“If a risk pool is profitable, the members get the advantage of reduced rates. But if the pool is unprofitable, the MEMBER DISTRICTS may be faced with assessments (additional contributions) regardless of what they tell you.“
“No insurance company or stock stands behind these pools except reinsurance above high retentions (deductibles). The managers and the agents bear no risk – only the members.”
“Interlocal risk pools are not subject to oversight by Texas Department of Insurance or any other state department, and are not required to submit financial reports. Hence, some risk pools provide no financial data to its members, its owners, even though the funds belong to the members. Who would invest in a company without seeing financials?”
– Robert Reim
