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Chickasaw County reviews Heartland insurance renewal after actuarial rate study; payroll and officer-count errors prompt data check
Summary
At its May 12 meeting the Chickasaw County Board of Supervisors reviewed Heartland insurance renewal figures adopted after a 2023 actuarial study, heard that most rates stayed the same for the 2025 policy year, and instructed staff to correct payroll and law-enforcement headcount errors by the May 31 deadline that affect premiums.
Chickasaw County supervisors on May 12 reviewed renewal numbers from Heartland, the county insurance pool, and directed staff to review and correct payroll and law-enforcement staffing data that Heartland used to calculate the county’s 2025 premiums.
The review mattered because the county faces higher premiums driven chiefly by reported payroll increases and general liability exposures. Mary, a Heartland representative, and Judy, who introduced the item, told the board the pool used rates adopted after an actuarial study authorized in 2023 and that most line rates remained the same for the 2024–25 policy year.
“Previously, there had not been any rate changes for Heartland for, like, the past 15 years prior to 2023,” Judy said. Mary added that, aside from work-compensation changes tied to exposures, the same adopted rates are being used for 2025–26 unless the board directs otherwise.
Heartland staff told the board the county’s Experience Modification (mod) factor is moving to about 1.02, which affects work-compensation premiums. Mary said the mod is calculated from three prior years of loss history (not including the current year) and that a mod above 1.0 increases premium. She also told supervisors the county has until May 31 to submit corrections to payroll, property values and staffing schedules that Heartland used to prepare its quote.
Supervisors flagged an apparent discrepancy in law-enforcement counts and payroll the county provided: Heartland’s schedule showed an increase in officers from 18 to 22 and a roughly $800,000 jump in payroll, figures county staff said did not match local records. “We need to look into that payroll issue and the number of officers,” one supervisor said; Mary replied the carrier priced the schedule submitted and Heartland will accept corrections through May 31.
Heartland staff also highlighted other cost drivers reported in the schedule: general liability expenditures were up about 10 percent, marine values increased nearly 2 percent, electronic data processing values were lower, vehicles showed a modest decline, and payroll overall rose near 13 percent. Mary reminded the board that a county’s chosen excess liability limits were standardized across member counties recently and that minimum reinsurance limits now include a $5,000,000 layer for every member.
Board members noted safety measures and loss-control work can affect future premiums. Judy said Heartland requires counties to maintain safety committees with quarterly meetings to qualify for a 10 percent safety discount. Heartland also adopted a variable dividend plan that will calculate loss ratios at the end of the July 1, 2024–June 30, 2025 policy period; Mary said any member with a loss ratio under 30 percent may receive a return of premium to surplus, with likely calculations available around the county’s October meeting.
No formal motion was taken on the Heartland report. County staff were instructed to gather and submit corrected payroll and staffing schedules to Heartland by May 31 and to provide affected documentation back to the board for review.
