School Board hears presentation on Worker's Comp status
The Picayune School Board of Trustees received a presentation from Beth Jarrell of Stewart Insurance Agency (Picayune) in regards to the current status of the school district’s Worker’s Compensation program and yearly premium for coverage.
Jarrell opened the presentation by telling the trustees that she had reviewed their current situation and felt the district needed a local advocate to help the district work through its current high rates for coverage due to the high Experience Modifier (MOD) and the risk history. Jarrell said that the district MOD of 1.65 could push the district into the risk pool which would limit the ability of the district to receive a better rate than the current quotes the district has received. Jarrell said that based on last year’s LUBA quote (district’s current provider) and pertinent information related to the district’s information, she submitted the information and the premium would be approximately $521,000.
Jarrell said the district was almost at “the point of no return and should get some really good advice” on how to work out of this situation in the future.
Jarrell introduced Greg Cullom of HUB International’s Gulfport, MS office as a possible agent for the district to begin to work with the district to begin working itself out of the current dire situation with the high cost of worker’s comp coverage and develop a customized plan for the district.
Cullom told the board that the data he has on the industry shows that premiums are coming down. He said that the premium is influenced by the experience (history) of the district which includes the loss runs and the MOD, but mainly the past five years of losses. Cullom said severity and frequency of claims has the biggest impact on the MOD along with medical and indemnity claims . Medical claims are discounted 70 percent, but indemnity claims are dollar for dollar according to Cullom’s explanation to the board.
Cullom asked the board and Matt Lee, the school’s director for worker’s compensation, a number of questions to understand how the school’s current provider is interacting and servicing the district to prevent incidents and accidents. Cullom stressed that he was confident he could help the district to put in loss prevention programs, protocols, and act as an agent to impact the district in a positive manner. He said he would like to be proactive in helping the district put actions in place to help the district work. Cullom pointed out that the MOD will go up because the school district will lose a good year of performance when the three year window of history and claims begins for the coming year.
Cullom presented the board with a one sheet overview of the services he would provide if appointed as their agent of record for worker’s compensation. The board took his request under advisement.
At conclusion of the meeting, Superintendent Dean Shaw confirmed that Coach Dodd Lee had submitted his resignation as head football coach. Shaw said Walt Esslinger is now the Assistant Superintendent for the district and Ms. Kristi Mitchell, one of the high school assistant principals, is now the Athletic Director for the school district, a responsibility held by Esslinger prior to his new position.