Daraskevich appeared at Tuesday’s county board meeting.

MCIT is a joint powers entity where member counties pool their resources to provide property, liability, auto and workers’ compensation coverage. Eighty-one of Minnesota’s 87 counties belong to MCIT. Formed in 1979, MCIT is celebrating its 40th anniversary.

Hubbard County has been a MCIT member since 1980.

“MCIT’s primary funding is taxpayer dollars that members contribute to the pool,” Daraskevich said.

“The advantage of being in a risk-sharing pool is that many of our members share very similar exposure, so we’re able to take advantage of economies of scale, smooth out a lot of large catastrophe losses and provide some rate stability. This also allows our members to budget future coverage costs,” he said.

Since 2010, aggregate contribution rates have declined 30.8 percent for property/casualty and 32.1 percent for workers’ compensation, according to Daraskevich’s report. “The result of those rate decreases is positive claim outcomes – membership attention to loss control and safety awareness,” he said.

In 2018, Hubbard County received a dividend of $172,322. “MCIT only issues a dividend when it is actuarially sound and fiscally prudent,” Daraskevich said. Last year, MCIT distributed $11.75 million in dividends.

The frequency and severity of work-related injuries and illnesses affect each member’s experience modification factor.

Daraskevich explained that a mod factor over 1.0 means the county is paying more than average; under 1.0 is below average.

“The good news is that for Hubbard County that the mod factor is .952, so your county is paying $12,532 less than the average member would pay for coverage,” he said of 2018. “We commend you. We thank you. We appreciate that. We encourage that you continue doing that. Again, that’s a reflection of good loss control and safety awareness.”

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This year, MCIT is introducing four of five coverage enhancements at no additional charge. Limits were increased for data compromise, builders risk, electronic data processing equipment coverage and class III dams at no cost. For a fee, liability coverage is available for all endorsed drones, Daraskevich said, and Hubbard County is taking advantage of this offer.



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