What is States?
States is a member-owned company providing excess liability insurance coverages to cities, counties, school districts and other public entities across the country. States can be accessed by Agents/Brokers or by direct contact.
Benefits
States’ insured member entities actually own the insurance company.
As owners, States’ insured member entities have a real voice in the Company’s operations through the election of the Board of Trustees, the ability to volunteer to serve on States’ boards and committees, and attendance at an annual Meeting of the Members.
States’ broad form policy language was developed by public entity risk managers, attorneys and insurance professionals which allows for the broadest coverage due to limited exclusions and favorable policyholder interpretations.
States is one of the only, if not the only, excess liability insurer that provides members with hands on, on-site loss control and claims management services.
Because insured members are the owners of the insurance company, States acts as their insurance “partner” and not a dictatorial insurance company, which is particularly important when claims arise.
FAQs
States is domiciled in Vermont, which is the largest and most experienced domestic domicile for captive insurance companies, including risk retention groups. Vermont applies strict regulatory controls over the insurers domiciled there. The Vermont Department of Insurance, Captive Division, has long been referred to as the “Gold Standard” for the way it provides regulation, audit and oversight on captive and RRG operations domiciled there while still allowing creative and innovative operational models. The State of Vermont is fully accredited by the NAIC. The State of Vermont has structured its insurance department so that the head of the regulatory section for captives and risk retention groups is in the position of Deputy Commissioner.
With States, you are more than just another insured. States’ insured’s are members of the States Self-Insurers Trust and, through the Trust, owners of States Self-Insurers Risk Retention Group, Inc. Since States’ public entity member-insureds own the insurance company, most remain insureds year in and year out, with a long-term view of their risk management programs. This is an indication of how committed States members are to the program and how they value the specialized services it provides. States’ member-insureds share in the financial success of the Company.
States wrote its first policy in 1988, shortly after non-manufacturing risk retention groups were allowed to form under the federal Liability Risk Retention Act of 1986. The group was created and formed by public entity risk managers and insurance professionals. As a result, States is focused entirely on public entity issues and public entity insurance-related and risk management needs.
States’ Board of Trustees is committed to building surplus in order to ensure the financial viability of States for the long-term. Total capital and surplus is approximately $9.0 million with gross premiums over $17.0 million annually. A Board resolution directs, for the present, that net revenues not needed for operating expenses be used to increase surplus and grow the Company. States has a long-term, fiscally conservative focus. It is owned by the public entities that are insured with the program and it has their best interests in mind.
States was licensed to operate in 1987 and has a long history of profitability since its first policy was issued in 1988. The Board of Trustees has directed that all revenues not required for operations be used to increase surplus so States can better protect its members and continue to grow. States operates as a group captive, and in many respects, as a well-administered public entity pool, rather than as a commercial insurance company. Unlike a for-profit, commercial insurance company, States exists only to respond to the unique needs of its public entity owner- insureds and therefore exercises strict underwriting standards when selecting risks to be allowed into its membership.