Effective January 1, 2002, the number of counties participating in the Association of County Commissions of Alabama Liability Self-Insurance Fund rose by three to 42. The three counties added to the list of participants are Cleburne, Dallas, and Pickens.

The fund, which began operating in 1988, was established at a time when it was difficult for counties to obtain liability insurance. The Alabama Supreme Court had just issued a landmark opinion which held that local governments in the state did not enjoy the sovereign immunity of the state and therefore could be sued and determined liable for certain acts or omissions. At that time traditional insurance companies were reluctant to enter the governmental liability insurance market. About 39 counties eagerly participated in the Fund during the early years.

Beginning in the early 1990's traditional insurance companies began to market liability and property insurance to local governments extensively. Since that time they have eagerly competed with the Fund for county business. These insurance companies were able to compete with some success because of, among other factors, a "soft market" which existed through the 1990's. Things began to change, however, late in the decade. The market became hard and it became more difficult for them to compete. The market became even harder after the tragic events of September 11, 2001. Beginning in October of 2001 county officials in several counties received renewal notices from their carriers indicating substantial increases in premiums, and in at least two instances, notice of cancellation or non-renewal of certain coverages.

It has always been the goal of the Board of Trustees for the Fund to keep coverages consistent and contributions (premiums) relatively level. Coverages provided by the Fund have remained consistent and adequate and while there have been some increases in overall contributions they have for the most part been moderate. In fact the annual contributions for some participating counties has actually been reduced. Participants that have experienced contribution increases did so because of their individual claims experience.

Participation in the Fund provides a benefit that is to our knowledge, unavailable through any other insurance arrangement - the Fund can refund contributions to participants. In 2001, for the fourth year in a row, the Board of Trustees approved refunds to participants. Eligible participants recently received checks for their prorata share of $1 million. The list below indicates the amount each eligible Fund participant received.

The Fund has and continues to do what it was designed to do - provide adequate liability coverage at reasonable and consistent cost. There is no reason to think it will not do the same for many years to come.

2001 ACCA Liability Refunds

Bibb County $29,972

Blount County $47,732

Butler County $14,488

Chambers County $40,546

Choctaw County $22,164

Clay County $10,726

Coffee County $33,928

Colbert County $14,944

Conecuh County $20,266

Coosa County $ 9,954

Crenshaw County $ 4,625

DeKalb County $57,345

Elmore County $27,376

Etowah County $35,267

Etowah Solid Waste $ 2,925

Fayette County $ 4,987

Geneva County $18,067

Hale County $17,647

Henry County $17,594

Houston County $39,791

Jackson County $29,480

Lamar County $23,434

Lauderdale County $49,400

Lawrence County $46,577

Lee County $49,159

Limestone County $63,731

Lowndes County $21,714

Marengo County $14,551

Marion County $49,997

Marshall County $ 8,531

Monroe County $26,391

Perry County $15,352

Randolph County $ 1,443

Russell County $20,919

St. Clair County $24,052

Tallapoosa County $ 5,898

Walker County $48,885

Wilcox County $16,081

Winston County $14,068

Total $1,000,007