LIABILITY PROGRAM

CalTIP's Liability Program provides protection against covered losses wherein the member is legally liable for bodily injury or physical damage caused by either the member itself or an owned vehicle. CalTIP's pooled and excess coverage, combined with various deductible options, provides general liability, public officials' errors & omissions, limited employment practices liability and vehicle liability.

Member Deductibles
Members are given the opportunity to select a deductible that best fits their agency. These options are: $0 (first dollar coverage); $25,000; $50,000; $100,000; and $250,000.

Pooled Program Layer
CalTIP self-funds or "pools" the first $1,000,000 of coverage for any claim. That amount is inclusive of the member's deductible.

Reinsurance/Excess Insurance
CalTIP purchases reinsurance and excess insurance for members applying to losses that exceed CalTIP's Pooled Program Layer. All members receive $4,000,000 of reinsurance or excess insurance above the $1,000,000 Pooled Layer. Members have the option of purchasing a total of $10,000,000 in coverage or a total of $20,000,000 in coverage.

Retrospective Premium Adjustments
CalTIP returns funds to members via a retrospective adjustment calculation process. This process, which is performed annually, allocates incurred costs or assets back to members participating in specific program years. Retrospective returns are a direct result of reduced claims experience. Thus, the lower the loss experience, the greater the retrospective adjustment. CalTIP returned over $1.24 million to its Liability Program members in the 1998/99 and 1990/00 years combined.