Untitled Document

Executive Director's Report- Legislative Conference Issue 2004

Insurance funds return $26 million to participants

The ACCA Workers Compensation Self-Insurance Fund (WCFund) was established in 1976. It currently has 74 participants (63 counties and 11 county-related entities). Participants annually pay into the program about $11.4 million in the form of contributions.

The ACCA Liability Self-Insurance Fund (LIFund) was established in 1988. It currently has 57 participants (50 counties and 7 county-related entities). Contributions paid into the program annually by participants total about $7.5 million.

These two programs were established with two primary goals in mind. The first was to provide a means through which county commissions and county-related entities could obtain insurance to meet their obligations under the workers compensation laws of the state and to protect themselves against civil lawsuits that arise from time-to-time as a result of their activities. Both programs have succeeded enormously in achieving that goal. Combined, the two programs handle about 2,500 claims filed against participants each year. County commission members, other elected county officials, and county employees have come to have great confidence in the ability of these two programs to manage their insurance needs.

The other primary goal was to make workers compensation and liability insurance available at reasonable costs. Participant contributions in both programs have always been competitive. In fact, an "apples-to-apples" comparison of coverages, benefits, and other factors generally reveals that the contributions assessed by the two Funds are generally less than premiums charged by traditional insurance companies.

Although contributions assessed participants in these Funds are generally less than premiums charged by traditional insurance companies, that is not the only way participants save money. The WCFund since 1978 and the LIFund since 1998 have returned to counties and other participants more than $26 million in the form of premium refunds and investment income distributions. Lower initial premiums combined with the return of premiums and earnings distributions have resulted in significant savings to participants.

The Board of Trustees for each of the Funds approved premium refunds and/or investment distributions during the 2004 year totaling about $1 million. The list below indicates the amounts each qualified participant received from each Fund. The amounts received by each participant depends on several factors including the amount of premiums paid, loss ratio, and length of time participating.

Participant
Autauga
Autauga County Water Authority
Baldwin
Barbour
Bibb
Blount
Bullock
Butler
Calhoun
Calhoun County Community Corrections
Chambers
Cherokee
Chilton
Choctaw
Clarke
Clay
Cleburne
Coffee
Colbert
Conecuh
Coosa
Coosa Valley Youth Services
Covington
Crenshaw
Cullman
Cullman County Parks & Recreation
Dale
Dallas
DeKalb
East Walker County Sewer Board
Elmore
Escambia
Etowah
Etowah County Community Corrections
Fayette
Fayette County Water Authority
Franklin
Franklin County Community Corrections
Geneva
Greene
Hale
Henry
Houston
Jackson
Lamar
Lauderdale
Lauderdale Cty Community Corrections
Lawrence
Lawrence County Community Corrections
Lee
Limestone
Lowndes
Macon
Macon County Racing Commission
Marengo
Marion
Marshall
Monroe
Morgan
NE Morgan County Water Authority
Perry
Pickens
Pickens County Water Works
Pike
Randolph
Russell
Shoals Solid Waste Disposal
St. Clair
SE Alabama Youth Services
Sumter
Talladega
Tallapoosa
Walker
Washington
Washington County Infirmary
Wilcox
Winston

WCFund
$9,714
$592
$24,517
$4,623
$7,114
$7,151
$5,089
$5,995
$9,496
N/A
$4,299
$6,792
$6,312
$4,808
$5,492
$4,896
$5,719
$8,273
$11,039
$3,360
$3,385
$1,691
$12,612
$5,545
$21,122
$639
$5,092
$6,707
$7,020
$43
$7,647
$7,506
$19,093
N/A
$5,134
$91
$6,541
N/A
$3,503
$3,111
$5,625
$4,828
$16,168
$9,031
$4,900
$12,927
$125
$8,140
N/A
$13,123
$8,761
$3,061
$7,059
$507
$4,531
$8,649
$8,426
$7,846
$22,220
$1,820
$5,276
$5,163
$716
$6,134
$6,465
$12,958
$2,084
$10,581
N/A
$5,889
$6,088
$6,291
$15,019
$6,548
$3,531
$3,231
$4,382

LIFund
N/A
N/A
$7,327
$1,649
$15,568
$6,767
$1,050
$10,173
$6,055
$86
$18,760
N/A
N/A
$9,149
N/A
$2,527
$1,426
$7,664
$17,301
$11,371
$6,451
N/A
$1,493
$5,779
$3,574
N/A
N/A
$2,812
$23,417
N/A
$17,384
N/A
$22,164
$77
$2,799
N/A
$810
$37
$3,456
N/A
$8,690
$10,980
$17,837
$15,058
$12,613
$18,502
$278
$27,356
$59
$17,763
$20,358
$5,762
-0-
N/A
$8,508
$8,487
$9,220
$16,955
N/A
N/A
$1,851
$2,148
N/A
N/A
$2,715
$14,147
N/A
$9,774
$99
$2,108
N/A
$6,604
$43,784
N/A
N/A
$6,702
$4,516

Total
$9,714
$592
$31,844
$6,272
$22,682
$13,918
$6,139
$16,168
$15,551
$86
$23,059
$6,792
$6,312
$13,957
$5,492
$7,423
$7,145
$15,937
$28,340
$14,731
$9,836
$1,691
$14,105
$11,324
$24,696
$639
$5,092
$9,519
$30,437
$43
$25,031
$7,506
$41,257
$77
$7,933
$91
$7,351
$37
$6,959
$3,111
$14,315
$15,808
$34,005
$24,089
$17,513
$31,429
$403
$35,496
$59
$30,886
$29,119
$8,823
$7,059
$507
$13,039
$17,136
$17,646
$24,801
$22,220
$1,820
$7,127
$7,311
$716
$6,134
$9,180
$27,105
$2,084
$20,355
$99
$7,997
$6,088
$12,895
$58,803
$6,548
$3,531
$9,933
$8,898

Association of County Commissions of Alabama
100 North Jackson Street | Montgomery AL, 36104 | 334-263-7594 | FAX 334-263-7678