Atlantic County Municipal Joint Insurance Fund Welcomes New Member

Marlton, NJ, Jan. 16, 2009- A local municipality recently realized $12,861 (22.5%) in savings after becoming a member of the Atlantic County Municipal Joint Insurance Fund (ACMJIF). This year the City of Port Republic paid $44,700 as compared to $57,561 in 2008 for insurance coverage from the standard marketplace.

With the addition of the City of Port Republic and the exception of the City of Atlantic City, the ACMJIF membership now boasts all municipalities in Atlantic and Cape May Counties, totaling 38 entities. In its 20-year history, the ACMJIF has never had a member municipality decide to leave the Joint Insurance Fund.

The ACMJIF, or “JIF” as it is commonly referred to, serves a way for municipalities to realize cost savings by pooling money with other local municipalities to purchase fire, liability, and workers compensation insurance coverages. Joint Insurance Funds are an outstanding example of inter-local municipal cooperation and shared-services arrangements in the State of New Jersey.

The results speak volumes about the effectiveness of the Joint Insurance Fund organization. During 22 years of operation, municipalities participating in the ACMJIF have saved millions of dollars in premiums and have received surplus distributions of $20,322,986, including over $1.8 million this year. “These surplus distributions would have been insurance company profits, instead they are local taxpayer’s savings” explained Dawn Stollenwerk, Mullica Township Chief Financial Officer, and Chair of the ACMJIF Finance Committee.

Michael Thomas, Executive Vice President of Glenn Insurance, Inc., and Risk Management Consultant to the City of Port Republic, worked closely with the City on their application to the ACMJIF. Thomas stated, “The JIF not only serves as a way for towns to realize cost savings, but also as a means of obtaining outstanding service that would otherwise be unavailable from a traditional insurance company.”

Currently, the ACMJIF is 45 members strong with an unparalleled record of financial success, member services, and coverage stability. Over 370 municipalities in New Jersey are members of a JIF. “The ACMJIF is willing to consider applications from municipalities that share our commitment to loss control and claims management,” explained Judson Moore, Commercial Township Chief Financial Officer, and Chair of the ACMJIF Operations and Planning Committee.

The ACMJIF offers member municipalities many value-added services in addition to insurance coverage. The JIF arrangement gives municipalities a firsthand role in overseeing claims and lawsuits. According to Richard Hirsch, 2008 ACMJIF Chair, and Borough of Longport Fund Commissioner, municipalities had virtually no involvement in the administration of claims with their former insurers. Now the municipalities work with their Fund Commissioners in managing claims. “It is the mission of the ACMJIF to offer a comprehensive approach to risk management, safety, and claims management programs, while achieving a cost savings that is often unrealized in the standard insurance marketplace,” stated Hirsch.

Due to reductions in claim frequency and severity, JIF members now have control over their premiums. This is the result of a unique safety culture adopted by the members and fostered by the rigorous safety and maintenance programs developed by the ACMJIF safety professionals.

Paul J. Miola of Arthur J. Gallagher Risk Management Services, Inc. based in Marlton, and Executive Director of the ACMJIF, credits the success of the program to the active involvement of municipalities in implementing JIF safety and risk management programs. “We’re not afraid to take cases to court when one of our members has been wrongly sued,” said Miola. “On the other hand, when one of our employees is injured, we take quick action to get high-quality medical care and return the injured worker to a productive life as soon as possible. Every accident is reviewed so we can learn from our mistakes and avoid recurring incidents.”

For the ACMJIF please contact:

Jaclynne Parsons, Marketing Sales Representative

Arthur J. Gallagher Risk Management Services, Inc., Marlton, NJ

(856) 446-9141

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