Wisconsin County Mutual Deductible Fund Refunds To Counties

Over the last few weeks, many county boards have enjoyed the pleasant experience of a visit from representatives of the WCA and Wisconsin County Mutual Insurance Corporation bearing, not premium notices, but Deductible Fund refund checks from the Mutual. Visitors included Herb Tauchen, President of Wisconsin County Mutual, Darla Hium and Mark O'Connell of the WCA, and various representatives of Aegis Corporation, the Mutual's General Administrator.

The checks are a result of the fact that when the 53 member counties pay their premiums to the Wisconsin County Mutual, a portion goes into the county's Deductible Fund account. All counties pay premiums based on the same base rate. The percentage which goes into the fund is dependent upon the degree of financial responsibility the county bears for each loss they may have. Other factors, such as the past loss experience of the county and their participation in the Wisconsin County Mutual loss prevention program, also can affect the percentage applied to the fund.

Paid losses, within the deductible of the county, are paid out of this cumulative account of all the counties. Each quarter, the average balance of the county in the fund is calculated and interest is credited to the county's balance (or deducted if paid losses within the deductible exceed the county's balance). Approximately seven months after the end of the policy period, the amounts the counties have in the fund exceeding any reserves for unpaid losses within the deductible amount, are returned. Additionally, amounts which were held in the past for reserves on unpaid losses, but were not subsequently needed are also paid, also with accumulated interest.

This may not seem like it would add up to much but the Wisconsin County Mutual pays very well for financial and risk management responsibility. This last aggregate refund to counties amounted to almost a half million dollars. At least one county, Marathon, received well over one hundred thousand dollars and several received nice five figure checks. No wonder counties look forward to visits from the Wisconsin County Mutual.