By NELSON MORAIS

Staff Writer

The Greene County Commission's Insurance Committee on Thursday approved two motions seeking to clarify the county government's share of deductibles in insurance claims with its partners in several joint ventures.

The motions focused on six to eight joint ventures between Greene County and other entities, including municipalities and other government agencies.

The Greeneville-Greene County Public Library and Kinser Park are two examples of joint ventures between Greene County and the city of Greeneville.

With regard to claims on county-owned buildings and their contents, in the case of a major fire or other catastrophic, expensive event, on properties that the county "reinsures," or has insured, the county government normally must pay a $50,000 deductible on the total claim.

Dan Jackson, the county's insurance risk manager, explained to a reporter that the motions passed Thursday were not a policy change, but rather an official "heads-up notice" to its joint venture partners what the county expects from them in the case of a large claim being filed.

Said Jackson, "The motions directed private and public corporations, in whose names some county buildings are in, and other entities in joint ventures with Greene County, to be notified by letter that they are in a joint venture with the county and that they agree to pay a percentage of the deductible proportionate to the percentage of ownership they have in the building."

One motion passed Thursday covered property, or casualty, insurance for buildings and their contents. They have a $50,000 deductible.

The other motion covered liability insurance where the county would have to pay a claim if it were found responsible for bodily injury or property damage, such as in the case of a driver or passenger and the vehicle they were in being involved in a car accident. Liability insurance has a $250,000 deductible.

In the cases of the Greeneville-Greene County Public Library and Kinser Park, the Greene County and Greeneville governments have a 50/50 stake in the joint ventures.

That means that in the case of a either a casualty, or liability claim, Greene County and Greeneville governments would split the deductible.

That translates into each entity having to come up with a maximum of $25,000 to meet the deductible in a casualty claim.

In liability claims, that translates in each government coming up with a maximum of $125,000 in out-of-pocket costs, to meet the deductible.

Jackson was quick to point out that this community has been very fortunate and not experienced a major loss in over 30 years. He also said there has never been a major liability claim of $250,000 or up.  

Jackson also noted that in some joint ventures, the city is the administrator and buys insurance. In other joint ventures, the county is the administrator and holds the insurance policy.

Citing a hypothetical scenario, committee member Kevin Morrison said, "If the library burns (down), I expect the city of Greeneville to pay half the deductible" of $50,000. He added, "I don't want the taxpayers of Greene County" to be saddled with the full amount of $50,000.

Jackson said that in the case of the library, the city administers it and has insurance on it from the Tennessee Municipal League, an insurance "pool" from which all cities in Tennessee can get their policies.

He answered Morrison's question by saying that whether the city has insurance on a joint venture, or whether the county holds the insurance policy, the cost of the deductible would be split 50/50.

The insurance committee regularly reviews health-care and other claims, and keeps track of the self-insurance fund that covers liability and buildings.