About the Pools
In the early eighties, public entities throughout the U.S. faced an insurance crisis. Commercial insurance carriers began excessively raising premiums for public entities, and in some cases, exited states or cancelled coverage, leaving many Nevada municipalities without adequate, affordable insurance coverage.
In response to this crisis, The Nevada Public Agency Insurance Pool (NPAIP) was formed by Nevada public entities in 1987. By pooling resources to create NPAIP, Nevada public entities discovered that they could obtain quality property casualty coverage at a reasonable cost. As an added benefit, NPAIP members also found that they could access risk management resources superior to those previously offered to smaller, rural municipalities. NPAIP was created for the following purposes:
- To fill a void in the traditional insurance marketplace, and offer affordable risk financing to its members.
- To identify legislative and regulatory issues affecting public entities and to provide information to assist members in addressing such issues.
- To act as a clearinghouse for the collection and dissemination of data and resources relating to risk management and to encourage and support new research for our members.
- To provide meaningful and significant education and professional support for the members, governing bodies and staffs of our members.
After successfully organizing the property-casualty pool, the members organized the Public Agency Compensation Trust (PACT) in 1996 to provide Workers Compensation coverage for it’s membership.
NPAIP and PACT members include counties, cities, school districts, special districts, and towns. Every Member actively manages the risks encountered as a public agency. Membership is a privilege earned by effective agencies committed to sharing resources to benefit their employees and the public they serve.
Both pools were organized under Nevada’s Interlocal Cooperation Act. Interlocal Agreements were designed to permit local government entities to band together and share in the provision of essential services. NPAIP and PACT are owned, controlled and governed by their members.
NPAIP and PACT each have a 45-member Board of Directors, composed of representatives from member agencies which meets annually. An elected eight-member Executive Committee meets routinely throughout the year.
Both NPAIP and PACT have earned the Advisory Standards Recognition from the Association of Governmental Risk Pools (AGRiP). The award recognizes those pools that adhere to the eighty-eight "best practices" standards as established by AGRiP's Membership Practices Committee, relating to the governance, management, financial accounting and operation of the pool.