The Buffalo Grove board approved possible withdrawal from IRMA on March 28.
The Buffalo Grove board approved possible withdrawal from IRMA on March 28.
The Buffalo Grove village board met in a special meeting on March 28 to discuss and approve Resolution No. 2016-10, which authorized the possible withdrawal from the Intergovernmental Risk Management Agency (IRMA).
While the village has been a member of IRMA for many years, it is investigating other options for general liability and workers' compensation insurance beginning in 2017. The contract with IRMA requires a nine-month notification of withdrawal before the beginning of the 2017 IRMA plan year on Jan. 1, 2017, or the village would lose its reserve fund, which is approximately $460,000.
By giving IRMA a withdrawal notice, the village keeps its options open. It can withdraw the notice up to 120 days before the end of the IRMA plan year, which is Dec. 31. Because most insurance plans are reluctant to provide quotes more than nine months in advance of the effective date, the resolution ensures that, should the village opt to contract with a different insurance company, it will preserve the village's right to a refund of the member's reserve fund. If the village manager determines that the village is best served by IRMA, he can revoke the withdrawal notice.
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