Are members of the Trust required to bid insurance coverage?
No. A Tennessee statute provides that governmental entities participating in a pool such as the Trust are not required to bid for insurance (TCA 29-20-407). That is because the legislature recognizes that the Trust bids for coverage each year on its member’s behalf. The Trust is owned by its members so when your board does business with the Trust, it is doing business with itself. The more members the Trust has committed to participate during the new year, the better the bargaining power for excess insurance. When a member elects to bid that member cannot be included in the business that is guaranteed and will not benefit from the bargaining power of the Trust.
Related Questions
- Is there a minimum number of members that can make up a Consortium bid and is there any reason why it would be looked on unfavourably if a Consortium only had 2 members?
- Why has TRS encouraged members not to name a trust as their beneficiary?
- Are members of the Trust required to bid insurance coverage?
