The Utah Counties Indemnity Pool is a public agency insurance mutual organized in accordance with the Utah Interlocal Cooperation Act and the Utah Governmental Immunity Act. Membership in the Pool is restricted to Utah counties and county controlled entities that are parties to the Amended Interlocal Cooperation Agreement.
Participating Member Counties formed the Utah Counties Indemnity Pool and commenced its operation as a public agency insurance mutual January of 1992. One major reason for that action was the inability of counties to obtain insurance through existing markets that would cover the unique exposures and provide services necessary to properly manage risks at a cost that would be level over time. Due to the cyclical nature of the insurance industry, insurance costs for many counties rose dramatically during the late 1980’s, and in some instances coverages became unavailable. Counties, together with Utah Association of Counties staff and insurance consultants, invested considerably in both time and money to create an entity to accomplish the following goals:
- Provide group self-insurance coverage for appropriate exposures of members.
- Stabilize the Cost of Risk to counties.
- Maximize the input and control of county officials.
- Develop and provide high quality services, designed for counties.
- Create equity for the members.
In so doing, Utah counties followed the example of many other public entity associations that have formed similar pools to provide a long-term answer to insurance and risk management problems. In fact, many entities formed by state associations of counties have been very successful in meeting members’ expectations regarding stability, service and costs. The 2002 General Session of the Utah Legislature passed Senate Bill 48, Public Agency Insurance Mutual Amendments. Effective July 1, 2002, public agency insurance mutuals, were exempted from most provisions of the Utah Insurance Code and from regulation by the Utah Insurance Department. This change was made in recognition that public agency insurance mutuals are not actually insurance companies at all, but are government agencies providing an opportunity for local governments of all sizes to self-insure their risks.
Since 1992 the Pool has consistently responded to the needs of members and provided many services and advantages unavailable elsewhere. Because only Utah counties are members of the Pool, the services of the Pool specifically focus on the needs of counties and county controlled entities.