The League of Minnesota Cities Insurance Trust (LMCIT) Board of Trustees is happy to announce the return of $6 million to members of the property/casualty program this year.
The dividend amount is largely determined based on members’ claim experience for past years, while premium rates are determined based on actuarial projections of how members’ claim experience might change in the future. The rates also include a cushion, or contingency margin, to ensure future losses are covered even if they turn out to be more than projected. When loss experience is good, that cushion isn’t needed and can be returned to members.
Members should be very proud of their continued dedication toward controlling claims, and sharing that success with other Minnesota cities. Members will receive their share of the $6 million dividend, along with a detailed explanation of the dividend return and calculation, in mid-December.