Agent News

Please take note the upcoming rate changes in various states.

Core States

The following core states have a pending rate change.

Georgia – Effective July 1, Accident Fund will adopt NCCI’s March 1, 2014, advisory loss costs in Georgia with an overall industry loss cost level increase of 2.3%. The actual change will vary by class. New rates became available in our eLink system on Feb. 24.

Mississippi – Effective April 1, Accident Fund will adopt NCCI’s March 1, 2014, loss costs in Mississippi with an overall average rate level increase of 3.8%. In addition, we are making a slight adjustment to our Loss Cost Multipliers. The actual change will vary by class. New rates became available in our eLink system on March 10.

Tennessee – Effective July 1, Accident Fund will adopt NCCI’s law-only rate change in Tennessee with an overall industry decrease of 5.9%. The actual impact will vary by class. New rates became available in our eLink system on March 10.

Texas – Effective June 1, Accident Fund is adopting NCCI’s loss costs in the state of Texas with an overall loss cost level increase of 0.1%. The revised rates will vary by class. New rates became available in our eLink system on March 17.

Accommodation States

Please be sure to discuss pricing options for all new business and renewals with me.

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
• Insurance Center, Inc., Little Rock

Georgia

• Sterling Risk Advisors, Inc., Atlanta
• Waites & Foshee Insurance Inc., Macon

Illinois

• Ralph Weiner & Associates, LLC, Wheeling
• Unland Co., Pekin

Indiana

• ISU Stewart Brimner Peters & Co., Fort Wayne
• The Thompson Group, Parker City

Iowa

• Arthur J. Gallagher Risk Management Services, Inc., Sioux City
• First Iowa Insurance Agency, Inc., Cedar Rapids

Kansas

• Insurance Center, Inc., El Dorado
• The Reilly Company, LLC, Leavenworth

Maryland

• Georgetown Insurance Services, Inc., Silver Spring
• PSA Insurance, Inc., Hunt Valley

Michigan

• Brown & Brown of Michigan, Inc., Fenton
• Wells Fargo Insurance Services USA, Inc., Grand Rapids

Minnesota

• CBIZ Insurance Services, Inc., Brooklyn Center
• The Christensen Group, Inc., Minnetonka

Mississippi

• Ross & Yerger Insurance, Inc., Jackson
• Stewart Sneed Hewes, Hattiesburg

Missouri

• Barker Phillips Jackson, Inc., Springfield
• Insurance & Benefits Group, LLC, Sedalia

Nebraska

• Marcotte Insurance Agency, Inc., Omaha

North Carolina

• Ascension Insurance Agency, Inc., Charlotte
• Greenpoint Insurance Group, Inc., High Point

South Carolina

• Citizens Trust Company, Greenwood
• Keenan & Suggs, Inc. – Columbia, Columbia

Tennessee

• Insight Risk Management, LLC, Cordova
• Wyatt Insurance Services, Inc., Knoxville

Texas

• Insurica Insurance Mgmt Network, Plano
• Wells Fargo Insurance Services USA Inc., El Paso

Virginia

• Integrated Insurance Solutions, Inc., Ashburn
• Mid Atlantic Insurance Svcs Inc., Richmond

Wisconsin

• Associated Financial Group, LLC, Kimberly
• McClone Agency Inc, Menasha

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.

Federal

Terrorism Risk Insurance Program Reauthorization Program

TRIPRA discussions in Washington are increasing. The United States Senate Banking Committee has indicated they are in the process of crafting a draft TRIPRA proposal, anticipated this spring. The House Financial Services Committee has indicated they will address reauthorization in late April. Independent Insurance Agents and Brokers of America communicated that TRIPRA is a priority issue that they intend to lobby in support of at the annual conference in Washington in early April. AFHI remains optimistic TRIPRA will be renewed, although the program could be amended from its current form.

State

Illinois

Illinois Chamber Work Comp Proposals

An omnibus workers’ compensation reform bill (SB 2624) that would limit claims by workers hurt while commuting to or from work has stalled in the Senate Labor Committee. The bill is supported by republicans, the Illinois Chamber of Commerce, and other business groups. However, republican sponsors have not lined up any democratic support for the bill. Without democratic support, it will be difficult for the bill to gain any momentum in the legislature.

Indiana

Work Comp Bill Approved by Legislature

The Indiana Legislature has approved a workers’ compensation bill related to repackaged drugs and billing review services standards. The legislation must now be sent to the governor for consideration. Once the bill is sent to the governor, he must sign or veto the legislation within seven days of transmittal or it becomes law without signature. The 2014 legislative session has adjourned.

Michigan

EBM Treatment Guidelines Proposed by Deputy Director

Michigan Deputy Director of Workers’ Compensation, Kevin Elsenheimer, recently released an evidence-based medicine (EBM) guideline proposal that utilized ODG as the single source. The deputy director is now reviewing all stakeholder feedback and analysis. EBM guidelines must not create overbearing administrative burdens on carriers, providers, injured workers or employers. The deputy director intends to release a new proposal in the near future and pursue enactment this year. AFHI will engage in the process when appropriate.

Wisconsin

Agreed Bill Fails…Debate Will Continue in Fall

The Wisconsin Medical Society political lobby has unfortunately defeated the enactment of the Workers Compensation Advisory Council’s Agreed Bill. The bill contained a number of changes to reduce medical costs including implementation of a medical fee schedule and limiting reimbursement of physician-dispensed drugs to the average wholesale price set by the drug’s original manufacturer. Hospitals, physicians and chiropractors political clout was evident throughout the process. Additionally, legislators hesitate to vote on decisive initiatives in an election year.

AFHI Government Affairs is working with our Wisconsin Insurance Alliance (WIA) partners to remain engaged for the remainder of the legislative session. We anticipate the cost containment debate to continue later this year, most likely in early Fall. Moving forward, the debate will continue and is encouraging the bill received a generally favorable reception from state lawmakers this year.

Information in this report was sourced from Florida Insurance Council, NAMIC, WorkCompCentral, and NCCI

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.

As you know, the strength of our agency partnerships is important to Accident Fund. We appreciate your feedback and constructive criticism to ensure we are meeting your needs. To measure this, Accident Fund Holdings will be sending an agency survey in April and we encourage you to participate. As an added incentive, those who complete the survey will have the opportunity to enter a drawing for great prizes, such as an Apple Macbook*, Apple iPads* and $50 Visa gift cards.

*Macbook and iPad are registered trademarks of Apple Inc. Apple is not a participant in or sponsor of this promotion.

Deep Customer Connections, a metrics-based consulting firm serving P&C carriers and their agents, recently released results of an in-depth survey conducted in 2013 of nearly 7,000 agents. The survey resulted in a list of agents’ top 10 property/casualty carriers, based on a variety of factors. Accident Fund Insurance Company of America took the No. 10 position – and was the only monoline carrier included.

The firm surveyed agents on 11 ease-of-doing business metrics, which form the basis of the top 10 rankings. These metrics have been derived from the firm’s experience with agents and their needs, and they’ve found “ease of doing business” can mean different things to different people. This includes how a carrier handles claims and if they are responsive in underwriting. The survey results indicate agents view a carrier’s ability to handle claims promptly and fairly as most important.

We are very proud that Accident Fund was considered in this top tier and will continue to work hard to provide superior service to our agents and policyholders.

We recognize that our success and growth would not have been possible without the support and commitment of our agent partners. We rely on your ability to attract new customers who believe in our WorkSafe values, retain profitable business and promote Accident Fund’s value.

We are honored to recognize the contributions and accomplishments of the following agency partners who distinguished themselves in 2013 on a regional level:

Thank you to those who attended our Annual Agent Meetings which ended on March 28. We enjoyed the sharing our 2013 results and the strategies for continuing our momentum into 2014.

If you or your agency partners were unable to attend one of our meetings, each of our state-specific presentations are available on our Agent website. Once you log in to the site, you can find the presentations by clicking on Agent Meeting Materials under the Quick Links header.

2013 was a year of successes for Accident Fund and the Accident Fund Holdings Enterprise. In fact, it was one of the most successful years in Accident Fund Holdings’ history. To learn how the Enterprise and each of our brands performed, we encourage you to review the 2013 Accident Fund Holdings’ Annual Report now available online.

Do you have a small to mid-size business owner in need of workers’ compensation insurance coverage? Our group programs may be the solution. We offer an array of programs that help businesses keep their employees safe while saving them money and reducing losses.

The benefits can be significant. For example, we recently paid an 8% dividend to 95 Lansing Regional Chamber members, which totaled more than $105,000.

When your businesses belong to an Accident Fund Group Program, they can expect the following benefits:

• 5% up-front savings on their premium (except in Iowa, Kansas, Missouri, North Carolina, Tennessee and Texas)
• Opportunity for dividend payments based upon the entire group’s loss history
• Access to safety materials through our WorkSafe Toolbox™
• Convenient billing options
• General underwriting guidelines apply

For group program literature, including details for golf, hospitality or business owners, visit the Marketing Materials Supply Order Form on the Agent website. Or for more information about group programs and their benefits, visit AccidentFund.com/Groupsor contact Theresa Ross or Beth Goodman.