An important factor in the success of Joint Insurance Funds is that they are controlled by their Commissioners. Each member town, county, authority and BOE appoints one of its elected officials or employees to serve as a Fund Commissioner. The Commissioners elect officers and an Executive Committee that meets monthly to decide the Fund’s business. These meetings are subject to all of the laws impacting local governments such as the Fiscal Affairs Act, Public Contracts Law, Local Government Officials Ethics Act, Open Public Meetings Act and the Open Public Records Act.
The local funds also elect one of their members to serve on the boards of the MEL, E-JIF, RCF and MRHIF. Over 250 local officials participate each month in the governance of their local JIFs and HIFs around the state. PERMA’s role as Fund Administrator is equivalent to that of a town or BOE administrator reporting to an elected governing body.
Local JIFs also provide members with another major advantage: a far greater opportunity to participate in JIF governance by attending the monthly meetings. As a result, they are continually exposed to the importance of safety and claims control.
In PERMA’s JIFs, 85% of the final cost of property & casualty insurance is claims, and consistent monthly involvement of local officials is a critical factor in dramatically reducing the accident rate and other improvements in risk management.