Risk Management Pools award six counties

The Association created its Risk Management Pools program to provide an alternative to the commercial markets so that counties would have a choice when meeting their risk management needs.

Accepting awards from President Terry Garrison on behalf of their counties were (from top to bottom) Commissioner Pat McElraft of Carteret County, Clerk to the Board Kathy Young of Mitchell County, Chairman Ernest Burden of Washington County, Human Resources Manager Melody Johnson of Cherokee County, and Interim Manager/Clerk to the Board Darlene Bullins of Stokes County. (Photos by Jason King)

Every county benefits from the Association’s program, either directly or indirectly. Member counties benefit by pooling their risk with other counties and entities in the state. The shared risk helps members keep their costs low.

Counties that are not members of the pools still benefit because the program provides competition to commercial carriers and helps encourage them to keep their rates as affordable as possible.

The Board of Trustees of the Risk Management Pools believes that each pool member also plays a crucial role in keeping the program viable. As a result, trustees established the Risk Management Pools Awards Program, which is designed to encourage members to improve their risk control programs and thereby reduce their overall pool cost.

The Association announced its 2006 Risk Management Pools Awards winners Sept. 9 at the 99th Annual Conference. Awards were given in two categories for each of the three pools. The Best Loss Results Award recognized pool members who have produced the best risk control results. Each winning county received $2,500.

The Most Improved Award recognized members who worked hard to improve their claims’ frequency and severity. Each winning county received $5,000.

County Health Plan

To determine the winners in the County Health Plan (Group Benefits Pool), the Association examined 24 months of claims experience for groups that were enrolled in the pool by July 1, 2004. The Association calculated a per member, per month amount so that all groups were on an equal playing field to determine the winners.

Mitchell County received the Most Improved Award, and Stokes County won the Best Loss Results Award.

Liability and Property Pool

To determine the winners in the Liability and Property Pool, the Association examined five years’ worth of loss ratios and took an average of the five years. A loss ratio is a proportionate relationship of incurred losses to earned premiums.

Hyde County received the Most Improved Award, and Carteret County was awarded for Best Loss Results.

Worker’s Compensation Pool

For the Worker’s Compensation Pool, the Association looked at the three-year averages of experience modifiers to determine the winners. An experience modifier is developed by measuring the difference between the insured’s actual past experience versus the actual experience of the class.

Cherokee County earned the Most Improved Award, and Washington County won the Best Loss Results Award.

“There are many outstanding programs that are taking place in our Risk Management Pools, and these are just a few of the shining examples,” said NCACC Past President Breeden Blackwell, chair of the Board of Trustees. “We created the pools to give counties a choice when it comes to their risk management needs. We celebrate these winners because they are helping the Association keep its costs down, which makes winners out of all of us.”