Pool Coverage and Limit Policy

Originally Adopted by MVRMA Board: September 16, 2002

Amended: March 21, 2005

PURPOSE

The purpose of this policy is to clarify the insurance coverage and limits provided by the Pool.  Additionally, this policy will provide a process for securing optional coverage and/or increased limits for individual members.

POLICY STATEMENT

It is the policy of the Miami Valley Risk Management Association that the Board of Trustees shall establish the Pool coverage and limits for the upcoming year, which shall apply to all members.  The insurance premium for the pool coverage shall be allocated based upon the pool contribution factor.

It is recognized that both the insurance coverage and limits are subject to change.  Market conditions, capacity, price, loss experience and risk exposure may potentially affect the available coverage and limits.  In addition, various insurers may increase or decrease limits of coverage, have various exclusions or provide certain sub-limits on coverage based upon insurance underwriting conditions.  There is no guarantee from one year to the next that policy coverage or limits will remain the same.

The Executive Director will review with the Finance Committee, at least once every two years, the total liability limit for the Pool.  The purpose of this review is to establish the desired liability limit.  They will consider but not limit themselves to such issues as the tort climate, changes in tort caps or governmental immunity, trends in civil litigation that may justify increased limits, insurance market conditions, similar limits of other public entity pools, large losses incurred by the Pool, and the financial impact of purchasing higher limits.  As a guideline, the total liability limit for the Pool should not be less than $5 million per occurrence for each member with a desired total limit of $10 million per occurrence.

In accordance with Article XIII. Additional Insurance of the MVRMA Agreement and Bylaws, the Board recognizes some members may desire higher limits than provided in the pool coverage.  Accordingly, members will be afforded the opportunity to purchase optional coverage limits to the extent they are available.  The cost will be passed directly through to the member.

It is also understood that from time to time members may need insurance coverage that is not part of the approved pool coverage program.  Members are free to secure those coverage needs separately from MVRMA.  However, if the member desires, MVRMA, through its Broker, will attempt to secure coverage at the limits and deductible desired by the member.  If the member elects to approve the placement of this coverage, the cost will be passed directly through to the member.