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for catastrophic claims. Today NLC MIC has some type of contractual relationship with 29 sponsored
public entity pools. Of those pools, 15 operate independently from the state league that created them.

Those endorsement or sponsorship fees from pools to state Leagues vary greatly from small annual
stipends to well over $2 million annually depending on the size of the state sponsored pool.

The Association of Governmental Risk Pools (AGRIP) surveyed 25 pools in September 2017 about their
relationships with sponsoring associations. LARM also conducted personal interviews with risk
management pool directors from across the nation in November and December 2017. Here are the key
points from the survey/interviews:

1. Risk Management Pools may be integrated with a sponsoring association, completely separate
or be connected only by training, lobbying, or other public interest projects.
2. Pools that are separated from a sponsoring organization may still pay a fee to the organization
and in turn receive benefits such as free or reduced rent for office space, paid utilities, web
presence, member training, marketing assistance, endorsements, free advertising in sponsor
publications, complimentary conference registrations for staff, and IT support.
3. In some cases the executive director of the sponsoring organization serves as a non-voting pool
board member. In many cases, a pool board member serves on the sponsor board – in one state
it is a requirement.
4. Pool administrators emphasize that a close relationship with a state association is important for
both organizations as they share common interests of providing training for members and
ensuring the success of the members.

Comments from executive directors of various pools:

“They have a municipal conference, we sponsor it with a booth and give articles for their magazine.”

“We have really close relationship with our League. A lot of times we sponsor elected official training
with them.“
“Our sponsorship fee includes free ads, training sessions. It’s not a percentage but an actual dollar
amount not tied to premium.”

“We pay the League a sponsorship fee based on a long-standing agreement- an unofficial rule of thumb
that when the League increases membership dues, they request an increase in sponsorship fees.”

“We don’t pay for booth space- fairly large booth free, our staff attends, no registration fee.”

“We do have marketing arrangements. We provide support for training that they provide. We pay for
booth, pay for advertising in magazine, get contact from their membership.”

Sources:

Connecticut Insurance Law Journal, Vol. 21, #1, 2015, revised August 2017
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2573253
Association of Governmental Risk Pools, “Sponsoring Association Survey Results” 9-19-2017