The savings on insurance Clark County Commissioners were promised when the board switched its agent of record likely will be much less than thought, if any at all.

Commissioners voted 2-1 -- with Mike Moore dissenting -- to switch from its previous agent of record, Mike Whalen of ISU Insurance and Investment Group, previously known as Hinton-Corby, to John Neace and Maverick Insurance, based largely on a promise of a saving at least $40,000.

"I personally believe, [a savings of] a minimum of 10 percent," said Edward "Pepper" Cooper, vice president of sales for Maverick Insurance, representing John Neace at the commissioners meeting June 11. "That's a minimum. That's $40,000."

When commissioners were presented with the figure at its meeting July 23, they were told they would be saving closer to $161,000.

But there is a problem in the proposal comparison Maverick presented to the commissioners that skewed numbers in its favor.

THE NUMBERS CRUNCH

The liability cost for the county for 2008-09 under ISU Insurance was listed at $341,647 in the proposal presented July 23. The problem is the proposal comparison included the premium the county pays for auto insurance twice. The premium the county paid in 2008-09 for auto insurance was $146,822.

The Maverick employee that prepared the proposal comparison said it was an honest error on her part.

The actual cost for ISU's general liability premium for 2008-09 was $194,825.

Maverick listed the total cost for last year's package -- which includes liability, workers compensation and other coverages -- at $768,625. The actual total according to county records was $591,803.

The total package of premiums, including workers compensation and property insurance for Maverick insurance proposal was listed as $607,019 for 2009-10.

The difference is ISU's 2008-09 total is $15,216 less than Maverick's proposal for 2009-10.

"As you can see the numbers [presented to commissioners] are not correct," Whalen said. "They're not even close to being correct."

Because of variation in the cost associated with workman's compensation, Barbara Swank-Gallegos, account executive for Maverick Insurance, said the value should be omitted from the comparison.

The totals -- with workman's compensation omitted -- would equal an $822 savings by Maverick.

OTHER VARIABLES

When looking at the two policies, the costs can be dependent on a variety of factors that may muddy the comparison.

Another insurance line item causing divisiveness is whether the county will have to shell out an additional $30,000 to cover a nurse practitioner.

The policy is a "wider-range" policy that covers exclusions made beyond the nurse practitioners coverage as a Clark County employee -- covering medical malpractice -- and runs for a calendar year ending Dec. 31.

However, the insurance policy from ISU expires Aug. 1, as it does not coincide with the calendar year.

"We are not changing our position on the malpractice insurance: It is not needed," Swank-Gallegos said in an e-mail. "That policy does not expire until Dec. 31. We will consult with the commissioners prior to the expiration if it is their wish to continue that policy."

In a letter responding to questions from Mike Whalen -- when he was the county's agent of record -- Scott Lage, vice president of claims from Governmental Insurance Managers Inc. listed coverages excluded from the county's policy, including diagnostic services and treatment by a nurse practitioner.

In response, the commissioners purchased additional coverage for the nurse practitioner.

Even if the coverage for the nurse practitioner is included in the ISU figures from 2008-09, the difference would be a savings of $14,784 for Maverick -- without the nurse practitioner proposal included -- which is well below the promised $40,000.

Moore said when the nurse practitioner contract expires in December, he "fully intends for that coverage to be purchased again."

If the $30,000 policy is included in Maverick's total, it would be $637,019 -- pushing the premiums above the cost of last year's policy.

MOORE'S THOUGHTS

According to the figures, the 10 percent discount promise to the commissioners is not being covered, and even if Maverick offers a reduction in cost to equal the price, Moore said he does not want John Neace and Maverick to stay the county's agent of record.

"I have no trust and faith in Maverick Insurance, whatsoever," Moore said. "I do not do business with people that deceive me."

Commissioners Ed Meyer and Les Young -- who voted for the new insurance policy -- did not return calls seeking comment on the matter as of press time.

Whalen did not blame the commissioners for changing the agent of record with the promise of saving money and if the commissioners asked he would want to be the agent of record again.

"This is bigger that Mike Whalen, this is bigger than [John Neace] this is bigger than the county commissioners," Whalen said. "This is about the taxpayers of Clark County."

AT A GLANCE

--WHAT'S HAPPENED: On June 11, Clark County Commissioners voted 2-1 to change the insurance agent of record for the county from Mike Whalen of ISU to John Neace of Maverick Insurance. Edward "Pepper" Cooper, presenting on Neace's behalf, offered a savings of 10 percent on insurance, or a minimum of $40,000, if the county switches its agent of record. On July 23, Neace presented Clark County Commissioners with a proposal saving the county a reported $161,000. The proposal is approved 2-1, with Mike Moore voting against it.

--WHAT'S NEW: The $161,000 in savings was derived through an error in figures on a proposal comparison presented to the commissioners. A $146,822 auto policy was included in the cost of the previous year's figures twice. Additional questions of whether or not the commissioners will have to renew a $30,000 policy for expanded coverage for a nurse practitioner expiring Dec. 31 remain.

--WHAT'S NEXT: County Commissioners meet next Aug. 6.

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