Nonprofit Insurance Trust
Providing complete commercial package insurance policies to Minnesota's 501c3 nonprofit organizations
Phone: (952) 469-5963
Email: mail@nitmn.org
Alternative Risk Management for Minnesota's Nonprofits
A MINNESOTA 501c3 NONPROFIT ORGANIZATION
- Managed by an elected 9 member Board of Directors composed of the membership.
- Premium savings of 15-40% compared to traditional insurance carriers
- Coverage available not offered by traditional carriers
- No Shareholders! As a member, you own part of the group!
- Reinvesting all member premiums back to Minnesota
- Approval by NIT Board of Directors required to join.
- A program developed by nonprofits for nonprofits!
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Providing alternative insurance solutions to Minnesota Nonprofits since 1994
NIT Work Comp Pool - FAQ's
The discount program follow premiums paid divided by loss ratio over a three year period. Members are eligible to receive a 10%, 20% or 30% discount on premiums on any year as long as the loss ratio falls within the following categories:
If loss ratio (over last three years) is between:
0% – 20% – Member will receive a 30% Discount for current year
21% – 30% – Member will receive a 20% Discount for current year
31% – 45% – Member will receive a 10% Discount for current year
45% – Over – Member will not be eligible to receive Discount for current year
The discount program enables my organization to receive up to a 30% credit on annual premiums. How are we elgible?
Yes, NIT is assessable, however we are not joint and severally liabile for losses. We are not an insurance company, rather a co-op of nonprofit organizations who have come together to put money into a pool and have claim payments drawn out of it. However, the Trust purchases specific re-insurance on an annual basis to limit the exposure any single organization could be assessed.
Although NIT is not joint and severally liable, the program is assessable. What are the potential impacts of this?
Who determines the rates of the group annually?
How will we save money on premiums?
Is there a requirement for how long I must participate in the group?
What happens if the Trust has an end of the year surplus?
Can my membership be terminated?
How is the Trust protected from large claims/losses?
What do I need to provide you to join and what would make my organization ineligible?
Who would handle my claims and loss control services?
How do I find out who has already joined?
Every insurance company and all groups whether individually or group self-insured must obtain the new annual pure premium rates established by the state of Minnesota every year. From this data, each insurance company/group must put on a sufficient charge to meet overhead costs and profitability standards. These charges are called multipliers, and they are added to every rate the state of MN publishes. Further, the Board of Directors of the Trust meet to determine what multiplier would have the Fund maintain nominal positive balance at the end of the year and then they budget this accordingly.
Yes, NIT is assessable, however we are not joint and severally liable for losses. We are not an insurance company, rather a co-op of nonprofit organizations who have come together to put money into a pool and have claim payments drawn out of it. However, the Trust purchases specific re-insurance on an annual basis to limit the exposure any single organization could be assessed.
We strive to end each year with a nominal positive balance. Unfortunately, this is not always the case. If the Trust develops a surplus at the end of the year we have the ability to call a dividend and return a percentage of each individual organizations portion. However, most recently for the best interest of the group, we have lowered rates for future years and set up reserve accounts.
Yes. We do require organizations to participate for three consecutive years to help eliminate “jumping” for better rates and to keep budget projections in line. There is a penalty for early withdrawal in this three year period. Most notably, if an organization decides to leave the Trust for any reason after the three year period they are not allowed back in at any time. As noted before, we are not an insurance company, we are a group insured together to help reduce the financial costs of workers compensation coverage.
1. Last five years of current loss history from your current insurance carrier
2. Current year experience modification worksheet (provided annually to you by the MN Workers Compensation Insurance Association)
3. Last three years of your audited financial statements
4. Payrolls by class code (typically found in the first two pages of your current workers comp policy)
5. Strong commitment to safety within your organization
After all necessary information has been received, the applicant will seek underwriting approval from NPIA, Inc.
Items that may make you ineligible:
1. Current experience modification over 1.50
2. High frequency/amounts paid for losses incurred (subject to underwriting)
3. Unwillingness to improve safety programs if deemed unsatisfactory
The Trust purchases what is called specific re-insurance every year to cap a loss it can experience. Specific re-insurance is protecting what the Fund could pay on any one claim throughout the year, so no one claim could result in a high payout. As of June 2013, two re-insurance claims have been filed by the Trust.
Yes. Although not frequent, the Board of Directors has the ability to cancel any member in the group. Payment of premiums paid on a timely fashion will eliminate the highest concern of cancellation. Further, considerations have been raised in the past to cancel two members due to an extreme increase in losses and unwillingness to follow loss control recommendations.
We have many types of nonprofit organizations who have already joined the Trust. More than likely, an organization in your industry has already joined. This is why when a quote is released to you, we give you a list of all the organizations who have joined and ask that you talk to them yourself. Frankly, on our part, what could be a better marketing tool! You can ask questions about our program and learn what your peers have experienced.
The Trust contracts with a TPA (Third Party Administrator) to handle claims and loss control services. Should you have a claim, you would work with one claims representative from the TPA and have access to all notes, and be able to follow a claims progress online. Similarly, loss control services are contracted to a TPA and visit locations in the Trust on a frequency which would be most beneficial to each organization. Videos, demonstrations and seminars are just a small sampling of what the loss control services can provide to your organization.
21021 Heron Way, Ste 103 Lakeville, MN 55044 Ph: (952) 469-5963 Fax: (952) 469-4553 Email: mail@nitmn.org
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