Underwriting - General Information
UNDERWRITING-DETERMINATION AND EXPLANATION OF COVERAGE
While the TNRMT program is underwritten as a "pool" the members risks are also evaluated on their individual characteristics. These include (but are not limited to) the value of owned property and vehicles, types of exposures, number of employees, payroll, losses and level of training. The TNRMT allows Tennessee school systems and governmental entities to create their own insurance rates based on losses occurring only in the state of Tennessee, occurring in Tennessee schools or governmental entities and settled in Tennessee Courts. Members are not subject to being charged for losses in the higher cost areas of the country. Rates and premiums are ultimately determined by TNRMT. Since this is a "pool" TNRMT does not use NCCI Workers Compensation experience modification rating.
The TNRMT provides the broadest possible coverages at rates competitive with any other policy or pool. Legislative and legal precedent changes are a common occurrence in Tennessee. The Board of Trustees of the TNRMT makes changes from time to time in the coverages available to avoid gaps that could possibly occur when changes in the law occur.
The Trustees making these decisions are administrators or members of Boards of Education and Boards and Commissions of the public entity members who currently participate in the program. This method of operation provides a partnership between TRMT and its membership, whereby members can participate in their own program and reap the many benefits from participation in a pooled cooperative.