Agent News

While spring and summer are traditionally viewed as peak seasons for severe weather, storms can develop at anytime of the year. During the first three months of 2017 alone, more than 350 tornadoes were confirmed in the United States by the National Weather Service.

With that in mind, Accident Fund has created a Severe Weather Safety Campaign that provides information on a wide array of weather-related safety topics:

• Motor vehicle safety
• Defensive driving
• Three-points of contact
• Avoiding struck-by accidents
• Construction zone safety
• Landing gear
• Loading and unloading

Be sure to encourage your Accident Fund customers to visit our campaign site today for lots of useful information and tips. Additional safety tools and resources can be found in the Toolbox on our website.

Accident Fund has adopted NCCI’s audit noncompliance charge (ANC) rule. The rule applies to accounts who will not allow us to complete a premium audit with an effective date of Jan. 1, 2017, or later. Please note that policyholders will receive a surcharge on their audit billing if they deny us from completing the audit.

There are several guidelines to be aware of, including:

• The rule has not been approved (or is not applicable) in AK, CA, IN, MA, NJ, NY or TX. It has been approved in all other states, including those with independent rating bureaus (this includes Michigan).
• The NCCI rule states that a carrier must make at least two attempts to obtain the audit information before applying the ANC. However, we will make three attempts before billing the insured for the ANC. The agent will be included on the second and third attempts.
• If the insured is billed for the ANC, but then lets us complete the premium audit, we will rescind the invoice.
• If an insured has paid the ANC, but then allows us to complete the premium audit, we will refund the charge or apply it to an outstanding balance.
• If a policy includes multiple states, the charge will only apply to the states in which the rule has been adopted.
• The amount of the ANC can vary by state. In most states, the ANC will be two times the estimated premium. The exceptions are MT and NV where the ANC is one time the estimated premium.
• The basis of the charge will be the estimated premium. For example, if the estimated premium was $20,000, and the charge for that state is two times the estimated premium, then they will be billed $40,000. This is in addition to the $20,000 they have already paid.
• Except for AK, GA, IL and TN, agency commission will not be paid on the ANC.
• An endorsement explaining the ANC will be added to all policies.

If you have any questions about this information, please contact your business development consultant.

Our annual Westran Golf Outing helps raise education funds for students seeking insurance-industry related degrees. We have plenty of room available on the green as well as a variety of sponsorship opportunities, including a new ‘Hole Flag Sponsorship,’ where sponsors logos are featured on the pin flags and in the program.

Please visit the event website today to review the options available and register for the outing. We encourage early registration.

When:    Friday, Aug. 4, 2017
Where:   Hawk Hollow Golf Course
15101 Chandler Road
Bath, Michigan 48808
Format:  Four-Person Scramble

Schedule:
8 a.m.         Continental breakfast and golfer registration
9:30 a.m.    Shotgun start
11 a.m.       Lunch provided on the course
3 p.m.         Awards reception

Event Contact:
Kylie Olanowski
Phone: 517-708-5639

We hope to see you in August!

As the WorkSafe People™, it’s imperative that our team is as knowledgeable as possible when it comes to workplace safety. Because of that, our safety professionals have a steadfast focus on continuing education, including obtaining safety-related degrees and designations that make them the best at what they do.

Recently, the entire Accident Fund Loss Control team gathered for several days of learning and collaborating, which included the completion of OSHA’s 10-hour construction course. Facilitated by Accident Fund Senior Loss Control Consultant Ryan Allen, who is an OSHA-certified instructor, the course included lessons on:

• Electrical safety
• Fall protection
• Personal protective equipment
• Cranes
• Mobile equipment stairways/ladders
• Health hazards
• Material handling
• Power tools

“The completion of this course will further help our team of consultants provide expert advice and sound safety solutions to our policyholders involved in construction,” said Mike Eckert. “Ryan and the other instructors did a fantastic job presenting the material, and our team looks forward to putting this knowledge to use on future Loss Control consultations for our customers.”

Arkansas

5403   Carpentry NOC

5213   Concrete Construction NOC

6217   Excavation & Drivers

5537   Heating, Ventilation, Air-Conditioning and Refrigeration

8835   Nursing-Home Health, Public and Traveling-All Employees

Georgia

0042   Landscape Gardening & Drivers

5183   Plumbing NOC & Drivers

8869   Professional Employees: School or College

Illinois

9082   Restaurant NOC

5348   Tile, Stone, Mosaic or Terrazzo Work-Inside

Indiana

9082   Restaurant NOC

5348   Tile, Stone, Mosaic or Terrazzo Work-Inside

Iowa

8380   Automobile Service or Repair Center & Drivers

5645   Carpentry-Detached One or Two Family Dwellings

4034   Concrete Products Mfg & Drivers

9403   Garbage, Ashes or Refuse Collection & Drivers

5445   Wallboard Installation Within Buildings & Drivers

Kansas

5437   Carpentry-Installation of Cabinet Work or Interior Trim

3507   Construction or Agricultural Machinery Mfg

2095   Meat Products Mfg NOC

9082   Restaurant NOC

7231   Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers

Maryland

5537   Heating, Ventilation, Air-Conditioning and Refrigeration Systems–Installation, Service and Repair and Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

9082   Restaurant NOC

Michigan

5221   Concrete or Cement Work-Floors, Driveways, Yards or Sidewalks

7202   Drivers Mail, Parcel or Package Delivery

6217   Excavation

5537   Heating, Ventilation, Air-Conditioning and Refrigeration Systems–Installation, Service and Repair and Drivers

5022   Masonry NOC

8835   Nursing-Home Health, Public and Traveling-All Employees

5183   Plumbing NOC & Drivers

Minnesota

8380   Automobile Service or Repair Center & Drivers

9015   Buildings-Operation-by Owner, Lessee, or Real Estate Management Firm: All Other Employees

8835   Nursing-Home Health, Public and Traveling-All Employees

5183   Plumbing NOC & Drivers

Mississippi

8380   Automobile Service or Repair Center & Drivers

8748   Automobile Salespersons

9501   Painting

Missouri

5474   Painting or Paperhanging NOC & Shop Operations, Drivers

5645   Carpentry-Detached One or Two Family Dwellings

8835   Nursing-Home Health, Public and Traveling-All Employees

9084   Bar, Discotheque, Lounge, Nightclub or Tavern

9102   Park NOC-All Employees & Drivers

Nebraska            

1803   Stone Cutting or Polishing NOC & Drivers

5348   Tile, Stone, Mosaic or Terrazzo Work-Inside

8058   Building Material Dealer-New Materials Only: Store Employees

8232   Lumberyard New Materials Only: All Other Employees & Yard, Warehouse, Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

North Carolina

5537   Heating, Ventilation, Air-Conditioning and Refrigeration Systems–Installation, Service and Repair and Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

9082   Restaurant NOC

South Carolina

5537   Heating, Ventilation, Air-Conditioning and Refrigeration Systems–Installation, Service and Repair and Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

9082   Restaurant NOC

South Dakota

5022   Masonry NOC

7382   Bus Co.: All Other Employees & Drivers

8829   Convalescent or Nursing Home-All Employees

9012   Buildings-Operation-by Owner, Lessee, or Real Estate Management Firm: Prof. Employees, Property Mgrs and Leasing Agents

9015   Buildings-Operation-by Owner, Lessee, or Real Estate Management Firm: All Other Employees

Tennessee          

8006   Store: Grocery Retail, Includes Rural General Stores

9015   Building – Operation – by Owner, Lessee, or Real Estate Management Firm

9052   Hotel; All Other Employees & Salespersons, Divers

Texas

3064   Sign Mfg-Metal

3724   Machinery or Equipment Erection or Repair NOC & Drivers

8391   Automobile Repair Shop & Parts Dept Employees, Drivers

9014   Buildings-Operation by Contractors

9052   Hotel: All Other Employees & Salespersons, Drivers

Virginia

5537   Heating, Ventilation, Air-Conditioning and Refrigeration Systems–Installation, Service and Repair and Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

9082   Restaurant NOC

Wisconsin

2759   Box or Box Shook Mfg

8835   Nursing-Home Health, Public and Traveling-All Employees

Pending Rate Changes

The following states have a pending rate change for Accident Fund. New rates are not yet available in eLink; however, some renewing policies may be viewable in the renewal index.  Please refrain from releasing quotes and renewals for these states until rates are updated.  Please check our website for updates.

New Rates Now Available in eLink

Updated rates are now accessible in eLink for the following states:

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

Arkansas

BancorpSouth Insurance Services, Inc., Little Rock

BHC Insurance, Fort Smith

Georgia

Griffin & Company Inc., Albany

Strawn and Company Insurance LLC, McDonough

Illinois

J. L. Hubbard Insurance and Bonds Agency, Inc., Forsyth

Southpoint Insurance Agency Inc, Mokena

Indiana

Hall Marose Silveus LLC, Warsaw

Robley & Associates, Inc., Greenwood

Iowa

Harper Insurance Agency, LLC, Manchester

Sisson & Associates Inc, Charles City

Kansas

Marsh & McLennan Agency LLC, Overland Park

The Reilly Company, LLC, Leavenworth

Maryland

Diversified Insurance Industries Inc., Baltimore

PSA Insurance, Inc., Hunt Valley

Michigan

Capital Insurance Group, Bloomfield Hills

Lighthouse Insurance Group, Inc., Grand Rapids

Minnesota

Risk Placement Services Inc., Minneapolis

The Christensen Group, Inc., Minnetonka

Mississippi

BancorpSouth Insurance Services Inc., Hattiesburg

Insurance & Risk Managers, Brookhaven

Missouri

G.M. Peters Agency, Liberty

Risk Innovations LLC – NE, Lees Summit

Nebraska

Arthur J. Gallagher Risk Management Services Inc, Omaha

UNICO Group, Inc., Lincoln

North Carolina

Pittman Insurance Group, LLC, Raleigh

Windermere Insurance Group LLC, Charlotte

South Carolina

BB&T Puckett Scheetz & Hogan, Myrtle Beach

Peoples First Insurance, Rock Hill

South Dakota

Howalt McDowell Ins, A Marsh & McLennan Agcy LLC Co, Sioux Falls

Rhodes Anderson Insurance, Aberdeen

Tennessee

Full Service Insurance Agency, Inc., Franklin

John Bailey Company, Knoxville

Union City Insurance, Union City

Texas

Catto & Catto LLP, San Antonio

MHBT, A Marsh & McLennan Agency LLC, Company, Dallas

Virginia

Olson Insurance Agency, Arlington

Preferred Insurance Services, Inc., Fairfax

Wisconsin

Johnson Insurance Services, Inc., Racine

Truyman Haase Zahn Insurance Group, Seymour

Michigan

The Workers’ Compensation Health Care Services Advisory Committee, led by Director Mark Long, recently took action on new air ambulance reimbursement regulation and the 2017-2018 fee schedule conversion factor. Nationally, air ambulance transporters have been charging exorbitant fees — regulation to set the fee schedule at 140% of Medicare for all air ambulance reimbursement successfully progressed out of Committee. Because he is not witnessing any access to care issues, and as a result of Medicare conversion, providers will receive a bit of a rate increase; the director sees no reason to increase workers’ compensation provider reimbursements at this time, and moved forward with an official recommendation to maintain the current fee schedule conversion factor.

Through the Advisory Committee, each initiative will now receive a public hearing, prior to proceeding to the Joint Committee on Administrative Rules (JCAR) where we anticipate them to pass into law.

Illinois

• The General Assembly passed legislation (HB 2525) establishing price controls on workers’ compensation insurers and (HB 2622) creating the Illinois Employers Mutual Insurance Company (IEMIC), a state-sponsored fund to provide workers’ compensation insurance in Illinois. House and Senate Democrats, who are at odds with the governor on virtually all fronts, promoted both bills. AF Group industry partners AIA, Illinois Chamber and the Illinois Insurance Association opposed both proposals.
• More recently, House Republican leadership introduced a modest series of budget and business reforms (HB 4068), which include two industry supported measures: the establishment of a Medicare-based fee schedule, and calls for the creation of an evidence-based drug formulary. In coordination with our trades, AF Group is supportive of HB 4068 and have requested that Governor Bruce Rauner veto both HB 2525/HB 2622 which we believe he is inclined to do.  We will remain engaged as the situation in Springfield continues.

Wisconsin

Labor and Industry Review Commission – The proposal that would’ve eliminated the state’s Labor and Industry Review Commission (LIRC) has failed. The issue will certainly arise in next year’s  budget, but for now the status quo is maintained.

Worker’s Compensation Advisory Council – Assembly Labor Committee held a hearing on Assembly Bill 308, which would alter the membership on the Workers’ Compensation Advisory Council. The legislation proposes to change the composition of the Workers’ Compensation Advisory Council (WCAC) to reflect the current unionized versus non-unionized labor force. Proponents of the bill argue that unionized labor should not be allowed to have five voting members on the council if unions only make up 8% of the workforce. Opponents argue that the legislation is not needed and would upend the delicate balance that exists on the council between labor and management. AF Group partners at the Wisconsin Insurance Alliance have opposed this legislation and successfully stalled the initiative for now.

North Carolina

North Carolina Supreme Court has issued its decision in Wilkes v. City of Greenville, ruling that once an injury has proven established as compensable, there is a rebuttable presumption that any additional medical treatment is related to the compensable injury.  AF Group national trade partner, the American Insurance Association, has filed an amicus brief in this action arguing against the presumption. The industry will be engaging with employer groups to seek a legislative solution to this decision. More to come as this situation progresses.

National Association of Insurance Commissioners

The National Association of Insurance Commissioners (NAIC) announced the creation of the Innovation and Technology (EX) Task Force to help insurance regulators stay informed on key developments, including new products and services from start-up companies, as well as established insurance industry players. The task force reports directly to the NAIC Executive Committee. Michigan Insurance Director Patrick M. McPharlin and Oregon Insurance Commissioner Laura Cali Robison will lead the task force as chair and vice chair, respectively. Of particular interest to AF Group, the new task force will also oversee the work of the Big Data Working Group and the Cybersecurity Working Group.