ACCEL Liability Program
Member cities share risk in excess of $1,000,000. ACCEL pools almost every catastrophic loss incurred by its members, thereby eliminating the need for commercial excess insurance protection. There are certain risks for which ACCEL does not provide coverage, such as airports and dams. Strong underwriting standards have been established for admission to ACCEL. Entities with poor loss experience will be scrutinized thoroughly by their ACCEL peers before approval or disapproval for membership. Separate accounts are maintained for each Program Year, and members pool losses only with the others who are members during the Program Year. The cost to a city depends on the losses of all the members. If there are many losses, the cost will be substantial. ACCEL's self-insurance concept leaves the responsibility for paying losses directly with the cities.
The cost to a member city will also depend on that member's own loss experience. Entities with a consistent record of costly claims will pay more than entities with a consistent record of low serious claim activity. Over the long run, that relationship will be almost proportional - an agency incurring 10% of the loss costs of all members will pay 10% of the catastrophic losses.
The ACCEL plan includes liability coverage for Bodily Injury, Property Damage, Public Officials Errors and Omissions, and Personal Injury as defined in the coverage document. Coverage is afforded on an occurrence basis.
Covered parties are persons who are past or present elected or appointed officials, employees or volunteers of the Member Agency, whether or not compensated, while acting for or on behalf of the Member Agency. This includes those individuals acting as members of boards, commissions, districts, or similar entities under the direction or control of the Member Agency.
There are a number of exclusions in the coverage, and the Memorandum of Coverage must be read thoroughly for detailed knowledge of these exclusions. The following exclusions highlight major exclusions and therefore do not constitute all exclusions enumerated in the coverage document:
- Airfields or similar aviation facilities
- Watercraft over 17 feet in length
- Medical Malpractice
- Inverse Condemnation
- Past salary or wages to unlawful discrimination, violation of civil rights or wrongful termination.
Deposits to ACCEL are collected from each member that are applied to each Program Year. The deposits are credited with investment income at the rate earned on the Authority's investments. Each program year stands alone and is not carried forward to succeeding years. The deposit made by each member is based on a percentage of estimated DE9 payroll. Beginning five years after the end or each Program Year, ACCEL calculates each member's share of pooled costs. The cost allocation calculation for each Program Year is recalculated annually until the Program Year can be closed out actuarially.
A retrospective rating program is used to determine if any assessments are needed or if return of funds are warranted.
Claims Management Review
- Occurrence/Claims Reporting and Handling
The Authority has a policy and procedure that specifies the steps for occurrence/claims reporting and handling.
- Claims Auditing
A claims audit of each member agency is performed annually to ensure compliance with accepted claims management standards.
- Excess Claims Management
Claims that penetrate, or have potential of penetrating ACCEL's shared risk pool are monitored and supervised by an excess claims third-party administrator.