Q. What are the significant advantages of membership?
- ICRMA Membership Keeps Your City in Control
Given all the challenges a city faces when evaluating the costs and complexities of managing risk, the last thing you need is to be limited when it comes to having a range of options as well as the ability to direct your programs as you think best.
That is perhaps the most important difference between ICRMA and the others: We keep you in Control!
With our programs and support, you control
- How much self-insurance your city carries for each line of coverage
- How much risk control assistance your city receives from the pool’s professional staff
- What are the best means and programs for minimizing future claims
- Your choice whether to join our risk sharing or group purchase insurance programs now or in the future
- What level of involvement you’ll take within the ICRMA organization
- Comprehensive Insurance Programs for Members
A complete offering of General Liability, Workers Compensation and Property( incl. Boiler and Machinery) insurance programs procured by one of the preeminent insurance brokerage corporations in the world. Program features include:
- Customized self insured retentions and deductibles
- Special Public Entity manuscript coverage forms
- Specialty coverage for ancillary risks and special events
- Market-wide studies and price comparisons
- Professional JPA Management and Administrative Practices
ICRMA contracts with a professional JPA Management firm which has over 20 years of experience providing services. Members receive skilled Pool Management delivered by seasoned professionals who are in touch with the most current trends in increasing the effectiveness of pool operation, pool insurance and Risk Management programs, including.
- Accounting and Financial Reporting
- Actuarial
- Litigation Management
- Risk Control
- Risk Management
- Workers’ Compensation Claims Oversight
- Information Services
- Professional Risk Management Programs and Resources Customized to each Member
ICRMA members enjoy a comprehensive menu of Risk Control, Actuarial, and Training programs, with most included within the member’s premium. Members may customize the delivery of these services based upon their individual city’s needs. Program offerings include:
- Actuarial Evaluations for self insurance annual liabilities
- Risk Management Programs for outside risk management services
- Claims audit services
- Internal member Risk Evaluation studies
- ICRMA University Training Curriculum
Q. Is there a minimum initial membership commitment term?
Yes; normally an initial three year commitment is required.
Q. Who are the other member cities in the pool?
There are currently 22 members in the pool. There are members in Los Angeles, Orange, and San Bernardino Counties. Members are full service cities and normally contain a full complement of municipal services including Police and/or Fire services. The members are as follows: Alhambra, Azusa, Baldwin Park, Colton, Culver City, Downey, El Monte, El Segundo, Fullerton, Glendora, Hawthorne, Hermosa Beach, Huntington Park, Inglewood, Lynwood, Manhattan Beach, Monrovia, Monterey Park, Redondo Beach, San Fernando, South Gate, and Upland.
Q. How long has this pool been in existence?
ICRMA was formed in 1979.
Q. What types of pool services are generally available, and which are included in the standard premium?
Risk Management Program and Service Points Program, ICRMA University, Scholarships to conferences, Occu-Med, STAR Member Recognition Program, Online Training (WC Program : Claims Audits, TPA Evaluation, File Audit Reviews ) Individual member actuarial studies.
Q. Who are the pool’s service providers?
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Pool Administration:
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Bickmore Risk Services (BRS)
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Risk Management Services:
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BRS
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Actuary:
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Bay Actuarial
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Broker:
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Marsh Risk Services
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General Counsel:
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McKenna Long & Aldridge
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Litigation Management:
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George Hills Company
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Investment Advisors:
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Public Financial Management
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Financial Auditors:
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Mayer Hoffman McCann P.C.
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Q. Does the Pool have its own staff?
The Pool contracts with its service providers as enumerated in Question #6.
Q. What are the requirements for joining?
If you become interested from your review of the website there is an abbreviated information sheet that is to be filled out explaining important facts about your city. It is customary for pool staff to come out to your city and conduct an informational visit to explain the benefits of ICRMA and the services provided to its members. We have one page questionnaires for each line of insurance you are interested in, from which we can give you an approximate estimate of insurance premiums.
Q. What are the withdrawal provisions?
Withdrawal or expulsion by a member from any risk management program shall be in accordance with the provisions of the Bylaws governing that program.
The withdrawal or expulsion of any member of any risk management program after the effective date of such pooling program shall not terminate its responsibility to contribute its share of premiums or funds to any fund or insurance program created by the Authority. All current and past members shall be responsible for their respective share of the expenses, as determined by the General Manager, until all claims, or other unpaid liabilities, covering the period of the member’s participation in the risk management program have been finally resolved and a determination of the final amount of payments due by, or credit to, the member for the period of its participation has been made by the Governing Board. All past members shall receive any distribution of dividends based on the same methodology of the current members. The withdrawal or expulsion of any member from any program shall not require the repayment or return to that member of all or any part of any contributions, payments, advances, or distributions except in conformance with the provisions set forth herein and in the risk management program’s Bylaws.
Any member seeking to withdraw without proper and effective notice shall be responsible for the full cost of the subsequent year’s premium, and the notice will be deemed effective for the following year.
A member which voluntarily withdraws from any program shall not be permitted to renew participation in the program until the expiration of three years from the effective date of the withdrawal.
No member can be expelled from a program except as provided by Article 14 of these Bylaws.
Voluntary Termination
A participant which has maintained its participation in the LP for three full program years, may terminate its participation if, at least five months before the next program year, a written notice to terminate participation is forwarded to the Authority from the participant. The notice must be postmarked no later than January 15, and it must include a participant’s Council resolution or meeting minutes authorizing such action.
A participant that has not maintained its participation in the LP for three full program years shall not be permitted to withdraw from the LP prior to the end of its commitment period and shall be obligated for payment of premiums for these three years.
Involuntary Termination
The Governing Board may initiate termination of future participation for the following reasons:
Termination as a member of the Authority;
Declination to cover the participant by the entity providing excess coverage;
Nonpayment of premiums, assessments, or other charges;
Frequent late payment of premiums, assessments, and/or other charges, subject to interest and penalty charges;
Failure to timely provide requested underwriting information;
Consistent poor loss history relative to the pool;
Substantial change in exposures which are not acceptable in this LP; and/or
Financial impairment that is likely to jeopardize this LP’s ability to collect amounts due in the future.
The Governing Board shall have the authority, as provided in Section 5.1.3.14 of the Authority Bylaws to send termination notice to a participant. Such notice shall be sent at least 60 days prior to termination.
Termination of participation, whether voluntary or involuntary, in future program years does not relieve the terminated entity of any benefits or obligations of those program years in which the entity participated. These obligations include payment of assessments, retrospective adjustments, or any other amounts due and payable. In addition, the obligation to provide timely claims data for evaluation of claims exposure does not cease with termination from the program. Any participant which voluntarily withdraws as a participant from the LP shall not be permitted to renew participation in the program until the expiration of three years from the date of the participant’s withdrawal.
Q. How can you describe the financial status of the Pool?
ICRMA enjoys the stability of a JPA which has been in operation for twenty-nine years, coupled with a healthy retained earnings base. Membership is stable and funding is currently adequate to meet obligations. At June 30, 2008, both the Liability and Workers’ Compensation Programs were funded above the 90% confidence level.
Q. Does my city have to risk-share with other cities or can a city opt for insurance purchase only?
Members have a choice in making a decision as to what their self insured retentions (SIR) shall be, and whether they purchase excess Liability and / or Workers Compensation insurance only, or whether they choose an SIR. That falls within the pool’s self insurance / risk sharing structure.
Q. What are the cost components for the pool members annually?
The pool’s premium structure consists of here components: 1)Pure Premium, which is the self insurance portion,actuarily derived , which provides for the self insurance funding requirement within the pooled risk sharing layer; 2) Excess Insurance premiums for the pool’s excess insurance coverage over each member’s SIR ;3) Broker fees : and 4) Administrative program costs :
Excess General Liability - Pool funding (SIR to $2 million), Excess Premium ($2 million to $20 million), Broker Fees, Administrative Expenses
Property/Boiler Machinery - Purchased Premium (different programs), Broker Fees, Administrative Expenses
Excess Workers' Compensation - Pool funding (SIR to $5 million), Excess Premium ($5 million to $100 million), Broker Fees, Administrative Expenses (includes Department of Industrial Relations Assessment, Structured Return-To-Work Program)
Q. What types of insurance are available to purchase?
ICRMA offers very competitive insurance programs for:
- Excess General Liability,
- Excess Workers Compensation,
- Property/ Boiler Machinery,
- Auto Physical Damage
Q. What are the insurance program Self Insured Retention options?
Excess General Liability - $100k, $200k, $250k, $300k, $400k, $500k, $750k, and $1 million or attach directly to purchase excess at $2 million.
Excess Workers' Compensation - $350k, $500k, $750k, $1 million. ICRMA self-insures the layer between $1 million and $5 million and purchases insurance in excess of $5 million.
Q. What are the assessment and dividend policies of the pool?
Dividends
Five years after the end of the program year, the first dividend calculation shall be performed. Each year thereafter there shall be an additional dividend calculation made until such time as the program year is closed. Any dividends available to be declared and returned to the participants will be at the discretion of the Governing Board.
Calculation
Dividends are available to be declared only at such time as the individual program has equity, with liabilities actuarially stated, and discounted at a 90% confidence level. The calculated amount shall represent the maximum dividend available to be declared.
This amount shall be reduced if the two succeeding years (after the fifth program year reaches eligibility) have negative equity, with liabilities actuarially stated at an expected confidence level.
Each participant’s share of any dividends shall be allocated based upon the method by which the deposit premiums were collected, beginning with the oldest program year. However, until the last claim of a program year has been paid and the program year has been closed, the program year must maintain sufficient funds to satisfy the 90% confidence level discounted requirement.
Assessments
As approved by the Governing Board, assessments may be levied on the participant for the risk sharing layer of any program year(s) when an actuary finds that the assets of the individual program, as a whole, do not meet the expected discounted losses of the individual program. Each participant’s share of the assessment shall be allocated based upon the method by which the deposit premiums were collected for the risk sharing layer of each respective program year being assessed. If such assessment is not sufficient to relieve the pool of its actuarial determined deficit in the year of the assessment, such assessment shall be levied each subsequent year until the actuarial deficit is relieved. The timing of the payment shall be determined by the Governing Board at the time of the assessment.
Q. What is the average tenure of membership for the average ICRMA member city ?