Fiscal Note
In 2015, the City is anticipated to spend approximately $178,000 on auto physical damage coverage and $292,800 on property coverage through the Local Government Property Insurance Fund (LGPIF), which includes a $50,000 maximum aggregate deductible on property coverage. This is expected to increase to $240,043 and $490,367, respectively, in 2016 through the LGPIF, with no maximum aggregate deductible on property coverage. Under the Municipal Property Insurance Corporation (MPIC), the cost of the property coverage is anticipated to be $370,700, also with no maximum aggregate deductible. This is approximately $120,000 less than the cost of the LGPIF coverage. MPIC will not be offering auto physical damage coverage; the City is pursuing coverage options through other carriers.
Title
To Withdraw from the Local Government Property Insurance Fund (LGPIF) and become part of the Municipal Property Insurance Company (MPIC).
Body
WHEREAS, in 1987, the Wisconsin Municipal Mutual Insurance Company (“WMMIC”) was created to help local municipalities effectively handle the costs of general liability insurance, with the City of Madison as a charter member and its largest participant. For the past 28 years, WMMIC has helped control costs for the City of Madison and its other members by providing liability coverage (including general liability, cyber liability, auto liability, and public officials errors and omissions liability) and claims administration services. In its most recent rating, AM Best gave WMMIC an (A-) (excellent) credit rating; and
WHEREAS, the Governor’s 2015-2017 state budget proposed to eliminate the Local Government Property Insurance Fund (“LGPIF”). While the Legislature retained the LGPIF, insurance provided by the fund will have significantly higher premiums of up to 100% of current rates. In response, local municipalities worked together to find positive alternatives to the LGPIF; and
WHEREAS, WMMIC partnered with Cities and Village...
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