Through pooling and service negotiation, Maryland Municipal League (MML) members participate in a variety of insurance programs at reduced cost. The three service areas are the Local Government Insurance Trust, Municipal Workers’ Compensation and Municipal Unemployment Insurance Cost Control.

The Local Government Insurance Trust (LGIT) is a joint association of Maryland local governments formed to provide insurance coverages and risk management services. The Trust is owned and directed by its local government members. The Trust provides coverage for liability, health, and property related risks as well as support services including litigation, administration and management of claims, risk management and loss control services, training, and property valuation.

The Trust operates four pools of coverage including: the Primary Liability Pool, the Property Pool, the Excess Liability Pool, and the health Benefits Pool. The Trust also sponsors an Environmental Impairment Liability Pool. Membership in the Trust is limited to Maryland local governments that are members of the Maryland Association of Counties (MACO), The Maryland Municipal League (MML) or Maryland public entities sponsored by a local government that is a Trust member. The Trust began its operation on July 1, 1987, with 19 members and as of June 30, 2001 had 186 members. Each member agrees to comply to a plan of risk management as determined by the Trust.

A Board of Trustees consisting of 13 voting members governs LGIT. Ten of the Trustees, comprised of five municipal and five county officials, are elected by the membership. The Board appoints one Trustee to represent a member of MACo or MML and both Executive Directors of MACo and MML serve as ex-officio members of the Board.

The Primary Liability Pool provides coverage for commercial general liability, police legal liability, public officials legal liability, and business automobile coverage. The maximum limit of liability to the Primary Liability Pool may not exceed $1,000,000 for any one claim or occurrence per participant. The Property Pool provides coverage for property based on the determined insured values of the property. The Excess Liability Pool has a maximum limit of $5,000,000 for each occurrence and in the aggregate for occurrence-based coverage; and $5,000,000 for each occurrence, and in the aggregate, for claims-made coverage. Participants in the Excess Liability Pool must either self-insure a retention of $1,000,000 or purchase primary liability coverage from the Trust. The Trust will not insure coverage over other commercial insurance companies. The Health Benefits Pool provides medical, life, vision, disability, prescription and dental benefit plans.

The Environmental Impairment Liability Pool was restructured on July 1, 1998 such that the financial risk was transferred to another insurance carrier. Although the Trust continues to sponsor this pool, participants deal directly with the other carrier.

The Trust also provides numerous other services to its members including: Employment Law Hotline service of 30 minutes of free legal advice regarding employee issues. Matching Grants Program which awards matching grants for public safety equipment and training programs; Training Seminars which provide over 15 opportunities for local government officials to receive risk management training. Member Newsletters and special focus Bulletins; and a Litigation Information Exchange for local government attorneys.

The Trust uses reinsurance agreements to reduce its exposure to certain large losses. Reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Trust as direct insurer of the risks reinsured.

The Trust is a member of the NLC Mutual Insurance Company (NLC), a captive reinsurance pool whose members consist of certain state self-insurance pools. NLC reinsures the entire risk exposure of the Trust’s Excess Liability Pool which covers all losses over the Primary Liability Pool’s coverage of $1,000,000 with a maximum limit of liability of $5,000,000.

The Trust also purchases reinsurance for the Property Pool from a private reinsurance carrier. The reinsurance carrier covers any claim which exceeds $100,000. Once claims paid surpasses a $500,000 aggregate level the reinsurance carrier covers any subsequent claim for that year which may exceed $5,000.

The Trust also purchases reinsurance for the Health Pool from a private reinsurance carrier. The reinsurance carrier covers all claims for covered individuals when their specific medical claims exceed $100,000.

The Maryland Municipal League (MML) and the state’s Injured Workers’ Insurance Fund (IWIF) have joined together to offer a workmen’s compensation insurance program to municipal governments who are members of the MML. The benefits available through the MML/IWIF program are focused on the unique needs of municipal government and include:

Reviews and processes applications for new policies, assigns job classifications, and rates and monitors payroll reports. Makes policy changes as needed, and provides proof of insurance certificates upon request.

Carefully reviews and promptly and equitably pays all valid claims for benefits to claimants for injuries, diseases or deaths, which may arise out of and occur in the course of employment with employers insured by the Fund, and to which they are entitled under the law.

Staffed by Assistant Attorneys General who represent the municipality in all aspects of legal activity from hearings before the Workmen’s Compensation Commission to cases before the Courts of Appeal of Maryland.

Conducts payroll and classification reviews to ensure that deposits are adequate and corrects misclassifications.

Provides services regarding the design, implementation, and evaluation of accident prevention programs including managing employee risk, safety engineering site inspections, and training for supervisors and managers.

For more information, contact: MML at 410-268-5514 or 800-492-7121; IWIF at 800-492-0917 or 410-494-2062

Unemployment insurance was created to pay benefits to workers who "lost work through no fault of their own." However, many mistakes are made and this can cost thousands of dollars per claim. The Maryland Municipal League (MML) and Unemployment Tax Services, Inc. (UTS) have joined together to offer an unemployment insurance cost control program to municipal governments who are members of MML. The benefits available through the MML/UTS program are focused on the unique needs of municipal government, and include:

On an as needed basis, supervisory workshops will be provided to discuss unemployment insurance in general, to learn how to properly document, to review sample warning and separation forms, and to learn how to best protect the municipality from unjust unemployment claims.

MML/UTS will administratively process all claims on your behalf. Any claims of questionable merit will be appealed and followed through to assure that only legitimate claims are charged to your account under the state regulations.

MML/UTS will review state decisions and appeal to the hearings level to present employers testimony. MML/UTS will advise any participating municipality of scheduled hearings and provide attendance along with employer witnesses.

MML/UTS will calculate and record employer liability on each and every claim. Any erroneous charges will be appealed and the credit will be requested. Follow through will be made with appropriate state agencies to protect employer’s best interest. MML/UTS will notify employers of final decision and what to do.

MML/UTS will provide management reports on a quarterly basis on all claims for that period, final decisions, liability and errors detected. Various other information will be provided to keep you up to date on all issues, including any legislation which may effect employers.

For more information, contact: MML at 410-268-5514 or 800-492-7121; UTS at 410-876-2708