Municipalities’ insurer refunds $10M

Apr 23, 2008

With no major storms in Florida in 2007, the trust has money left over from premiums.

Anika Myers Palm
Sentinel staff writer
Orlando Sentinel--April 23, 2008

Thanks to their insurer, Florida municipalities will get a refund of millions of dollars.

The Florida Municipal Insurance Trust has announced that it will refund $10 million to its members, which include several Orlando-area entities. The trust’s 58 members in Orange, Osceola, Volusia, Brevard, Lake, Polk and Seminole counties will split $1,644,940.

“We’re in a good financial position and that gives us the flexibility to do this for our members,” said Michael Madden, managing director of the trust.

The trust has money left over from 2007 property-insurance premiums, Madden explained.

Because no major hurricanes hit the state last year, the trust has excess money it collected through the fiscal year that ended September 2007.

“Since the property claims did not come in for that year, we’re basically returning that premium,” Madden said.

For the prior fiscal year, the trust had $20 million in losses because of claims it paid for damages resulting from Hurricane Wilma.

When the municipalities renew their policies in early October, they’ll see the funds applied to their premium adjustments.

Although the unexpected premium adjustments individually may be small, they still may be a boon to the municipalities, because many are facing cuts this year because of state budget shortfalls.

The Florida Municipal Insurance Trust provides governmental entities with workers’ compensation, liability, auto, health and property insurance. According to the trust, about 59 percent of Florida’s 412 towns, cities and villages are members.