Corporate Partner Profile: Local Government Insurance Trust

MACo is proud to re-introduce the Local Government Insurance Trust (LGIT) who has renewed as a gold-level partner in our Corporate Partner Program.

LGIT is a non-profit association authorized by state law, wholly-owned and managed by its local government members. The Trust’s main purpose is to provide joint self-insurance programs or “pools” for towns, cities and counties in the State of Maryland. The concept is simple: rather than paying premiums to buy insurance from an insurance company, local governments contribute those premiums into a jointly-owned fund. The money in that fund is used to pay for the members’ claims, losses, and expenses.

In some ways, LGIT functions like an insurance company. Maryland local governments pay a premium to LGIT, LGIT gives the member government a coverage document that looks like an insurance policy, and LGIT pays claims and losses on the member’s behalf. However, there are a few important differences.

LGIT is owned and managed by its member local governments. Its purpose is to meet local government risk management needs — not to make a profit by selling insurance. Because LGIT is a not-for-profit organization, if the Trust’s income from fees and investments is more than is needed to pay for losses and expenses, the excess funds may be returned to the members.

LGIT also works in partnership with the Cigna and Benecon on the Maryland Local Government Health Cooperative.  The Health Cooperative program provides local governments with an alternative to self insuring or purchasing health insurance.

For more information on the services offered by LGIT contact Tim Ailsworth.

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