CHARLESTON, W.Va. — The state’s liability insurance agency is doing a reset after spending its reserve funds on dozens of sexual abuse cases from a now closed private boarding school.
BRIM (Board of Risk and Insurance Management) Executive Director Jeremy Wolfe appeared before state lawmakers Tuesday at interim committee meetings at the state capitol. He said the agency is now at “ground zero” with its reserves after the cases involving the Harrison County-based Seventh-day Adventist Church school Miracle Meadows.
BRIM insured the school which was located near Salem.
It was later proved there was abuse there from 1987 to 2014. BRIM initially wasn’t liable for the older abuse cases because they were beyond the statute of limitations but in 2020 state lawmakers increased the civil statutes of limitations for child abuse from 22 years to 36 years, bringing in many of early Miracle Meadows cases. More than $100 million has been paid out so far on more than 100 claims.
“Essentially wiped out 10 to 15 years in financial reserves with that rule change,” Wolfe told lawmakers.
He said they’ll try to rebuild the reserve fund with money from premiums but it’s difficult to predict how long it will take.
“It’s going to take us a while…so every year we’re going have to be proactive and monitor our finances and make sure we’re doing the right things,” Wolfe said.
Generally BRIM has the most severe claims in the area of physical and sexual abuse involving secondary schools along with excessive use of force by law enforcement against an inmate or someone who is under arrest. Wolfe said he along with BRIM stand against any and all violations of the law. He said the agency is working with its insured to encourage better training and screening.
“That means the accounts that have a bad claim experience and be proactive and meet with them—to do all that we can do with them to make the right changes,” Wolfe said.
BRIM has made a number of changes in its program since 2021 including several recently including:
–approved in July a drop in limits for excessive force claims from $1 million to $500,000
–premiums are now more in line with commercial insurance market
–a more detailed review of those non-state agencies seeking coverage
Wolfe said BRIM could still be liable for older sexual abuse claims the agency doesn’t yet know about.
Wolfe told lawmakers BRIM does have a $300 million trust fund.
Story by Jeff Jenkins, MetroNews