What is the AMLJIA?
The AMLJIA is a not an insurance company or agency, rather it is a self-insurance pool owned entirely by participating members. The AMLJIA is dedicated to providing stable, cost-effective risk financing and quality claims and loss control services designed to meet the needs of local governments and school districts.
Thirty-seven charter member municipalities and school districts created this risk management self-insurance pool in 1988. Over the years, the AMLJIA has grown to be financially secure and has been able to focus more on preventing losses and growing the membership. The membership has blossomed to over 150 cities, boroughs and school districts and our financial strength has reached a point where there can be no question of the program’s ability to pay claims.
None of this would be possible without the long-term commitment of the AMLJIA members. It is the membership that created the program. It is the support of members that understand that stability is our goal and that we must stick together to smooth the ups and downs of the commercial market.
Just as with people, the personality of the program was established in its youth. The AMLJIA remains committed to serving its membership. Our focus now remains on helping members prevent losses, achieving pricing stability and providing first-rate services to retain and grow the pool.
What is a Pool?
A pool is a cooperative arrangement that works a lot like a traditional insurer: Participating entities pay a contribution, receive coverage and make claims. In addition, many public agencies rely on their pools for assistance with overall risk management programs.
Why did Pools Begin?
Intergovernmental risk sharing pools began in the United States with the creation of the Texas Municipal League Pool in 1974. The shifting legal environment faced by public agencies in the mid-’70s, particularly the steady erosion of sovereign immunity, made risk financing a major issue. Public entities needed to purchase insurance or examine alternative methods of financing this risk.
During this time period, however, insurance was hard to get. In response to this crisis, governmental entities began to form coalitions and partnerships for the purpose of creating alternatives to satisfy their insurance and risk management service needs. These early pioneers quickly learned that by pooling their resources they could establish programs that would satisfy their insurance needs as well as guarantee delivery of risk management services, without dependence on commercial insurance. The Alaska Municipal League Joint Insurance Association (AMLJIA) was created and began operation on July 1, 1988.
What Services Can a Member Expect?
Pool members have more direct control over claims-handling policies and defense strategies. They also have more control over the type and breadth of coverage and limits offered by the pool. Since representatives of pool participants sit on the board of trustees, the members themselves make these decisions.