Agent News
Q2 2019
AF Group’s next LEAD with Comp class is right around the corner! LEAD is a 12-month professional development opportunity designed with professionals newer to workers’ compensation in mind. Participants will be equipped with the knowledge and relationships necessary to be successful in the workers’ compensation market.
The program kicks off with a three-day training course followed by a year-long mentorship program with AF Group experts from Business Development, Loss Control and Premium Audit. Participants can look forward to agency visits, ride-alongs and microlearnings throughout the year.
Class details:
- When: Sept. 17-19, 2019 (training)
- Where: AF Group Headquarters in Lansing, Mich.
Register here – registration fees are waived for President’s Club agencies!
LEAD with Comp objectives:
- Assist agency leadership in developing new talent and encouraging agency perpetuation
- Build relationships between agency staff and AF Group brand staff
- Empower agency team members with the knowledge necessary to specialize in niche markets
- Provide producers with quotes based on leads they generate
- Increase success rate on new business by educating participants on how to displace the incumbent agent
- Establish a mentorship program to foster the growth of the agency sales force
Visit our website or check out this short e-learning course to learn more about LEAD.
2018 was a remarkably successful year for Accident Fund and the greater AF Group enterprise. We again achieved unprecedented outcomes through partnership with agents like you. To learn how the enterprise and each of our brands performed, we encourage you to review the 2018 Annual Report.
Thank you for your consistent support and dedication — you have played a significant role in helping us achieve ongoing success. We look forward to our continued partnership!
Accident Fund invites our top agencies to take part in our 2019 incentive trip program — for a 2020 escape to stunning Tenerife, the largest of the seven Spanish Canary Islands. This Atlantic treasure has it all, including year-round sunshine, never-ending coastlines, panoramic island views from atop Mount Teide, whale watching, wineries, canyons and caves, amazing food, shopping and more.
While there, April 25 – May 2, 2020, trip earners will stay at the Ritz Carlton Abama Resort — a Moorish-inspired resort with a prized ocean view, Michelin-starred restaurants and a renowned golf course. Guests will be invited to relax at the luxury resort spa, take a dip in one of several sparkling pools or set off on a variety of excursions.
We hope you’ll join us on this unforgettable trip. Visit our incentive trip website to read more about these stunning scenes, incredible accommodations and trip qualifications — and be sure to watch our videos about the program for more information!
Keep an eye out for our monthly email updates, which will contain your personalized performance standings and exciting details about the trip. You’ll be able to check your progress and ensure you’re on track to qualify.
You asked and we listened! Effective immediately, your agency’s agent inbox email address will be copied on all AccuPremium notifications sent to customers. After issuance, AccuPremium customers receive an email notification to register and will receive additional notifications if their account experiences any of the following:
- Late payroll (never reported/previously uploaded) — sent if payroll is not uploaded by the three-day grace period of their selected reporting date.
- Insufficient funds (first occurrence) — sent when initial draft for payment is unsuccessful to inform customer we will be drafting for funds one more time.
- Insufficient funds (multiple occurrences) — sent to notify insured that the second draft for funds was also unsuccessful. Customer will need to review and correct any mistakes in banking information on file.
- Bad account — sent when unable to withdraw funds from customer’s ACH draft account, usually when the account is closed or frozen.
- Missing authorization — sent when an attempted ACH draft is returned as “not authorized.”
- Account/system error — sent when the account number or routing number is incorrect. Customer will need to review and correct any mistakes in banking information on file.
- Re-attempt to collect — sent to inform customer that we will attempt to draft payment again after prior draft has been returned.
- Corrections — sent to notify customer that a correction has been made to their account.
Customer Tips: AccuPremium Payroll Reporting
To increase customers’ ease of reporting payroll, this help sheet will be included in the welcome email after policy issuance. The included tips can help customers avoid premium due once the audit is complete. Existing AccuPremium customers will also receive the tip sheet via email. For questions about class code classifications, please contact Premium Audit at 866-206-5851.
Audit noncompliance charge rate reduced to 50%
As you’re aware, Accident Fund adopted NCCI’s audit noncompliance charge (ANC) rule in February 2017. The rule applies to accounts that will not allow us to complete a premium audit, which then receive a surcharge on their audit billing.
In all states other than the listed exceptions (below), Accident Fund will apply an ANC rate between 50 and 200% for policies effective on or after Jan. 1, 2018. Exceptions include states where the rule is not applicable or where there is a mandated rate, including Massachusetts, which just adopted a two-year ANC pilot program, applicable on policies between May 1, 2019 and April 30, 2020.
ANC rate exceptions:
| State | Rate |
| Arizona | 200% |
| Alaska | N/A |
| California | N/A |
| Indiana | N/A |
| Hawaii | 200% |
| Massachusetts | 200% |
| Montana | 100% |
| Nevada | 100% |
| New York | N/A |
| Oklahoma | 200% |
| Pennsylvania | 200% |
| Texas | N/A |
| Wisconsin | 200% |
Reminders — when and how the charge is applied:
- We calculate ANC using a policyholder’s estimated annual premium.
- The NCCI rule states that a carrier must make at least two attempts to obtain audit information before applying the ANC. However, Accident Fund will make three attempts before billing the policyholder. In many cases, the agent will be included in communication attempts.
- If a policyholder is billed for the ANC but then allows us to complete the premium audit, we will process the audit, recalculate the charges and produce a new invoice.
- If a policyholder 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.
An endorsement acknowledging the ANC rate reduction will be included in all policies.
Commissions no longer paid on noncompliance charges
It was discovered that agents have been receiving commissions on audit noncompliance charges, which are not commissionable in most states. Agents in those states who received commissions to date will not be asked to pay them back. However, as of April 5, 2019, commissions are no longer paid on noncompliance charges except in Georgia, Illinois and Tennessee, where audit noncompliance charges are commissionable.
Please contact your business development consultant with questions.
Claims activity notifications for all new and closed claims have resumed with additional detail, including:
- Claim number
- Claim jurisdiction state
- Claims examiner contact information
Notifications are sent to agent inbox contacts between 6 and 7 a.m. EST each day for all claims entered or closed on the previous day. Contact agencyrelationstechn@accidentfund.com to update your agent inbox.
Our causation investigation efforts meant an estimated $17.2 million in enterprise loss avoidance in 2018. Causation investigations examine an injured employee’s work environment and work practices, then relate them to a reported injury. See how we conduct these investigations and learn more about their impact in our new pitchbook.
Join us from 10:30-11:30 a.m. EDT on Aug. 8 for a short training session on the following topics:
- Part 1: Ergonomics for the Active Employee– Michael Meehan, CSP, ARM
- Part 2: Accident Fund Loss Control Toolbox Intro – Chris DeRuiter, ASP, CAWC
New Toolbox Flyer
Download our new Loss Control Toolbox flyer, which highlights safety documents, online training courses and employee assessment tools available exclusively to Accident Fund policyholders.
Arkansas
Allison Insurance LLC, Jonesboro
BHC Insurance, Fort Smith
Georgia
Clover Insurance Srvcs, Duluth
Risk Innovations, LLC, Atlanta
Illinois
Assurance Agency, Ltd, Schaumburg
Esser Hayes Insurance Group Inc., Naperville
Indiana
Gregory & Appel Insurance Agency, Indianapolis
McGriff Insurance Services Inc., Kokomo
Iowa
Miller, Fidler & Hinke Insurance Agency, Inc., Clive
Sheets Forrest Draper Insurance, Marion
Kansas
IMA, Inc., Wichita
Insurance Center, Inc., El Dorado
Kentucky
Chas. M. Moore Insurance Agency Inc., Bowling Green
Johnson – Pohlmann Inc., Danville
Louisiana
Arthur J. Gallagher & Co., Baton Rouge
HUB International Gulf South, Metairie
Maryland
Avon Dixon, an Alera Group Agency, LLC, Easton
Wright – Gardner Insurance, Hagerstown
Michigan
Cambridge P & C, a Marsh & McLennan Agcy LLC Company, Livonia
General Agency Co. Inc., Mount Pleasant
Minnesota
Dilley Insurance Brokers, LLC, Sartell
North Risk Partners LLC, Mendota Heights
Mississippi
AssuredPartners Gulf Coast Insurance Agency LLC, Gulfport
Bottrell Insurance, Jackson
Missouri
Charles L. Crane Agency Company, Saint Louis
SRA Insurance Agency LLC, Kansas City
Nebraska
INSPRO, Inc., La Vista
UNICO Group, Inc., Lincoln
North Carolina
SIA Group, Jacksonville
Southeastern Agency Group Inc, Greensboro
Oklahoma
Insurance Center Agency Inc, Oklahoma City
Rich & Cartmill Inc., Tulsa
South Carolina
McGriff Insurance Services Inc., Greenville
Palmetto Insurance Associates LLC, Anderson
South Dakota
Black Hills Insurance Agency Inc., Rapid City
Fischer Rounds & Asssociates, Watertown
Tennessee
Lester Greene & Mccord Insurance Agency, Inc., Tullahoma
Lipscomb & Pitts Insurance, LLC, Memphis
Texas
Highpoint Insurance Group, LLC, Friendswood
Insgroup, Inc., Houston
Virginia
Midatlantic Insurance Group LLC, Richmond
The Winchester Group, Inc., Winchester
Wisconsin
HUB International Midwest Ltd., Sheboygan
Starr Insurance Group Ltd, Greenfield
Arkansas
6325 Conduit Construction-For Cables or Wires-& Drivers
5190 Electrical Wiring-Within Buildings & Drivers
5537 Heating, Ventilation, Air-Conditioning and Refrigeration
5022 Masonry NOC
8044 Store: Furniture & Drivers
Georgia
8833 Hospital
8835 Nursing – Home
9082 Restaurant NOC
Illinois
8380 Automobile Service or Repair Center & Drivers
4299 Printing
Indiana
3824 Automobile, Bus, Truck or Trailer Body Mfg: NOC
5190 Electrical Wiring-Within Buildings & Drivers
Iowa
8380 Automobile Service or Repair Center & Drivers
9060 Club-Country, Golf, Fishing or Yacht-& Clerical
5190 Electrical Wiring-Within Buildings & Drivers
8034 FISH, Meat or Poultry Dealer – Wholesale
8293 Storage Warehouse-Furniture & Drivers
Kansas
8380 Automobile Service or Repair Center & Drivers
9015 Buildings-Operation-By Owner, Lessee, or Real Estate Management Firm: All Other Employees
5213 Concrete Construction NOC
5022 Masonry NOC
8835 Nursing-Home Health, Public and Traveling-All Employees
Kentucky
8380 Automobile Service or Repair Center & Drivers
6217 Excavation & Drivers
Louisiana
8391 Automobile Repair Shop & Parts Dept Employees, Drivers
8380 Automobile Service or Repair Center & Drivers
8868 College: Professional Employees & Clerical
6217 Excavation & Drivers
Maryland
5190 Electrical Wiring-Within Buildings & Drivers
5022 Masonry NOC
7231 Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers
Michigan
5190 Electrical wiring within Buildings
3628 Machine Mfg.
4484 Plastics Mfg. molded plastics
5183 Plumbing
Minnesota
8380 Automobile Service or Repair Center & Drivers
9015 Buildings-Operation-By Owner, Lessee, or Real Estate Management Firm: All Other Employees
3076 Fireproof Equipment Mfg
8842 Group Homes – All Employees & Salespersons, Drivers
8835 Nursing-Home Health, Public and Traveling-All Employees
Mississippi
5221 Concrete or Cement Work-Floors, Driveways, Yards or Sidewalks-& Drivers
5537 Heating, Ventilation, Air-Conditioning and Refrigeration
9083 Restaurant: Fast Food
7219 Trucking: NOC-All Employees & Drivers
Missouri
9014 Buildings-Operation by Contractors
9015 Buildings-Operation-By Owner, Lessee, or Real Estate Management Firm: All Other Employees
5537 Heating, Ventilation, Air-Conditioning and Refrigeration
0042 Landscape Gardening & Drivers
9102 Park NOC-All Employees & Drivers
Nebraska
8380 Automobile Service or Repair Center & Drivers
7382 Bus Co.: All Other Employees & Drivers
5403 Carpentry NOC
5215 Concrete Work-Incidental to The Construction of Private Residence
7231 Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers
North Carolina
5537 Heating, Ventilation, Air-Conditioning and Refrigeration
8835 Nursing-Home Health, Public and Traveling-All Employees
7219 Trucking: NOC-All Employees & Drivers
Oklahoma
2003 Bakery & Drivers, Route Supervisors
5190 Electrical Wiring-Within Buildings & Drivers
9082 Restaurant NOC
7219 Trucking: NOC-All Employees & Drivers
5445 Wallboard Installation Within Buildings & Drivers
South Carolina
6217 Excavation & Drivers
5537 Heating, Ventilation, Air-Conditioning and Refrigeration
7231 Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers
South Dakota
8380 Automobile Service or Repair Center & Drivers
4244 Corrugated or Fiber Board Container Mfg
8835 Nursing-Home Health, Public and Traveling-All Employees
8102 Seed Merchant
5445 Wallboard Installation Within Buildings & Drivers
Tennessee
9014 Buildings-Operation by Contractors
5645 Carpentry–Detached One or Two Family Dwellings
9052 Hotel: All Other Employees & Salespersons, Drivers
7219 Trucking: NOC-All Employees & Drivers
Texas
5102 Door Frame or Sash Erection
3632 Machine Shop NOC
5183 Plumbing NOC & Drivers
9079 Restaurant NOC
8018 Store: Wholesale NOC
Virginia
5645 Carpentry-Detached One or Two Family Dwellings
5022 Masonry NOC
8835 Nursing-Home Health, Public and Traveling-All Employees
Wisconsin
3632 Machine Shop NOC
4484 Plastics Manufacturing: Molded Products NOC
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.
| State | PROPOSED NCCI/Bureau Impact | Effective Date |
| California | N/A | 08/01/19 |
| District of Columbia | N/A | 11/01/19 |
| Georgia | N/A | 09/01/19 |
| West Virginia | N/A | 11/01/19 |
New Rates Now Available in eLink
Updated rates are now accessible in eLink for the following states:
| State | NCCI/Bureau Impact | Effective Date | Available in eLink as of: |
| Arkansas | -3.4% | 07/01/19 | 05/24/19 |
| Georgia | -8.9% | 07/01/19 | 04/26/19 |
| Louisiana | -5.6% | 05/01/19 | 04/26/19 |
| Montana | -17.2% | 07/01/19 | 04/05/19 |
| North Carolina | -2.8% | 04/01/19 | 03/08/19 |
| Rhode Island | -8.1% | 08/01/19 | 06/07/19 |
| South Carolina | -9.2% | 04/01/19 | 04/05/19 |
| South Dakota | -11.9% | 07/01/19 | 06/07/19 |
| Texas | -12.4% | 07/01/19 | 05/24/19 |
| Virginia | -2.6% | 04/01/19 | 03/15/19 |
Please be sure to discuss pricing options for all new business and renewals with your business development consultant.
The workers’ compensation legislative environment is currently calm. Recent rate decreases are at the lowest level they’ve been in more than 20 years. With a healthy marketplace, employers will be allowed to grow their employee base, improving the economy. But as the market prospers, there are pending legislative and regulatory issues now and on the horizon receiving our attention.
Federal
The United States Senate Committee on Banking, Housing and Urban Affairs held a hearing recently entitled, “The Reauthorization of the Terrorism Risk Insurance Program.” Witnesses included Mr. Tarique Nageer, Terrorism Placement advisory and leader, Property Practice, Marsh; Dr. Howard Kunreuther, co-director, Wharton Risk Management and Decision Processes Center; and Mr. Baird Webel, specialist in Financial Economics, Congressional Research Service. Congress made several improvements to the program during the 2015 reauthorization and it ultimately garnered overwhelming bipartisan support in the Senate with a vote of 93-4. The program is set to expire on Dec. 31, 2020. AF Group will work with industry allies over the next 18 months to execute a lobbying strategy aimed at securing reauthorization prior to the expiration of the Act.
Wisconsin
Attached is the management and labor proposals shared at the most recent Workers’ Compensation Advisory Council (WCAC) meeting. The WCAC will begin discussions on these as they build this session’s “agreed bill.” Because things are currently so politically heated between the republican-led legislature and democratic governor, we don’t anticipate anything of significance to come from the process. That said, the political process is unpredictable and we intend to remain very engaged to minimize risk. Any sort of agreed upon proposal produced by the WCAC won’t be considered by the legislature until the Fall.
Oklahoma
Oklahoma workers’ compensation legislation (HB 2367) has been signed by the governor. The new law, among other provisions, increases temporary and permanent indemnity benefits for injured workers, provides additional funding for the multiple injury trust fund, requires a study of the medical fee schedule, and specifies use of the sixth edition of the AMA Guides. Through negotiations with industry trade associations, the Chamber of Commerce and other interested stakeholders, adverse provisions were successfully removed throughout the legislative process. These included proposed provisions adding loss of earning capacity into permanent impairment determinations, increasing attorney fees, adding hips and shoulders as scheduled injuries, increasing vocational rehabilitation benefits, and expanding the scope and recovery for mental stress claims. The new law took immediate effect.
