SDPAA 2014 Member Credits Top $1 Million

By Kristina Peterson, Director of Underwriting, SDPAA

SDPAA is excited to share that in 2014, Member credits topped $1 million for the first time in SDPAA history. These credits can be earned through renewal, loss control efforts, and low loss ratios. Earned credits are reflected on Member invoices each year.

Each Member receives a renewal credit upon their coverage term date for renewing with SDPAA. In 2014, SDPAA credited Members a total of $60,678 in renewal credits.

Loss control credits are earned by participating in loss control recommendations from our service provider, Safety Benefits, Inc. (SBI). SBI visits each Member and reviews both property and liability coverages. Covered property is inspected every four years and a property valuation is conducted by SBI. The results and recommendations are shared with the Member and if the Member takes the recommendations and addresses concerns, SBI may recommend a loss control credit for the following year. For liability, SBI visits every three years and provides recommendations to help prevent or mitigate losses. Credits are given upon completion of recommendations made by SBI. In 2014, SDPAA credited Members a total of $438,628 in loss control credits. Loss ratio credits are earned for an acceptable three-year loss history. Upon renewal, the Member’s loss ratio is reviewed and if acceptable, the credit is applied to the invoice for coverage. Loss control can tie into loss ratios. Following the recommendations made by SDPAA and SBI may prevent or minimize losses in some instances thus helping Members keep loss ratios down which may result in a loss ratio credit. Loss ratio credits to SDPAA Members in 2014 totaled $462,779.

For Members purchasing law enforcement liability coverage through SDPAA, credits are available for those who follow SBI’s recommendations. SDPAA gave a total of $47,145 in law enforcement liability credits to Members in 2014.

According to SDPAA Executive Director, Judy Payne, “Our Member credit program is of value to Members, the SDPAA, and the public. Any time we can incentivize and work to eliminate or reduce losses, all involved are providing great public service. SDPAA appreciates Members’ participation in the program and we look forward to growing that participation.”

For any questions regarding the SDPAA Member credit program, please contact SDPAA at 800.658.3633 or sdpaa@sdmunicipalleague.org.