|
California
State Fund Hosts Product Fairs Across Golden State
It’s 7:30 a.m. in a ballroom filled with round tables of specially-invited
brokers and a delectable breakfast spread. Addressing this select group is
California State Fund CEO Janet Frank. Strategically arranged around the room
are tables staffed by State Fund’s top executives and most expert
professionals. The best of State Fund people and products all in one
room. Welcome to the California State Fund’s product fair.
This fall a team of California State Fund executives,
managers, and marketing employees hosted six product fairs across the
Golden State
to show and tell broker partners about the wide array of products and services
available to policyholders. The time was right to make a bold move to get
State Fund’s positive message out to brokers that State Fund is a strong and
stable provider of workers’ compensation insurance, and we want their
business. It was also a chance for State Fund’s top business partners to
enjoy a cup of coffee with State Fund’s leadership team.
At six open-house styled events throughout the state, the
California State Fund re-introduced brokers to many of the products and
services that contribute to its well-earned status as an industry leader. State
Fund leadership attended the events, mingled with brokers, and delivered
presentations about the self-supporting enterprise that has provided
workers’ compensation insurance in California
since 1914.
Managers and local representatives from key State Fund
functions staffed tables showcasing collateral and promotional materials,
along with information about their specific department’s products and
services. Communications, Legal, Underwriting, Group Insurance, Safety
and Health Services, Ergonomics, Industrial Hygiene, Audit, Fraud, Online
Products, Claims and Return-to-Work, and Customer Service Center
functions were highlighted at the events.
Executives
lend supporting role
“State Funds play a major role supporting employers and injured workers
across the nation.” said Doug Stewart, State Fund’s Chief Risk Officer.
“Even though our business model is receiving much attention because of the
national healthcare discussion, stakeholders need specifics about why our
“public–private” partnerships work so well. The product fairs are a
great step in that direction.”
Other State Fund executives who joined Stewart and CEO
Janet Frank at the product fairs included Chief Investment Officer Peter
Guastamachio and Chief Financial Officer Jay Stewart, who personally manned a
booth with information about State Fund’s “rock-solid” financial status.
Feedback from broker partners and invited guests at each
event was outstanding.
Scott Leary, executive director of the 700-member
Builders Exchange of Alameda County, found the
Berkeley, California
fair impressive.
“The depth and breadth of State Fund’s services are
quite significant,” Scott said. “Many of us who have been in the business
for a long time were still not aware of all the services State Fund offers.”
Joining brokers who offered plaudits for the product
fairs was Lorrie Garrity, a claims representative for the James E. McGovern
insurance brokerage in
Belmont
. “In my book their Claims Liaisons raise State Fund right to the top,”
said Garrity.
State Fund employees in attendance also saw great value
in the product fairs.
“This has been an exciting project. I would jump at the chance to do it
again,” said Janet Rowlett, State Fund Field Operations Manager.
More product fairs on the horizon
The idea for the product fairs took roots at a recent
gathering of State Fund’s Broker Advisory Council.
Because of the positive feedback from this initial
round of product fairs, Rick Quintanilla, Business Development Manager for
State Fund, says there will be more in the future. “We
intend to continue to do these annually, possibly moving locations to
accommodate all business partners,” he said.
Mark Leninger of NEK Insurance, a brokerage with an
enduring partnership with State Fund, was equally impressed and buys into the
idea of the product fairs.
“What State Fund is doing now is timely and of
great value going forward. This demonstrates the dramatic evolution of State
Fund’s product lines, particularly online services,” he said.
Kentucky
Workers'
Comp Prices See Another Decrease
Kentucky's largest workers' compensation insurance provider is again lowering
its rates for businesses around the state.
The
rate reduction by Kentucky Employers' Mutual Insurance (KEMI) amounts to an
overall average decrease of 6.0%; businesses eligible for KEMI's preferred
tier may see rates decrease by as much as 30%. These rate changes went into
effect on October 1, 2009 and apply to both new and renewal policies.
KEMI
Announces New Underwriting Manager
KEMI has promoted Jeremy Terry to Manager of Underwriting. Jeremy has been an
underwriter with KEMI since 2003 and has held numerous roles within the
Underwriting department, including Underwriting Supervisor.
KEMI
Making Plans to Host 2010 AASCIF Annual Meeting
Kentucky's breathtaking landscapes and unique, fun-filled adventures offer the
ideal setting for hosting AASCIF 2010 Annual Meeting on July 25-28, 2010. Be
sure to visit www.aascif2010.com and
sign up to receive updates regarding the AASCIF 2010 event.
Maryland
The following executives were recently promoted or have new corporate
responsibilities:
 |
The
IWIF board of directors welcomes its newest member, Lewis C. Powell. Mr.
Powell is founder and president of Antiok Holdings, Inc., in LaPlata, Md.
IWIF is headed by a nine-member board appointed by the governor for a
maximum of two, five-year terms. He replaces Queen Logan Gladden, who
served with distinction for the maximum 10 years.
|
 |
Sharon
Rowell, formally Premium Audit director, will assume new responsibilities
as Director of the Strategic Business Unit (SBU) for IWIF. She will
replace Katherine Emanuel, who will be retiring at the end of the year.
The 22-member SBU provides services
for municipalities, counties, volunteer fire departments, housing
authorities, various affiliated boards and associations, as well as direct
accounts.
|
New legislation
impacting IWIF includes the following:
Senate Bill (SB) 959 requires
IWIF to operate, in nearly all respects, like any other commercial insurer,
but still allows IWIF to maintain its autonomy regarding rates. The new law
clarifies IWIF’s role as a “competitive insurer” and requires IWIF to
fully comply with producer licensing and appointment laws. IWIF will also be
required to pay the annual regulatory assessment to the Maryland Insurance
Administration, but IWIF remains exempt from the 2 percent premium tax charged
to other insurers. IWIF is not required to affiliate with NCCI. IWIF’s rates
will be reviewed every five years by the MIA.
Senate Bill (SB) 909 amends the
Labor and Employment Article to specifically prohibit employers from falsely
classifying employees as independent contractors.
Minnesota
The soft market continues, with pricing down 2.6 percent
year-to-date, although the rate of decline has abated somewhat in recent
months.
SFM, which unlike some funds is not the market of last
resort, was selected recently as one of three servicing carriers for the
Minnesota Assigned Risk Plan. SFM expects to service about 9,000 policies for
the risk pool. SFM's three-year contract begins Jan. 1.
Earlier this summer, SFM began insuring small- and
medium-sized employers for employment practices liability. SFM is providing
EPL coverage as an endorsement to the workers' compensation policy. An EPL
quote is included with each small business work comp renewal quote.
SFM Foundation, established to award higher education
scholarships, celebrated a very successful first year. More than two dozen
children of injured or killed workers submitted applications, nine
scholarships were awarded, and fundraising efforts significantly exceeded
expectations.
New York
NYSIF is celebrating its 95th year as a reliable, self-sustaining workers'
compensation insurance carrier serving New York businesses and injured
workers.
Created as part of the NY Workers’ Compensation Law in 1914, NYSIF is a
competitive, non-profit carrier currently serving 41 percent of the New York
market as a market leader. Since 1950, NYSIF has also written disability
benefits insurance for off-the-job injuries and illnesses.
“This is an unsurpassed record of service to the people of
New York,” NYSIF Chairman Robert Hurlbut said. “I extend our gratitude to
our policyholders for their continued confidence in NYSIF and a heartfelt
thank you to our employees who contribute daily to the success of our
organization.”
NYSIF is recognizing long-time policyholders throughout 2009
and into the first half of 2010, starting with the first five who have been
customers since 1914. In presenting each with a plaque, NYSIF also is posting
their company logos and linking their web sites to www.nysif.com.
NYSIF Chief Deputy Executive Director Francine James said
NYSIF's workforce is behind its record of stability, service and customer
loyalty: "NYSIF's success and longevity can be traced to the dedication
of our employees."
NYSIF numbers:
-
Approximately 183,000 employers have workers'
compensation policies totaling $1.35 billion in NYSIF premium.
-
NYSIF retained 88.2% of workers' compensation
policies and 90.8% of premium in 2008.
-
NYSIF saved policyholders over $500 million through
discounts and dividends since 2007.
-
Thirty-five percent of our workforce has 20 years'
experience or more with NYSIF.
NYSIF's Board appointed Francine James as chief deputy
executive director and secretary to the board. Ms. James previously served as
Gov. David Paterson's appointments secretary and, prior to that, as New York
Assistant First Deputy Attorney General. Jean Woodard was appointed NYSIF
deputy director for finance and administration, and Michael Miliano NYSIF
deputy general attorney and assistant secretary to the board.
Ohio
Ohio BWC Continues
Implementation of Plan to Enhance Workers' Compensation System
Most public employers can also expect to see an
overall drop in premium rates.
The
Ohio Bureau of Workers’ Compensation (BWC) continues its path to bring
premium equity to all employers. Led by its Board of Directors and
Administrator Marsha Ryan, BWC is amid implementation of a rate reform plan
that is lowering premium rates for the majority of Ohio employers.
To
achieve premium equity among group-rated and non group-rated state fund
insurance employers, the Ohio BWC lowered the average premium rate for
non-group employers by 25.3 percent, and raised group-rated employer rates by
an average of just over nine percent. These new rates went into effect on July
1, 2009 and are already showing signs of success.
Early
estimates show the benefits of rate reform include more affordable workers’
compensation insurance costs for most employers, rates that are more in line
with those of other states, and lower base rates for 441 of Ohio’s 532
manual classifications. It is also
estimated that more than 178,000 employers will see a $100 million drop in
premium. In addition to the benefits to
private employers, rate reform is responsible for a recent 17-percent rate cut
for public employers effective January 1, 2010. Since 2008, these Ohio public
employer taxing districts have experienced rate reductions of 22 percent.
BWC’s
rate reform efforts are the result a comprehensive study of rates, processes
and programs. This comprehensive study, performed by Deloitte Consulting, LLC,
was completed earlier this year and resulted in 146 recommendations for
change. Recently, BWC Administrator Ryan provided an overview of
the study’s findings and the agency’s progress in implementing its
recommendations to the Ohio General Assembly. “Rate
reform is resulting in Ohio employers paying rates that more closely match the
risk they bring to the workers’ compensation system. It also eliminates a
major portion of the vast premium inequity between group rated and non-group-
rated employers,” said Ryan.
BWC
continues to evaluate the results of the comprehensive study and anticipates
implementation of a number of the 146 recommendations will take place over the
coming months and years.
For
more information about Ohio BWC visit www.ohiobwc.com.
Oklahoma
Task Force on privatizing
CompSource
Oklahoma’s Legislature established a Task Force to study and identify
the steps that would be needed to privatize CompSource Oklahoma by Dec. 10,
2010. Presentations to the Task Force have included:
-
Douglas Dirks, President
and CEO of Employers Holdings, Inc. on behalf of Nevada's workers'
compensation insurer;
-
Russ Oliver, former
President of Texas Mutual;
-
Oklahoma's former State
Attorney General, Larry Derryberry, on the 1975 Supreme Court ruling Moran
v. Derryberry which ruled CompSource's assets belong to its policyholders;
-
The National Council on
Compensation Insurance; and
-
National American
Insurance Company (NAICO), one of the top ten writers of workers'
compensation policies in Oklahoma, which offered a plan and recommendation
to sell CompSource.
The Task Force will present its recommendations to
members of the Legislature and the Governor by Dec. 1, 2009.
CompSource Medicare reporting
CompSource recently completed a project that involved Medicare reporting,
Sec. 111, which requires submission of information by group health and
workers’ compensation health plans. “Our Medicare project team did a great
job to ensure we met Medicare’s requirements before their deadline,” said
Don Holman, CompSource claims director.
Oregon
SAIF releases Spanish-language Worker Guide
Eleven percent of the Oregon population is of Latino origin (with a
167-percent rise in the greater Portland and Salem areas since 1990.) Of these
a significant number of workers prefer communication in Spanish. To provide
better service for these workers, SAIF Corporation recently released its
online Spanish-language Worker Guide (La Guía para Trabajadores.) Just like
SAIF's English-language Worker Guide, the fully translated Spanish- language
Worker Guide provides advice for injured workers, including information about
claim management, getting back to work, rights, and responsibilities, fraud
prevention, and medical care information. To see the Spanish-language Worker
Guide, visit www.saif.com
2009 direct earned premium similar to 2004 levels
SAIF reports that its year-to-date direct premium (as of June 30) is down
18 percent from the same period in 2008, to $180.6 million from $219.6
million. The most recent comparable year was 2004, when SAIF's direct earned
premium was $174 million during the first six months of that year.
For the same year-to-date period (January 1, 2009 to June
30, 2009), incoming claims count declined 20 percent.
Oregon's pure premium rates continue to fall
Oregon's workers' compensation rates are slated to fall by an average of
1.3 percent for 2010. This marks the fourth straight year of decreases and 20
years without an increase.
The Department of Consumer and Business Services
estimates that the rate decrease will save employers $18.1 million in 2010.
Since 1991, Oregon employers have realized $17.4 billion in savings, while
benefits and services for workers have improved. Since 2004, workplace injury
and illness rates in Oregon have declined nearly 19 percent, and since the
late 1980s, more than 50 percent.
Texas
New, familiar faces assume leadership roles
Texas Mutual promoted Lisa Corless to chief operating officer and
hired Steve Math as senior vice president of underwriting. The company
also announced that Cecily Gallagher has assumed her new role as
corporate actuary and chief risk officer.
Texas Mutual earns
high performer designation
August 24, 2009 - Texas Mutual Insurance Company was recognized as a
"high performer" in the Performance-based Oversight
(PBO) report
issued by the Texas Department of Insurance, Division of Workers' Compensation
(DWC). The report evaluates carriers' timeliness in submitting required data
to the state, paying health care providers for their services and delivering
income benefits to injured workers.
New policyholders earn dividends
In November, Texas Mutual distributed about $1million in dividends
among first-year policyholders with acceptable loss ratios. This marks the
final phase of the company's $75 million dividend distribution.
Approximately 38,000 business owners, representing 79 percent of Texas
Mutual's policyholders, received a dividend as a reward for committing to
workplace safety.
Texas workplace
fatalities decrease
Texas recorded 457 work-related fatalities in 2008, a 13 percent decrease
compared to 2007 when 528 fatalities occurred, according to a report issued
this fall by the Texas Department of Insurance. Nationally, there were 5,071
fatal work injuries in 2008, a decrease of 20 percent from the revised total
of 5,657 that occurred in 2007.
|
