skip to main content | plain text |

Search:

Find Service: I'm looking for... Bids & Proposals Cable TV Franchise Birth & Death Certificates Boards & Commissions Budget for the County Budweiser Events Center Building Permits Child Protection & Youth Services County Code County Store Courts Citizen Information Center Elections Employment Enterprise Zones Fair & Rodeo Food Stamps Forms Foster Care Land Use Code Landfill & Recycling Larimer Lift Liquor Licensing Location of County Offices Maps Marriage Licences Medicaid Meeting Agendas & Minutes Natural Resources News Releases Plans, Publications, Reports Policies & Ordinances Property Taxes Property Valuations Public Health Public Records Databases Roads Sales Tax Senior Services Special Event Permit Starting a Business in the county Televised Meetings Use Tax Vehicle Registration Veterans Assistance Volunteering Voter Registration Weed Control Wildfire Safety A-Z...

• Home
• Hot Topics
• Services A-Z
• Departments
• News
• Jobs
• Public Records
• How To
• Contact Us

LARIMER COUNTY, COLORADO
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1998

NOTE 6 - SELF-INSURANCE:

The County has established self-insurance funds (internal service funds) for dental, unemployment, workers' compensation, general liability, automobile liability and physical damage, law enforcement liability, professional liability and a self-insured reserve. Fees collected from other County funds are recognized as revenues in the period in which the insurance coverage is provided. Insurance claims are recognized as expenses as they are incurred. There have been no significant reductions in insurance coverage from coverage in the prior year. Insurance settlements have not exceeded insurance coverage for each of the past three fiscal years.

1. Dental insurance: County departments are charged a monthly fee per employee and employees are charged a monthly fee for any dependent coverage they request. Actual claims are processed and paid by a third party administrator for a fee based on the number of eligible employees participating during the month, plus any expenses for identifiable printing and postage. The third party administrator is reimbursed weekly from the Self-Insured Dental Fund.

2. Risk Management: County departments are charged a fee for direct costs of property and casualty based on individual departments' exposures. Liability claims are processed by a third party administrator for a fee per each claim processed. The third party administrator is reimbursed weekly from the Self-Insured Risk Management Fund. Personal injury limit is $150,000 per person, $600,000 per occurrence as stated in the Colorado Governmental Immunity Act. Property insurance is provided by a commercial insurance company with a $10,000 deductible and a limit of liability per occurrence of $75,000,000. In 1998, excess liability insurance was purchased with Self-Insured retention of $500,000, to be paid by the County, with additional coverage of $3,000,000 limit of liability to be paid by a commercial insurance company.

Workers' compensation: County departments are charged a fee per $100 of gross wages based on the relative risk of each employee's position. Actual claims are processed and paid by a third party administrator for a fee per each claim processed. The third party administrator is reimbursed weekly from the Self-Insured Risk Management Fund. The maximum self-insured liability per person is $300,000. Any excess is covered by a commercial insurance company.

3. Unemployment insurance: County departments are charged 0.15% of gross wages for unemployment coverage. Actual claims are processed and paid by the State of Colorado. The State is reimbursed quarterly from the Self-Insured Unemployment Fund.

4. Reserve: The Reserve is funded by annually appropriated transfers from the insurance funds. In the event that an insurance fund has a deficit, funds are transferred back to it from the Reserve. The Self-Insured Reserve's fund equity detail by type of insurance is as follows:

Changes in the balances of claims liabilities during 1997 and 1998 are as follows:

		Current Year
		Claims and
	Balances	Changes in	Claim	Balances
	1/1/97	Estimates	Payments	12/31/97
Dental	$ 35,576	$ 375,330	$ (367,254)	$ 43,652
Risk Management	900,780	768,858	(833,807)	835,831
Unemployment	29,950	54,702	(45,026)	39,626
		Current Year
		Claims and
	Balances	Changes in	Claim	Balances
	1/1/98	Estimates	Payments	12/31/98
Dental:
1997	$ 43,652	$ 6,383	$ (50,035)	$ -
1998	-	397,698	(361,857)	35,841
	$ 43,652	$ 404,081	$ (411,892)	$ 35,841
Risk Management:
1986 - 1993	$ 292,059	$ 49,581	$ (60,640)	$ 281,000
1994	160,825	39,920	(125,940)	74,805
1995	115,418	(34,957)	(79,890)	571
1996	63,517	198,684	(41,546)	220,655
1997	204,012	229,430	(288,579)	144,863
1998	-	817,807	(357,042)	460,765
	$ 835,831	$ 1,300,465	$ (953,637)	$ 1,182,659
Unemployment:
1996	$ 15,769	$ (3,495)	$ (12,274)	$ -
1997	23,857	41,427	(50,030)	15,254
1998	-	32,698	(4,919)	27,779
	$ 39,626	$ 70,630	$ (67,223)	$ 43,033

The claims liability reported in each fund is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Estimated liabilities, including claims incurred but not reported and/or paid as of December 31, 1998, are listed on the following page:

		Risk
December 31, 1998	Dental	Management	Unemployment	Total
Current Claims Payable:
1986 - 1993	$ -	$ 145,927	$ -	$ 145,927
1994	-	25,385	-	25,385
1995	-	146	-	146
1996	-	105,568	-	105,568
1997	-	48,051	15,108	63,159
1998	35,841	382,135	23,540	441,516
Total Current	35,841	707,212	38,648	781,701
Long-term Claims Payable:
1986 - 1993	-	135,073	-	135,073
1994	-	49,420	-	49,420
1995	-	425	-	425
1996	-	115,087	-	115,087
1997	-	96,812	146	96,958
1998	-	78,630	4,239	82,869
Total Long-term	-	475,447	4,385	479,832
Total Claims Payable	$ 35,841	$ 1,182,659	$ 43,033	$ 1,261,533

Back to 1998 Financial Report