Who is MIRMA

  1. MIRMA is not an insurance company or agency, rather a self-insurance pool, owned entirely by participating members. It functions solely for their benefit.

  2. MIRMA is an incorporated association which establishes a protected group self-insurance program for its members. It provides the most comprehensive uniform property and casualty coverage under one plan available today.

  3. MIRMA was created in the wake of the instability that existed in the municipal insurance market in the 1970's as an actuarially sound alternative to commercial insurance. Operations began in 1981 following a feasibility study that started in 1979.

  4. Such a program demands an increased awareness of, and responsibility for, loss prevention, and for the prompt correction of improper, hazardous, and unsafe conditions or procedures. Only in this manner can the maximum cost savings be realized.

  5. Members assessments collected will be retained by MIRMA to pay losses, purchase excess insurance, pay insurance service fees, and to cover the administrative expenses incurred.

  6. MIRMA is governed by a Board of Directors composed of 10 members which are elected by the general membership of the association.

  7. Even though the association is not an insurance company or agency, it is still regulated by the Division of Insurance and the Division of Workers' Compensation.

  8. In addition to providing a comprehensive package of coverage and limits, MIRMA is designed to be a cost saving device. This is done primarily through long range cost containment features. When MIRMA was initially formed with its 8 charter members, cost savings amounted to $131,500. After 19 years of operation the total cost savings has been estimated to exceed $20,000,000, when compared to commercial insurance premiums.
What is Governmental Risk Pooling
The Birth of Governmental Risk Pools
In the mid 1970's through the mid 1980's, governmental entities throughout the United States were faced with skyrocketing insurance costs and in many cases a total lack of availability of insurance at any cost. In addition these governmental entities found that the commercial insurance companies that were willing to provide insurance, even at astronomical cost, did not provide the risk management services necessary to assist them in improving their insurability.
In response to this crisis governmental entities began to form coalitions and consortiums for the purpose of creating alternatives to satisfy their insurance and risk management service needs. These early pioneers quickly learned that by pooling their resources they could establish programs that would satisfy their insurance needs as well as guarantee delivery of risk management services, without dependence on commercial insurance. It was these early programs that became known as GOVERNMENTAL RISK POOLS.
Governmental Risk Pools Are:

  1. Non-profit organizations
  2. Owned and operated by their members
  3. Responsive to individual state laws, regulations and member needs
  4. Actuarially sound and evaluated annually
Governmental Risk Pools Provide:

  1. Consistent availability of coverage
  2. Competitive and stable prices
  3. Equity interest in surplus
  4. Risk management services designed for governmental entities
Governmental Risk Pools Today
Today, governmental risk pools have grown in number to some 500 nationally, generating an estimated $6 billion in annual premium. The accomplishments of governmental risk pools in terms of advantages, benefits and services clearly sets them apart from other sources of coverage and services available in the commercial insurance industry and establishes them as catalysts in governmental risk management.
Governmental Risk Pools In The Future
Although the crisis conditions that existed in the 1970's and 1980's substantially diminished during the 1990's, it must be kept in mind that governmental risk pooling is a long-term management strategy. It is not a “quick fix” for governmental insurance pricing problems. The full benefits of participation in a governmental risk pool are not fully realized for several years.
These benefits result from a members equity interest in the pool’s surplus as well as the impact of good training, education and implementation of changes based on sound risk management principles. The simple purchase of insurance is a pre-management strategy, void of risk management principles, dependent upon conditions existing in the insurance market. Therefore, a governmental risk pools future success will be largely dependant upon the commitment of its members to support it on a long term basis.
What Does MIRMA Have to Offer

  1. MIRMA provides its members with a single comprehensive multiple line insurance package. Individual lines of coverage can not be obtained through the association. The coverage package includes the following:

    1. All risk on buildings including earthquakes
    2. All risk on contents including earthquakes
    3. Boiler and Machinery
    4. Contractors equipment
    5. Auto physical damage
    6. General liability
    7. Automobile liability
    8. Public officials liability
    9. Police professional liability
    10. Employment Practices Liability
    11. Airport Liability
    12. EMT & Paramedic Liability
    13. Money and Securities
    14. Employee Fidelity
    15. Workers’ Compensation

    The limits provided are listed as follows:
    All property, Boiler and Machinery 100% replacement cost per location, $100,000,000 per occurrence
    General liability and Auto liability $2,500,000 per occurrence
    Airport liability $2,000,000 per occurrence
    Uninsured Motorist $25,000 per person
    $50,000 per occurrence
    Workers' Compensation Statutory Limits
    Public officials, Police Professional and Paramedic Liability $2,500,000 per occurrence
    Money and securities and employee fidelity $100,000 per occurrence
    Employment Practices Liability $1,000,000 per occurrence
    The deductibles that apply are listed as follows:
    Members property $1,000
    Auto physical damage $1,000 cars and pickups

    $2,500 trucks and buses
    Employment Practices Liability $5,000 members with no prior claims

    $10,000 members with prior claims
    Boiler and Machinery Business income and extra expense - 30 days

    Hazardous substance clean up-$50,000

    Gas turbines, steam turbines and internal combustion engines/generators greater than 2,000 KW - $175,000

    Internal combustion engines/generators 2,000 or less KW - $25,000

    Electrical transformers under 10,000 KVA - $5,000

    Electrical transformers 10,000 to 29,000 KVA - $25,000

    Electrical transformers 30,000 KVA and greater - $50,000

  2. With the exception of Airport Liability, MIRMA pays the majority of member claims from a central loss fund. The loss fund provides for two layers of funding. The primary self insured retention layer provides for $150,000 per occurrence. The secondary or excess self insured retention layer provides for an additional $850,000 per occurrence on Workers' Compensation, $350,000 per occurrence on property losses and $850,000 per occurrence on liability losses.

  3. In addition to MIRMA'S self-insured retention limits, excess insurance is purchased annually from excess insurance carriers with AM Best ratings of A V or better.

  4. MIRMA purchases a fully insured group policy to provide Employment Practices Liability coverage for its participating members.

  5. MIRMA distributes the cost of the program to its members in the form of annual assessments. The assessments are based on a rate per $100 of annual payroll reported by the member. This rate will be sufficient to cover the total of the following costs:

    1. Loss Fund
    2. Excess Insurance
    3. Insurance Service Fees
    4. Administrative Expense
    5. Employment Practices Liability Premium

  6. Any surplus loss related funds and interest revenue that are not needed to pay claims, or establish claim reserves are distributed to the members on a pro-rate- basis as credit against future years assessments. This is important because many claim reserves must be maintained and invested for several years before all claims are settled or the statutes of limitation expire.

  7. MIRMA furnishes its members with the following services in addition to insurance protection:

    1. Claims administrative service
    2. Legal defense of claims
    3. Subrogation
    4. Loss prevention service including individual member evaluation and development - minimum of four on site visits per year
    5. A loss prevention manual
    6. Monthly Loss and Claim Experience Reports
    7. An insurance coverage outline which explains the coverage provided
    8. Loss experience adjustment of annual assessments
    9. Adjustment of annual assessments for loss prevention programs
    10. Monthly computerized legal training for police officers covering constitutional and civil law as it relates to the performance of their duties
    11. Special seminars and workshops for police chiefs
    12. Special seminars on current topics affecting municipal government risk management
    13. Simulated situational shooting training for police
    14. Model police policies on critical tasks
    15. Newsletter
    16. Monetary risk management awards for reduction of accidents and injuries, including partial funding for loss prevention related equipment and resources
    17. Reimbursement for Aquatic Risk Management Audits provided by Ellis and Associates
    18. Safety video library available to members at no additional cost
    19. Annual conference for participating members

  8. MIRMA has a service contract with Ward North America, Inc. to provide claims administration, subrogation, and monthly loss reports. Ward provides a dedicated unit of adjusters that handle only MIRMA claims, located in Columbia.

  9. MIRMA'S primary self-insured retention limit of $150,000 per occurrence shall be applied on an occurrence basis, covering any and all liability claims arising out of incidents or occurrences taking place during the period of membership, for which claims are made within the statutes of limitation.

    MIRMA'S excess self-insured retention of $850,000 per occurrence shall be applied on a claims made basis, covering any and all liability claims arising out of incidents or occurrences taking place during the period of membership, for which claims are made during the period of membership.

    In the event of termination of membership the member shall be offered an extended discovery period not to exceed 24 months for an additional one time charge not to exceed 200% of the most recent rate of contribution to said excess self-insured retention level.

    MIRMA'S excess liability insurance contract is on a claims made basis, covering any and all liability claims arising out of incidents or occurrences taking place during the period of membership.

    In the event of termination of membership the excess insurance company shall offer an extended discovery period of up to twenty-four months for an additional premium to be negotiated at that time and paid by the former member.

    MIRMA'S other excess insurance contracts are on an occurrence basis, covering any and all claims arising out of incidents or occurrences taking place during the period of membership, for which claims are made within the statutes of limitations.

    Under no circumstances will MIRMA provide coverage for claims arising out of an incident or occurrence taking place prior to the effective date of membership.
What Doesn't MIRMA Have to Offer

  1. Environmental impairment liability.

  2. Faithful performance or other Bonds specifically required by state statute or city ordinance.

  3. Coverage for public school systems.

  4. Liability coverage for public swimming pools when they are loaned, rented, or leased to a third party for its exclusive use, (organization or individual); unless, the member provides lifeguards for that specific use, who are certified or licensed by a nationally recognized certification or licensing organization.

  5. Liability coverage for events or facilities involving go-carts, motorcycles, or all terrain cycles.

  6. Liability coverage for tractor pulls, truck pulls, or bicycle racing unless such events or facilities are operated by a third party and the third party provides the city with a hold harmless agreement and a certificate of liability insurance providing a combined single limit of $1,000,000 per occurrence naming the city as an additional insured.

  7. Liability coverage for carnivals unless the carnival operator provides the city with a hold harmless agreement and a certificate of liability insurance providing a combined single limit of $1,000,000 per occurrence naming the city as an additional insured.

  8. Liability coverage for amusement parks.

  9. Liability coverage for fireworks displays unless the display is provided by an independent pyrotechnician and the pyrotechnician provides the city with a hold harmless agreement and a certificate of insurance providing a combined single limit of $1,000,000 per occurrence naming the city as an additional insured.