About LARM

LARM provides coverage and risk management services to cities, villages and other governmental agencies in Nebraska. Meadowbrook Insurance Group provides many of the membership services. LARM’s goal is to be a long-term, stable, cost-effective risk management alternative for members of the League of Nebraska Municipalities.

 

LARM is a public agency formed through the use of an interlocal agreement and, as such, it is an extension of each member. LARM is required to operate in accordance with state statute and to comply with the rules regulating the operation of a public agency. The Intergovernmental Risk Management Act (IRMA) very clearly states that pools created under IRMA are not considered insurance companies. IRMA recognizes the unique legal status of pools and creates regulations specifically for them. IRMA allows the Director of the Nebraska Department of Insurance to adopt and promulgate rules and regulations related to maintaining reserves, payment of dividends, payment of claims and changes to the structure of the Pool.

 

LARM is administered by the League of Nebraska Municipalities (LNM). LNM provides legal assistance, coordination of legislative efforts and information/education. LNM is responsible for contracting with and overseeing all service providers including the pool manager, risk management staff, property/liability and workers’ compensation claims specialists, loss control consultants, accountants, actuaries, investment managers and financial auditors. LARM operates under the direction of the board of directors made up of elected and appointed officials that are elected by the LARM membership.

 

LARM History

In the 1980’s public entities faced an insurance crisis. Rates were skyrocketing and some municipalities were being cancelled completely. Based on a study initiated by the League of Nebraska Municipalities (LNM), it was determined that there were limited insurance carriers and products available to municipalities in the State of Nebraska, which limited the municipalities’ ability to control insurance costs, coverage and services. Based on the results of the study and the interest of members, LNM resolved to create the League Association of Risk Management (LARM).

 

LARM began operations in late 1989 by offering an endorsed insurance program for municipalities that included risk management services. In 1995, with 13 participating municipalities, LARM received its pooling certificate from the State of Nebraska and began operating the Property and Liability Group Self-insurance Pool. The Workers' Compensation division was introduced in 1997.