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1 6.2. The reserves and estimates of potential DAMAGES exposure in Section 6.1 above <br />2 shall include the MEMBER'S potential exposure to claimant's attorney fees, costs, and <br />3 prejudgment interest, if applicable. <br />4 <br />5 7.0. CLAIMS ADMINISTRATION AUDIT. <br />6 <br />7 7.1. The BICEP Board of Directors shall select a claims auditor. <br />8 <br />9 7.2. Utilizing the Liability Claims Quality Control Guidelines in section 9 below, the <br />10 auditor shall conduct a claims administration audit once annually, or more often at the <br />11 discretion of the BICEP Board of Directors, particularly if: <br />12 <br />13 a. There is an unusual fluctuation or increase in the MEMBER'S claims experience <br />14 number of claims; <br />15 <br />16 b. There is a change of liability claims administration firms; or in-house <br />17 claims/litigation management; or <br />18 <br />19 c. The MEMBER is new. <br />20 <br />21 7.3. Within sixty (60) days of receipt of the audit report, the MEMBER shall respond to <br />22 any recommendations and shall either outline in writing a program for corrective action or <br />23 explain why the MEMBER should not be required to follow the recommendations. <br />24 <br />25 8.0 ACTUARIAL STUDY. The BICEP Board of Directors shall obtain an actuarial study <br />26 performed by a Fellow of the Casualty Actuarial Society annually, or more often if indicated. Bas< <br />27 on the actuarial recommendations, BICEP shall maintain Reserves and the MEMBER shall make <br />28 funding contributions equal to or exceeding the "Projected Ultimate Losses" shown in the actuaria <br />29 report. <br />30 <br />31 9.0. LIABILITY CLAIMS QUALITY CONTROL GUIDELINES <br />32 <br />33 9.1 The MEMBER will: <br />34 <br />35 a. Conduct investigation within thirty days of the MEMBER'S knowledge of the <br />36 CLAIM, including taking statements from participants and witnesses. <br />37 <br />38 b. Develop information regarding liability issues, including immunities, eompazative <br />39 negligence, joint tortfeasors, and joint and several liability. <br />40 <br />41 c. Develop information on damages, including property damage, nature and extent o <br />42 bodily injury and emotional distress claims, medical costs, and economic damages <br />43 such as wage loss, lost profits and loss of goodwill. <br />44 <br />45 d. Obtain and review contracts that maybe in effect relating to specific accidents, <br />46 such as hold harmless and indemnity agreements, additional insured requirements, <br />47 other applicable insurance policies and joint powers agreements with other public <br />48 entities. <br />49 <br />03-OS-06 1 7 <br />