February 3, 2010

STATE APPROVES FIRST JOINT INSURANCE FUND FOR COUNTIES

JIF could save counties 25 percent on insurance-related expenses

TRENTON – The New Jersey Association of Counties announced today that a major initiative that could save counties millions of dollars has been approved by the state and is ready for launch.

The state Department of Banking and Insurance recently approved the New Jersey Counties Joint Insurance Fund (NJCJIF), the first-ever insurance pool for county governments that could reduce their insurance costs by as much as 25 percent.

“This enterprise has the potential to save millions of dollars for the taxpayers of participating counties,” said JIF Chairman James Carroll, who serves as Freeholder Director in Bergen County and as First Vice President of the New Jersey Association of Counties.

Join insurance funds, which typically include local governments that pool their resources to insure themselves against property damage and liability claims, are common throughout the country. They are run not by insurance companies but by their members, operating on the theory that broadening the risk pool, reducing exposure and managing litigation is more cost effective for the participants.

“County governments working together can purchase insurance more cheaply, manage risk more comprehensively and defend against claims more effectively than the individual members can do on their own,” explained Carroll. “Our preliminary research indicates that the members of the JIF can reduce their insurance-related expenses substantially.

“The savings will allow the counties to devote more resources to programs and control the growth in property taxes,” he continued.

The New Jersey Counties Joint Insurance Fund will provide a basket of coverage for its members, including: property insurance; general liability; auto insurance; law enforcement insurance; errors and omissions liability for public officials and workers compensation.

With annual budgets ranging between $70 million per year and $400 million per year, county governments in New Jersey are among the largest employers and property owners in the state.

“Counties have to insure billions of dollars worth of property and thousands of employees in New Jersey,” said Carroll. “The cost of insurance has become one of the largest items in county budgets.

“The JIF is a way to improve coverage, reduce costs and manage the growth in budgets,” he said.

Carroll said that all New Jersey counties would be free to apply for membership in the pool. He pointed out as well that all surplus earned by the JIF will be returned to the participating counties.

“The counties that participate will own the program and they’ll be able to manage its operation, set policies and participate in the returns,” he said.

The New Jersey Association Counties has been among the most persistent and effective supporters of shared services. While counties have reduced costs over the years by combining their resources with municipalities and each other, the JIF has the potential to produce record savings.

“This is the first joint insurance fund for county governments in New Jersey and the opportunity for savings is unprecedented,” said Carroll.

For more information about the New Jersey Counties Joint Insurance Fund and the New Jersey Association Counties, log onto the NJAC website at www.njac.org or call the office at 609-394-3467.

CHRISTIE ROUNDS OUT CABINET

TRENTON -- Governor Chris Christie this week nominated two more people to serve in his cabinet: former child abuse advocate Janet Rosenzweig as Commissioner of Children and Family Services; and former NY State DMV Commissioner Raymond Martinez as head of the NJ Motor Vehicle Commission.

Save the dates now for the Annual NJAC Conference, June 15 through June 18. 

For more information on the New Jersey Association of Counties, visit the NJAC website at www.njac.org, or call the office at 609-394-3467.