Insurance Commissioner Jim Poolman doubts damage from Thursday's storm caused more than $1 million in damage to public buildings insured by the state's Fire and Tornado Fund.

The $1 million mark is significant because damage exceeding that amount is covered by a reinsurance policy of the Fire and Tornado Fund. The fund provides insurance to $6.1 billion worth of property and 1,084 policyholders across the state, but its reinsurance policy will pay for losses up to $100 million after the first $1 million.

The fund hasn't tapped into its reinsurance policy since June 2001, when it was used twice - once for a hailstorm that pounded the Bismarck-Mandan area, and again for an arson fire at Bismarck's Simle Middle School.

Poolman said the fund has received 12 claims from Thursday's storm that caused damage in Bismarck, Mandan, Hettinger and other areas.

Although officials don't have complete information on the amount of claims, Poolman said it's doubtful reinsurance will be needed.

"We do not think we are going to tap into reinsurance," Poolman said.

Ironically, Poolman received approval from the Industrial Commission just hours before Thursday's storm to renew a reinsurance policy with Lexington Insurance for $1.3 million, a 10 percent reduction from the last premium.

Poolman said the state was able to save money this year because of a softening of the reinsurance industry nationwide and because there haven't been any catastrophic events since 2001.

The 2001 hailstorm caused $3.3 million in damage to buildings insured by the Fire and Tornado Fund, of which reinsurance paid for $2.3 million.

The fire at Simle Middle School caused $1.25 million in damage, of which $250,000 was covered by reinsurance.

Poolman said reinsurance allows the fund to maintain a relatively low balance, which is currently at about $20 million.

"The fund is very healthy, of course, because we have had no catastrophic claims that have had a drain on the fund," Poolman told the Industrial Commission on Thursday.

Vehicles and liability coverage is not provided by the Fire and Tornado Fund.

Steve Spilde, CEO of the North Dakota Insurance Reserve Fund, which insures vehicles for several political subdivisions, said he doesn't know how much damage the storm caused to vehicles covered by the NDIRF, but said the damage won't be as severe as the 2001 storm.

Spilde said the NDIRF does not have reinsurance.

(Reach reporter Tom Rafferty at 223-8482 or tom.rafferty@bismarcktribune.com.)