This afternoon the Legislature’s Joint Finance Committee (JFC), on a unanimous 16-0 vote, adopted a motion by Sen. Howard Marklein (R-Spring Green), which delays for 2 years the ending dates for renewal of existing policies and for filing claims under the Local Government Insurance Fund (LGPIF).
This should provide an additional two years for existing policy holders to seek coverage alternatives and for new insurance providers to enter the marketplace and offer coverage to those who may be interested in transitioning from coverage under the LGPIF. This increased competition should help to keep rates lower during (and after) this transition period.
The motion also requires the Office of the Commissioner of Insurance (OCI), which manages the LGPIF, to adopt the rate increases and structural changes to the LGPIF recommended by the Fund’s advisory committee at its April 9, 2015 meeting. Those rate increases average 45 percent across the various risk categories.
The final date for the issuance of new policies by the LGPIF remains July 1, 2015, same as in the original budget proposal. This will effectively close the LGPIF to new insureds after that date.