Savings Times 2

Why is the AAC building busy?

Savings times 2

The Association of Arkansas Counties Risk Management Fund (AACRMF) was founded in 1986 and started operation in 1987. Since 1987, the AACRMF has prospered as a noninsurance risk management pool. Forty-six counties, as well as other county entities and more than 400 volunteer fire departments, participate in this pool. It is by design that the AACRMF is not “insurance.” It is a trust fund owned by member counties. That’s right, it is owned by member counties and governed by a board of seven trustees who are county officials. How does this work and how is it important to counties?

As a non-insurance pool, the Risk Management Fund (RMF) is authorized to use governmental immunities as “coverage” provisions. You see, immunity that counties enjoy by right is waived when “insurance” is purchased. The AACRMF has been carefully crafted to give Arkansas counties self-insurance that is not “insurance.” Be assured, this concept has been tested in court. When challenged, the federal courts have held that it is not insurance and that immunities are not waived. In addition, in situations when immunity is not provided — such as liability under federal laws for which there is no state-law immunity — the AACRMF program provides protection. Furthermore, the AACRMF is not merely a defense fund program. The fund is prepared to pay damages in addition to defense costs.

Mike Rainwater and his legal team along with AAC staff attorneys provide legal defense and claims adjustment services for the RMF General Liability Protection. Auto and property protection also are available. The auto claims are handled in house by AAC staff. Property claims are adjusted and paid in house as well. That is one reason the AAC building is busy.

Since the AACRMF manages claims in house, efficiencies are built so that additional services can be provided to member counties. These are some of the services that member counties are afforded free of charge:

• CDL drug testing with participation in the RMF Auto Program

• Partnership with Metro to provide Peace of Mind (P.O.M.) emergency claim services. RMF Members receive priority response with participation in the AAC Property Program.

• Guardian Inmate tracking system. This system is 20 times faster and more defensible than a barcode. • Codification of county ordinances. Accessing your ordinances is made efficient by the AAC compiling your substantive county ordinances and codifying them into a single-bound volume.

Wallet & waistline

Becky Comet AAC Member Benefits Manager

In addition to all these services, members that participate in all three AACRMF services (General Liability, Auto and Property) receive a 10 percent auto discount. You have to love a good discount.

The RMF is designed to use the sum total of experiences, problems and solutions of one county in order to pass on help and advice to all other member counties. Employee discipline and dismissal advice and assistance is provided to members without any charge. The purpose is to avoid claims. The program has been effective when pre-claim advice is sought. The RMF sees its job as helping county officials do all they can do within the limitations imposed by the constitution and laws. Having 46 counties to work with — and in working with counties for 29 years — the AACRMF has been effective in avoiding liability in the employment arena, in particular. This is yet another reason the AAC building is busy. More counties and more experiences equal more solutions.

The AAC building is busy in order to help counties in as many ways as possible. The AACRMF can provide general liability, auto, and property coverage at a competitive rate. On top of competitive rates, we provide services like codification, Guardian RFID, CDL drug testing and POM emergency restoration services through Metro. If that’s not enough, an amazing staff and incredible attorneys are available to guide counties through just about any situation. Yes, The AAC building is busy ... for the benefit of the counties of Arkansas.