HomeMy WebLinkAboutResolution 2015 (33) Resolution No. 33 (2015)
ST RO .,, RESOLUTION TO TERMINATE COVERAGE WITH LGPIF
' ' AND ELECT PROPERTY INSURANCE COVERAGE FROM
THE NEW MUNICIPAL PROPERTY INSURANCE COMPANY
(MPIC)
1 WHEREAS, in 1987, the Wisconsin Municipal Mutual Insurance Company was created
2 to help local municipalities effectively handle the costs of general liability insurance. For the
3 past 28 years, WMMIC has helped control costs for its members and provided general liability
4 coverage and claims administration (including cyber liability, auto liability and public officials
5 errors and omissions liability). In its most recent rating, AM Best gave WMMIC and (A-)
6 (excellent) credit rating; and
7
8 WHEREAS, the state budget initially proposed to eliminate the Local Government
9 Property Insurance Fund due to financial issues, ultimately resulting in the continuation of the
10 Fund but with notice of increased renewal premiums to members of up to 85%; and
11
12 WHEREAS, St. Croix County is a member of LGPIF and upon notice of a significant
13 premium increase, began looking for a positive alternative to the Local Government Property
14 Insurance Fund; and
15
16 WHEREAS, WMMIC has again looked to provide a viable option for local
17 municipalities by partnering with Cities and Villages Mutual Insurance Corporations (CVMIC)
18 and the League of Wisconsin Municipalities Mutual Insurance Corporation (LWMMI) to create a
19 new stock insurance company, Municipal Property Insurance Company (MPIC); and
20
21 WHEREAS, the three mutual entities have each provided a start up fund of three million
22 dollars. They will hire an executive director and are eligible to issue insurance policies on
23 October 1, 2015; and
24
25 WHEREAS, with more than 400 municipalities of these three entities currently insured
26 with LGPIF, MPIC expects to have a new insurance pool of more members that cannot be
27 equaled in the State of Wisconsin; and
28
29 WHEREAS, all information from LGPIF can be transferred to MPIC, so a long
30 application and evaluation process will not be necessary; and
31
32 WHEREAS,pursuant to the requirements of Wis. Stats. § 605.21(3), to withdraw
33 from the Local Government Insurance Fund, the local municipality must provide certified notice
34 to LGPIF by majority vote that they have elected to withdraw from the fund. (Withdrawal
35 cannot be prior to the date action was taken.)
36
37 THEREFORE, be it resolved by the St. Croix County Board of Supervisors, that pursuant
38 to Wisconsin Stats. §605.21(3), that they elect to withdraw from the Local Government Property
39 Insurance Fund on November 6, 2015 at midnight.
40
41 FURTHER be it resolved that a certified notice of this resolution be sent to the Local
42 Government Property Insurance Fund and the appropriate forms be completed.
43
44 FURTHER be it resolved that the St. Croix County Board of Supervisors hereby elects to
45 become part of the Municipal Property Insurance Company (MPIC) effective on November 7,
46 2015 at 12:00 a.m.
Legal—Fiscal—Administrative Approvals:
Legal Note:
Fiscal Impact: Existing State of WI property insurance carrier, LGPIF must increase premium rates
across its membership to stay solvent. The County's current policy premium was
$73,456 which expires 11/6/15. The county received a lower premium quote from
MPIC($98,118)than LGPIF ($122,090)for the 11/7/15 renewal and also expects
stable renewal premiums going forward. The difference between the two quotes is
$23,972.
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Pa ck The Cannt�Admini 1.0/ O15
09/16/15 Administration Committee RECOMMENDED
......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ..........
RESULT: RECOMMENDED [4 TO 1]
MOVER: Ron Kiesler, Vice Chair
SECONDER: Judy Achterhof, Supervisor
AYES: Travis Schachtner, Roy Sjoberg, Ron Kiesler, Judy Achterhof
NAYS: Jill Ann Berke
Vote Confirmation.
�chtner,Su 10/2/2015
SL Croix County Board of Supervisors Action:
Roll Call -Vote Requirement—
....................................................................................................................................................................................................................................................................................................................................
.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jill Ann Berke, Supervisor
SECONDER: Travis Schachtner, Supervisor
AYES: Schachtner, Ring, Novotny, Sjoberg, Koch, Kilber, Nelson, Berke, Ostness, Larson,
Hansen, Kiesler, Brinkman, Peterson, Anderson, Achterhof, Leibfried, Peavey
ABSENT: Christopher Babbitt
This Resolution was Adopted by the St. Croix County Board of Supervisors on October 6, 2015
Cindy Campbell, County Clerk