Underwriting Process


There are five steps in the underwriting process. An explanation of each step is provided below. If you have questions or need clarification on any of the steps, please send your inquiry to Olga Berdial.

Step 1: Application

The underwriting process begins with an application. Please click here to start an application.

Step 2: Cost Estimate

Ten years of historical loss data is required to prepare the cost estimate. The loss data must be in an Excel spreadsheet with the following data fields:

  • Claim number
  • Date of loss
  • Claim type
  • Claim description
  • Department (police, public works, etc.)
  • Open or closed
  • Indemnity paid ($)
  • Indemnity reserved ($)
  • Expense paid ($)
  • Expense reserved ($)
  • Total incurred value* ($)

Additionally, five years of payroll information, as well as the agency’s IRS Form 941s for the previous calendar year, is required to prepare the cost estimate. The five years of payroll information should be in the following form:

  • Medicare, wages, and tips (not base salary)
  • Payroll should be segregated by:
    • Fiscal year
    • Sworn (list police and fire payroll separately)
    • General government (non-sworn, clerical, general labor)
    • Total payroll

* Total incurred value is the full value of every claim, without deductibles or self-insured retentions. In other words, the loss data should be “all inclusive,” showing all claim costs, both below and above any self-insured retention that may apply. If your agency has an open claim with a total incurred value of $300,000 or greater, please submit a copy of the most recent status report or claim summary: this information will be kept confidential. If the cost estimate is acceptable to your staff and other stakeholders, then you can proceed to Step 3.

Step 3: On-Site Risk Management Evaluation

Prior to the on-site risk management evaluation, you will be required to complete an underwriting questionnaire and submit a good faith deposit of $1,000, which will be refunded as a credit on your agency’s first annual contribution invoice if membership is approved. Next, an on-site risk management evaluation is scheduled, which includes interviews with department managers and at least one member of your governing body. This process allows the Authority to gain a better understanding of your agency’s operations and risk exposures.

Step 4: Underwriting Committee Review

The Underwriting Committee will then meet to review the staff report, discuss all relevant issues, and make a recommendation to the Executive Committee for either approval or denial of membership.

Step 5: Executive Committee Determination

Lastly, the Executive Committee will meet to review the staff report, discuss relevant issues, and consider the recommendation of the Underwriting Committee, prior to making the final membership determination.

California JPIA