HomeMy WebLinkAboutMMIA Liability Program DividendMontana Municipal Insurance Authority
MEMORANDUM
FROM: Paul Luwe, Chair ~JA~ 3 0 2004
Bob Worthington, Chief Executive Officer
Alec Hansen, Executive Director MLC&T
J
DATE: January27,2003 ,_CITY OF LAUREL
RE: 2003 LIABILITY PROGRAM DIVIDEND
In the eighteen years since our creation, the MMIA has experienced significant changes in all
areas of operation. We have grown into a full service dsk retention a .uthodty. Today we work to
manage the collective exposures of 118 Montana cities and towns, in addition to enjoying full
service underwriting, claims, and administration of the Programs, members have the benefit of
unprecedented, comprehensive, risk management assistance.
For members of the MMIA Liability Program, the mad has not been smooth. Initially,
development of the Program was delayed several months due to the unavailability of additional
insurance and the lack of capital. Creative marketing and financing overcame these hurdles and
the Liability Program was in place Apdl 7, 1986. Over the life of the Program, members have
enjoyed broad coverage of their liability exposures at very affordable pricing.
This prosperity and growth has been in the face of the ever expanding expectations of our
citizenry. When a citizen suffers damage, they increasingly look to the government for recovery.
Over the years, the courts have not necessarily been kind to local government adding to the cost
of the management of municipal risks.
Today members of the MMIA Liability Program share assets in excess of $26.8 million and
member equity in excess of $8.5 million. While the challenge of managing municipal liability
exposures continues to grow, the MMIA Program is in sound financial position. The Board of
Directors and staff are pleased to share the financial success of the Program with the
membership. During th,e 2003 annual meeting, the Board voted to distribute $500~000 to the
membership. This distribution [s being made in accordance with the formula used for the
previous distribution in 1994.
Included with this letter is a check for your share of the distribution. We encourage you to include
this announcement, and a discussion of the MMIA, at the next meeting of your governing body.
The support you give the MMIA and the overall commitment to manage municipal exposures,
provides the opportunities for all to share in the Program's good fortune.
Congratulations and thanks for your continued support.
Alec Hansen, Executive Director
' - .~~... ~. ir Montana League of Cities and Towns
\~dc-l\OfficeFiles',BWorthington\Bob\Uability~Dividend Ltr2004,doc
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