The Tennessee Risk Management Trust has achieved recognition as a financially sound, professionally managed organization. Each year, rates are actuarially determined to provide funding to cover losses and the expenses of operating the Trust. The annual objective is to control losses to the extent that member equity grows slightly while ensuring that rates remain stable. Trust reserves are actuarially certified in accordance with sound risk management practices.
A part of your premium is used to establish a loss fund for payment of claims. Another part of your premium is used to purchase reinsurance to cover losses that exceed the Trust's loss fund. The reinsurance is purchased to protect the Trust from large claim occurrences.
The Trust continues to grow while maintaining its financial stability.
Our Risk Management Trust is operating in a very financially sound manner. We have an audit and an actuarial analysis of our program done each year in order to ensure that our operating principles are on target and our practices are continuing to strengthen the Trust.