The Kenai City Council adopted a resolution that authorizes the renewal of the city’s property, liability, workers’ compensation, airport, and other ancillary policies with the Alaska Municipal League Joint Insurance Association (AMLJIA). Each year the city goes through the process of renewing its insurance coverages. Since July 1, 2020, the city has been a member of the AMLJIA and has received quality insurance at competitive rates.
City Manager Paul Ostrander tells council:
“Essentially, this is a renewal of our insurance coverage through AMLJIA. The total net change increase for the year is just under $46,000, which is 7.31%. There is a caveat in the agreement that if it exceeds 10% year over year, we can terminate the agreement, but since this is under that 10%, we’re proposing to renew with AMLJIA.”
The Alaska Municipal League Joint Insurance Association provides a 5% premium credit to members who enter a three-year commitment for coverage. The FY23 credit offered to the city is $35,264. The agreement required to receive the credit allows the city to terminate the agreement at any time should the net premium for the coverage increase by more than 10% from one fiscal year to the next. Exclusion to the limit are increases in scheduled values, declared property values, vehicle counts or covered payroll.
According to Ostrander, after consideration of the longevity credit and the three-year discount, the FY23 premium is $78,695, 13.30% higher than FY22 and recommended the city to renew its coverage citing its quality, competitive rates, and excellent service.