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54 °F 5 Day Forecast Friday, November 28, 2003 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | eSouthernOregon | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA Newspaper in Education Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find a Rental Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Email Story to a Friend October 12, 2003 Insurance reserve fund has become a safety valve By JONEL ALECCIA Mail Tribune A recent spate of high-profile — and high-stakes — legal settlements against Jackson County could be a preview of the future, a financial expert said. "The kinds of things that have happened in the last three or four years are more in line with what we’d expect to be happening," said Richard Sherman, the county’s actuary, an insurance risk forecaster. "Before that, Jackson County was kind of a blessed place." For years, in fact, Jackson County carried no excess insurance at all for property, auto, worker’s compensation and general liability because claims were so small and so rare, Sherman said. When a claim came due, the county simply paid it in full. Advertisement That’s a striking difference from this year’s budget, which includes excess coverage requiring a $3.1 million self-insurance retention fund, the largest in the county’s history. It’s like a regular car or home insurance policy, but with an extremely high deductible. In the 2002-2003 budget, Sherman recommended that the county set aside $1.6 million for the reserve. He doubled that figure for 2003-2004, after reviewing data that now appear flawed. The large reserve will remain, however, as the county struggles to forecast pending legal claims, said Dave Kanner, deputy county administrator. Years 2001 and 2002 saw a spike in liability, property and automobile claims, county figures show. In 2001, 108 claims with an aggregate value of more than $1.1 million were filed; in 2002, 91 claims with a value of more than $225,000 were filed. (Those values include only initial payments on multi-year claims.) In 2003, by contrast, 65 cases with an aggregate value of $58,000 were filed. In 2001, 86 worker’s compensation claims were filed with a total cost of nearly $295,000, figures showed. Jackson County Counsel Mike Jewett has a simple explanation for the recent rise in settlements. "Well, we’ve been getting sued a lot," he said. He’s reluctant to reveal pending claims or to speculate about potential settlements. "This is an adversarial deal," he said. "It’s like trying to play poker and the other guy can see your cards." Kanner said county officials have implemented stricter personnel and safety policies to keep claims — and insurance reserves — down. "We just got hammered by those two aberrant years," he said. Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback 3 WEEKS FREE! ADVERTISERS SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Real Estate Showcase Food for Thought Hike of the Week Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Openings Prime Times