NIAC Members from 1995-99 to Receive Monetary Rewards for Good Risk Management

The Nonprofits’ Insurance Alliance of California (NIAC) board of directors recently set aside $1,000,000 of NIAC’s surplus to be returned to members who were with NIAC during the years 1995 through 1999. The monetary bonus comes from a period between 1995 and 1999 in which the NAIC exceeded financial expectations, with a claims experience that proved to be fruitful for its members. Those that maintained a 55 percent or better loss ratio during that period qualify to receive a check.

The checks are going to receiving members, who are being rewarded for practicing good risk management, and therefore had fewer claims.

The NIAC was formed in 1988 in response to concerns over the lack of insurers who would cover nonprofits, labeling them “high-risk.”

Of the nonprofits during the period that could receive a check, 90 percent (728 organizations) will qualify to receive a check at renewal. Ten percent will not qualify for checks because of claims experience.

The largest check will total $83,850, while the smallest will be $195. Additionally, the median amount of a check will be $530, while the average amounts to $1,374.

“Through conservative management, effective underwriting and claims handling, and a strong commitment to loss control and risk management we have proved that nonprofits can be far better than average risks,” Pamela Davis, president and CEO of the NIAC, remarked. “As always, we are grateful to our members, brokers, friends and foundations that have shown their confidence in us over the year.”

NIAC currently insures more than 3,000 nonprofits in California and writes in excess of $23 million in premium.

Topics Risk Management