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Grundy County insurance trust reports $853,000 in total incurred claims; budgeted county contribution to cover majority of loss
Summary
At the GCIT meeting trustees heard that 15 claims are open with $853,000 total incurred, law-enforcement claims account for the largest share, and the insurance trust expects a county contribution to cover most of the year-to-date shortfall.
At a meeting of the Grundy County Insurance Trust, a presenter reviewing the financial summary said the trust had a negative variance of a little more than $55,000 for the quarter and that 15 claims are currently open with $853,000 total incurred.
The trust’s financial health matters because open claim costs and legal expenses determine whether county contributions and the insurance trust balances will cover year-end liabilities. The presenter and other trustees discussed the composition of claims, subrogation recoveries and investment strategy for the trust account.
"If you turn to your financial summary, we'll take a quick look and see from the last quarter, we have a negative variance of a little over $55,000," the presenter said. The presenter said the term that began Dec. 1, 2024, includes 10 losses recorded so far, eight involving county vehicles, and that the smaller group of those 10 had total incurred below $35,000.
The presenter reviewed open claims by coverage code. "The first is law enforcement," the presenter said, noting five law-enforcement claims with a little over $600,000 total incurred and that two of those five are close to closure, with one settled and another dismissed by the plaintiff's attorney. The presenter also listed general liability, bodily injury, public officials liability and six open auto physical damage claims among the 15 open matters.
On subrogation, the presenter said the trust has reviewed 40 claims dating to Dec. 1, 2020, with total paid on those cases of about $676,000 and recoveries of about $238,000, a roughly 35% recovery rate. "Not all of these have viable subrogation," the presenter said, noting some incidents are not appropriate for recovery.
John, a claims representative, reported six new claims in the last quarter including two tied to a transit bus backing into a parked vehicle, a sheriff's vehicle damaged during arrest of a suspect, and two professional law-enforcement cases (one dismissed and one alleging refusal of medical care on intake). A separate report-only claim involved another county vehicle being struck by an adverse driver.
The trust's accounting and investment adviser, Mike of Studio Vancetti, reviewed the portfolio and said the account favors short-term bonds and cash. He reported a trailing one-year net return and said the portfolio is designed to mature by the second half of 2027 so funds are available for claims. He noted Federal Reserve policy will affect yields and that the Fed had recently left rates unchanged.
On budgetary implications, a trustee noted the insurance trust recognized a loss of around $639,000 through May and that the county’s year-end budgeted contribution of $550,000 is expected to cover most, though not all, of the year-to-date loss; the budget had earlier forecast a possible loss up to $325,000 depending on legal and claim costs. The presenter said administrative annual costs (insurance premium, admin fees and audit) have been paid for the year.
Trustees approved the Studio Vancetti report and the financial report by recorded motion. No executive session was requested; trustees adjourned to continue with the next agenda item.
