CLIC Program History

The CLIC Insurance Program began on August 1, 1983, with eight chartered members. The program was known as “The County of Lake Insurance Cooperative.” The Total Insurable Values for the eight member districts were close to $125,000,000.

The purpose of forming a cooperative purchasing group was to take advantage of the group’s size to purchase insurance at a reduced cost. The chartered members were jointly purchasing other services and felt that insurance could easily be done as well.

After having eight different sets of bylaws, legal counsel drafted numerous variations to the bylaws. The group finally compromised and settled on one set of bylaws. The first few board meetings allowed the Cooperative’s members to “amend” the bylaws to accommodate the realities of the Cooperative now that it was in operation. Since that time the CLIC bylaws have had six revisions with the latest occurring in October of 2008.

From CLIC’s humble beginnings at Stevenson High School District’s administration building, or at the time it was known as “the trailer,” the Cooperative has had a number of milestones and has accomplished numerous goals. All have been a benefit to the school districts throughout Illinois.

Milestones/Goals Summary:

In 1986 the Cooperative elects to offer membership to Illinois School Districts outside Lake County, a district from McHenry County (Crystal Lake #47) elects to join CLIC. In order to accommodate not only McHenry County districts, but other districts in Illinois, the Cooperative kept its acronym but changes the official name to the Collective Liability Insurance Cooperative.

1988 – CLIC membership has grown to 37 school districts. The Total Insurable Values of these districts approached $1,000,000,000.

1991 – Through slow controlled growth the membership approached 45 members. The Total Insurable Values exceeded $1,523,855,697.

1995 – The “hard” market in the insurance industry drove many districts to seek alternative to conventional insurance coverage. Membership swells to 60 members. Total Insurable Values exceeded $2,900,000,000.

1999 – Membership had grown to 75 members. The Cooperative insured over 201,000 students. The Total Insurable Values exceeded $4,000,000,000.

2000 – Based on a need for more Workers’ Compensation options for Illinois School Districts, CLIC offered First Dollar Workers’ Compensation coverage. Initially 27 districts participated.

2000 – The Y2K scare and other insurance issues such as costs and limits, increased the Property/Casualty Cooperative to 88 districts. CLIC insured over 300,000 students. The Total Insurable Values exceeded $5,400,000,000. Pollution Liability coverage is added to the program, along with Property Appraisal services

2001 – The CLIC Workers’ Compensation Program moves to Protected Self-Insurance. Membership grows to 43 districts. Property/Casualty program membership grows to 105 school districts. Total Insurable Values exceeded $8,600,000,000.

2003 – The Property/Casualty Program adds Student Accident coverage. The Property/Casualty Program has grown to 132 members. The Workers’ Compensation Program has grown to 71 members.

2004 – The Property/Casualty Program now has 139 members. Total Insurable Values exceeded $11,000,000,000. Students insured exceeded 420,000. Teachers insured exceeded 28,000. The Workers’ Compensation Program has grown to 79 members. Modified Premium exceeds $12,500,000.

2005 – The Property/Casualty program now has 145 members. Total Insurable Values exceed $12,000,000,000. Student insured exceed 450,000 and teachers insured exceed 31,000. The Workers’ Compensation Program now has 89 members. Modified premium exceeds $13,600,000.

2006 – CLIC Indoor Air Quality Evaluation Program is implemented. The CLIC Property/Casualty Program now has 148 members and the Workers’ Compensation Program has 97 members. Modified Premium exceeds $16,500,000

2007 – CLIC closed out years on the Property/Casualty Program and returned $1,500,000 in surplus to members. The CLIC Property/Casualty Program grew to 153 Members and the Workers’ Compensation Program grew to 110 Members. The Total Insurable Values exceed $15,000,000,000.

2008 – The CLIC Membership has now grown to 160 Property/Casualty members and 114 Workers’ Compensation member districts. On January 1, 2008, the Cooperative added School Violent Acts Coverage.

2009 – Total Insurable Values exceed $17,675,000,000. Membership in the Property/Casualty program grows to 165 members. The Workers’ Compensation program has 121 members. Fiduciary Liability coverage is implemented. The Executive Committee authorizes a $1,000,000 surplus return to Workers’ Compensation members for fiscal years 2009/2010, 2010/2011 and 2011/2012.

2010 – Total Insurable Values exceed $18,019,000,000. Membership in both programs remains stable. Cyber Liability coverage is added as a mandatory coverage.

2011 – Total Insurable Values exceed $19,498,000,000. Membership in the Property/Casualty program grows to 167 member districts and 125 districts now belong to the Workers’ Compensation program. The Executive Committee authorizes a close-out of the 2005-2006 School Board Legal claim year in the amount of $600,000 and a return of School Board Legal surplus funds in the amount of $400,000 resulting in a total of $1,000,000 being returned to the CLIC members that are in good standing as of July 1, 2011. CLIC hires Milliman, the actuarial firm, to handle the Property/Casualty loss fund allocation methodology.

2012 – Total Insurable Values grow to $20,179,862,687. Membership in the Property/Casualty program rises to 170 member districts while the Workers Compensation program grows to include 125 member districts. Laptop Program is established as an optional program for members who purchase electronic equipment to be sent home with students. Six districts have joined this program.

2013 – Total Insurable Values grows to $20,710,407,558. Membership in the Property/Casualty program increases to 172 member districts and the Workers Compensation program grows to 133 member districts. The primary Auto Liability limit on the Selective Package policy increases to $2,000,000 to comply with the amended Illinois Vehicle Code and the Crime limits are increased from $500,000 to $1,000,000. An additional layer of Excess Liability coverage is added with Markel Insurance Company and provides an additional $5,000,000 limit, per member, per occurrence. The WC-Employer’s Liability limit increases to $2,000,000 for no additional premium. CLIC implemented the Company Nurse Program

2014 – Total Insurable Values grow to $21,339,343,047. Membership in the Property/Casualty program increases to 173 member districts and the Workers’ Compensation program grows to 139 member districts. In early 2014, the Executive Committee called for a supplemental payment of $5,548,354 for years 2007-2010 due to claims history exceeding actuarial projections in these years. In addition, the Executive Committee elected to return Workers’ Compensation Surplus for years 2002-2006 in the amount of $689,854 to the membership. The Executive Committee also authorized the return of partial property/Casualty Surplus for some years in the amount of $4,891,467. Under the CLIC Workers’ Compensation program, a dedicated Claims Team was instituted with Sedgwick where adjustors now only handle CLIC claims. CLIC instituted a debit/credit loss fund allocation methodology.

In conclusion, CLIC is now represented in thirteen local counties. All Illinois public school districts are eligible to apply to the programs offered by CLIC. The program design is flexible.

Program Highlights:

Ownership – Each district is represented on CLIC full board

Savings – Over conventional programs

Security – Property/Casualty known maximum cost program

Stability – “A” rated carriers