Policyholders of AEIX own the company. Members benefit directly because they are actively involved in managing policy development, financial decisions, risk management and quality programs. Ownership allows for greater control and fosters an environment of complete operational transparency.
A reciprocal insurer has no employees, but is managed by a separate individual or organization called the “attorney-in-fact” (AIF). The AIF for AEIX is an association called American Excess Association, Inc. (AEA) which in turn contracts with PIMS for the day to day management activities of AEIX. The Subscriber’s Advisory Committee (SAC) for both AEIX and AEA are the same, and meet concurrently. The SAC consists of nine to thirteen members, including a designee of Premier, Inc., the Chairman of the Finance Advisory Committee, the Chairman of the Insurance Advisory Committee, a Vermont resident, and an independent director. The remaining directors are made up of member representatives, typically CEOs, elected by the membership. Each member is entitled to one vote at all meetings on all matters submitted to the members for action. Decisions of the SAC are binding on AEIX and the members.
AEIX/AEA has two permanent advisory committees of policyholder representatives. These committees are the Finance Advisory Committee (a peer group of finance officers), and the Insurance Advisory Committee (a peer group of risk managers, claim managers or general counsel). The advisory committees meet frequently throughout the year on a variety of issues relating to new member applications, underwriting and investment performance, risk prevention and claim management, and assisting PIMS with overall management and strategic direction.