More than half of New Jersey Municipalities have elected to say farewell to their old insurance companies and join forces with each other to secure insurance protection through one of 18 MEL affiliated Joint Insurance Funds (JIF). JIFs are public entities chartered under Title 40:A 10-6 that allow local communities to pool their resources and achieve economies of scale and other advantages previously available only to large corporations or very large cities. This arrangement enables member municipalities to lower the ultimate cost of their fire, liability, automobile, and workers' compensation insurance.The Municipal Excess Liability Joint Insurance Fund (MEL) was established in 1987 to serve as a lead agency for affiliated Joint Insurance Funds and to provide “safety in numbers” by providing reinsurance to the local JIFs. Over the past 20 years, the MEL has become one of the most successful shared services programs in the state's history - saving New Jersey taxpayers over $800 million to date. The MEL is a governmental entity that provides excess insurance and services to 18 local Joint Insurance Funds (JIFs) representing over 60% of all local governments in New Jersey. The membership includes 380 municipalities, 74 utility authorities, and 87 housing authorities. With an annual budget of $175 million and a statutory surplus of $125 million, New Jersey's MEL system is the third largest governmental self-insurance pool in the country.
For more information about the JIF please click on the link below.
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