Published by the SC Municipal Insurance Trust and the SC Municipal Insurance and Risk Financing Fund
Supreme Court: Police May Act
After 20 Seconds
By Gina Holland, Associated Press are exceptions, such as when police have reason to
believe a suspect would be dangerous.
After knocking, police don’t have to wait
WINTER longer than 20 seconds before breaking into the Although Tuesday’s ruling did not spell out
2004 home of a drug suspect, a unanimous Supreme exactly how long is a reasonable time to wait before
Court ruled in a case involving a man who said he executing warrants for drugs or other contraband,
needed more time to get from the shower to the it’s likely many officers in drug cases will follow
door. Souter’s reasoning and feel waiting 15 to 20 seconds
is appropriate.
LaShawn Banks emerged soapy and naked to
find masked, heavily armed officers searching for “This gives officers the leeway they were
drugs in his Las Vegas apartment in 1998. His case taking throughout the country,” said George Wash-
gave the court its first opportunity to say how long ington University law professor Stephen Saltzburg.
police must wait before breaking into a home to “This is a case that suggests great deference to the
serve a warrant. police.”
The court didn’t set a specific standard but Officers knocked and announced themselves at
said the brief delay in the Banks case was long Banks’ apartment, then waited 15 to 20 seconds
enough. Any more time would give drug suspects an before using a battering ram to break down the door.
opportunity to flush evidence down the toilet. They forced Banks to the floor and handcuffed him,
then allowed him to put on underwear, court records
Justice David H. Souter, writing for the nine
show.
justices, said while “this call is a close one, we think
that after 15 or 20 seconds without a response, The North Las Vegas police and federal
police could fairly suspect that cocaine would be officers found crack cocaine and three guns during
gone if they were reticent any longer.” the raid. Banks served four years of an 11-year
prison sentence before his conviction was overturned.
He noted the unfortunate timing of the after-
noon raid, which brought Banks “out dripping to Souter said that because police believed there
confront the police.” But police didn’t know Banks were drugs inside Banks’ home, officers had more
Municipal was in the shower, he said. reason to rush in. He said officers do not have
Association freedom to destroy property in any raids without
of SC Banks’ lawyer, Randall Roske, criticized the
longer delays.
P Box 12109
.O. ruling, saying it will lead to aggressive searches.
Columbia, SC Police continued on page 13
29211 “Police are going to read this as, ‘Knock and
803.799.9574 announce and kick the door in,’” he said.
The new after-hours emergency number for
FAX The Supreme Court has said that in most both SCMIT and SCMIRF is
803.933.1283 cases, police armed with court warrants to search 1.800.845.2724.
http:// for drugs must knock and announce themselves,
masc.sc/rms Continue to use the daytime numbers
otherwise they run afoul of the Constitution’s Fourth
Amendment ban on unreasonable searches. There for all non-emergency use.
Risk Letter 2
Director’s Thoughts
SCMIT and SCMIRF Programs Renew
If it’s almost January, it is time for SCMIT and Considering everything, the good news for
SCMIRF’s program renewals. The Board of Trustees, SCMIRF is no rate increases for 2004. However, the
staff, and the actuaries have spent the last several final cost could be more than in 2003 due to several
months analyzing past claims experience and collecting factors. These include exposures (number of vehicles,
data to calculate the renewal quotes. The process is the payroll, building values, etc.), experience modification
same each year, but each new year also brings new factors for liability coverage only
challenges. and compliance with Minimum
Risk Management Guidelines.
There are always certain cost increases
which have to be considered. For example, In addition to rising reinsurance
SCMIT and SCMIRF are impacted by commer- cost, SCMIT faced a number of chal-
cial reinsurance costs. For 2004, SCMIT has lenges as well. Medical costs continue to
been told its reinsurance rate could increase 23 increase. The Second Injury Fund (SIF)
percent. On the SCMIRF property/liability side, assessment increases each year as
the reinsurance rate “indications” are a 15 claims’ costs increase. The increased
percent increase for property coverage and workload for reduced Workers’ Com-
12.5 percent increase for liability. pensation Commission staff and
awards from liberal commissioners
For several years now, SCMIRF has
result in increased costs. Recent Court
been faced with whether or not “first
decisions have made it more difficult to
dollar” flood coverage can be continued.
manage claims; and in some cases,
We have reached the end of the line now,
harder to deny claims. These circum-
and the SCMIRF Board has been forced to exclude
stances also add to increased costs.
property coverage in Flood Zones A or V. This coverage
can be obtained through the federal National Flood All of the above resulted in a 16 percent overall
Insurance Program (NFIP), but this is an added cost for rate increase for the SCMIT workers’ compensation
those municipalities who feel they need it. Staff has program effective January 1. Fourteen (14) percent is a
assisted those members who have requested quotes so result of the actuarial analysis and the need to fund for
they could decide whether or not to buy the coverage. expected losses. SCMIT’s Equity (fund balance) has
taken a severe hit during the past year, and the Board
SCMIRF will provide property coverage excess of
has imposed a 2 percent Equity Enhancement Surcharge
the NFIP maximum limits ($500,000/building and
in hopes that SCMIT’s overall financial position will
$250,000 contents) whether or not a member buys the
improve.
NFIP coverage. Since SCMIRF will not be providing
“first dollar” flood coverage, the property reinsurance As with SCMIRF, the SCMIT members’ final cost
cost should be less over time. This reduction in cost will depends upon several factors. Payroll is a big factor, but
benefit the SCMIRF members long term. the single most important factor is claims experience.
Unfortunately, some members will see a tremendous
Another property issue deals with vacant and
increase in cost for 2004 when increased payroll and a
unoccupied buildings. SCMIRF’s primary property
significant increase in Experience Modification Factor
reinsurer is requiring SCMIRF to take a closer look at
are coupled with the 16 percent rate increase.
these structures because they often pose additional
exposure. Beginning January 1, 2004, totally vacant or Everyone must remember that workers’ compensa-
unoccupied buildings will be valued at no more than $10 tion benefits are based on state law. Whenever a worker
per square foot. Partially occupied buildings will be is injured on the job, the claims adjuster can do only so
valued at an agreed upon amount between SCMIRF and much to manage the claim. The only way for SCMIT to
the member. In all cases, a loss will be adjusted on an reduce rates is to reduce workers’ compensation claims.
Actual Cash Value (ACV) basis rather than at replace-
ment cost. Renew continued on page 3
Risk Letter 3
The Colonel’s Kernels
“Shoulda... Coulda... Woulda...”
Adapted from an article in The Risk Connection glasses or that reflective vest will do the trick. Bottom
(Fall 2003) by David Morrill line, this is not rocket science…just good old common
sense that prevents most accidents. It starts with taking
A few weeks back I ran across an article a compa-
the time to think first, then act. This is especially true for
triot of mine authored about supervisors and their attitude
those tasks that we complete over and over again,
toward safety I thought had several good points so I
sometimes without thinking about the risks we are taking.
wanted to pass it along. Although directed at supervisors,
the article certainly applies to all within an organization Remember, life is not made up only of things that
regardless of position. The title of this article refers to a are supposed to happen but rather occurrences that we
phrase commonly heard in the safety business, usually later claim could never happen. Not here... not to us!
after an incident has occurred. What it means is: “I
Does this mean we should paralyze ourselves with
should have thought of that before the accident; if I had,
fear of something to bad occur? No, not at all. All it
it could have turned out better and things would have
means is we should ask ourselves if we are expecting
been different.” How true! Too often we view safety
what we think should happen versus what we know
reactively as opposed to being pro-active and taking that
might happen before engaging in our work assignments
extra minute to think about what we are getting ready to
and tasks. If we do, we will realize that the safe way is
do before “plowing in” and causing an incident with
as simple as the risky way and it may just be the key to
resulting damage or injury.
preventing a “shoulda” event from going bad.
All that is required to prevent accidents and inci-
dents is a little forethought, much akin to that other
saying we have all grown up with, “Stop, Look and
Listen.” Simply put, wearing that seatbelt or checking
your equipment before use may prevent you from being Phil Cromer, ARM
the victim in an accident. Maybe putting on those safety Risk and Safety Services Manager
RENEW
continued from page 2
Top management must make safety a priority and hold every employee must be held accountable if he/she
department heads and supervisors accountable for safety doesn’t follow safety rules and procedures.
on the job. Unless this is done, workers’ compensation
If we all do our part, costs can be contained. If not,
costs will continue to rise.
expect to see continuing cost increases. Doing your part
Some SCMIT members will see reductions in cost, will ensure the continued availability of affordable
even though overall costs have increased. The reason for insurance protection, as well as save your municipality
the reduction is their claims experience has improved. money.
They have implemented a sound safety program with top
management support, and workplace safety has become
a priority.
The Risk Management Services staff and Third
Party Administrators are always available to provide the
very best service possible. However, worker safety is Harvey Mathias
everyone’s job. A safety “culture” must be created, and Director of Risk Management
Risk Letter 4
Loss Canons
Abandon Catamaran!
Around the latter part of July, I decided to open a The lesson I learned was simply this: when you
self-directed IRA with one of the online brokerage firms. establish a long-term strategy, don’t abandon that
I rolled some money I had in another IRA into my new strategy midstream because you have reached some
IRA, which allowed me to trade about any security I measure of “accomplishment” – keep pressing until it is
wanted, instead of being tied to a finite menu of mutual clear that a certain strategy is no longer working or is not
funds. applicable. Not only did I abandon ship, I jumped off a
catamaran in the middle of the Caribbean on a gorgeous,
I did my homework, spending several hours re-
sunny day because I was enjoying myself too much.
searching stocks and funds. I finally decided on four
mutual funds, and about eight stocks. My final stock In my case, my intial stock strategy was working
choice was Taser International, the manufacturer of a beautifully. (Sure, there was some luck to my picking the
non-lethal law enforcement technology similar to (but far basket of stocks I picked, but I was seeing very good
advanced from) the old stun-guns that used to be popular. results.) I set out from the beginning to take a long-term
The tasers are well-conceived technology, and it is stake in the stocks I chose, and I had no reason to
evident that the company has been listening to the cops abandon ship on Taser. Think about it – I bailed out
that are using them. “An innovative company with good exactly at the time Taser was doing what I wanted it to
financials that is willing to heed it’s customer base,” I do!
thought, “that sounds like a good choice.” I bought 50
Does this have application for municipal risk
shares for $13 per share.
managers? Of course it does. So many times I see
Well, it wasn’t long until Taser started taking off. It member municipalities start working on their risk man-
would go up $3 in one day, then back down $1. The net agement programs. They get the attention of their
effect was that by the beginning of October, Taser was employees, and they start making some real headway
up to $35 per share. A couple of days after that, Taser hit into cutting their losses. Their experience modifiers go
a rough patch and fell to about $28.50 per share. I down and subsequently premiums go down. Then,
decided it was time to cash in and move to something something amazing happens: a sense of accomplishment
else. I was concerned I would lose all of my gains and and finality creeps into the consciousness of the munici-
was convinced that Taser was probably on it’s way back pality and the “we’re done here” attitude sets in. Then, a
down after such a meteoric rise. I was more than back claim here, bum knee there, and suddenly – higher
satisfied with the return I had garnered in the 2 ½ months losses, higher mods and higher premiums again. It’s a
I had held the stock. mix of the “familiarity breeds contempt” syndrome and
members not giving themselves enough credit for why
Well, suffice to say, I got out a tad early. In mid-
they were successful in the first place.
October, Taser announced a million dollar deal with the
Department of Defense, and this sent the stock higher Once you establish your long-term risk manage-
once again. Good news, more good news and even still ment strategy (which should be to minimize your losses),
more good news followed this announcement. By mid keep pressing on. Don’t let a few successful years
November, Taser stock was pushing $75/share. My cloud your judgment. There is certainly more out there to
original $650 investment would have been $3,750 if I had accomplish, and letting up will only assure a future
held on to the stock for another month and a half - that’s demise. If ya’ll will promise to keep pressing, I will agree
an annualized return of 1,431 percent. to never give you any unsolicited stock advice.
What’s worse is that I invested the proceeds of my
sale in two dog stocks that have since lost about 15
percent of their value. I abandoned my long-term strat-
egy, and I am paying for it by losing the return I would
have garnered by staying with Taser, as well as suffering
losses on two temptresses that I thought I could make Jeff Thompson, ARM
some more fast money in. Risk & Safety Services Consultant
Risk Letter 5
Claims Corner
My Crystal Ball for 2004
The year 2003 was a busy and exciting one for SCMIRF. The Commission continues on the path of
SCMIT and SCMIRF. At the beginning of the year, we increasing ratings. The time necessary to schedule
put out a limited request for proposal to selected vendors informal conferences and hearings continues to lengthen
for claims administration for 2004 through 2006. We due to budget constraints and adverse case law, such as
compared responses from vendors to various options, Brown v. Bi-Lo. The full impact of that decision has not
including bringing claims administration in-house. It yet reached us, but I anticipate that our inability to
became apparent through an extensive comparison communicate uniformly and directly with medical
process that one option was a clear choice. The Boards providers will slow down the claims handling process
of Trustees for SCMIT and SCMIRF met in June and even more in 2004. The broadening of covered injuries
voted to move claims administration in both pools to continues in workers’ compensation, again costing more
Companion Third Party Administrators, effective January for each employer. Adverse development of older claims
2004. will continue for prior years.
Staff have been working with Companion employ- The property/casualty side also has some potential
ees to make the transition a smooth one. Companion has pitfalls. Recent S.C. Supreme Court decisions continue
hired all the on-site Sedgwick claims staff. All phone to erode the South Carolina Tort Claims Act. There have
numbers, fax numbers, addresses and staff for SCMIT been some worrisome outcomes from recent cases
and SCMIRF will remain the same. The only change will involving the Fireman’s Rule, discretionary immunity and
be in the after-hours emergency number. The new after- expansion of the definition of “occurrence” that would
hours emergency number for both SCMIT and SCMIRF potentially expand acts arising out of the same source as
is 1.800.845.2724. Continue to use the daytime numbers being multiple occurrences or happenings. We will be
for all non-emergency use. watching the outcomes of several recent cases on these
issues to determine the impact
There will be some improvements in 2004. Compan-
on our own claims. Be
ion is upgrading their claims software from POINT to
prepared for further
Claims Pro, a Windows-based system, for both SCMIT
deterioration of immunity
and SCMIRF. We are working on developing new
protections and the
reporting formats to make the information you receive
attendant costs.
easier to read and more responsive to your needs. We
expect to have training sessions on the new format in the We hope 2004 will
first quarter of 2004. be a positive year for the
pools. The strides and
In our search to find ways to keep claims handling
gains made by all our
costs down, we will make some changes internally. Early
members. Improved
in the first quarter, we will make some improvements to
reporting and utiliza-
our drug PPO program to further enhance savings.
tion of return to work
Companion staff member Kay Williams will take over
and preferred provider organizations help keep our costs
subrogation recovery efforts for both SCMIT and
down. Let me encourage all of you to keep up the good
SCMIRF as of January 1. Welch Consulting Group will
work and expand your efforts. We are your claims team
take over Second Injury Fund Recovery efforts as of
and hope 2004 will continue to show improvement in the
January 1 (see related article on page 8). Nancy
claims process.
Campbell will provide administrative support to both
SCMIT and SCMIRF, and Sue Lambert will take on
some additional responsibilities for SCMIT. I am delighted
to have such a good claims team together and ready to
tackle another year.
Taking a further look into the claims crystal ball, I Carol Brown, CPCU, AIC, CPIW
foresee 2004 as another year of change for SCMIT and Claims Manager
Risk Letter 6
Law Enforcement Accreditation
Promoting Professionalism, Pride and Performance
Law enforcement accreditation has been around for ! Increased community confidence, respect and
nearly 25 years but outside of law enforcement circles advocacy
little is known about the process and the value it brings to
! Access to the latest methods developed by law
the agency and community it serves.
enforcement experts
Two of the most recent municipal agencies to acquire
! Precise written manual of policies and proce-
state accreditation are the City of Simpsonville Police
dures
Department and the City of Orangeburg Public Safety
Department. While Simpsonville went through the state ! Better managed department
accreditation process, Orangeburg achieved national
accreditation. Orangeburg has applied and qualified for ! Higher morale among personnel
state accreditation recognition as well. After a self-assessment, a qualified assessor(s)
Lieutenant Colleen O’Neil of the Professional conducts an on-site assessment to determine if the
Standards Division of Simpsonville said, “The accreditation participating agency has complied with all applicable
offers a program through which law enforcement agencies standards. The standards describe what agencies
can evaluate, strengthen, improve and maintain their should be doing in order to achieve the highest profes-
effectiveness. It has assisted Chief Reese in accountability sional practices in the following areas:
of his command and supervisory staff. The police depart- ! Roles, responsibilities and relationships with
ment now has a higher level of confidence and that, in other agencies
turn, leads to better service.”
! Organization, management and administration
Mayor Dennis Waldrop of Simpsonville agrees, “The
accreditation of our police department has clearly demon- ! Law enforcement operations, operational
strated to our community the dedication our officers and support and traffic law enforcement
leaders have to professionalism.” ! Prisoner and court-related services
In 1979, four major law enforcement associations ! Auxiliary and technical services
established an independent accrediting authority known as
the Commission on Accreditation for Law Enforcement South Carolina ranks among the highest nationally
Agencies, Inc. (CALEA). The membership of these (on a per capita basis) for having more CALEA
associations is comprised of approximately 80 percent of accredited agencies than most other states. In South
law enforcement personnel in this country: International Carolina, 23 agencies have achieved CALEA accredi-
Association of Chiefs of Police (IACP); National Organi- tation, 13 of these are municipal agencies.
zation of Black Law Enforcement Executives (NOBLE); While attaining national (and international) ac-
National Sheriffs Association (NSA), and Police Executive creditation status through CALEA is a desired goal, the
Research Forum (PERF). expense and number of requirements prevent many
The benefits of accreditation, whether national or smaller law enforcement agencies from achieving the
state, are numerous. It not only makes a statement that the designation. Several states have set up their own
highest standards of law enforcement are being met, but it accreditation programs, not to compete with the
also demonstrates agency responsiveness to community national program, but to provide an alternative.
needs. Specific benefits include: The South Carolina Law Enforcement Accredi-
! Controlled liability insurance costs tation, Inc. (SCLEA) was created in April 1999, with
the accreditation goals of helping law enforcement
! Defense against lawsuits and citizen complaints agencies strengthen crime prevention and control
! Greater accountability within the agency
! Support from governmental officials Accreditation continued on page 7
Risk Letter 7
The Benefits of
Prompt Injury Reporting
From The Insurance Marketing & Management claims reported within two weeks of an injury were 18
Services Newsletter, www.imms.com percent more expensive than claims reported within one
week. The costs of the injury increase with the length of
Prompt reporting of an on-the-job injury is a key
the delay — reaching 45 percent if reported more than
factor in securing timely payment of benefit claims and
five weeks from the date of injury. Another benefit of
an employee’s safe and successful return to work.
prompt injury reporting is the decrease in litigated claims.
Immediate reporting also ensures appropriate medical
The paper stated that one carrier found 22 percent of all
treatment is sought, which helps control adverse develop-
claims litigated when reported within 10 days of an injury,
ment of the injury. However, according to a 2001 white
while 47 percent were litigated when reported more than
paper study, First Report of Injury: Impact on Claims
31 days from the date of the accident. Reporting injuries
Costs, the average report was delayed 10 to 14 days.
promptly gives us the best start to getting you and your
That’s one expensive delay. According to the study,
employees back on track
A CCREDITATION
CCREDITA
continued from page 6
capabilities; formalize essential management procedures;
establish fair and nondiscriminatory personnel practices; South Carolina State Accredited
improve service delivery; solidify interagency cooperation
and coordination, and boost citizen and staff confidence Municipalities
in the agency.
Aiken Department of Public Safety *
The costs associated with state accreditation are
Bishopville Police Department
nominal; a $50 application fee covers all materials, forms,
contracts, and administrative costs. In addition to the Charleston Police Department *
application fee, agencies are also responsible for their Clemson Police Department
self-assessment and on-site costs. National accreditation Columbia Police Department *
can cost $4,000 to $16,000, depending on the size of the
Greenville Police Department *
department.
Greenwood Police Department *
For more information on the South Carolina
Greer Police Department *
Law Enforcement Accreditation process, contact
Debra Covington at S.C. Law Enforcement Accredita- Isle of Palms Police Department *
tion, Inc., PO Box 21428, Columbia, S.C. 29221, or Lexington Police Department
call 803.772.1101. Mount Pleasant Police Department *
Newberry Police Department
North Augusta Department of Public Safety
Orangeburg Department of Public Safety *
Simpsonville Police Department
Spartanburg Public Safety Department *
Sumter Police Department *
Union Public Safety Department
*denotes CALEA accreditation also
Risk Letter 8
Putting our shoulders to the wheel
Second Injury Fund Recoveries
The Second Injury Fund (SIF) was established to The form’s only purpose is to verify employer
encourage employers to hire people with certain preexist- knowledge of permanent conditions eligible for reim-
ing physical conditions. The fund would reimburse the bursement from SIF in the event an employee has a
employer for additional treatment costs should the workers’ compensation claim. The Health Insurance
employee have a workers’ compensation claim. To fund Portability and Accountabillity Act (HIPPA) specifically
this program, SIF annually assesses insurers and self- excludes workers’ compensation claims, so rules that
insurers, based in part on claims made upon the Fund apply to HIPPA covered information do not apply to
during the year. SCMIT and other insurers have seen a medical information obtained for workers’ compensation
steep increase in the yearly assessments. claims.
The current SIF assessment is $1.7 million for When an employee with an eligible permanent
SCMIT. With a premium base just over $10 million, over condition has a workers’ compensation claim, the
15 percent of the Trust’s gross income goes to pay the employer/member will be contacted by Welch Consult-
SIF assessment. A 16 percent increase in premiums from ing, a vendor retained by SCMIT to submit requests to
SCMIT members in 2004 and an increase in the reim- SIF. Welch will ask for information and cooperation from
bursements paid to SCMIT by SIF can go a long way to the employer/member to present the claim for reim-
help maintain the financial stability of SCMIT. bursement to SIF. We ask that you cooperate with
Welch to help SCMIT achieve its goal of reaching and
Each member who receives a reimbursement on a
exceeding recoveries from SIF.
workers’ compensation claim from SIF receives credit on
the total incurred cost for that claim for the amount SCMIT staff is well aware of the rising costs
reimbursed. The advantage to the employer is a lower associated with workers’ compensation losses. Please
ratio, resulting in lower premiums. To qualify for reim- help us to recover the maximum amount available from
bursement, the employer must obtain information from the Second Injury Fund by making sure you have up-to-
the employee to verify the permanent condition. date forms and by cooperating with our recovery
specialists. If we all put our shoulder to the wheel, we
Under South Carolina statute 42-9-400, the respon-
can help off-set the high assessment cost imposed by
sibilities of the Second Injury Fund (SIF) and employers
SIF and lower premium costs to the members as well.
are spelled out for requesting reimbursement for monies
spent on a workers’ compensation claim. “In order to
qualify under this section for reimbursement from the
Second Injury Fund, the employer must establish when a
claim is made for reimbursement thereunder, that the
employer had knowledge of the permanent physical
impairment at the time that the employee was hired, or at RiskAlert Listserve
the time the employee was retained in employment after
the employer acquired such knowledge.” Have you signed up for RiskAlert, the
SIF has advised SCMIT that the preferred format subscription listserve that allows RMS
for verifying the knowledge requirement is a four page staff to communicate with members
document titled, “Post-Offer of Employment Medical quickly by e-mail? To sign up, visit
Questionnaire.” This form should be completed after
extending an offer of employment and updated annually. http://listsrv.masc.state.sc.us/mailman/
Ideally, the person handling your human resources listinfo/riskalert.
should retain this information in a file marked, “Medical
Information,” separate from other personnel information. RiskAlert is a service brought to you
The form can be found at www.masc.sc/rms/ by RMS and is for members only.
client_resources/SIFTFORM.pdf.
Risk Letter 9
OSHA Briefs
Excerpts taken from LabSafety.Com’s monthly for Chemical Process Safety (CCPS), is available
newsletter, SAFTNEWS. If you would like to subscribe, through the site. It includes a compendium of best
send an e-mail to listserv@listserv.labsafety.com with practices from leaders in chemical processing. Safety
the words SUBSCRIBE SAFTNEWS-L in the body of and health managers, engineers, chemists and others are
the e-mail. likely to find the book useful.
New Bulletin Attacks Mold Visitors can also access OSHA standards fact
sheets on process safety management (PSM) and
Molds can be found almost everywhere. As long additional reactive material hazard information from
as moisture and oxygen are present, they can grow on CCPS. A link takes readers to a chemical reactivity
virtually any substance. Molds can damage building worksheet provided by the National Oceanographic and
materials and, if left unchecked, can eventually cause Atmospheric Administration’s Office of Response and
structural damage to wood-framed buildings by weaken- Restoration. The worksheet includes a database of
ing floors and walls. reactivity information for more than 6,000 common
Some molds cause adverse health effects in hazardous chemicals and details the dangers that can
people with mold allergies. These include asthma arise during chemical mixing.
attacks, hay fever type symptoms, skin rashes and www.osha.gov/dep/reactivechemicals/index.html
irritation to the eyes, noses, throat and lungs. These
symptoms can also affect people without mold allergies.
Fire Extinguisher Training Resource
OSHA has issued a new Safety and Health
OSHA requires employ-
Information Bulletin on preventing mold growth and
ers to train their
protecting those working to prevent mold or clean up
employees annually
after mold damage. The bulletin is directed primarily at
on the use of por-
building managers, custodians and other building mainte-
table fire extinguish-
nance personnel. It covers assessment of mold and
ers. CFR 1910.157
moisture problems, methods for preventing mold growth
(g)(1) states, “Where
and for cleaning up damage caused by moisture and
the employer has
mold, and proper use of personal protective equipment.
provided portable fire
The bulletin includes mold remediation guidelines extinguishers for
based on the size of an affected area that make it easier employee use in the
to select appropriate techniques. Additional sections workplace, the em-
address sampling methods and remediation equipment. ployer shall also provide an educational program to
familiarize employees with the general principals of fire
Find this OSHA bulletin at:
extinguisher use and the hazards involved with incipient
www.osha.gov/dts/shib/shib101003.html.
stage fire fighting.”
OSHA Chemcial Reactivity Info A visit to www.fireextinguisher.com allows you to
participate in web-based training. If completed success-
OSHA has added a Chemical Reactivity Safety fully, the employee will receive a certificate of comple-
page to its Web site. This new resource material is tion to keep in their employee file for documentation. in
intended to help companies reduce injuries, illnesses and each employee’s file for documentation. If you have any
fatalities during chemical manufacturing and operations. questions, please let RMS know. You may find out that
you don’t know as much about the use of fire extinguish-
Visitors to the site will find information on recog-
ers as you thought!
nizing, evaluating and controlling chemical reactive
hazards, along with compliance requirements and
access to available training resources.
A new book, “Essential Practices for Managing
Chemical Reactivity Hazards,” published by the Center OSHA continued on page 10
Risk Letter 10
OSHA
continued from page 9
OSHA Aids Ergonomic Updated OSHA Forms Available Online
Computer Station Design The revised OSHA Form 300, Log of Work-
OSHA has made another addition to its list of Related Injuries and Illnesses, is now available on
available “eTools.” The latest provides simple and OSHA’s Web site at www.osha.gov/recordkeeping/new-
inexpensive principles for creating safe and comfortable osha300form1-1-04.pdf. The forms, which are required
computer workstations. The interactive instruction tool for employers to use in recording injuries and illnesses,
starts with basic design goals worth considering when have changed in several important ways for 2004.
setting up computer workstations or performing com- Foremost among the changes is the addition of an
puter-related tasks. Photographs and detailed images occupational hearing loss column to OSHA’s Form 300,
illustrate the concepts. Log of Work-Related Injuries and Illnesses. Other
OSHA eTools provide guidance for developing changes include: “days away from work” column now
comprehensive safety and health programs. It includes comes before “days on job transfer or restriction,” more
recommendations for good industry practices that often clear formulas for calculating incidence rates and new
go beyond specific OSHA mandates. recording criteria for occupational hearing loss. In the
“Overview” section, there is a more prominent column
You’ll find this new eTool at: heading, “Classify the Case,” to make it clear that
www.osha.gov/SLTC/etools/computerworkstations employers should mark only one selection among the four
columns offered.
All About OSHA These changes were made in response to public
OSHA has a publication to introduce the agency to suggestions on making the forms easier to use.
anyone who needs to know more about it. Appropriately Employers had to start using the new OSHA Form
titled, “All About OSHA,” the publication provides an 300 on January 1. The new form has the date revision
overview of OSHA activities including an explanation of (rev. 1/2004) located next to the form number.
the Occupational Safety and Health Act, information on
state programs and detailed information on standards and Injuries and illnesses for years prior to 2004 should
guidance. The publication also discusses agency enforce- continue to be recorded on the appropriate form for that
ment programs, outreach programs, programs to assist year (i.e., 2003 and 2002 injuries and illnesses should be
with education and compliance, partnerships and other recorded on the forms for those years). The forms for
cooperative programs including Alliances and the Volun- 2003 and 2002 will continue to be available on OSHA’s
tary Protection Program. Web site at www.osha.gov/recordkeeping/
OSHArecordkeepingforms.pdf. Additionally, employers
To download a PDF version go to: should use the old OSHA 300A Summary Form (without
www.osha.gov/Publications/osha2056.pdf. the hearing loss column) to post as required in February
2004. The new 300A form that includes the hearing loss
Fork Lift Safety Info column should be used to post in February 2005.
Injuries associated with the operation of powered Hard copies of the new OSHA 300 can be obtained
industrial trucks (forklifts) are often attributed to a lack using OSHA’s online order form or by calling
of safe operating procedures and safety-rule enforce- 1.800.321.OSHA.
ment, plus insufficient training. You can access informa-
For more information, visit www.osha.gov.
tion on specific OSHA requirements on operating the
trucks, as well as details on loading and unloading,
working with hazardous materials, and vehicle mainte-
nance at: www.osha.gov/SLTC/poweredindustrialtrucks/
index.html.
Risk Letter 11
New Resource to Enhance Fire Safety
As part of National Fire Prevention Week in “Each year in this country, thousands of people are
October, the Federal Emergency Management Agency killed in home fires,” said U.S. Fire Administrator Dave
(FEMA) joined with the Fire Safety Council (FSC) Paulison. “The sad fact is that these deaths are prevent-
membership to announce plans to address the threat of able. Bringing these experts together to tackle this
fires in residential homes throughout the nation. The joint challenge will unite forces to make our homes safer, and
effort, which will focus initial efforts on the 5 million further protect the lives of America’s firefighters.”
American homes without smoke alarms, includes a two-
“The U.S. Consumer Product Safety Commission
year pilot phase that focuses on public fire safety educa-
has made significant progress in reducing fire-related
tion and awareness, as well as research on fire safety
deaths during the past 30 years,” said CPSC Chairman
technology for the home.
Hal Stratton. “We are continuing our efforts to further
Though the partners have had smoke alarm installa- reduce fire deaths by focusing on the consumer products
tion programs, a joint effort combining knowledge and most often involved in these deaths - electrical products,
experiences has never before been attempted. Addition- upholstered furniture, mattresses, and heating equip-
ally, FEMA and the FSC are launching a Web site, ment.”
www.firesafety.gov, to provide up-to-date information
The 16 FSC partners include government agencies
about program activities, prevention tips and a special
and non-governmental organizations. The Centers for
interactive pages for children to learn about fire safety.
Disease Control and Prevention, the United States Fire
Eventhough home fire deaths have decreased Administration, and the Consumer Product Safety
2 to 3 percent in the U.S. each year from 1977 to 2002, Commission were the founding FSC partners and
the National Fire Protection Association (NFPA) continue to serve as lead organizations for the partner-
reports that an estimated 2,670 people died in residential ship. Organizations interested in supporting the FSC
fires in 2002. should contact the USFA at 301.447.1853.
The Station Fire: A Lesson for Municipalities
Could a South Carolina town be held liable for White band are bankrupt, and only have $1 million each
allegedly not enforcing building and fire codes? Lawsuits available to pay claims.
brought against the Rhode Island town of West Warwick
Under the doctrine of joint and several liability,
where a nightclub fire broke out proves municipalities
plaintiffs may recover 100 percent of their damages from
can be prosecuted for negligence in enforcing building
a joint tort-feasor, a separate entity that may have also
codes.
contributed to the injury. West Warwick has an exposure
On February 20, 2003, a fast-moving fire destroyed to the remainder of an estimated verdict, or $498 million,
The Station nightclub in West Warwick, Rhode Island. should the other tort-feasors become unable to pay.
Pyrotechnics by Great White, a rock‘n’roll band, ignited
What makes the Town of West Warwick a target?
highly flammable packing foam surrounding the stage and
The town fire marshal and building inspector both
caused a fire that engulfed the building in five minutes.
inspected The Station prior to the fire, and the town had
There were 427 people in the club when the fire broke
two uniformed police officers at the nightclub on the
out. One hundred people died, and 190 people were
night of the fire. A complaint filed in United States
injured.
District Court in Connecticut lists some causes of action
The estimated total damages for all victims, their against West Warwick. They are:
families and estates could ultimately exceed $500 million.
1. Failure to enforce building code and fire safety
According to James Green, general counsel and claims
laws
manager for the Rhode Island Interlocal Risk Manage-
ment Trust, the estimated exposure to the Town of West 2. Failure to adequately inspect The Station
Warwick is $40 million. The Trust provides $4 million in
coverage. Both the owners of The Station and the Great Station continued on page 13
Risk Letter 12
Car Chase Accidents
By Clif LeBlanc, The State Newspaper, The patrol’s new policy means troopers must call
independent investigators from sheriffs’ departments for
South Carolina police, battling critics’ charges of
wrecks resulting from patrol chases - even when there is
favoritism, soon will change the way they investigate law
no impact with a cruiser.
enforcement chases that lead to wrecks.
Until an October 7 memo from Patrol Commander
The Highway Patrol now will require an outside
Colonel Russell Roark, troopers could investigate them-
agency to investigate wrecks that result when troopers
selves as long as their cruisers did not strike another car
chase suspects, an internal memo shows.
or property.
Sheriffs are likely to follow the patrol’s lead and
Roark said in a September 14 news article that the
require independent investigations of wrecks involving
9-year-old law did not apply unless there was direct
local and county police, said S.C. Sheriffs’ Association
contact by a law enforcement vehicle. Most sheriffs
Director Jeff Moore.
shared that view, Moore said, leaving untold numbers of
The association’s board on Wednesday asked state wrecks improperly investigated.
lawmakers to clarify language in the 1994 law, which
The law was designed to protect the public from
governs who investigates such crashes.
biased investigations or the appearance of bias, said
In a September article in The State, critics com- Larry Richter, who wrote the law when he was a state
plained the law was being misinterpreted. Misuse of the senator.
law allowed troopers and local police to investigate many
Violating the 1994 law is considered misconduct,
of their own crashes, they said.
and officers can be removed from office.
That interpretation allowed Forest Acres police, for
Richter, other legislators and four opinions by the
example, to investigate their own conduct in a May 27
state attorney general said the way law enforcement had
chase that ended in the death of Beverly Meyers, a
been interpreting the law was wrong.
passenger in a car that was struck by a car being driven
by a suspect who was fleeing police. Chase continued on page 13
What the Law States
56-5-765. Investigation of traffic collisions involving a motor vehicle or motorcycle of a law enforcement agency or
the Department of Public Safety
(A) When a motor vehicle or motorcycle of a law enforcement agency, except a motor vehicle or motorcycle
operated by the department (of Public Safety), is involved in a traffic collision that results in an injury or a death, or
involves a privately-owned motor vehicle or motorcycle, regardless of whether another motor vehicle or motorcycle is
involved, the State Highway Patrol shall investigate the collision and file a report with findings on whether the agency
motor vehicle or motorcycle was operated properly within the guidelines of appropriate statutes and regulations.
(B) When a motor vehicle or motorcycle of the (Public Safety) department is involved in a traffic collision that
results in an injury or a death, or involves a privately-owned motor vehicle or motorcycle, regardless of whether another
motor vehicle or motorcycle is involved, the sheriff of the county in which the collision occurred shall investigate the
collision, regardless of whether the collision occurred within an incorporated jurisdiction, and file a report with findings
on whether the department’s motor vehicle or motorcycle was operated properly within the guidelines of appropriate
statutes and regulations.
(C) A law enforcement department or agency may not investigate collisions in which a motor vehicle or an
employee of that department or agency is involved that results in an injury or a death, or involves a privately-owned
vehicle or motorcycle, regardless of whether another motor vehicle or motorcycle is involved.
Risk Letter 13
STATION
STA POLICE
continued from page 11 continued from page 1
3. Failure to discover and remove highly flammable “Police seeking a stolen piano may be able to spend
and toxic materials by reasonable inspection more time to make sure they really need the battering
4. Failure to train personnel in safety regulations ram,” Souter wrote.
5. Failure to require sprinkler systems or fire Generally, courts have considered whether police
prevention devices at The Station moved too hastily “case by case, largely avoiding catego-
ries and protocols for searches,” Souter said. He noted
6. Failure to enforce a Rhode Island law requiring
that some courts have found delays shorter than 15
performances to more than seventy-five people
seconds to be reasonable.
to be free of combustible devices
7. Failure to limit the number of patrons at The Justices reversed the 9th U.S. Circuit Court of
Appeals ruling in Banks’ favor. Souter said that the
Station to a safe number of persons.
appeals court was wrong to set up a multipart scheme for
The Trust is raising several defenses to the allegations: reviewing knock-and-announce cases.
1. The Rhode Island Fire Marshal Immunity The Supreme Court ruled in 1995 that no-knock
statute. Rhode Island statute states that the entries usually are unlawful. Two years later, justices gave
municipal fire marshal is an arm of the State Fire an exception to officers executing drug warrants who can
Marshal’s office. Negligence by the fire marshal show they had reason to believe a suspect would be
should be indemnified by the state. dangerous or destroy evidence.
2. The Public Duty Doctrine shields the state and www.supremecourtus.gov.
political subdivisions from tort liability arising
from discretionary governmental actions not
ordinarily performed by the private sector. CHASE
3. The Rhode Island Tort Claims Cap. Rhode continued from page 12
Island, as South Carolina, has a tort cap limiting
damages. The patrol’s new policy does not address wrecks
involving local law enforcement agencies.
Since the fire, the list of possible defendants has
grown. Attorneys and fire investigators representing many But the Sheriffs’ Association’s endorsement to
of the plaintiffs have inspected debris from the site and change the law and the patrol’s new policy are likely to
have tagged about 300 pieces of evidence. It now appears result in new practices across the state, Moore said.
that manufacturers of the ceiling tile, carpeting, furniture, If the new policy had been in effect, the Forest
wiring, plywood, fiberglass insulation as well as the Acres Police Department would not be investigating its
packing foam used for sound insulation will be brought into own conduct in the May 27 chase that resulted in
the litigation. Meyers’ death.
After 9-11, a federal law was enacted to move Meyers, 50, was killed when a Pontiac ran a stop
jurisdiction from state to federal court where there are sign while police chased the driver, a suspected check
more than 75 accidental deaths. Because many of the counterfeiter.
deceased were from the surrounding states of Massachu-
setts and Connecticut as well as Rhode Island, some The dispute over interpretation of the law comes
plaintiffs have filed suit in those states. The Trust will use down to the meaning of the word, “involved.” The statute
this statute and seek to move all state claims to federal mandates independent investigations when a law en-
court. forcement vehicle is “involved in a traffic collision.”
The patrol had read that to mean the police vehicle
Although this incident happened in another state, the
had to hit another object. “It’s always been our opinion
lawsuits’ outcomes can greatly affect South Carolina
that unless there’s contact between the officer’s vehicle
municipalities. In addition, South Carolina towns and cities
and the violator’s vehicle, then we’re not bound by the
have some of the same unexpected exposures within their
statute,” Roark said in the September 14 State article.
municipal operations. The best defense is to be pro-active
and make sure all policies and procedures are followed Contact LeBlanc at 803.771.8664 or
when inspecting buildings and enforcing building codes. cleblanc@thestate.com.
Risk Letter 14
2004 SCMIT Soft Body Armor
Program Renewal
At its last board meeting, the SCMIT Board of (showing price paid per unit and number of units pur-
Trustees renewed the SCMIT Soft Body Armor Cost chased). A dated invoice is sufficient for meeting this
Sharing Program for 2004. Since its inception in 1999, criterion.
the Program has helped provide soft body armor for over
3. A copy of your policy mandating soft body armor
468 officers.
wear for all patrol officers while on duty.
Each member who responds by March 5, 2004, will
Please note that these funds will be available on a
be eligible to receive reimbursement for half the cost of
first-come, first-serve basis. Once funding is depleted,
each vest purchased in the 2004 calendar year, up to a
there will be no additional reimbursements. This means
maximum reimbursement of $250 per vest. The maxi-
the fund could be depleted prior to December 17. It is
mum benefit for any one member will not exceed $1,250
essential to request reimbursements as soon as you
(or five vests).
purchase the soft body armor.
To qualify for the soft body armor program, you must:
The SCMIT Board of Trustees and staff thank you
1. Complete the attached Soft Body Armor Ques- for taking an interest in the lives and safety of your
tionnaire below and return it by March 5. officers. If you have any questions, please call Jeff
Thompson at 803.933.1216.
2. Submit evidence of soft body armor purchases
during the period January 1, 2004, to December 17, 2004
Questionnaire
Member (Name of Municipality): __________________________________________________
1. How many vests do you intend to buy this year? (maximum reimbursement is five.)
________________________________________________________________________
2. When do you intend to purchase these vests?
________________________________________________________________________
3. Does your policy comply with the criteria for reimbursement?
________________________________________________________________________
At this time, you are not required to submit a copy of your soft body armor policy. If you would like for us to review
your policy for compliance with the criteria, please feel free to send it to us.
4. Name of person completing form
________________________________________________________________________
5. Additional Comments
________________________________________________________________________
This questionnaire must be submitted to SCMIT by March 5, 2004, to qualify initially for the 2004 calendar-
year reimbursement. Please return questionnaire to South Carolina Municipal Insurance Trust (SCMIT), Attn:
Soft Body Armor, PO Box 12109, Columbia SC 29211. Fax: 803.933.1295 or e-mail jthompson@masc.sc.
Risk Letter 15
The Difference Between Certificates of Insurance, Indemnity/
Hold Harmless Agreements and Additional Insureds
Often we are asked about precautions members It is strongly recommended that all contractor
should take before entering into a contractual relation- work be handled with written agreement including the
ship. These questions center around obtaining certifi- aforementioned types of documentation.
cates of insurance, obtaining indemnity/hold harmless
One additional layer of protection that may help
agreements and being named as an additional insured.
the city is a performance bond. A performance bond
The best way to think of these options is in terms is issued by an insurance company and guarantees
of layers of protection. Each one by itself offers some satisfactory completion of a project by a contractor. If
protection but the more that you can obtain before the project is not completed satisfactorily, the proceeds
signing a contract, the better. Let’s take a look at each can be used to complete the contract or compensate the
of them. municipality for a loss.
A hold harmless agreement is an indemnity
provision found in many contracts. In this agreement,
one party agrees to shield the other party from damages
to certain liabilities assumed under the terms of the
contract. For example, if your city or town were sued
Did You Know?
due to the negligence of a contracting party, the hold Did you know S.C. State Law requires any
harmless agreement would require the contracting party real property improvement over $50,000 have a
to pay the city or town’s defense costs and judgements, labor and material payment bond. (Section
if any. When your entity is receiving services from 29-6-250) A labor and material payment bond
another party or allowing another party to use equip- protects the municipality if the general contractor
ment or property owned by you, a hold harmless clause does not pay for any materials or does not pay
should be included in the contract, if possible. This the subcontractors. The bond could cover costs
would help protect your entity from the financial for the labor of the contractor’s employees or
consequences of liability claims or suits resulting from subcontractor, as well as materials bought by the
contractor or subcontractors.
acts omissions, or presence of the other party.
This type of bond is distinct from a general
By obtaining a certificate of insurance from a
performance bond. The latter commits the surety
contractor, you establish he actually has an active policy
only to completing the work but does not include
of coverage and what it covers, the limits of this any of the defaulting supplier’s unpaid bills. The
coverage and any exclusions that could adversely affect labor and materials bond guarantees the
the city or town in the event of an incident of loss. supplier’s bills will be paid and affords the
While this document, like a hold harmless agreement, municipality protection against liens for such
does not provide a guarantee the city or town will not debts.
be sued, it reduces the likelihood your entity will end up
Labor and material payment bond
paying a claim for an uninsured constractor’s mistake.
definitions from Stanford University’s Pro-
A way to acquire insured status is to be added as curement Manual.
an additional insured to the contractor’s or named
insured’s policy (usually accomplished by endorsement).
Having your organization added as an additional insured
provides increased liability protection. Should you later
be named as a defendant in a suit, the coverage af-
forded you by being an additional insured should ad-
dress the damages as long as they are under the scope
of that policy.
Risk Letter 16
MASC Risk Management Staff
Harvey Mathias Phil Cromer Barbara Little
Director Risk & Safety Services Manager Administrative Assistant
803.933.1212 803.933.1210 803.933.1237
hmathias@masc.sc pcromer@masc.sc blittle@masc.sc
Carol Brown Jeff Thompson Amy Lindler
Claims Manager Risk & Safety Services Consultant Administrative Assistant
803.933.1235 803.933.1216 803.933.1271
cbrown@masc.sc jthompson@masc.sc alindler@masc.sc
MASC
P.O. Box 12109
Columbia, SC 29211
www.masc.sc
Companion Claims Staff
Bob Salley Burns McBride Sue Lambert
SCMIRF Claims Supervisor SCMIRF Senior Adjuster SCMIT Claims Adjuster
803.933.1261 803.933.1253 803.933.1269
Scott Broome Dawn Allison Brenda Keglar
SCMIRF Senior Adjuster SCMIT Supervisor SCMIT Associate Adjuster
803.933.1263 803.933.1267 803.933.1268
Cindy Martellini Martha Gaw Companion
SCMIRF Senior Adjuster SCMIT Senior Adjuster P.O. Box 12220
803.933.1262 803.933.1265 Columbia, SC 29211-2220
Toll Free: 877.825.2477
Nancy Campbell Kelly Benson After-hours number:
Administrative Coordinator SCMIT Senior Adjuster 1.800.845.2724
803.933.1264 803.933.1266