The City of Shannon Hills is one member of the Central Arkansas Risk Management Association (CARMA). CARMA is not a traditional insurance company, rather it is a risk pool for its members. However, public entities have been leaving CARMA and the remaining membership pool is getting close to being unsustainable. If CARMA does dissolve than the City of Shannon Hills does have other insurance options, but they are likely to be more expensive than CARMA. For a more detailed explanation, I encourage you to read the Arkansas Democrat Gazette story “Membership’s shrink threatening public entities’ insurance group”.