Small picture of Wisconsin capital.State of Wisconsin, Office of the Commissioner of Insurance
Abbreviation for Office of the Commissioner of Insurance, O C I.
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   Local Government Property Insurance Fund

General Information
Administrative Bulletins
Administrative Contact List
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  or print the contact list, which you can download at no cost from Adobe )
Committees:
   Advisory Committee
   Oversight Committee
Financial Information
Forms
Miscellaneous State Reports
Newsletters
Surveys: Claims and Renewals
Web Server Electronic Statement of Values (ESOV) Link
(The Electronic Statement of Values (ESOV) system is a password protected Web-based software program used by individual Fund policyholders to record/update respective insured property via an internet connection. By clicking the above link you will be entering into that secure logon process.) Frequently Asked Questions for ESOV


Administrative Bulletins

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Advisory Committee

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Bylaws
Officers and Sub-Committees for 2009
Contacts
Appointments

Minutes

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Oversight Committee

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Minutes

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Financial Information

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General Information

The purpose of the Fund is to make reasonably priced property insurance available for tax-supported local government property such as government buildings, schools, libraries, and motor vehicles. The Commissioner of Insurance by law is designated as the Fund’s manager. The Fund has one state employee who supervises day-to-day operations of the Fund by contracting for specialized services, such as claims and policy administration which are performed by The ASU Group located in Madison, Wisconsin.

During fiscal year 2008 the Fund continued to enhance program and administrative operations relating to its policy processing and computer system and also to its investment authority. Major enhancements to policy processing including renewals and all policy changes continued to be implemented in 2008 relating to the Electronic Statement of Values (ESOV) project which is a Web-based software program that allows policyholders to make all of their policy changes on line. Functionality within ESOV also gives the policyholder the option to export their statement of values to Excel spreadsheet format and sort by that entity’s own department codes. The Fund also obtained statutory authority expanding its ability to invest its assets in more than just the state’s short-term cash investment fund. The change grants the State of Wisconsin Investment Board (SWIB) the authority to invest Fund assets in higher yielding, longer term investment securities consistent with the Fund’s cash flow needs and has the potential to produce additional investment income that could be used to moderate premium rates.

As of June 30, 2008, the Fund insured 1,124 policyholders: 62 counties, 319 schools, 158 cities, 191 towns, 274 villages, and 120 miscellaneous (libraries, etc.). Combining new business and terminations, the overall number of policyholders decreased by 23 since the previous fiscal year-end. Two graphs are included that reflect changes in the Fund’s policyholder base and growth in its insurance coverage in force.

Chart showing number of policyholders for fiscal years 1999-2008. Chart showing growth of coverage in force.

The Fund’s insurance in force represents property that is insured against loss. The more property insured, the greater the potential for a loss. The total amount of insurance in force as of June 30, 2008, was $45.5 billion, up from $42.8 billion as of the previous fiscal year-end. The Fund’s total insurance in force increased $2.7 billion over the prior year, while its surplus (total assets minus total liabilities) decreased approximately $3.3 million over the same time period.

Three pie charts are included in this report reflecting the premium earned and the percent of policies by type of policyholder entity and a breakdown of the type of policy purchased. The majority of the Fund’s insureds are using the valuation project service that began in 1988. This method of valuing buildings, contents, property in the open and contractor’s equipment was developed to promote equity in premiums and the proper reporting of values. Valuation participants not only have broader coverage than those insureds that purchase a coinsurance policy but also enjoy the benefits of automatic computer-generated statements of value. The coinsurance policy requires the insured to establish the insurance value for the property, which caps the maximum recovery in the event of a total loss and can also impose limitations when paying partial losses if the property is not insured to full value.

The Fund’s balance sheet and income statement for the fiscal year ending June 30, 2008, are included with this report. The Fund experienced an underwriting loss of approximately $6.6 million due to a combination of premium rate reductions and higher claims losses, but realized a smaller net loss of almost $4.3 million after investment income was taken into consideration.

Fund management will continue to monitor insurance in force, claims trends and Fund surplus when evaluating the Fund’s rating structure. Claims costs coupled with higher self-insured Fund reinsurance retention levels and reinsurance premium will continue to be factors considered in the rate-setting analysis.

Pie chart showing direct premium earned by entity type for fiscal year ending June 30, 2008.


Pie chart showing percent of policies by entity type for fiscal year ending June 30, 2008.


Pie chart showing percent of policies by policy type for fiscal year ending June 30, 2008.

Balance Sheet and Income Statement - Fiscal Year Ending June 30, 2008 (pdf)

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Miscellaneous State Reports

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Newsletters

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Updated: November 9, 2009

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