Agent News

Please take note the upcoming rate changes in various states.

Core States

South Dakota

Effective July 1, 2015, Accident Fund is adopting NCCI’s rate change in the state of South Dakota with an overall industry rate level decrease of 8.9%. In addition, we have modified our Loss Cost Multipliers slightly. The actual change will vary by class. New rates became available in our eLink system on June 1.

Accommodation States

Please be sure to discuss pricing options for all new business and renewals with your business development consultant

The Agency Hall of Fame is recognition for those agencies that write the most new business each month. The acknowledgment, given to top agencies in each state, allows us to show appreciation to our agent partners for their efforts.

Arkansas

• Brown – Hiller – Clark & Associates, Fort Smith
• Brown & Brown of Russellville, Russellville

Georgia

• J. Smith Lanier & Co., Augusta
• Risk Innovations, LLC, Atlanta

Illinois

• Kamm Insurance Group, Chicago
• Lundstrom Insurance Agency, Inc, Elgin

Indiana

• M.J. Schuetz Insurance Services, Inc., Indianapolis
• McGowan Insurance Group, Inc., Indianapolis

Iowa

• Harper Insurance Agency, LLC, Manchester
• Millhiser Smith Agency, Inc., Cedar Rapids

Kansas

• Creative Planning Risk Svcs, Leawood
• USI Midwest LLC – Wichita, Wichita

Maryland

• Day Deadrick & Marshall, Inc., Beltsville
• Yates Insurance, Inc., Edgewater

Michigan

• Collins & Associates Corp., Grand Rapids
• Willis of Michigan, Inc., Grand Rapids

Minnesota

• Apollo Insurance Agency, Saint Cloud
• J. A. Price Agency, Inc., Eden Prairie

Mississippi

• Insurance & Risk Managers, Brookhaven
• Wellington Associates, Inc., Flowood

Missouri

• Barker Phillips Jackson, Inc., Springfield
• Nixon & Lindstrom Insurance, Springfield

Nebraska

• Marcotte Insurance Agency, Inc., Omaha
• UNICO Group, Inc., Lincoln

North Carolina

• Cranford Agency, Inc., Asheboro
• TriSure Corporation, Raleigh

South Carolina

• Southern Risk Insurance Services LLC, Anderson
• Wells Fargo Insurance Services USA Inc., Charleston

South Dakota

• Boen & Associates, Inc., Sioux Falls
• First Madison Insurance, Madison

Tennessee

• Dickey – McCay Insurance Inc., Copperhill
• Miller Loughry Beach Insurance Services, Murfreesboro

Texas

• MHBT Inc., Dallas
• Swingle Collins & Associates, Dallas

Virginia

• Nansemond Insurance Agency, Inc., Suffolk
• Sheehan Insurance Group, Inc., Haymarket

Wisconsin

• Insurance Marketing Group of Wisconsin, Inc (IMAGE), Saint Germain
• Johnson Insurance Services, Inc., Racine

Legislative Update is a brief synopsis of relevant legislative activity currently taking place in Accident Fund core and accommodation states. For more details or further documentation on any of these legislative activities, contact your business development consultant.

State

Iowa

The Iowa Legislature passed a new law that will impact sole proprietors, partners and limited liability company members doing business in Iowa. The Iowa Legislature passed House File 259 to clarify sole proprietors intent to be covered or not be covered by a workers’ compensation policy. IA Workforce Development – WC Division recently released a revised non-election of Workers Compensation or Employers’ Liability Coverage Form, 14-0174 (5-15). Click here for more information.

The revised form should be used for proprietors, LLC members and partners to clarify their intent to not be covered by work comp. The current work comp law has not changed, these persons are still not considered employees and are automatically excluded from coverage unless they elect inclusion. This form must now be signed to clarify their intent to not be covered. The Division has released no further instructions or information in regards to this issue only that the form has been revised. Should additional information be released, we will communicate appropriately.

South Carolina

House Bill 4197, the “S.C. employee injury benefit plan alternative,” would provide workers’ compensation opt-out provisions for eligible employers. This proposal is nearly identical to House Bill 4171, which was introduced back in May, with the only notable difference between the two bills being the committee to which they were referred (H 4197 was referred to L.C.I. and H 4171 was referred to the Judiciary Committee). We anticipate this initiative will receive consideration in 2016.

Both bills were initiated by the Association for Responsible Alternatives to Workers’ Compensation (ARAWC). ARAWC’s website claims they are an organization that focuses on ensuring that employees receive the best possible care and employers have the choice to provide what is best for their employees. Similar law is in place in Oklahoma and Texas, and this year legislation was introduced in Tennessee to promote a similar initiative.

Minnesota

Medicare based workers’ compensation hospital fee schedule legislation has been enacted and signed by the Governor. According to the Minnesota Department of Labor and Industry, the agreed bill will cut workers’ compensation inpatient hospital costs by 10% to 15% and slow future medical cost increases. The legislation requires Minnesota’s workers’ compensation system to use the same payment system Medicare uses to reimburse hospitals beginning in January 2016. The system bases a hospital’s reimbursement on a patient’s diagnosis using Medicare Severity — Diagnosis-Related Groups (MS-DRGs). This replaces the current system in which reimbursement is based on charges billed for treating a patient.

Wisconsin

The Workers’ Compensation Advisory Council met this month to unveil and discuss proposals from both Labor and Management on items potentially to be included in the Work Comp Agreed Bill. The final Agreed Bill proposal is anticipated to be non-controversial this year. Serious cost containment measures, including a medical fee schedule will likely have to wait until a future date. The Advisory Council is expected to forward the Legislature a final Agreed bill proposal later this year.

California

Assembly Bill 1142, would order the California Division of Workers’ Compensation to implement a prescription drug formulary was recently passed by the Assembly and sent to the Senate for consideration. The fiscal analysis prepared for Appropriations Committee estimated that if enacted this legislation would cost about $500K for Division of Workers’ Compensation to develop. Given the estimated $708 million spent on California work comp pharmacy benefits in 2013, this proposal could offer a great return on investment depending on how the formulary is structured.

Ohio

House Bill 205 was recently introduced and proposes to allow large employers (those with 1,000 or more employees) and “groups” to forgo obtaining workers’ compensation insurance from the Ohio Bureau of Workers’ Compensation (BWC) and instead utilize coverage from private carriers. According to the legislation, a group is defined as: An association that 1) has been organized and maintained for at least one year in good faith for purposes other than obtaining private market workers’ compensation coverage and 2) maintains a minimum enrollment of 300 employees in this state of two or more employers whose businesses are substantially similar such that the risks which are grouped are substantially homogeneous. Similar initiatives have failed in the past. We’ll continue to monitor this initiative.

Information Sources – American Insurance Association, Insurance Institute of Michigan, MIRS, Workcompcentral, Illinois Chamber of Commerce

Disclaimer of Liability

This document is provided for informational purposes only and does not constitute legal advice. This information is subject to change. Every effort is made to provide accurate and complete information in Accident Fund Holding’s Legislative Update. However, Accident Fund Holdings makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of the Update and expressly disclaims liability for errors and omissions in the contents of this newsletter.

Accident Fund has built an industry-leading training program that provides dynamic opportunities for our partner agencies, including:

• Certified Authority in Workers’ Compensation (CAWC) Designation Program
• Continuing education (CE) opportunities
• Customized training services

For agents who have already received their CAWC designation, keep in mind that it needs to be renewed every two years. Click here for more information.

To learn more about our training opportunities, click here or contactinfo@AccidentFundTraining.com for more information.

Now that the school year is over, many teens will be starting summer jobs and entering the workplace for the first time. Because of their unfamiliarity with workplace settings, young workers are more prone to injuries on the job for many reasons, including:

• Unsafe equipment
• Inadequate safety training
• Limited supervision
• Dangerous work that is illegal or inappropriate for youth under 18
• Pressure to work faster
• Stressful conditions

If you have a policyholder that hires teen workers on a temporary or full-time basis, now is a good time to remind them of the possible workplace hazards with younger workers:

• Construction and Manufacturing: Slips and falls, machines and tools, hazardous materials, confined space, electricity, noise, moving equipment, heat, hazardous chemicals
• Food Service/Fast Food: Sharp objects, hot cooking equipment, slips and falls, electricity, heavy lifting, violent crime
• Janitorial/Maintenance: Hazardous cleaning chemicals, slips and falls, heavy lifting, blood on discarded needles, electricity, vehicles
• Office/Clerical: Repetitive hand motion, back and neck strain, stress
• Outdoor Work: Sun exposure, heat, landscaping, pesticides and chemicals, machinery and vehicles, electricity, heavy lifting, noise
• Retail/Grocery/Convenience Stores: Equipment and machinery, heavy lifting, violent crime, repetitive hand motion, slips and falls

For more information on the use of teen workers, visit OSHA’s Young Worker Safety and Health site at Osha.gov/youngworkers.

Also, don’t forget about our other great safety materials available on our website as well as our new workplace violence prevention campaign. Please encourage your Accident Fund policyholders to visit the site today.

The Roy Westran Memorial Insurance Industry Scholarship Golf Outing celebrates its 22nd anniversary this year and we want to see you there. Taking place Friday, Aug. 7, at Hawk Hollow Golf Course in Bath, Mich., the annual event gathers agents from across the country to help Accident Fund raise scholarship funds for students pursuing insurance-related degrees.

At the same time, the event recognizes the work of the late Roy Westran, an individual committed to the advancement of our profession. Established in 1990, the Westran Memorial Scholarship has awarded more than $810,000 to nearly 500 students and helped to ensure the growth of our industry.

We have plenty of room on the green as well as several sponsorship opportunities available. The four-person scramble will begin at 8 a.m. with a continental breakfast, followed by a shotgun start at 9:30 a.m. Lunch and an awards reception will follow in the afternoon. For more information, visit WestranScholarship.org or contact Kylie Olanowski.