The Wisconsin County Mutual Insurance Corporation Program Overview II, The Success Continues...

John A. Dirkse
Assistant Vice President

In January of 1988, I wrote the main body of the following article to introduce the Wisconsin County Mutual Insurance Corporation to it's new and prospective members. Since the appearance of this article much within the Wisconsin County Mutual Insurance Corporation has changed. In addition to expanded membership, the Mutual has consistently worked to improve it's broad based coverage format and truly respond to the ever-changing needs of it's members, Wisconsin Counties. Therefore, this article will address these changes and provide for those of you who may not have read the first article, the opportunity to acquaint yourself with this highly successful insurance program.

The members of the Wisconsin Counties Association, like other public entities throughout the country, have experienced at one time or another, significant increases in liability insurance premiums, reductions in coverage and uncertainty concerning the availability of coverage or parts of coverage in the future.

As a result of the above crisis, the Wisconsin Counties Association formed a Steering Committee to explore alternatives to the traditional insurance marketplace. The Steering Committee concluded that the members of the WCA should band together to form the Wisconsin County Mutual Insurance Corporation to address the concern over stable, cost effective liability coverage.

Then, through the efforts of 39 "Pioneer Counties" that funded and participated in the feasibility study to determine, the scope of coverage, adequacy of rates and other business decisions relative to the structure of their insurance carrier, the Wisconsin County Mutual Insurance Corporation was created.

On January 1, 1988, the Wisconsin County Mutual Insurance Corporation issued the first policies to it's 24 Charter Counties. These charter counties paved the way in the formation of an insurance company that was specifically designed by and exclusively for Wisconsin Counties. In 1989, the young corporation had expanded it's membership to 34 members. Growth continued and in 1990, the Mutual membership roles showed 44 members. The year 1991 showed growth to 49 counties and as of May 1, 1992, the Mutual membership stands at a tally of 52 members. As a result, the Mutual is the insurer of choice for the majority of Wisconsin Counties.

When viewing the Mutual, you must consider more than just the "bottom line," in that, the Mutual provides broad coverages were unavailable to or not purchased by many Wisconsin counties. In addition, the Mutual is YOUR COMPANY and is designed to respond to YOUR needs. The relationship is US & WE vs US & THEM. Therefore, provides you more control and stability of coverage and premium. Let us take a moment to discuss the goals, coverages, features and costs of the Wisconsin County Mutual Insurance Corporation.

GOALS

The primary goals of the Mutual were the "road map" for certain decisions relative to the formation of the Mutual. In order to address the needs of all Wisconsin counties, several goals were established to insure that the Mutual represented mutual interests of it's members. The following represent these primary goals:

1. To provide the members with the broadest coverage possible, and do it "substantially at cost."
2. To provide high quality, professional service with the expectation that we perform at levels greater than the service currently provided by the commercial insurance industry.
3. Provide a stable source of insurance from year to year.
4. To instill a risk management philosophy in members that encourages partnership through participation, with the result being improved risk management programs that further reduce the cost of insurance.
5. To place control of the Mutual in the capable hands of it's members, so as to insure that the operation of the company remain focused on the immediate needs of the members.

FEATURES AND COVERAGES

As previously presented, there are 52 member counties that make up the Wisconsin County Mutual Insurance Corporation. The Mutual is a full service insurance company and provides claims handling, loss control and general administrative services common to a commercial insurance company. The major difference being that the services and their providers are well versed in the specific needs of Wisconsin counties and are given direction by the four Technical Operating Committees and the Board of Directors. These Committees are:

• Underwriting
• Loss Prevention
• Claims Review
• Investment

The Board of Directors and these operating committees are charged with the responsibility of governing the activities of the Mutual and the various service providers.

In order for the Mutual to maintain a high degree of integrity and cost control, the knowledge and capabilities of these governing bodies is effectively utilized when decisions impacting the cost of the Mutual are presented.

This cost effective operation equates to the ability of the Mutual to absorb a greater level of losses without having to increase the premiums charged the members. Also, as a quasi-governmental organization, we are a tax exempt, non-profit service organization. The result is that we are able to meet our first goal of providing the members their insurance "substantially at cost."

TYPES OF INSURANCE COVERAGES

The Wisconsin County Mutual Insurance Corporation was formed to provide the specific coverage needs of Wisconsin counties. We are granted the authority and confidence of the Insurance Commissioner's office to provide the following liability insurance coverages:

1. General Liability
2. Personal Injury Liability (including a broad definition and coverage for discrimination, civil rights violations and employment related actions)
3. Automobile Liability (including Uninsured Motorists coverage)
4. Law Enforcement Liability (including coverage for assault & battery and intentional acts)
5. Public Officials Errors & Omissions Liability (including Directors & Officers Liability for health care institutions)

The following types of coverage are not provided by the Mutual at this time:

1. Hospital or Nursing Home Liability
2. Airport Liability

PERIPHERAL COVERAGE PROGRAM

The statutes governing the formation of the Mutual clearly state that only liability coverage may be offered. Therefore, the Board of Directors of the Mutual has recommended to the Wisconsin Counties Association the appointment of an endorsed broker to place theses coverages not available from the Mutual. Frank B. Hall & Co. of Wisconsin, Inc. is endorsed to provide these peripheral coverages. This Peripheral Program provides the convenience and efficiency of combined insurance purchases, as well as superior, cost competitive alternatives. An example being the highly successful Worker's Compensation Group Dividend Program, which paid member counties participating in 1989 a total dividend of approximately 44%.

CHANGES AND HIGHLIGHTS

In 1990, the Mutual expanded the coverage to offer the Personal Injury Coverage extension to the Errors & Omissions coverage for those counties with Nursing Home operations. This afforded the Nursing Home the same protection for personal injury allegations enjoyed by the rest of the County.

With 1991, the Mutual embarked on a campaign to increase awareness for loss control and risk management by offering several programs to encourage activity in these areas. The Loss Prevention Committee and Board of Directors offered incentive programs for the organization of individual county loss control organizations, supported by a Risk Management Manual presented to the members. Secondly, the Mutual offers funding for enrollment in the new CDL Employer Notification Program. Finally, the Mutual offered a continuing incentive program, that allows member counties to earn premium credits by completing a menu of tasks necessary to nurture and organize an active loss control and risk management effort.

Limited by the confines of space, I am forced to summarize at this point. I could continue to present many more points that truly make the Wisconsin County Mutual Insurance Corporation the successful company that it has grown to be. However, I would be remiss if I did not address one of the key components to this success, the member counties themselves. It is through your support and willingness to participate and cooperate in the efforts of the Mutual, that your insurance company and it's future success is determined. This truly is the cornerstone for the corporation called the Wisconsin County Mutual Insurance Corporation.

If this article has generated any questions or comments, please direct them to me or my staff at 1-800-242-9601.