Risk Management Services General Frequently Asked Questions

Who governs the pools?
The three pools (workers' compensation, health benefits and property/liability) are separate entities governed by a 14-member board of trustees. The board includes 13 elected and municipal officials in North Carolina who serve 3-year terms and the NCLM Executive Director who serves in an ex-officio, non-voting capacity.

How are rates set?
The NCLM RMS Board of Trustees set the rates based on the financial performance of the pools and on the advice of our actuaries. The pools retain actuarial services from nationally recognized firms specializing in public entity risk. The actuaries complete two studies per year, one to determine the amount of loss reserves and the other to recommend rates.

What are the essential goals of the programs?
The pools were established for three basic reasons.

1. Coverage availability. The programs seek to remain viable so that North Carolina cities and towns will always be able to purchase insurance, despite market trends wherein commercial carriers determine not to write municipal risk.
2. Cost stability. The programs seek to avoid significant swings in cost, up or down, so that members can reasonably predict costs from year to year (although we have seen with the recent skyrocketing costs of health care that this goal has been very difficult for the medical plans);
3. Superior service. We seek to provide the very best risk management, wellness, EAP, loss control, claims, coverage, and underwriting services tailored to municipal risk.