County Commission | The Magazine August 2018 | Page 19
FROM THE COVER
q PAST, PRESENT & FUTURE: INSURANCE r
ACCA tailors insurance for counties
F
inancial concerns have formed a common bond
uniting Alabama counties since they formally
organized as an association in 1929.
Working together on money matters has taken many
shapes, and insurance has been a major element for more
than 40 years.
The self-funded insurance programs for workers’
compensation and liability coverage have flourished,
with expansion into property insurance in just the last
few years.
Now, as the Association enters its 90th year, the
programs are breaking new ground again – for the
betterment of counties – as they transition into
self-administration.
The history of ACCA’s insurance services can be
traced back to the mid-1970s. County budgets were
taking a beating from the volatile commercial insurance
market, and leaders persuaded the Alabama Legislature
to pass a law authorizing counties to set up a self-
funded insurance program for workers’
compensation coverage. A total of 33
counties joined during the first year,
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with a combined premium of just
more than $420,000.
A decade later when counties faced similar challenges
with liability coverage, the Legislature consented for
counties to organize another insurance program. Today,
more than 60 counties participate in one or more of these
self-funded programs.
Because these are self-funded programs, there is a
long tradition of returning dollars to members when it
makes good sense financially to do so. In April of this
year, checks totaling $2,333,550 went out to counties and
county-related entities that participate in the programs.
The money represented participation in the Safety
Incentive Discount Program and a return of investment
earnings based on participation and claims experience.
Beginning in 2019, the Association will self-
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