Title
Resolution Approving Third Party Administrator Memorandum of Understanding for General Risk Retention Claims Processing
Body
Department: Financial & Administrative Services
Council District: All
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Richard Lusk, Finance Director 373-2077
Contact 2 and Phone: Bobby Fitzjohn, Financial Reporting Manager 373-2271
PURPOSE: To approve a Memorandum of Understanding with Sterling Adjustment Company for third party administration of general risk retention claims processing on behalf of the City.
BACKGROUND: The General Risk Retention Fund accounts for risk retention expenses incurred by the City which includes self-funding of general liability, automobile liability, public official liability and law enforcement liability claims. The Fund is supported by internal charges assessed to the various departments within the organization based on claims history.
The City's risk program utilizes the services of the Guilford City/County Insurance Advisory Committee ("Committee") to perform a variety of insurance-related functions. The Committee serves as the first point of contact to begin the claims adjustment process and sends claims electronically to the Third Party Administrator (TPA) in order to contact the claimant and act on behalf of the City as a claims adjuster. The TPA's settlement authority to pay out claims is limited to $25,000 for bodily injury and $50,000 for property damage. Claims above these amounts are required to be approved by the City's Legal Department. For consistency in claims handling, the specialized nature of this professional service ideally requires a local dedicated adjuster with a minimum of five years governmental experience.
The TPA Request for Proposal process began with the Committee contacting 10 vendors in the ten-county M/WBE plan area in which Greensboro is located. The M/WBE office was not able to identify any TPA vendors within the ten-county area with claims...
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