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Risk Management Action Plan

​In 2004, the IMWCA Board of Trustees adopted this approach on the premise that members with large losses over several years should bear a greater responsibility for those losses than the rest of the IMWCA membership. Effective October 1, 2014, on a quarterly basis we will review the loss ratio of each member. Members will be considered for a Risk Management Action Plan based on the following:

Criteria if the member qualifies for an experience modification factor:

The member has failed to respond to a high-level loss control recommendation - or -
The member’s loss ratio for one year exceeds 100 percent.

Response            

The member will receive an assessment from a loss control representative - and -  
The loss control representative will make recommendations based on the assessment.
Result

If the Members loss ratio exceeds 150 percent, they may not be eligible for a good experience bonus.
Based on the member’s response to recommendations, at the next renewal they may be subject to the following:

a. loss of IMWCA discounts, and/or
b. Fifteen percent surcharge, or
c. non-renewal of coverage

Criteria if the member does not qualify for an experience modification factor:

The member has failed to respond to a high-level loss control recommendations - or -
The 5-year cumulative loss ratio exceeds 100 percent.
Response

The member will receive an assessment from a loss control representative - and - 
The loss control representative will make recommendations based on the assessment

Result

1. If the 5-year cumulative loss ratio exceeds 100%, the member will receive a minimum 15 percent surcharge   - or -
2. If the loss ratio exceeds 500 percent, they will lose all IMWCA discounts and receive a minimum 15 percent surcharge - and -
3. In addition, based on the member’s response to recommendations, at the next renewal they may be subject to the following:

a. Loss of IMWCA Discounts, and/or
b. Thirty percent surcharge, or
c. non-renewal of coverage

For more information about the Risk Management Plan, please contact losscontrol@iowaleague.org

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Contact Information

Phone: (800) 257-2708
Fax: (978) 367-2862
imwcainfo@iowaleague.org
Administered by the Iowa League of Cities