The Delaware Valley Insurance Trust is a regional municipal risk sharing pool providing property and liability coverage to its participating members. The Trust was formed under the authority granted by the Pennsylvania Intergovernmental Cooperation Law and the Pennsylvania Political Subdivision Tort Claims Act.
The Trust commenced operation on January 1, 1989 after a three (3) year study conducted by the Montgomery County Consortium of Communities.
DVIT is governed by a Board of Trustees comprised of a representative from each member municipality. The governing body of each municipal member selects an appointed or elected official to serve as a Trustee on the Board of Trustees. Each municipality receives one (1) vote on the Board; voting is not weighted. The Trustees elect five (5) officers to serve on an Executive Committee that provides management oversight to staff and professional advisors on a monthly basis.
Funding and Financial Information
The Trust is funded by annual member contributions determined by the trust's actuary and underwriting consultant, in amounts necessary to pay expected losses, administrative expenses, and a recommended risk margin. The Trust's financial statements are prepared in conformity with generally accepted accounting principles using a full accrual basis of accounting. Each year, in conjunction with the annual financial audit, an independent actuary contracted by the Trust's auditor performs a review of the report prepared by the Trust's actuary as to the adequacy of loss reserves.
The overall financial condition of the Delaware Valley Insurance Trust continues to meet or exceed original expectations. DVIT is well positioned for continuing to meet its two long term goals of: 1) maintaining an insurance program managed by municipal officials, offering meaningful coverage designed to prudently protect municipalities from loss, and; 2) maintaining a financially secure product which is consistently priced year after year.
Excess funds are returned to members through four methods: dividends, multi-trust discounts, rate stabilization fund (RSF) credits, and safety grants. Although DVIT was not intended to be a dividend paying pool, the Trust has been returning dividends annually for more than 20 years. Dividends are made possible by a better-than-expected loss ratio, low operating expenses, conservative funding, and a good return on investments. The Trust has returned nearly $28 million in dividends since 1994.
As of January 1, 2008 all three trusts began offering multi-trust discounts as a reward for participating in more than one trust. Should a DVIT member decide to also join the Delaware Valley Workers Compensation Trust (DVWCT) and/or the Delaware Valley Health Trust (DVHT), the reduction in property / liability premium contributions would be 3% to 4%. The municipal participant would also receive a comparable reduction in premium contributions from DVWCT and / or DVHT.
The Trust also offers contribution credits through a rate stabilization fund (RSF). Members have the option to use all or some of the credits allocated to reduce annual premium contributions due or to roll the balance forward to future years. In effect, the RSF allows each member the discretion of choosing the most opportune time to apply their own rate relief. If the RSF balance is rolled over to future years, the Trust will add interest, and, if approved by the Trustees, an additional year's allocation to the balance. DVIT has allocated $17.5 million to the RSF since 2005.
The Trust offers a safety grant program, whereby members are reimbursed for the costs associated with approved safety related expenditures, such as personal protective equipment, worksite safety materials, training programs, etc. The Trust has set aside over $1.5 million for these grants in the past ten (10) years.
The Trust provides the following coverages on a package-basis only to its members:
- Automobile Liability
- General Liability, including Police Professional Liability
- Employment Practices
- Public Officials Liability and Employees Liability
- Automobile Physical Damage
- Boiler and Machinery
- Privacy Liability
- Employee Benefit Plan Fiduciary Liability
- Heart and Lung Act (HLA) Liability
Each member receives a professional property appraisal and annual updates at no added cost.
Trust Professional Advisors and Support Organizations
Rating, Underwriting & Risk Consulting:
Insurance Buyers Council, Inc. Cockeysville, MD
Insurance Buyers Council, Inc. Cockeysville, MD
Geoffrey L. Beauchamp, Esq., Horsham, PA
Wells Fargo, Hartford, CT
Citizens Bank, Plymouth Meeting, PA
Bee, Bergvall & Company, Warrington, PA
Bodell Bove Grace & Van Horn, Philadelphia, PA
Deasey, Mahoney & Valentini, North, Philadelphia, PA
Kane Pugh Knoell Troy & Kramer, Norristown, PA
Marshall, Dennehey, Warner, Coleman & Goggin, Philadelphia, PA
Montgomery McCracken Walker & Rhoads, Philadelphia, PA
Post & Schell, Philadelphia, PA