With the exception of Airport Liability, MIRMA pays the majority of member claims from a central loss fund.

In addition to MIRMA’S self-insured retention limits, excess insurance is purchased annually from excess insurance reinsurance carriers.

MIRMA purchases a fully insured group policy to provide Airport Liability coverage for its participating members.

MIRMA distributes the cost of the program to its members in the form of annual assessments. The assessments are based on a rate per $100 of annual payroll reported by the member. This rate will be sufficient to cover the total of the following costs:

• Loss Fund
• Excess and Re-insurance
• Insurance Service Fees
• Administrative Expense
• Airport Liability Premium

Any surplus loss related funds and interest revenue that are not needed to pay claims, or establish claim reserves are distributed to the members on a pro-rate- basis as credit against future years assessments. This is important because many claim reserves must be maintained and invested for several years before all claims are settled or the statutes of limitation expire.