$ 85,850,254  
Page 15  
Washington Counties Risk Pool  
Member Services  
The Member Services Division includes operational support as well as loss control, field services and other Pool-  
wide risk management activities. This includes marketing efforts, membership compact compliance, strategic plan  
administration, agency partnerships, 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  
they also meet with county officials to provide insight regarding losses and what can be done to stop those losses.  
WCRP normally 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 duties including  
orientations for newer appointees. Because of the training topics offered and the valuable networking  
opportunities, over a 95% rate of attendance by member counties at conferences is experienced.  
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. Jill Lowe, Loss Control Coordinator, meets yearly with each county risk manager to  
discuss how incurred losses can be reduced.  
Member counties must appoint a Pool director and alternate director, a Risk Manager and Claims Administrator.  
The Risk Managers and Claims Administrators are expected to work with elected officials and other administrators  
in their counties to reduce risks. These appointees must meet specific certification requirements within two years  
of appointment to their positions. Most Risk Managers and Claims Administrators serve in other capacities such as  
county attorneys, clerks of the board, budget and human resource officers, etc. Certification includes passing  
exams for AICPCU introductory courses. Five member 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 scholarships and grant  
funds for training opportunities, which are frequently  
used to address specific areas of concern and enable  
county employees to attend specialized liability related  
trainings. For example, Parks and Recreation, Human  
Resources, Law Enforcement, Corrections and other  
areas of liability concern.  
County Visitations  
Membership in the WCRP is not unlike being a  
member of a cooperative. The strength of the  
cooperative lies in the knowledge and participation  
of each individual member. Annually, Executive  
Director, Vyrle Hill, and Specialty Services  
Representative, David Goldsmith, meet with each  
member county’s leadership, County  
Commissioners/Councils and elected/appointed  
officials, to update them on the health of the Pool,  
Loss Control works closely with the Claims Division and  
the Risk Management Committee to develop trainings,  
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  
emerging areas of risks and exposures, claims  
activities, and costs for the WCRP coverage  
programs (liability, property, cyber risk/security).  
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.  
Marketing/Partnerships  
Part of the services offered by the WCRP is its  
breadth of county risk and claim knowledge. To  
this end, WCRP staff meets with partner  
organizations such as the Washington State  
Association of Counties, Washington Association  
of County Officials, Washington Association of  
Prosecuting Attorneys, and Washington State  
Association of Sheriffs and Police Chiefs to share  
and participate as a resource. Additionally,  
relatively passive marketing efforts are directed  
towards the eight counties in the state that  
belong to the Washington Rural Counties  
Insurance Pool. We reach out to these non-  
member counties and inform them of WCRP’s  
program and services that are available through  
membership.  
Loss Control Workshops offered in Pool Year 2014:  
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  
three locations throughout Washington State. In  
addition, Conducting Difficult Conversations, Conducting  
Effective Performance Evaluations, and Management  
and Supervisory Training workshops were presented.  
Val Van Brocklin, a nationally recognized presenter,  
spoke on Emerging Technology Risks and provided  
Leadership Tools to over 100 elected officials and  
managers in both eastern and western Washington.  
Cyber Security, Risk and Liability - A workshop on  
Cyber Security, Risk and Liability was offered. The first  
90 minutes provided county officials with information on  
current cyber risks, 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.  
The presentation was videotaped and placed on the  
Pool’s website to facilitate ongoing cyber education.  
Organizational Development  
Organizational development had three areas of  
focus in 2014: board development and  
recruitment, strategic planning, and member  
satisfaction. The Pool is experiencing a relatively  
high turnover of its members’ appointees  
resulting in a loss of institutional knowledge.  
Greater emphasis is being placed on succession  
planning for and orientation of the members’  
appointees to the Pool’s Board and liaison  
agents. Annually, the Board of Directors reviews  
the strategic plan, modifying it as appropriate,  
and then reviews the annual work program and  
the approach to implementing specific strategic  
elements. This feedback system assures that the  
strategic plan serves to guide the organization  
towards its mission.  
Other Loss Control Programs  
Risk Manager, Claims Administrator, Board  
Members – The Pool Board meets three times during  
the year to discuss Pool business and receive training.  
Property Insuring Alternatives, Contract Risk  
Management, Managing Disabled or Injured Worker and,  
Sexual Harassment were topics presented to meeting  
attendees. The summer meeting Roundtable included a  
full three hours dedicated to the sharing of challenges  
and achievements, and short presentations made by  
scholarship recipients.  
Finally, the biennial membership satisfaction  
survey was conducted at the conclusion of 2014.  
As in past years, the WCRP was rated as an  
effective and well run organization by its  
membership. With each successive survey, the  
ratings for the organization by the membership  
continue to grow, reaching an overall high rating  
of 4.71 (out of 5) in 2014. This satisfaction  
survey also provides specific information from  
which to review program and product delivery for  
each functional division.  
Law Enforcement/Corrections – Eighteen 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.  
Sample Policy Library, White Papers and  
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  
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.  
WCRP continues to focus efforts on recording training  
sessions and webinars for its website.  
AGRiP Re-certification  
WCRP was one of the first self-insured public  
pools to receive certification by the (national/  
international) Association of Governmental Risk  
Pools (AGRiP), by meeting advisory standards of  
excellence set by this peer organization. Over  
the years WCRP has continued to meet  
certification standards, and in 2014 application  
was submitted against an expanded and more  
rigorous set of standards. Once reviewed and  
approved, WCRP will continue its unbroken  
tradition as an AGRiP recognized organization of  
excellence.  
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.  
2013-14 TRAINING SNAPSHOT  
$7816  
Scholarship  
Awards  
7
15  
474  
3501  
Loss Control  
Workshops  
Locations  
Attendees  
Attendee Hours  
MEMBERSHIP Py2014  
Adams  
Benton *  
Lewis *  
Mason *  
Chelan  
Okanogan  
Pacific *  
Pend Oreille  
San Juan  
Skagit  
Skamania *  
Spokane *  
Thurston *  
Clallam *  
Clark (thru 4-28-14)  
Columbia  
Cowlitz *  
Douglas  
Franklin *  
Garfield *  
WCRP  
Members  
State  
% of  
State  
Population  
2,441,450  
44,958  
6,968,170  
66,456  
35%  
68%  
57%  
Area (Sq. Miles)  
Grays Harbor* Walla Walla  
Island  
Jefferson *  
Kittitas  
Whatcom *  
Yakima  
* Founding Member  
County Road  
Mileage  
22,308  
39,207  
# Bridges  
2,063  
6,956  
3,281  
N/A  
63%  
N/A  
# Vehicles  
# Worker Hours  
22,682,358  
Page 18  
Washington Counties Risk Pool  
FREQUENCY of 3rd-PARTY LIABILITYOCCURRENCES  
Summarized Data at the close of Py2014  
1,225  
1,050  
875  
700  
525  
350  
175  
0
35  
30  
25  
20  
15  
10  
5
0
POLICY PERIODS  
Reported (Thru Py2014)  
Actuarial Ult. Est.  
Worker Hours  
WCRP Members  
Categorized Liabilities & Net Position  
$40  
$35  
$30  
$25  
$20  
$15  
$10  
$5  
NET POSITION  
A/P, Other &  
Accrued  
Liabilities  
JSILP & WCPP  
Rate  
Stabilization  
JSILP Claims  
Reserves  
$0  
$5  
Page 19  
WASHINGTON COUNTIES RISK POOL  
COMPARATIVE STATEMENT OF NET POSITION  
AUDITED  
FY-2004  
FY-2008  
FY-2012  
FY-2013  
FY-2014  
ASSETS:  
CURRENT ASSETS:  
Cash and Cash Equivalents  
Cash and Cash Equivalents - Restricted  
Investments  
$
10,897,279  
300,000  
$
19,317,651  
$
21,544,798  
14,695,575  
$
17,745,096  
$
8,733,724  
-
26,135,502  
33,265,546  
JSILP Deductibles, Reinsurance & Excess Receiva-  
JSILP Assessments Receivable  
Member Reassessments Receivable  
WCPP Assessments Receivable  
Prepaid Expenses  
1,966,318  
2,460,710  
4,350,187  
2,639,448  
943,787  
-
412,721  
6,647,496  
-
1,019,378  
897,477  
524,721  
892,124  
2,697,024  
1,263,222  
2,857,829  
3,500  
140,530  
702,421  
4,375  
13,569  
369,702  
2,960  
11,672  
-
-
Other Accounts Receivables  
TOTAL CURRENT ASSETS  
$
$
19,974,494  
$
29,961,103  
$
$
41,159,087  
$
$
46,017,808  
$
46,343,850  
NONCURRENT ASSETS:  
Total NonCurrent Assets  
558,386  
$
1,103,766  
950,134  
919,442  
$
1,069,560  
TOTAL ASSETS  
$20,532,880  
$31,064,869  
$42,109,221  
$46,937,250  
$47,413,410  
LIABILITIES:  
CURRENT LIABILITIES:  
Claims Reserves - "SIR"  
Reserves for Open Claims  
IBNR Claims Reserve  
Claims Reserves - "Corridor(s)"  
Reserves for Open Claims  
IBNR Claims Reserve  
Accounts Payable  
Unearned Revenue - Members Assessments  
TOTAL CURRENT LIABILITIES  
$
4,023,310  
7,326,163  
$
2,898,097  
4,395,431  
$
2,486,685  
1,814,161  
$
1,029,553  
2,017,431  
$
807,091  
1,225,000  
2,577,571  
591,462  
11,680,556  
23,368,117  
4,853,147  
4,554,868  
117,772  
14,339,071  
28,165,704  
2,106,958  
35,990  
9,692,978  
21,078,441  
44,729  
14,797,219  
17,888,932  
103,385  
13,148,498  
16,165,933  
$
$
$
$
$
$
$
NONCURRENT LIABILITIES:  
Claims Reserves - "SIR"  
Reserves for Open Claims  
1,973,957  
410,985  
1,611,469  
274,425  
IBNR Claims Reserve  
Claims Reserves - "Corridor(s)"  
Reserves for Open Claims  
IBNR Claims Reserve  
"$8Mx$2M 10% Quota Share" Reserve  
Reserve for ULAE  
Accrued Liabilities (Compensated Absences)  
JSILP Rate Stabilization Account  
WCPP Rate Stabilization Account  
TOTAL NONCURRENT LIABILITIES  
2,545,642  
5,472,852  
150,000  
1,015,285  
93,662  
661,000  
2,090  
12,325,473  
4,501,089  
4,232,871  
130,000  
1,015,858  
112,594  
-
$
643,552  
60,820  
$
860,564  
57,684  
$
986,717  
93,783  
-
$
704,372  
$
918,248  
$
1,080,500  
$
$
11,878,306  
TOTAL LIABILITIES  
$
21,782,813  
$
24,286,365  
$
29,246,204  
$
30,214,405  
$
28,044,239  
NET POSITION:  
Restricted - WAC 200.100.03001(3) Compliance  
Restricted - WCRP Underwriting Policy Section D  
Restricted - Franjo Beach Property Recovery  
Capital Assets Net of Debt  
$
797,841  
4,036,935  
-
950,134  
7,078,107  
$
920,000  
11,580,000  
-
919,442  
3,303,403  
$
(1,808,319)  
$
5,674,738  
558,386  
1,103,766  
1,069,560  
18,299,611  
Non Restricted Net Position  
-
-
Total Net Position  
$
(1,249,933)  
$20,532,880  
$
6,778,504  
$
$
12,863,017  
42,109,221  
$
$
16,722,845  
46,937,250  
$
$
19,369,171  
47,413,410  
TOTAL LIABILITIES AND NET POSITION  
$31,064,869  
Page 20  
WASHINGTON COUNTIES RISK POOL  
STATEMENT OF REVENUES AND EXPENSES  
AND CHANGES IN WCRP NET POSITION  
AUDITED  
FY 2012  
FY 2004  
FY 2008  
FY 2013  
FY 2014  
OPERATING REVENUES:  
Member Assessments -- Liability Coverage  
$
9,544,842  
$
9,141,287  
$
11,648,053  
$
11,487,536  
$
11,727,035  
Member Assessments -- Property Insurance  
Reassesments for Prior Years  
Miscellanous Operating Income  
2,322,428  
2,799,807  
2,927,485  
3,072,645  
2,100,000  
42  
100,000  
107,627  
150,000  
150,000  
Total Operating Revenues  
$
11,644,885  
$
11,563,716  
$
14,555,487  
$
14,565,021  
$
14,949,680  
OPERATING EXPENSES:  
Current Year's SIR Reserve  
$
1,900,000  
1,150,769  
$
1,264,343  
(251,088)  
1,825,000  
$
1,605,472  
(1,913,306)  
2,375,000  
$
1,531,606  
(1,905,071)  
3,600,000  
(1,795,695)  
150,000  
$
1,259,129  
(1,075,806)  
3,625,000  
360,768  
-
(20,000)  
573  
3,593,317  
505,630  
70,205  
-
Prior Years' SIR Reserves Adjustment  
Current Year's "Corridor" Reserve  
Prior Years' "Corridor" Reserves Adjustment  
Current Year's "10% $8Mx$2M QS" Reserve  
Prior Years' "Quota-Shared" Reserve Adjustment  
Reserve for ULAE  
93,552  
6,790,566  
303,025  
40,932  
3,806,063  
302,581  
82,209  
142,510  
5,602,250  
454,345  
56,513  
28,568  
3,199,125  
480,125  
66,365  
730,000  
2,798,095  
Reinsurance Premiums  
10x10 Excess Insurance Premiums  
Optional 5x20 Excess Insurance Premiums  
JSILP Rate Stabilization Account  
Property Insurance Premiums  
2,260,094  
2,726,208  
2,959,396  
WCPP Rate Stabilization Account  
Depreciation Expense  
2,090  
51,673  
-
70,000  
64,282  
70,947  
55,831  
Operating Expenditures  
915,451  
1,341,814  
1,677,653  
1,879,943  
1,884,321  
Total Operating Expenses  
$
11,217,645  
$
10,742,895  
$
12,782,476  
$
10,816,824  
$
13,232,533  
Operating Income  
$
427,240  
$
820,821  
$
1,773,011  
$
3,748,197  
$
1,717,147  
NON OPERATING REVENUES (EXPENSES):  
Interest Income  
$
74,129  
2,700  
$
630,365  
10,314  
(2,114)  
-
$
47,004  
17,269  
(6,319)  
2,000  
-
$
150,638  
30,731  
(5,215)  
$
219,858  
34,996  
(8,587)  
19,778  
2,133  
Rental Income on Suites 104 & 110  
Suite Rental Expenses  
Gain (Losses) on Capital Asset Disposition  
Miscellaneous Income  
855  
1,487  
Fraud: Recovery of Franjo Beach Property  
-
(66,010)  
Total Nonoperating Revenues (Expenses)  
$
$
76,829  
504,069  
$
$
$
$
639,420  
1,460,241  
5,318,264  
6,778,505  
$
59,954  
1,832,965  
11,030,052  
12,863,017  
$
$
$
$
111,631  
3,859,828  
12,863,017  
16,722,845  
$
$
$
$
268,177  
1,985,325  
16,722,845  
CHANGES IN NET POSITION  
$
TOTAL NET POSITION, Beginning of Year  
$
(1,754,002)  
(1,249,933)  
$
$
Prior Year Adjustment  
TOTAL NET POSITION, End of Year  
661,000  
19,369,171  
$
Page 21