Actual claims are processed and paid by a third party administrator for a fee based on the number of eligible employees participating during the month, plus any expenses for identifiable printing and postage. County departments are charged a fee for direct costs of property and casualty based on individual departments' exposures. Liability claims are processed by a third party administrator for a fee per each claim processed. Actual claims are processed and paid by the State of Colorado. Actual claims are processed and paid by a third party administrator for a fee per each claim processed.
Any excess is covered by a commercial insurance company.
The Reserve is funded by annually appropriated transfers from the insurance funds. In the event that an insurance fund has a deficit, funds are transferred back to it from the Reserve. The claims liability reported in each fund is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurrred at the date of the financial statements and the amount of the loss can be reasonably estimated.