Dividends Shared Among Self-Insured

COURT HOUSE – All Cape May County’s 16 municipalities will receive a total $813,713 in dividends as members of the Atlantic County Municipal Joint Insurance Fund. In total, 40 southern New Jersey municipalities will share nearly $1.9 million in dividends from the fund. Dividend amounts vary by member but will average $44,210 per town, according to a release.
Member municipalities in Atlantic, Cape May, Camden, Cumberland and Gloucester counties are sharing dividends this month. Joint Insurance Funds allow New Jersey municipalities to collectively pool money for insurance coverage.
The Atlantic County Municipal Joint Insurance Fund, commonly referred to as simply, “J.I.F.” celebrated its 20th anniversary in 2007. It began operations on Jan. 1, 1987 with seven municipalities.
Currently, the ACMJIF is 44 members with “an unparalleled record of financial success, member services, and coverage stability,” according to the release.
Over 370 municipalities in New Jersey are members of a Joint Insurance Fund (JIF). During 21 years of operation, municipalities participating in the ACMJIF have saved millions of dollars in premiums and have received surplus distributions of $20,322,986.
“These surplus distributions would have been insurance company profits, instead they are local taxpayer’s savings” explained Dawn Stollenwerk, Mullica Township chief financial officer and chairperson of the ACMJIF Finance Committee.
Towns that join a Joint Insurance Funds often see an initial savings of approximately 30 percent of their overall insurance cost from conventional insurance arrangements. The money that would otherwise have been spent in purchasing an expensive stand-alone insurance policy is available for other municipal needs.
Due to reductions in claim frequency and severity JIF members have control over their premiums. This is the result of a unique safety culture adopted by the members fostered by the rigorous safety and maintenance programs developed by the ACMJIF safety professionals.
Paul J. Miola of Arthur J. Gallagher Risk Management Services, Inc. based in Marlton, and executive director of the ACMJIF, credits the success of the program to the active involvement of municipalities in implementing JIF safety and risk management programs. “We’re not afraid to take cases to court when one of our members has been wrongly sued”, said Miola. “On the other hand, when one of our employees is injured, we take quick action to get high-quality medical care and return the injured worker to a productive life as soon as possible. Every accident is reviewed so we can learn from our mistakes and avoid recurring incidents.”
Cape May County municipalities and dividends:
• Ocean City, $ 256,395
• Wildwood Crest, $ 60,132
• Dennis Township, $ 29,146
• Avalon, $ 68,686
• West Wildwood, $ 4,115
• North Wildwood, $ 95,966
• City of Cape May, $14,280
• City of Wildwood, $ 2,047
• Woodbine, $ 8,464
• Sea Isle City, $ 83,777
• Lower Township, $ 99,434
• West Cape May, $ 2,879
• Stone Harbor, $ 13,532
• Middle Township, $ 72,563
• Cape May Point, $ 298
• Upper Township, $ 1,999