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September / October 2009
Volume 21, Number 5

News you can use

TAC Risk Managment Pool Votes to Give $22 Million in Renewal Credits

Longevity with the pool and good loss histories will qualify members of the TAC Risk Management Pool for their share of $22 million in renewal credits for workers’ compensation and liability coverages in 2010 as a result of action by the TAC Risk Management Pool board of directors.

Meeting at the TAC Annual Conference Aug. 26, the county officials on the pool’s board voted to set aside $10 million in renewal credits for members with workers’ compensation coverage and another $12 million for liablity coverages, such as automobile, general liability, public official’s liability and law enforcement liability.

The amount of a county’s potential renewal credit will be established based on two factors, longevity and loss history. To be eligible, a county must have been a member of the pool for at least a year — 25 percent of any available renewal credit is based on longevity. Renewal must be for at least one year.

The remaining credit is available to members with a combined historical loss ratio of less than 100 percent. The idea is that members that take active steps to reduce their losses are rewarded for their efforts to reduce their claims potential.

Members with a loss ratio of more than 100 percent could still receive a portion of the credit if their loss histories have improved over the past three or four years. “Renewal credits or dividends are very important to our members and have helped to lower the price that the member must pay for insurance coverage,” TAC Program Administration Director Jim Jean told the board.

“We think it’s important to recognize counties that have shown loyalty to the pools and especially important to reward members that implement effective safety programs and pay attention to potential liabilities in the county.”