Page 53 - Yucaipa Valley Water District

Director Memorandum No. 18-135 Page 2 of 3

The table details the actual losses for the last three years that effect the Experience Modification
Factor.

Policy Period Claims Actual Losses %/Claim
44031580 $5,985 4.530%
10/31/2016 - 10/31/2017 44032050 $5,831 4.414%
UNDER $2,001 $2,091 1.583%
10/31/2015 - 10/31/2016 UNDER $2,001 $2,982 2.257%
10/31/2014 - 10/31/2015 UNDER $2,001 $2,377 1.799%
Loss-Free Experience Modification 59.875%
Calculated Experience Modification 74.458%

The chart below provides the historical Experience Modification Factor percentages from 2005 to
2018.

Yucaipa Valley Water District

120 114
112
106

100 86 79 75 80
Experience Modification Factor % 60 68 69 65 61 61 60 74

80

40

20

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Staff recommends that the Board selects Redwood F&C Berkshire Hathaway due to the proposal
cost, long-term working relationship, and a solid financial rating of A++XV.

Financial Consideration

Funding for the insurance will be split between the Water, Sewer and Recycled Water Funds, [GL
Account #xx-5-xx-50019] Workers Compensation. This expense is included in the 2018-19
approved budget.

Yucaipa Valley Water District - October 16, 2018 - Page 51 of 151