The following are some of the questions frequently asked:
Q. What is OTARMA?
A. OTARMA is a self-insurance pool endorsed by the Ohio Township Association (OTA). The Pool was originally formed in 1987 for the primary purpose of providing townships throughout the State of Ohio with an alternative to traditional property and casualty insurance. The OTARMA Program is designed to provide Ohio Townships with the coverages necessary to properly protect their assets.
Q. Why was OTARMA formed?
A. Historically, the 1980's was a time when liability insurance coverage for public entities was virtually unattainable from the traditional insurance marketplace. Public entities throughout the United States joined together to form group self-insurance pools.
Q. What is a self-insurance pool?
A. A self-insurance pool is a non-for-profit association of members joined together for the purpose of sharing losses and spreading risks. Unlike most self-insurance pools, OTARMA is a non-assessable pool program.
Q. How could OTARMA provide specialty coverages to Ohio Townships when traditional insurers would not?
A. Because of the structure of OTARMA, the Membership is insulated from the factors that have historically caused the extreme variances in traditional insurance company pricing and coverage availability. OTARMA provides coverage for only one class or risk - townships, and in one geographical area - Ohio. This translates into more predictable claims payment patterns and therefore the ability of OTARMA to provide stable pricing and broad coverage.
Q. What coverages does this pool offer?
A. OTARMA offers the following coverages: commercial general liability, police professional liability, public officials liability (errors and omissions), commercial automobile liability, auto physical damage and property liability.
Q. What are some of the advantages of OTARMA?
A. There are many:
- Lower overhead
- Retain investment income
- Stable pricing
- Self governance
- Homogenous group
- Endorsed and sponsored by the Ohio Township Association (OTA)
- Marketed through your local independent agent
- AAA financial stability rating from Demotech, Inc.
- Simplified application
- Specialized loss control
- Interactive website
- No annual aggregate all casualty lines
- General liability coverage includes special events, volunteers, athletic participants, water slide liability, skate board liability, sexual abuse and misconduct, liquor law liability
- Public officials errors and omissions
- Employment practices liability
- Commercial property coverage
- Commercial auto (including physical damage coverage for non-owned autos)
Q. Is there a firm that independently analyzes OTARMA and other intergovernmental pools' financial stability?
A. Yes, Demotech, Inc. specializes in providing a broad set of management consulting services related to financial stability analysis. OTARMA consistently receives the highest ratings in all four areas of performance:
Financial Stability - AAA
Loss Reserve Opinion - AAA
Administration - AAA
Overall Performance - AAA
Q. Is OTARMA an assessable pool?
A. No, OTARMA does not require its Membership to be jointly responsible for the liabilities of other Members.
Q. How does joining the OTARMA Pool save money?
- OTARMA does not operate under a "for profit" motive and is tax-exempt.
- OTARMA has a much lower overhead.
- The OTARMA Membership retains the investment income.
- Improved loss control which translates into reduced claims.