Around AASCIF

Colorado

• For the fourth year in a row, Pinnacol policyholders who’ve maintained safe workplaces were rewarded with a general dividend. In May 2008, Pinnacol paid a general dividend totaling $55 million to nearly 58,000 policyholders. This dividend brings our four-year total return of dividends to more than $227 million, which is possible because of our financial health and stability.
• To provide educational opportunities for students whose parents have been seriously injured or killed on the job, the Pinnacol Foundation will award $269,500 in college scholarships to 94 Colorado students for the 2008-2009 school year—an increase of approximately 50 percent from 2007. This is the largest number of scholarship recipients since Pinnacol established the Foundation in 2000.
• Pinnacol recently announced the following promotions:
  • Amy Hand was promoted to learning and development director.
  • Mark Isakson was promoted to the role of associate vice president. He served previously as a business director.
  • Jerica Jones was promoted to business director of customer service.
  • Gina Greckel was promoted to business director from her previous role as director of customer service.
  • Jennie Miller and Dave Hoffman were promoted to associate vice presidents. Miller previously served as the director of marketing and Hoffman was the team leader of application services.
• Pinnacol recently received several company awards:
  • The Aurora Chamber of Commerce recognized us as “Business of the Year” for our contributions to the community and quality of life through our business practices, employees, and community involvement.
  • The National Sports Center for the Disabled (NSCD) honored us with a “Bold Tracks Award” for displaying long-term support of the NSCD, serving as an ambassador for the NSCD, and supporting employee involvement through participation and volunteer time in fundraising or individual giving.
  • The Hispanic Contractors of Colorado (HCC) named us “Service Company of the Year,” citing us for our commitment to diversity and involvement in the Hispanic community.
  • The Colorado Chapter of the Chartered Property Casualty Underwriters Association (CPCU) recognized us with its “Company of the Year” award for helping make insurance education a priority.
    

Kentucky

KEMI Rated “Excellent” by A.M. Best for 8th Consecutive Year
KEMI announced that the A.M. Best Company once again affirmed its financial strength rating of A- (Excellent). In addition, KEMI retained an issuer credit rating (ICR) of “a-” for its balance sheet strength, operating performance and business profile. The announcement marks KEMI’s eighth consecutive year receiving an “Excellent” rating from A.M. Best, which is the leading provider of financial ratings for the insurance industry worldwide.

KEMI Wins Corporate Volunteer Award from United Way
KEMI was recognized by the United Way of the Bluegrass as the Corporate Award Winner for the Central Kentucky Volunteer Awards for its commitment to serving the non-profit community.

The United Way of the Bluegrass received nominations from several non-profit organizations serving Central Kentucky and awards winners were selected by a panel of judges composed of various business leaders in the community. Accepting the award on KEMI's behalf were (pictured left to right): William Hubbard, Jenny Whitis, Ryan Worthen, Michelle Landers, Rebecca Prater, Rhonda Miller, Jackie Spaulding, Bonnie Taylor and Brandy Bentley-Spencer.

2007 Annual Report Now Available on KEMI.com
KEMI’s newest financial report, entitled “It’s more than just the bottom line” is now available on www.kemi.com. The report features several video interviews as well as our audited financial statement for 2007.

Susie Maybrier Named Manager of Louisville Office
KEMI has promoted Susie Maybrier to Manager of the Louisville Office. Susie has been with KEMI since 2001.

Louisiana

LWCC Honors Its Safest Policyholders
Louisiana Workers’ Compensation Corporation (LWCC) launched a new program in May to recognize its safest policyholders. Called the “Safest 70,” the program features the presentation of an award to 70 of the company’s approximately 22,000 policyholders to acknowledge exemplary dedication and commitment to workplace safety. These are the businesses that consistently control and manage workplace exposures that contribute to illnesses and injuries.

“The Safest 70 awards program will help LWCC build loyalty with key, profitable accounts by acknowledging their commitment to improving workplace safety,” said Michael Page, director of safety and loss prevention. “Ultimately, this program will assist all policyholders by providing real-life examples of companies that have benefited from having a safe workplace.”

The criteria for the 2007 Safest 70 award include a ranking of policyholders divided into three premium groups (small, medium and large). Each policyholder qualified within its own premium group based on results in the categories of loss ratio, claim frequency and claim severity. Those eligible for the award include current policyholders with the highest combined ranking in the

LWCC Promotes Buffone to VP of Risk Management Services
LWCC has announced the promotion of Paul D. Buffone to vice president of risk management services.

Buffone, who joined LWCC in 1993, served as director of litigation services for the company from 2001 to 2006, when he was promoted to assistant vice president of risk management services. Previously, he was LWCC’s senior corporate counsel after practicing for several years in the areas of state workers’ compensation and maritime law.

Buffone received a B.S. degree from Louisiana State University in 1989 and a Juris Doctorate degree from LSU’s Paul M. Hebert Law Center in 1993. He also is a Louisiana Bar Foundation Fellow.

Maine

A.M. Best Re-Affirms “Excellent” Rating for The MEMIC Group
A.M. Best has affirmed the financial strength ratings of "Excellent" for The MEMIC Group and its members, including Maine Employers' Mutual Insurance Company (MEMIC) and MEMIC Indemnity Company. After Best's analysis of the companies, A.M. Best affirmed the "A" (Excellent) rating for MEMIC and for The MEMIC Group, while subsidiary MEMIC Indemnity Company had its "A-" (Excellent) rating affirmed.

A.M. Best singled out MEMIC’s strong capitalization, conservative operating policy, experienced management team, loyal policyholders and market position as the positive factors that attributed to the rating. It also noted the group's high-level service to policyholders that includes aggressive claims management and a firm commitment to loss control and in-depth safety education.

Fraud Conviction Leads to Jail Sentence
MEMIC’s careful attention led to an investigation of a fraudulent workers’ comp claim that resulted in a Donald Rankin, a New Hampshire truck driver, being sentenced to 6 months in jail and a $4,000 fine. The sentence and fine were suspended in lieu of Rankin writing MEMIC an apology, re-paying the company and performing 200 hours of community service. Rankin collected more than $2,300 after for falsely asserting that he could not return to work and accepting workers’ compensation checks from October 2005 to January 2006.

Third Annual Ergo-Symposium: Success
For the third year in a row, MEMIC and the University of Southern Maine came together to offer a cutting edge conference, the Northern New England Ergo-Symposium. About 150 attended the conference to learn more about the science and prevention of soft tissue injuries. This year’s theme was “Real Stories, Real Solutions,” aimed to give attendees practical solutions to ergonomic risks. The conference was open to anyone interested in attending, and MEMIC policyholders received a reduced attendance fee. The conference earned rave reviews from attendees for the third consecutive year. MEMIC is teams with the University’s School of Applied Science, Engineering and Technology to offer the conference.

MEMIC President Named “Tech-Savvy CEO” By Insurance and Technology Magazine
MEMIC President and CEO John Leonard was named one of five “tech-savvy” CEO’s for 2008 in the June issue of Insurance and Technology. Writes reporter Nathan Conz: “In many ways, Leonard's personal technology philosophy parallels the way he views technology at [MEMIC].”

“When we talk about technology as a competitive advantage, it's more the enabling process than it is the technology itself,” Leonard told the magazine. “We're not a gadget company. We're not a company that will buy something because it's attractive or flashy. We are strictly built around the idea of utility.”

Maryland

IWIF Workers’ Compensation Insurance launched the 7th annual IWIF Workplace Safety Month in June. Titled, “Putting the Brakes on Aggressive Driving,” the campaign targeted policyholders, agents and brokers, as well as Maryland employers and their employees.

IWIF partnered with the Smooth Operator Program, a cooperative interstate effort to combat aggressive driving in the mid-Atlantic region, to help spread the safety message. The campaign included television and radio public service announcements, web site resources and links, and a free employers’ safety kit with information on preventing and avoiding aggressive driving.

“Driving in the course of the workday is one of the most dangerous duties faced by Maryland workers,” says Tom Phelan, IWIF president and CEO. “IWIF is proud to partner with the Smooth Operator Program to help Maryland’s workers become safer drivers and to educate them on the hazards associated with aggressive driving.”

• Katherine Emanuel, Director, heads up IWIF’s new Strategic Business Unit, which services approximately 8,000 accounts worth $50.5 million in premium. The SBU will provide dedicated underwriting, claims, loss control and premium audit services to public entities and direct business without agent representation.
• IWIF recently introduced two new programs specially created for the Home Builders Association of Maryland and the Maryland-National Capital Building Industry Association. Both programs offer members 5% off IWIF’s standard rates and promote workplace safety among participants. Each program offers free, customized safety plans that address the safety needs of participating members. To date, IWIF has created 15 association/safety group programs.

Minnesota

SFM recently launched a new online system through which independent agents can quote, bind and submit business. SFM Application Manager (SAM) leapfrogs the capabilities of competitors’ online systems, reaffirms SFM as the service leader for agents and is expected to generate growth in business.

This was a considerable undertaking for the company, involving well-conceived technical development of the system and extensive promotional and roll-out activities.

The first 24 hours after launch produced greater activity from agents than expected. At the end of three weeks, 47 percent of all applications submitted to SFM were submitted through the new system—an outstanding response far exceeding our success target. In addition, the overall volume of applications submitted to SFM is up, and it appears that a substantial portion of these online apps would not have been submitted but for the new system.

Indications are very positive that agents will continue using the new system into the future: First-time users rate the system high, say they’re likely to use it again soon, and 100 percent say they would recommend the SFM system to others in their agency.

Read the news story in SFM’s agent publication.

Missouri

MEM Focuses on Drug-free Workplaces during WorkSAFE Week 2008
Missouri Employers Mutual will celebrate WorkSAFE Week 2008 June 2-6 by focusing on the importance of having a drug-free workplace. This year’s theme, “Drugs Don’t Work Here,” encourages employers to have a drug-free workplace policy, enforce it and educate their employees. MEM has created a drug-free workplace guide for all policyholders and producers across the state with five simple components: develop a written drug-free workplace policy, train supervisors and managers, educate employees, provide employee assistance and establish a testing program. Additional resources, such as a sample drug-free workplace policy, are available to producers and policyholders when they log in to MEM’s Web site.

A.M. Best Rating Renewed, Outlook Upgraded to Positive
MEM has earned an A- (Excellent) Best’s Financial Strength Rating for 2008, and the outlook for the rating has been upgraded from “stable” to “positive.” The 2008 rating and outlook were based on MEM’s history of excellent capitalization, strong underwriting through improved reserve development, consistent operating performance and dominant position in the Missouri workers compensation market. MEM has maintained an A- (Excellent) rating from A.M. Best Company since 2004.

Montana

Good News for Policyholders
Montana State Fund’s Board of Directors announced an overall average 3% rate decrease effective July 1, 2008 for the coming policy year.

“For the second consecutive year, we have had modest but important rate reductions,” said Laurence Hubbard, President/CEO. According to Hubbard, Montana State Fund has continued to improve processes and service. “We continue to focus on excellent claim management, customer service, and safety programs that are of real benefit to our policyholders,” he said. “In these days of economic uncertainty and double-digit increases in other expenses, this says a lot about our operation, and our people.”

Young Workers Safety Program
MSF kicked off the new No Jack young workers’ safety campaign at a May 23, 2008 press event. The No Jack campaign was developed to humorously educate young workers (ages 16-24) about workplace safety. The website, www.nojack.net, features a number of Jackass TV show style videos (kids doing stupid stunts). At the end of each video, the message, “Don’t be a jackass at work” appears. Web visitors are also invited to upload their own jackass’ style videos. In addition, four Wii station games were given away as part of the promotion. Safety tips, real young worker accident stories and free downloadable accident ring tones are also available on the site. Employers were educated about the importance of young worker safety through a series of print advertisements that were placed in statewide newspapers and trade publications. This will be the third year MSF mounted an aggressive young workers’ campaign.

New York

• NYSIF launched a new customer-centric homepage along with other pages that gear its web site to the individual user needs of various stakeholders. The nysif.com homepage and main secondary pages are totally redesigned to be more user-friendly and make site navigation easier. The homepage provides featured links most often used under the headings of Claimant Central-On the Job Injuries, Customer Services, Workers’ Comp. Employer Resources, Disability Benefits, and Medical Providers.

  Main pages for Workers’ Compensation, Disability Benefits, Safety & Risk Management, and Claimants are also redesigned, containing sub categories that further tailor information, resources and online services for the same user groups. “Our web site has a look and feel that is more customer-driven, clean and concise,” said NYSIF CEO David Wehner. Site development, design and maintenance are handled entirely NYSIF eCommerce and Marketing staffs.
  

• NYSIF is using its intranet to conduct a mentoring program for underwriters. The program features online resource material available for mentors and protégés. Materials include topics that serve as an introduction to underwriting for new employees, and as refreshers for existing staff, such as insurance fundamentals, compliance under the law, extraterritorial coverage, and Workers’ Compensation Board hearings.

Underwriting managers developed mentoring guidelines to cover generally applicable practices to place new employees in an atmosphere that will enhance their chances for success. Mentors assigned to new underwriters use beginner-friendly online materials that convey the reasons for and importance of each practice. More detailed information is available in NYSIF’s online Underwriting Procedures Manual.

• As summer hiring began, NYSIF reminded policyholders about teen worker safety and compliance with child labor laws, including the number of hours youth may work, prohibited occupations, and working papers required before employment can begin. NYSIF issued a press release and published articles reminding all businesses, parents and minors about laws regulating youth employment.

Oklahoma

CompSource Oklahoma Issues $20 Million Dividend
CompSource Oklahoma announced on March 25 that its Board of Managers approved a $20 million dividend for nearly 28,000 policyholders in this its 75th anniversary year. The amount of dividend each policyholder received was based proportionately on premium.

"Our strong and stable performance is a credit to the efforts of our policyholders and the company regarding effective claims management," said President and CEO Terry McCullar. "Sound insurance business practices and a wise investment strategy also contributed to CompSource’s ability to declare the dividend for policyholders. We are very pleased to offer the dividend during our 75th anniversary of service to Oklahoma employers."

Education fair beneficial to policyholders
CompSource policyholders were provided an opportunity to gain more knowledge about workers’ compensation on April 7 at CompSource Oklahoma’s Education Fair.

The education fair commemorated CompSource Oklahoma’s 75 years of service to Oklahoma employers. Employees from CompSource’s business operations assisted policyholders, agents and others who wanted to learn more about underwriting, claims, fraud, risk/loss prevention, auditing, premium billing and financial services.

“I continue to be impressed with the employees of CompSource and what you do for your policyholders,” said Lt. Gov. Jari Askins as she presented a proclamation by Gov. Brad Henry proclaiming April 7, 2008, CompSource Oklahoma Day.

House Bill 1959 signed into law
Gov. Brad Henry signed House Bill 1959 into law on April 25. House Bill 1959 gives CompSource the authority to extend workers' compensation coverage into other states for Oklahoma-based businesses that have employees permanently working in states outside of Oklahoma. CompSource will write such coverage by agreement with licensed carriers in the various states. CompSource is currently working to implement this value-added customer service to policyholders and contracted agents as quickly as possible.

Ontario

Young Worker Safety

Keeping young workers safe at summer jobs is a priority for Ontario's Workplace Safety and Insurance Board (WSIB). But catching and holding the attention of 15 to 17 year-olds can be a challenge. Building on the success of last year's animated "Prevent-it-ville" campaign, the WSIB has launched a new series of entertaining online ads aimed at young workers.

The slogan for the campaign is: If your boss looked out for you like this at work, you wouldn’t have to look out for yourself. Scenes show a young worker at a crucial moment in a typical social situation when their boss intervenes to save them from potential embarrassment or harm. The situations satirize the more serious scenarios they may face on the job. This approach highlights young workers' rights and responsibilities and alerts them to expect challenges and to take workplace safety seriously. Find out more at www.prevent-it.ca.





Oregon

Branding continues
SAIF Corporation’s branding campaign continues with the installation of energy-efficient signs with the new company logo in front of our nine regional offices and Salem headquarters. In addition, print ads have begun running with new photography that highlights our theme of working “side by side” with employers, workers, agents, and medical providers.

Leadership changes
SAIF President and CEO Brenda Rocklin recently made management changes in the Claims Division, the company’s largest. Michael Mueller, who was the interim vice president of claims as well as VP of legal services, is now senior vice president for claims and legal services.

Michelle Graham is the new vice president of claims, and Lisa Wilch is SAIF’s newest claims director and will oversee the training, customer support, and vocational staff.

“We have a duty to Oregonians to perform at the highest level and to provide superior customer service,” said Ms. Rocklin. “These changes are designed to create the kind of positive results that we have pledged to deliver.”

In addition, Michael Hartman has been named the new vice president of underwriting services, replacing Carl Wilson, who retired.

Introducing saifQuote
When we asked agents last year to provide feedback about our operations, they wanted faster response time in processing submissions. We agreed, and in April we introduced saifQuote — our new, automated, online submission system. Since then, approximately 35 percent of all submissions have been done by our agency partners online through saifQuote.

Based on the ACORD form, the saifQuote online submission and quote process allows our agents to enter a submission and receive a quote for certain types of businesses (and even bind it) on the same day — often within minutes.

The feedback from our agency partners has been overwhelmingly positive. Therese Pritchett, workers’ compensation account manager at United Risk Solutions, Inc. in Medford, said it best. “Thanks to the team for making the online quote so easy. SAIF rocks!”

Pennsylvania

The Pennsylvania State Workers’ Insurance Fund has realized great success through their Customer Service unit, which serves as the first point of contact for the Funds’ policyholders, brokers, agents, service providers, claimants and other callers. The unit handles the initial phone calls pertaining to Underwriting, Claims, Auditing, Accounting and other miscellaneous issues within the fund.

Customer service has alleviated a large volume of calls from production areas within SWIF; approximately 85% of calls are resolved by the employees in this unit. With less interruption this has allowed those departments more time to process work has been realized, thus increasing production. Only when a more complex issue or situations arises will the customer service transfer the call to the production area to address the caller needs. In 2007 the unit handled 133,593 calls for the year or an average of 11,133 calls per month. This trend appears to be continuing based on current numbers for first quarter 2008.

Customer Service Unit employees are also crossed trained to monitor SWIF’s first report of injury 800-number and process all first report of injury for the fund. In 2007 they processed 23,064 new reports for the year or an average of 1,922 reports per month.

Total combined calls for both 800-number/first report of injury and initial policy/claims calls in the unit for 2007 were 156,657 calls or an average of 13,055 per month.

Saskatchewan

Saskatchewan WCB Launches Mission: Zero; Posts Best Ever Financial Performance
The Saskatchewan WCB announced a new target for its prevention initiatives and record setting financial performance at its 2008 Annual General Meeting.

Mission: Zero is an edgy social marketing campaign that intends to ramp up public awareness of the scope of Saskatchewan’s work injury experience. The province has the second worst work injury rate in Canada, despite a 23 per cent improvement since the WCB began its prevention initiatives in 2002. Mission: Zero depicts true to life vignettes to reinforce that all workplace injuries are predictable and preventable.

The Mission: Zero campaign includes two TV ads, four print ads, and Mission: Zero buses on routes in the province’s two largest cities. The TV ads show an injury with a table saw and a fall in a retail location. Both stop short of showing the injury, leaving it to the imagination of the viewer to complete the story. The print ads are a mix of work behaviours with a high risk of injury and one declaring that “The (work injury) statistics stink!”

In launching the campaign, WCB Chairperson David Eberle said he understands that others might view the goal of zero work injuries as ambitious, and added that will not deter the WCB, its stakeholders and partners from, “keeping our eyes on the prize. Every work injury is predictable. That means it’s also preventable.”

The WCB also reported that it ended 2007 with a $130 million operating surplus, the largest ever recorded by the board. Three factors contributed to the surplus. Advantageous investment decisions early in 2007 resulted in higher than expected investment income. Premium revenue was higher as well, the result of a booming provincial economy. Fewer Time Loss injuries, lower durations and stable administration expenses kept costs in check.

To view the Mission: Zero campaign and the WCB’s 2007 annual report, visit www.wcbsask.com.

Texas

Texas Mutual to Pay $150M in Dividends
In May, Texas Mutual Insurance Company’s board of directors approved a $150 million individual policyholder dividend. Texas Mutual has paid $595 million in individual policyholder dividends and $36.8 million in purchasing group dividends since 1999.

Texas Mutual Funds Free Safety Courses
Texas Mutual Insurance Company announced a $100,000 grant to Kilgore College in Kilgore, Texas. The grant will fund free health and safety courses for East Texas employers and their employees.

Texas Mutual Insurance Company has given similar grants to Midland College and College of the Mainland in Texas City.

Texas Mutual Launches New Purchasing Groups
This spring, Texas Mutual launched two new purchasing groups: Texas Construction Supply and Texas Recreation Purchasing Group. Members get a premium discount, industry-specific safety plan and potential dividends.

Texas Mutual is a leading writer of purchasing groups in Texas. The company offers 26 groups representing a range of industries, including oil and gas, construction and food service.

United Way Recognizes Texas Mutual
Texas Mutual Insurance Company has won United Way’s Corporate Partnership Best Practices Honorable Mention for Employee Giving. Texas Mutual employees have donated $1.3 million to the United Way during the past 14 years, including $145,377 in 2007.

West Virginia

BrickStreet Mutual Insurance reported earnings of $185 million for calendar year 2007. According to BrickStreet President and CEO Greg Burton, “This profit is a strong indication of how well West Virginia’s business community has accepted BrickStreet and the major improvements we have made to customer service and better company management.”

In 2006, to help create BrickStreet, the state of West Virginia loaned the new company $200 million in the form of a surplus note. Because of last year’s earnings, BrickStreet has asked the Offices of Insurance Commissioner for approval to pay an extra $50 million to $60 million toward BrickStreet’s debt to the state.

Burton said, “We will make a scheduled $40 million note payment on July 1. With approval from the Offices of the Insurance Commissioner, we intend to make an additional payment of $50 million to $60 million before the end of the year. While our decisions must be based on sound actuarial practices, paying off the surplus note early benefits everyone. Once the note is completely paid off, we may be able to return a portion of the profits to policyholders in the form of dividends.”

If the company is allowed to make the prepayment, the balance at the end of 2008 will be less than $100 million.

The current interest rate on the surplus note is 1.5 percent and increases to the prime rate on January 1, 2009. The proposed prepayment will be made closer to the time the interest rate increase is scheduled. Remaining earnings will be used to ensure that BrickStreet has adequate reserves.

BrickStreet holds a tax-exempt status for its first three years. The company loses that exemption and will begin paying a 35 percent tax rate in 2009. If the company experiences continued positive financial performance, it plans to make additional prepayments on the note in 2009.