HomeMy WebLinkAboutIR 7599 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7599
To the Mayor and Members of the City Council April 14, 1992
Subject: CLAIMS AND LAWSUITS RESERVES
un
During a City Council work session, Councilman Meadows asked a question regarding
the reserving practices of the in-house claims adjusting program wherein the Risk
Management Department sets and maintains reserves on claims filed against the
City for automobile liability, general liability, and law enforcement liability.
Attached is a list of cases that compares reserves and payments. The cases
listed were randomly selected from our records of closed files for losses that
occurred during 1990 and 1991. Although lawsuit files were included in the
sampling universe, no lawsuits were selected through the random selection
procedure. Therefore, all cases in the sample were handled as claims.
The attached sample of reserves indicates that, overall, only 63.81 percent of
reserves were expended in claim settlements. The general liability property
damage (GLPD) claims were over-reserved by $42,839.38. These claims are usually
denied according to the provisions of the Texas Tort Claims Act. However, a
reserve of 50 percent of the damages claimed is established as a standard
procedure in recognition of the possibility of a compromise settlement in the
event that some liability is determined as the case develops. The "rule of
thumb" reserve in these cases will be reduced to 25 percent in the future to
improve this ratio of actuals to reserves.
This department's newly implemented claim information system will generate
periodic reports similar to the one attached for each adjuster on the Risk
Management Department staff. These reports will be used to review and maintain
reserves on claims. In addition, the adjusters meet at least quarterly with the
Assistant City Attorneys to keep reserves on lawsuits current and the Risk
Management Director personally reviews all case reserves with the adjusters at
least biannually.
Case reserves are not currently relied upon solely as the basis for setting
budget requirements for claims and lawsuit expenses and payments. An estimated
annual cash "pay as you go" requirement for claim and lawsuit settlements and
associated expenses is primarily used as the basis for determining budget
requirement. Reserve information is reflected in the City's financial
statements and forecasts, however, and therefore, reserves are and will continue
to be closely monitored in the Risk Management program.
Please let me know if you desire additional information.
Q"G-&
Bob Terrell
Interim City Manager
Attachment
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
OW
Total Actual As a Over
Claim Type Amount Actual Percent of (Under)
Number Claim Reserved Payout Reserved Reserved
91-081501 ALBI $250.00 $.00 .00% $250.00
90-0110601 ALBI $5,500.00 $14,000.00 254.55% ($8,500.00)
90-011301 ALBI $2,500.00 $1,500.00 60.00% $1,000.00
9C-061801 ALBI $7,500.00 $.00 .00% $7,500.00
90-070901 ALBI $5,000.00 $3,367.86 67.36% $1,632.14
90-071301 AI-BI $4,500.00 $7,500.00 166.67% ($3,000.00)
90-080101 ALBI $4,500.00 $3,000.00 66.67% $1,500.00
90-081101 ALBI $10,000.00 $25,000.00 250.00% ($15,000.00)
90-082801 ALBI $2,000.00 $.00 .00% $2,000.00
90-092001 ALEI $100.00 $.00 .00% $100.00
90-111901 ALBI $ioo.oc $.00 100% $100.00
90-1142601 ALBI $2,000.00 $.00 .00% $21000.0c
$43,950.00 $54,3611 .86 123.70% ($10,417,86}
,IV.VV $.00 .00% $250.00
A
K-CIC701 A"'?D $300.00 $.00 .00% $300.0V
9 1-r%", :w-
"1.1.?D $500.00 $140.00 28.00%
91-0-1 9 IM,"It el"2100.00 $.00 .00% el
e W- 4.00.00
4^JO,VO 4067. 94 97.77% $--4.% V 0%r
91-0?1 2c ALFD $2,700.00 $2,700.00 '100.00% $.00
A't�-, d*,�E� .M 0 lil .�^ 2)
-e, " V $-,vmo.,j2 L-.L �-.)% ($40.34
$^ro. A� 1 Ij, 16,C%
7%11"F D 11 %.0 V 4.:00.00 $.00
L 11) :460.0 $457.37 99. 43% $2- 63
91-042402 Al, " t400 .00 $372. 88 93.22% $27.12
� V
t!6 7
V It.00 V6; $600.00
w
VV V-i 4c;
$244.00 $243.6-7 99.84% $.:S
S1 0612"3 1 A L F, $100.00 $.00 .Oc% VV.00
I
0 ..:-st.3n ' 01 t.90)
�p � V 00. 4V C,
tco^.In 'no�
V $800.00 C V
91-C
$175.1.-0 $-r,no
$100.00 57-14% 1
350-00 $1,152. 14 1 C 3. I E% ($2.14)
110
s,C 0
91-0925^1 $--I C V, $211.24 99. 64%
91-110^0901 pn It 1 ' 6511 .00 $1,539.37 93.33 $110 .0
.I V
&, ,,,
V� , -V.vv I d.0 105.20%
V ni 1 283.41 ($61 .41)
t-:) $4,5"0.00 0'1 $4,872.3.3 1"8.28%
�V VV
$4,000.00 $6, 663.70 166.59% (&V2 , 66-'n .7AVj%
ALK) 45,000.00 $4,000.00 e0.00% 1,IV, C,0
D $205.00 $204, 25 99. 63 . $.75
tIn $3_'_. C'4 16.118
V $477.72 ' 8-1 .98% V
90-0307"1 AL?D $500.00 $469J7 93. 93%
ALPD $410.0" $.00 1^1 0% V
9 0-0;3 22 3 C ALPD $750.00 $617.89 82.11SA
91�-^ 3
V $400.00 $356.73 $9.20% $41-22
-V VV 65. 62%
PL?- $300.00 - 69
ALP- $1, 200.00 $iI322. ?3 110.414%
A'L $500.00 $498.15 9S, 63% $1.8_`1
dk"S^ ^� C, 05
$45;.25 %
WI " V. L.-
OW Total Actual As a Over
Claim Type Amount Actual Percent of (Under)
number Claim Reserved Payout Reserved Reserved
90-052501 ALPD $390.00 $387.20 99.28% $2.80
90-060801 ALPD $2,500.00 $2,752.08 110.08% ($252.08)
90-0612C4 ALPD $1,030.00 $511.13 49.62% $518.87
90-061304 ALPD $300.00 $275.28 91.76% $24.72
90-062502 ALPD $508.00 $507.40 99.88% $.60
90-070901 ALPD $2,500.00 $1,441.14 57.65% $1,058.86
90-071301 ALPD $750.00 $1,000.00 133.33% ($250.00)
90-080101 ALPD $1,000.00 $891.67 89.17% $108.33
90-080701 ALPD $150.00 $138.85 92.575 $11.15
90-081131 ALPD $2,000.00 $1,115.00 55.75% $885.00
90-081501 ALPD $300.00 $276.80 92.27% $23.20
010-0s2001 A L F.D $700.00 $.00 .00% $700.00
90-082801 AL PD $1,000.00 $.00 .006 $1,000.00
?0-0cn ICI A --F D $380.00 $377.05 99.221% $2. 95
$Iro,,.Oo r ' 9% $52
ALPD ,� V $*z'17. 9vm 6..�..1. 4 2.10
90-I_2 C I AL?D $1,750.00 't.00 .00% $1,750.00
$50,416.7-7 $12.2,945.33 85.18% $7,471.39
$ �^
$7,500.�10 .V V 0090 $7,500 .00
$..A.C.40 49.74%
$2$234.00� $117. 60
t3,0^0,00
V $.^Vo .00% $31000.00
0,1-0fC4^;2 G I. $9^^. f%,E $879. 60 97.73% $20 .0
$2cm . 110 $153.00 76. 50% $47 ,00
V
CL! 100^.00 eI'000.00
C.-r t , rm ^n
^^0 .00 40.0010 V 0^
. V
0 $500.00
.0^
90-02:71 $.00 .00%- VVV VV
V.V %J1.
V
V,) C $.00
t�r - t1r^.00
$,^r,.00 l .Vn
r:1 r� e.,N f, ^I
Cos
90-C-71CC4 0 k.V- VVQ V,
$2,500.00 $1,850.00 74.00% $650.00
9c-^8250-1 GIB: $2,500.00
$.CO .00% 52,500.00
90-1I.,V-I-1^^
- GIBI $:, SV-0.00 $.01,1, CV^9. $2,500.00
9^-1,IIA^l ^.r,^ t"^M.00
V J. V.L GiJE: $Ico.cc V V CVI% �.L kr V
--- $2,5�x'0,00 S500.00 20.00 $2,000.00
$4S,13*2.00 It-' 3E9.14 25.120 $33,944.86
$18r.^M t185.00
L Ij V V VV
$I"2.00 $.00 .00% $102.00
91-011 05 C1 PD $55.00 $.00 .00% $55.00
$.C,, .006 $21.00
91-012502
GIF-D $1, 500.00 $.00 .0090 r^^.mo
L
V'L $.00 .00". 60 0^1
GLPD $210.00 $.00 .30% ^ .Vv
$250.00 $-00 .011,11% $45. "
Total Actual As a Over
Claim Type Amount Actual Percent of (Under)
Number Claim Reserved Payout Reserved Reserved
91-021301 GLPD $300.00 $270.94 90.31% $29.06
91-022103 GLPD $200.00 $.00 .00% $200.00
91-030101 GLPD $5,000.00 $.00 .00% $5,000.00
91-030402 G?PD &500.00
Y $.00 .00% $500.00
91-030601 GLPD $1,850.00 $1,840.25 99.47% $9.75
91-031601 GLPD $200.00 $.00 .00% $200.00
91-031904 GLPD $250.00 $.00 .00% $250.00
GLPD $250.00 $.00 .00% $250.00
91-041107 GIPD $700.00 $.00 .00% $700.00
,"
911-041204 C Air D $11500.00 $.00 .00% $1,500.00
91-04-701 GLPD $125.00 $100.72 80.62% $24.22
91-0*12201 1 G L-r:) $2,"00.00 $260.90 13.05% $1,739.10
91-04:0842 IGI L P D $185.00 $.CC .00% $185.0C
-FD 0--,^An.00 ".Co .00% $2,000.00
91-050303 GLPD x5^.00 $.00 .00% $5C+00
00
rTr:
$406.00 $406.00 100.00% $.00
91-05400 GLPD $OVV $.00 .00% $800.00
91-05:303 G-.r:
$400.00 $.00 100% $400.00
91-062402 GLPD $25.00 VI C% $25.00
5'-0,.1:5 (7-t-D
$347.34 $347.34 100.00% $.00
-0101C
GLPD $3177.00 $37" .r%C :O^V.Vn^V% $.00
^0.00
.00% 2 0
$,;.00.00 $.010 .00% $100.C:
.
si- "2502 G:I-D .00 $.00 . 000, $100.00
$.00 .00% $40,00
._FD $200 .00 10^v% $2:0,110
.00% $45.0^0
9i-0°1 ^ $500 0
0 % $,L C C*
C, t-'. -
V V �V
~L..D 1�dv V 0 rI%
6
C-L D $65C.00 $.CI^ CC91 $ V nn
rv,
Do $.00 %
51'--"-0- $501.rID $4"I . SC 95,00%
�
$270.00 4>.0L CC%
90 $9 0.rv,L" $8�.13 99.0,)Oo $.87
90-Al "C G
V--- - F $100.V $.0V .00% $I00.00
G P $2,500.00 y.,vU
*
GLF-
250.00
00 .00% $50^,0:
70 GLFD $500 .0,^
nn n,nlni GIF- $60.00 A�
.00% r
V
D $-^0.00
G AL P.Lj �V
et- .CC
V G i.F V $,.0 0 C 00 cIv Ck
C v 1 M3. i 1%. $,-.r^)
", $412.SO V 'v
c ,
V -.L V- GL!-D $22C,03 $2119.00 59.559.5,x`: C.
- ,500.00 $.00 - C0^.00
*I-
J-- $2,500.00 $.00 .00%
"X00.ICM
OC-03.1202 & V $.00 .00 W.L L V V V,J
^ 0
^
GLPD $150.00 $.0C V 0'0 W tlro.c V
.7V-V--V.
m- $72.00 V^O%
ll �
90-C3_19 $775.38 77.94% $220. 62
Total Actual As a Over
Claim Type Amount Actual Percent of (Under)
Number Claim Reserved Payout Reserved Reserved
90-040201 GLPD $70.00 $.00 .00% $70.00
90-041104 GLPD $300.00 $298.17 99.39% $1.83
90-041802 GLPD $200.00 $250.00 125.00% ($50.00)
90-042003 GLPD $280.00 $100 .00% $280.00
90-050101 GLPD $1,000.00 $.00 .00% $1,000.00
90-050106 GLPD $200.00 $.00 .00HS $X0.00
90-050111 GLPD $11000.00 $.00 .00% $1,000.00
90-050116 GLPD $700.00 $.00 .00% $700.00
90-050121 GLPD $500.00 $.00 .00% $500.00
90-050201 GLPD $45.00 $.00 .00% $45.00
90-^5C4C2 GLPD $2Cw.00 $.00 ,CO% $200.0C
90-050704 GLPD $25.00 $.00 .00% $25.00
Sn-051101 G1PD $50.00 $.CC .00% $50.00
90-051609 GLPD $100.00 $.00 .00% $1010.00
90-C5�101 GLFD $30.00 $31.02 103. 40% ($1 .02'
KV-053102 GLPD r500.0C $286.62 57.32% $213.38
90-G-CIC5 GLPD $F0C .00 $.00 .00% $500.00
90-C^1002 GLPD $1,200.00 $.00 .00% $1,200.00
9C-061502 ^:� D $I ,35 .GC $759.30 56.24 , $590.70
901-062 J2 G=""u $100.00 ;:00. 00 1Cu.00% $.00
SG-CE^?011 G_^D MSC.cC $.00 00$ $50.00
90-070332 GLs^ $425.00 $.00 .ode $425.CC
r►. 901-^+, "" GLF. $300.001 $229.fi9 '760. 60% $70 .21
S0-C8^'03 GLPD $100.CC 4 .00 100% $100.00
90-090201 GLPD $1,10^ .010 $.00 .00% $1,100.00
,y..^D o17V .dJ ,x.00 ,V0% r'7V.VV
Ma
901-C9�501 G2 F` $131.00 $130.20 4S.39z $.80
SC-G9,E92 5C $58.0_ ;.^0.50% ($4.55}
90-092EC'a "^ .VV $6 7 .50 96.43% $2.00
,(1h,nn ♦T!+ �, 7, M1 nn M1+'�9 C+• CM1n M1
�i 5CV .0 $.V4• V.•[ ,'� , sV,� .G,+
SC-ICC4^n G" $374.0: $224. 95 611.15% $14?. 05
-C 'V"cal D $. OV.Cd $198.00 99.000 $2 .001
90-10170'_ GLP" $1,100.00 $.C^ 00% $i.,1�C.00
9 '? a 00.00 fi -r c
'1^S IV 1 L 4 C n M1 C [ , n
a,`c dV.: L L ya,J ,.,.0. 90 30.20' y9ii5. ..'
90-1022^2 GL P" $.00 OC.% $:"r .CO
90-1, n-.v r.-.+ � $500 .00
:.V:,V_ , .Od .^014 $500.00
90-11 3v0' GLPD $200.00 $.00 .00% $200.00
QM1 n,n, r. n*.a $- %,n.. ^00 ")C
V �_._._ �.'.�__ $ J. %, .00 .VOA $32.5.00
90-120"0'- GLPD $300.00 $13E.19 45.4096 $'E3.81
90-1.'^"' GL"D $45. 00 $45.00 100.00% $.00
9d-121401 GLr^D $250.00 $:35.00 54.0C9, $115.00
G..FD $55,01^ $.00 Oda wSJ.VV
90-1222C4 GLo-r, $400.00 $.00 .00% $400.00
90-010101 "L^D $10^.001 $.00 . 00% $100.00
$51,5.8.84 $£,679.46 16.85% $42,839.36
op
Total Actual As a Over
Claim Type Amount Actual Percent of (Under)
Number Claim Reserved Payout Reserved Reserved
90-072201 LEBI $2,500.00 $3,019.73 120.79% ($519.73)
90-040305 LEPD $1,000.00 $.00 .00% $1,000.00
90-072201 LEPD $1,000.00 $4,645.57 464.56% ($3,645. 57)
90-081703 LEPD $250.00 $.00 .00% $250.00
$2,250.00 $4,645.57 206.47% (0,39507)
TOTAL $195,969.0 $125,047.09 63.81% $70,922.47