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Will a single catastrophe loss or a series of catastrophe losses exhaust MIRMA'S loss funding? |
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No. The annual loss funds will only pay up to $1,000,000 per occurrence for liability losses, $725,000 per occurrence on Workers' Compensation, and $500,000 per occurrence on property losses. The balance will be paid by our excess insurance carriers. |
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Can a city participating in MIRMA be subject to an additional assessment charge? |
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Yes, but under extremely limited conditions. MIRMA'S losses are prefunded by the regular annual assessment. However, an assessment provision is required by state statute as a financial safety valve to address the unlikely contingency which would step outside the realm of probability. |
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Does MIRMA adjust the annual assessment based on good or bad loss experience? |
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Yes. MIRMA uses an experience rating formula to adjust member assessments up or down. |
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Does MIRMA purchase excess insurance coverage from any non-admitted insurance carriers? |
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No. MIRMA purchases excess insurance only from domestic excess insurance carriers admitted to do business in the State of Missouri, with Best’s Ratings of A V or better. |
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How does MIRMA know its reserves are adequate? |
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MIRMA is subjected to an independent financial audit annually, conducted by an “Independent” accounting firm. As a condition of expressing an unqualified opinion, MIRMA'S auditors require that MIRMA'S reserves be certified by a licensed professional actuarial firm. |
