Meet cindy Mallett, Aic, cWcP, ARM-P

36 Pages·2011·9.54 MB·English

Published by the Public Risk Management Association www.primacentral.org MAy/June 2011
GeoRGiA Risk MAnAGeR BecoMes
PRiMA’s 33Rd PResident
Meet cindy Mallett,
Aic, cWcP,
ARM-P
do you see WhAt i see?
Interpreting Insurance Policy Language
sPeedy coMPlAint systeMs
Picking Up the Pace May Open the Door to Liability
BlAzinG the tRAils of Risk
PRIMA’s 32nd Annual Conference Preview
Why do We PAy clAiMs When it
seeMs We’ve done nothinG WRonG?
seven hABits of A hiGhly effective
Risk infoRMAtion systeM
The ever-changing world of public sector risk can perplex even
the most experienced professionals. That’s why it’s important
to partner with an industry expert like OneBeacon Government
Risks. With decades of public entity expertise, customizable
insurance solutions and industry specific risk management
services, our team will help make your entity a safer place to live
and work. And when something does go wrong, our dedicated
claims team can help you navigate the right solution.
To learn more, email: [email protected],
logon to onebeacongov.com or visit the PRIMA conference
booth # 721.
This program may be underwritten by one of the following insurance companies located
in Canton, Massachusetts: The Employer’s Fire Insurance Company, OneBeacon
American Insurance Company, The Camden Fire Insurance Association and OneBeacon
Insurance Company.
volume 27, no. 5 | May/June 2011 | www.primacentral.org
the Public Risk Management Association promotes
effective risk management in the public interest as an
essential component of public administration.
inteRiM executive diRectoR
Marshall Davies, Ph.D.
ContEnts
PResident
Laura Peterson, JD, MPA
Director of Risk and Insurance
University of Wyoming
Laramie, WY
PAst PResident
Ron Hayes
Risk Manager
Calcasieu Parish School Board
Lake Charles, LA
PResident-elect
Cindy B. Mallett, AIC, CWCP, ARM-P
6 11 Risk Manager
City of Gainesville
Gainesville, GA
diRectoRs
Betty Coulter
6 Georgia Risk Manager Becomes PRIMA’s 33rd President RCiistyk oMf aAnsahgeevmilleent Director
Asheville, NC
Meet cindy MAllett, Aic, cWcP, ARM-P
Matt Hansen, MPA
Director, Risk Management Division
By Jennifer Ackerman, CAE City & County of San Francisco
San Francisco, CA
Dan Hurley, CSP, ARM-P, MS
11 do you see WhAt i see?
Senior Director, Risk Management & Safety
Norfolk Public Schools
Interpreting Insurance Policy Language Norfolk, VA
Dave Parker, ARM-P
By Paree Roper
Risk Manager
Pima County Sheriff’s Department
Tucson, AZ
16 sPeedy coMPlAint systeMs
Marilyn Rivers, CPCU, ARM, AIC
Director of Risk and Safety
Picking Up the Pace May Open the Door to Liability City of Saratoga Springs
Saratoga Springs, NY
By Jeff Rogers
Linda Spacek
Interim Director, Human Resources
City of San Marcos
18 BlAzinG the tRAils of Risk San Marcos, TX
editoR
PRIMA’s 32nd Annual Conference Preview Jennifer Ackerman, CAE
Senior Manager, Communications
By Jennifer Ackerman, CAE 703.253.1267 • [email protected]
AdveRtisinG
Donna Stigler
23 Why do We PAy clAiMs When it seeMs We’ve 888.814.0022 • [email protected]
done nothinG WRonG?
Public Risk (ISSN 0891-7183) is published 10 times per year
by the Public Risk Management Association,
By Bradley York
700 S. Washington St., #218, Alexandria, VA 22314
tel: [phone] • fax: [phone]
email: [email protected] • Web site: www.primacentral.org
28 seven hABits of A hiGhly effective Risk Opinions and ideas expressed are not necessarily representative
of the policies of PRIMA. Subscription rate: $140 per year.
Back issue copies for members available for $7 each
infoRMAtion systeM
($13 each for non-PRIMA members). All back issues are
subject to availability. Apply to the editor for permission to
By Lee Mashore reprint any part of the magazine. Periodical postage paid at
Alexandria, VA, and additional mailing offices.
POSTMASTER: Send address changes to
PRIMA, 700 S. Washington St., #218, Alexandria, VA 22314.
In EvEry IssuE
Copyright 2011 Public Risk Management Association
Reprints: Contact the Reprint Outsource at 717.394.7350.
4 News Briefs | 31 Advertiser Index | 32 Member Spotlight
May/JunE 2011 | PuBlic Risk 1
W
hil
e
BOvisita t PRI
u
O s M
TH at A
#
5
0
1
A Tradition of Consistency
“ We’ve enjoyed a reinsurance relationship with Genesis and
General Re for more than 20 years. They’re solid and reliable,
coming through for us on some big, difficult losses. They’ve
also demonstrated their flexibility by working with us on
innovative new coverages for our member cities. That’s
important to our pool.
With Genesis, there are never surprises. We’ve enjoyed a
tradition of consistency that the League of Minnesota Cities
Insurance Trust needs.”

— Peter Tritz, Executive Director
Visit our website at www.GenesisGov.com League of Minnesota Cities Insurance Trust
Genesis Underwriting Management Company, 120 Long Ridge Rd, Stamford, CT 06902
A.M. Best A++ XV S&P AA+ A Berkshire Hathaway Company
Message from PRiMA President laura Peterson
a statE of transItIon
I
t is hard for me to believe a year has passed and it Of particular importance is the selection of individuals
is time for me to write my last message to you, my as the future leaders of PRIMA. I applaud your selection
friends and fellow PRIMA members. Darren L. and welcome the participation of Regan Rychetsky, from I have relied heavily
Johnson said, “To realize the outcomes you want, it the State of Texas, and Eddie Beecher from the City of
is critical to recognize and experience the transition Pompano Beach, Florida. Regan and Eddie bring a wealth on and been
from our present thoughts, habits and actions to new of knowledge and ideas that will serve PRIMA well in the
thankful for the
thoughts, habits and actions.” This year has truly been coming years. I hope you will join me in thanking them for
one of transition both for me personally and for PRIMA. their willingness to serve. I encourage you to seek out Eddie, wise counsel of my
Many of you know that I moved from the state where I Regan and other members of the board to talk with them
grew up, went to college, got married, started a family about your ideas for the future of your association. PRIMA colleagues.
and learned to be a risk manager to the Wild West.
I could not have
I have been surprised to find some of the Wild West Finally, at PRIMA’s 2011 Annual Conference, with great
stereotypes, particularly that there are no rules and the pleasure and confidence, I turn over the helm to your new
made the positive
people don’t want any rules, are true. As I faced the president, Cindy Mallett. Cindy is a dedicated PRIMA
challenges of implementing a risk management program member, a skilled risk manager and human resources impact I have made
in a place where rules and procedures are frowned upon, professional, a thoughtful leader and a cherished personal
without each of
I have relied heavily on and been thankful for the wise friend. You can read about Cindy in the pages that follow
counsel of my PRIMA colleagues. I could not have made but I hope you will take time to build a relationship with
you. Whatever
the positive impact I have made without each of you. her. I know from personal experience your efforts will be
Whatever challenges you face, I hope that you find your rewarded both personally and professionally. challenges you face,
membership in PRIMA as valuable as I do as you address
I hope that you find
and conquer your challenges. One of my favorite lines from Annie is, “How lucky I am to
have something that makes saying goodbye so hard.” I am
your membership
Most of you may not know about the many important blessed to be part of such a wonderful organization and I
transitions taking place at PRIMA, but I assure you the know that the future is bright for PRIMA and its members! in PRIMA as
transitions, although not outwardly visible, are moving
valuable as I do
PRIMA from its present thoughts, habits and actions to a Sincerely,
bright future that promotes public risk managers and risk
as you address
management in public entities. I hope you will join me
in thanking the current PRIMA board and staff for their and conquer your
tireless work investing in PRIMA’s future. Each and every
board and staff member has unique skills and they have Laura Peterson, JD, MPA challenges.
gone above and beyond the call of duty to ensure PRIMA 2010–2011 PRIMA President
is financially sound and capable of meeting the needs and Director of Risk and Insurance
exceeding the expectations of its diverse membership. University of Wyoming
May/JunE 2011 | PuBlic Risk 3
news Briefs

nEws
BrIEfs
Jfk RunWAy collision sPotliGhts dAnGeRs
on the GRound
The violent collision between a double-decker Airbus A380 and a regional jet at New
York’s John F. Kennedy International Airport is a sobering reminder that the ground
can be a dangerous place for an airliner, reports USA Today. Air France Flight 7, flying
the largest passenger plane in the world, was taxiing toward takeoff at 8:08 p.m. when
its left wing struck the tail of a Comair jet.
“Roll the emergency trucks at Mike,” one of the Comair pilots radioed moments after
the collision, identifying his location at taxiway Mike. “We’ve been hit by Air France.”
None of the passengers on board the two jets were hurt. The pilots on Comair Flight 6293 ordered passengers to make an emergency exit on the
tarmac and called for fire trucks, Federal Aviation Administration spokesperson Jim Peters said.
The violence of the collision, which appears to have been capable of causing serious damage, indicates that the event needs to be taken seriously,
aviation safety experts say.
“This was a significant collision that clearly has safety implications,” Bill Voss, president of the non-profit Flight Safety Foundation, said.
The NTSB is investigating the collision, spokesperson Keith Holloway says.
toWn ends tAseR use By its officeRs
Citing liability concerns, Stallings, N.C., abandoned Tasers early this year. Nearby Monroe, N.C., recently added the weapons, and police officers
completed training in their use in April, reports the Charlotte Observer. Stallings police have had Tasers since 2008, but the town discontinued them
in January to reduce its liability risk, Chief Michael Dummett said, declining to elaborate. He was careful not to criticize Monroe or other cities that
choose to use Tasers.
“That’s their decision,” said Dummett, who took over as chief in December. “It’s a real sticky issue
for a lot of law enforcement.”
Tasers are an electronic control device. They use compressed nitrogen to shoot a pair of tethered
needlelike probes into the skin to deliver an electric shock that temporarily subdues a person.
Nationally, more than 16,000 law enforcement agencies use Tasers, including 579 in North Carolina.
It is rare for departments to drop Tasers, said Steve Tuttle, spokesperson for the Arizona-based
company. He said only three other agencies stopped using them; none were in North Carolina.
And Tuttle dismissed liability concerns: “That’s the last thing we have trouble with.”
4 PuBlic Risk | May/JunE 2011 WWW.PRiMAcentRAl.oRG
MountlAke teRRAce, WAsh.:
no MedicAl Pot shoPs heRe
Anticipating a possible new state law aimed at
facilitating the medical marijuana business in
Washington, the Mountlake Terrace City Council
has adopted a moratorium on such facilities in the
north Seattle suburb, reports the Seattle PI.
Mountlake Terrace’s new law was adopted in April
“as a precaution in case the Washington State
Legislature decides to adopt a bill allowing such
dispensaries.”
At an upcoming public hearing, the City Council
will decide whether to continue the ban for the full
six-month period or let it expire.
The Washington State House passed a bill that would establish a regulatory system hosPitAl sAfety PlAn Will sAve
for the medical marijuana business and seek to provide criminal liability protection lives And Money
for patients.
A hospital patient care and safety initiative aimed
at preventing medical errors and hospital-acquired
Washington is one of 15 states where pot use for medical purposes is legal. Voters there
infections could save thousands of lives and billions of
overwhelmingly approved an initiative in 1998.
dollars, U.S. government and industry officials said.
The goal is to cut preventable hospital-acquired
conditions by 40 percent over the next three years, said
Health and Human Services (HHS) Secretary Kathleen
Sebelius, who announced the initiative with consumer
Multi-Line Public Entity Package
and industry groups. She said it could result in 1.8
million fewer injuries and saving more than 60,000 lives
Provided by an A.M. Best “A” Excellent Rated Carrier
over the period, reports Reuters.
(Coverage also available as reinsurance)
Target Classes They also want to reduce hospital readmissions by
• Cities, Townships & Villages 20 percent.
• Counties
• Scholastic & Higher Education Medicare, which provides medical coverage for about
45 million elderly Americans, could save as much as $50
Program Highlights
billion over the next decade, HHS said.
• All Lines Basket Aggregate for SIR • Employee Benefits Liability in POL
• Clash Cover for SIR • Occurrence & Claims Made Available
Sebelius said up to $1 billion in federal funding is being
• Unintentional E&O Clause for Property • Broad Incidental Med Mal Offered
made available through last year’s health care overhaul
• Sexual Abuse & Harassment Covered • No Coinsurance Clause
law to help improve patient safety at hospitals.
Lines of Coverage Available
Law Enforcement Liability • Public Officials • Comprehensive General Liability The Obama administration and Congress are trying to
Crime • Automobile • Property • Workers’ Compensation & Employers’ Liability curb runaway health care costs as they grapple with the
U.S. budget deficit and debt burden.
For additional information, please contact:
Sebelius said 500 hospitals had already joined the initiative.
Midlands Management Corporation • [email protected]
Phone: [phone] • www.midlandsmgt.com
Proudly Serving You Since 1990
May/JunE 2011 | PuBlic Risk 5
GeoRGiA Risk MAnAGeR BecoMes PRiMA’s 33Rd PResident
Meet cindy MAllett,
Aic, cWcP, ARM-P
By Jennifer Ackerman, On Cindy Mallett’s first day as the risk manager for the City of Gainesville,
cAe
Ga., she was lucky enough to find a “must-do” list on her desk, left behind
by her predecessor. she immediately noticed one of the top things on the
list was to renew the city’s PRiMA membership.
since that day in 2001, Mallett has become in integral part of the Public
Risk Management Association’s leadership. on June 8, she will be sworn
in as PRiMA’s 2011–2012 president during the 32nd Annual conference
in Portland, ore.
6 PuBlic Risk | May/JunE 2011 WWW.PRiMAcentRAl.oRG
“When I became
actively involved in
PRIMA, I found that
same spirit among
fellow committee
members, and, as
my involvement grew,
among fellow board
members, corporate
A Risk MAnAGeR is BoRn “In 2007, I was privileged to be chosen for the PRIMA board partners and staff.
“I’ve been involved in risk management since 1988,” said of directors. I went on to serve on several other PRIMA
These groups give so
Mallett. Like many risk managers, Mallett’s early involve- committees while a director. I never imagined that I would
ment was not intentional. become PRIMA’s president, and I am humbled and honored willingly of their time
to serve this organization that has given me so much.”
“I had just begun working in the private sector, in the and talents, and each
pipeline construction industry, and was initially tasked with Mallett says that board and committee work has been
plays an integral role
processing workers’ compensation claims and, later, liability immensely satisfying, primarily because of the people that
claims,” she said. “Safety was eventually added to my plate, she has been fortunate enough to encounter. in PRIMA’s success.
along with insurance procurement. And like that, a risk
manager was born!” “One peek at the PRIMA Cybrary reveals the spirit of
sharing that our members demonstrate so willingly,” she
In 2001, Mallett joined the public sector as the risk manager said. “When I became actively involved in PRIMA, I
for the City of Gainesville. Since she didn’t have any found that same spirit among fellow committee members,
experience in public risk management, Mallett did exactly and, as my involvement grew, among fellow board
what her predecessor recommended, and renewed her city’s members, corporate partners and staff. These groups give
PRIMA membership. so willingly of their time and talents, and each plays an
integral role in PRIMA’s success. Networking with
“Coming from the private sector, I had never heard of the these individuals and learning from them has been
Public Risk Management Association,” she said. “Then a very rewarding.”
few weeks later, I was on a plane to Chicago to attend my
PuttinG PRiMA to WoRk in GeoRGiA
first PRIMA conference. I returned with a briefcase full
of valuable session handouts and a stack of business cards Like most local governments, the City of Gainesville’s
for risk management professionals that I now call friends. greatest challenge in the last five years has been the impact
I’m so glad that I renewed that membership, because of the economic downturn and the resulting decrease in
PRIMA—and its members—quickly became my ‘go-to’ tax revenues. Strained funding required the city to freeze
resource for addressing risk management challenges.” hiring for a time, implement furloughs and conduct a small
number of employee layoffs.
GettinG involved
Mallett became active in PRIMA first at the chapter level. In “All of this occurred at the same time we combined risk
2003, a group of local risk managers resurrected the defunct management with human resources, so I called on fellow
Georgia chapter. Working with James Huckaby, ARM-P, and PRIMA members who also have HR responsibilities to
others at PRIMA, Mallett’s group got the chapter back on its talk me through my concerns and to share their experi-
feet. Mallett served on the chapter’s board of directors. ences,” said Mallett.
“I began my involvement at the national level in 2004, as a Another result of the city’s financial challenges was
member of the Chapter Relations Committee, which I later the limited budget available for training and other
chaired,” she said. safety programming.
May/JunE 2011 | PuBlic Risk 7
Meet cindy Mallett, Aic, cWcP, ARM-P
“In 2007, I was privileged to be chosen for the
PRiMA board of directors. i went on to serve on
several other PRiMA committees while a director.
i never imagined that i would become PRiMA’s
president, and i am humbled and honored to serve
this organization that has given me so much.”
“The resources PRIMA offers, through PRIMAtalk, a great source of informative and timely articles, is now
the PRIMA Cybrary, and elsewhere, helped bridge the available in an interactive electronic format, so information
gap until funding improved,” said Mallett. “Through is always at our fingertips. PRIMA has also joined the
PRIMA, I have gained knowledge and skills that helped social networking craze, through our online presence with
improve our risk management program, and that helped Facebook and LinkedIn.”
me demonstrate and articulate to our decision-makers the
value of risk management.” Unfortunately, many members do not take advantage of all
that PRIMA has to offer.
PuttinG PRiMA to WoRk foR you
We all know that risk management is no longer simply “We’ve all experienced the ‘dues-only syndrome’ at
buying insurance. Risk managers today must have sharper some point—we pay dues to an organization that looks
business acumen than ever before. Recent auditing trends, promising, but then we never actually take advantage of the
as well as the financial challenges risk managers have benefits that the organization offers,” said Mallett. “PRIMA
experienced, require them to view risk from a broader members are definitely doing themselves a disservice if they
perspective. “The savvy risk manager can help his or her don’t try some of the products and services PRIMA offers.
entity to understand its appetite for risk, and to think about
risk in a more strategic manner,” said Mallett. “Luckily, “I’d like to see a greater number of participants in our
that’s where PRIMA comes in.” Webinars,” Mallett continued. “During 2011, PRIMA
Webinars are provided to members at no charge. These
PRIMA has so many resources available to members that Webinars provide training on a variety of topics that are
it is difficult to identify just a few as “the best,” Mallett relevant to today’s risk management practitioner, and are
said. One very positive trend is that, in addition to more conducted by industry leaders who know and understand
traditional offerings, PRIMA now offers many member the challenges we face.”
benefits in an electronic format.
The benefit of participation is multiplied when the risk
“In today’s environment, many of us have faced shrinking manager invites one or more coworkers to join in. “That’s
travel budgets and increasing responsibilities that place really an unbeatable value!”
rigorous demands on our time,” she said. “It’s important to
have resources, like the PRIMA Cybrary and PRIMAtalk, the yeAR AheAd
which can be delivered right to our members’ desktops. As Mallett enters her term as PRIMA president, she knows
Another tremendous benefit is the Webinar series, which firsthand the challenges risk managers face today.
provides members with free training on a variety of topics,
for an unlimited number of viewers—all without leaving “Like my city, I believe that all public entities will continue
the office. Even Public Risk magazine, which is always to feel the effects of a slowed economy,” she said. “Risk
8 PuBlic Risk | May/JunE 2011 WWW.PRiMAcentRAl.oRG