Agent News

Q3 2016

Key Leadership Changes at Accident Fund

Last month, we announced the retirement of current President Mike Britt, and the promotion of Al Gileczek as our new president, effective Jan. 1, 2017.

mike_britt

Mike Britt

 
Al_Gileczek_2014

Al Gileczek

After beginning his career in the industry with Aetna and Hanover/Citizens insurance companies, Mike joined Accident Fund in 2006 as vice president and then assumed the president’s role in 2009. During his tenure, Mike and the Accident Fund team established the brand as a national workers’ compensation powerhouse and expanded its reach to include 20 core states.

“During the past seven years, the remarkable performance of Accident Fund is a direct result of Mike’s consistent, capable leadership,” said Lisa Corless, president of parent company AF Group. “He is truly appreciated by our employees, respected by his peers and revered among our agents and customers. We are grateful for his lasting impact on our organization and we wish him all the best in his retirement.”

Upon Mike’s retirement, Al Gileczek will serve as the new president of Accident Fund. As most of you know, Al has been at Mike’s side for many years, a relationship that predates their time at Accident Fund. For the past nine years, he has been instrumental in assembling our exceptional Business Development team and is well regarded for his business acumen across our organization. Additionally, Al has been appointed the president of CompWest Insurance, effective immediately, which will provide greater collaboration and alignment between these AF Group brands.

“We are excited to welcome Al into this new leadership role, which will ensure continuity of Accident Fund operations with no disruption to partnerships with our valued agents,” said Corless. “Al’s significant experience in the industry, strong affinity with our agents and customers and his proven leadership throughout his career make him an excellent choice to lead Accident Fund to future success.”

Thank you for your continued partnership with Accident Fund. To learn more about these leadership changes, please visit our website. If you have any questions regarding this transition, please contact your business development consultant.

Help Us Improve Our Customer Experience With a Chance to Win $500!

survey-mouseAF Group – through our brands, Accident Fund Insurance Company of America, United Heartland, CompWest and Third Coast Underwriters – is committed to providing the best experience possible for our customers. To assist us in this endeavor, we are conducting a customer experience survey in early October aimed at three key groups – you, our agents, policyholders and injured workers (non-litigated claims only). The responses we receive will help us identify areas to focus on and prioritize as we develop services, products, systems and processes across all our brands in the future.

To build excitement and increase participation, respondents will have the chance to win a $500 gift card! The survey will be available from Monday, Oct. 3 to Friday, Dec. 2, 2016. A link to the survey will be sent on Monday, Oct. 3, to agents via an Agent Alert and via email to those policyholders that we have email addresses for. Postcards containing survey information will be sent to policyholders and injured workers shortly after its launch. Most people will complete the survey in five to 10 minutes.

We especially encourage you to promote this survey with our policyholders so we can ensure we’re meeting their needs and providing the best experience possible. You are our best avenue of communication for many of these individuals and they trust your judgment.

We appreciate your partnership and your assistance with this important initiative. If your questions are not answered below, please reach out to your business development consultant or underwriter for more information.

Customer Experience Survey FAQs

What is this survey for?

This survey is designed to measure how our customers view their interactions with AF Group and our four insurance brands so our organization can develop strategies and direct future resources in response to their feedback.

How do you access the survey?

The survey will be available via web links that will be promoted via emails, postcards and on our customer phone lines. As part of the survey process, respondents will be asked to identify as an agent, policyholder or injured worker and then identify their brand affiliation.

When will the survey be available?

Monday, Oct. 3 to Friday, Dec. 2, 2016.

Is the survey anonymous?

Respondents can remain anonymous, but to be entered in the drawing for a chance to win a $500 gift card, a name and email address must be provided.

What if I’m an agent that writes with multiple AF Group brands?

In the survey, after you identify yourself as an agent, you will be asked: “Please select the brand you primarily do business with. You will be given a chance to review other brands later in the survey.” This will allow you to provide your customer experience feedback for all the brands you work with.

What if my customers or I have technical issues with the survey?

Send all technical questions to [email protected]. You can also contact your business development consultant or underwriter.

How will policyholders and injured workers (non-litigated claims only) be informed of the survey?

For policyholders and injured workers that we do have email addresses for, we will communicate to them electronically. We will also be sending postcards in the mail to policyholders and injured workers promoting the survey close to the survey start date. Customers calling into our brand phone lines will also hear a brief message at the beginning of each call directing them to the survey link. We hope to count on you as well to spread the word to your policyholders about our customer experience survey!

Will this customer experience survey replace the annual agent and customer satisfaction surveys?

While we have conducted different surveys to collect agent and policyholder feedback in the past, it is our intention to use this single survey to collect feedback from these key stakeholders in the future. The frequency of the survey’s distribution is still undetermined.

 

Cyber Security: Scam Awareness
Internet Theft - a man wearing a balaclava and holding a credit card while sat behind a laptop,Starting this quarter, we’ll be including information and tips on cyber security in an effort to keep your business safe – and ours!  In this edition, we want to share a few scams to be aware of.

First, whether on a personal device or a work-provided one, it’s important to be mindful of the kinds of apps you’re downloading. One recent example is the Pokémon Go app, which is wildly popular. Researchers have discovered that many “online tutorials” for the app are linked to malicious software.  There is malicious software that specifically targets Android devices while some will target iOS devices.  Learn more here.

Next, there are several social media scams to be aware of, including fake accounts, comments, discounts, surveys and more. Read about the top five social media-related scams here.

Lastly, and perhaps most disturbing, many online scammers are preying on the public’s empathy for tragedies like the Orlando club shooting and Louisiana flooding by running fake charity scams. Click here for a few tips to keep in mind when helping out.

When in doubt, Google the latest cyber scams before clicking on an unfamiliar link.

We hope these tips will help keep your agency digitally safe. For more useful information, click here for the Department of Homeland Security’s “Stop.Think.Connect.” Toolkit.

OSHA Delays Effective Date of Enforcing Anti-Retaliation Provisions of New Tracking Rule

Accident Report for OSHACiting a need to conduct additional outreach as well as provide educational materials and guidance for employers, the Occupational Safety and Health Administration has postponed the enforcement date of the anti-retaliation provisions of its new injury and illness tracking rule. Enforcement will begin on Nov. 1, 2016, instead of the originally scheduled date, Aug. 10, 2016.

From the OSHA press release announcing the delay: “Under the rule, employers are required to inform workers of their right to report work-related injuries and illnesses without fear of retaliation; implement procedures for reporting injuries and illnesses that are reasonable and do not deter workers from reporting; and incorporate the existing statutory prohibition on retaliating against workers for reporting injuries and illnesses.”

Please encourage your policyholders to familiarize themselves with this new rule, and to learn what types of businesses the standard impacts and when the submission deadlines go into effect, by reading our updated article on this topic.

Accident Fund Group Programs

group-underwriting-criteria-thumbnailIn 2016, Accident Fund added four new Group Dividend Programs, which include more than 33 new chambers, one national group called Zenjuries*, and the addition of five states to the existing Auto Services group.

To reflect these changes, we’ve updated our Group Program marketing materials. Click here for the upgraded groups overview (insert link to map), which can also be ordered through our online order form.  For instructions on how to order marketing materials, click here.

We’ve created a reference guide for all groups and eligibility as well as instructions on how to view dividend histories for reference.

As a reminder, Group Dividend Programs offer the same commission rate, plus no commission reduction for paid dividends**.  For more information contact your group and association specialist or business development consultant.

Group and Association Specialists:

Mike Dake                  Laura Hall

517-708-5127             517-708-5821

outside of MI              MI only

*Agents with policyholders participating in the Zenjuries group, please note their new toll-free number: 888-405-8893. Please be sure to update your records.

**Dividends paid impact profit sharing.

Class Codes

Arkansas

7228   Automobile Towing Company

8829   Convalescent or Nursing Home-All Employees

5190   Electrical Wiring-Within Buildings & Drivers

5537   Heating, Ventilation, Air-Conditioning and Refrigeration

3030   Iron or Steel: Fabrication: Iron or Steel Works-Shop-Structural-& Drivers

Georgia

0042   Landscape Gardening & Drivers

9102   Park NOC-All Employees & Drivers

9082   Restaurant NOC

Illinois

5146   Furniture or Fixtures Installation-Portable-NOC

8835   Home Health

Indiana

8868   College: Professional Employees & Clerical

5537   Heating, Ventilation, Air-Conditioning and Refrigeration

Iowa

8380   Automobile Service or Repair Center & Drivers

5645   Carpentry-Detached One or Two Family Dwellings

3635   Gear Mfg or Grinding

5022   Masonry NOC

9082   Restaurant NOC

Kansas

9101   College: All Other Employees

8868   College: Professional Employees & Clerical

7380   Drivers, Chauffeurs & Their Helpers NOC-Commercial

8800   Mailing or Addressing Co. & Clerical

9082   Restaurant NOC

Maryland

9060   Club-Country, Golf, Fishing or Yacht-& Clerical

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

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

Michigan

8395   Automobile Repairs Facility

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

8868   College: Professional Employees & Clerical

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

8869   Professional Employees: School or College

Minnesota

9014   Buildings-Operation by Contractors

8810   Clerical Office Employees NOC

8868   College: Professional Employees & Clerical

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

4299   Printing

Mississippi

9014   Buildings-Operation by Contractors

6217   Excavation & Drivers

2883   Furniture Manufacturing-Wood-NOC 

Missouri

5645   Carpentry-Detached One or Two Family Dwellings

9101   College: All Other Employees

8868   College: Professional Employees & Clerical

4251   Stationery Mfg

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

Nebraska             

8380   Automobile Service or Repair Center & Drivers

7605   Burglar Alarm Installation or Repair & Drivers

9101   College: All Other Employees

8868   College: Professional Employees & Clerical

2883   Furniture Manufacturing-Wood-NOC

North Carolina

9060   Club-Country, Golf, Fishing or Yacht-& Clerical

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

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

South Carolina

9060   Club-Country, Golf, Fishing or Yacht-& Clerical

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

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

South Dakota

8380   Automobile Service or Repair Center & Drivers

9101   College: All Other Employees

8868   College: Professional Employees & Clerical

8864   Social Services Organization – All Employees & Sales

8044   Store: Furniture & Drivers

Tennessee          

8380   Automobile Service or Repair Center & Drivers

5537   Heating, Ventilation, Air-Conditioning and Refrigeration

9102   Park NOC-All Employees & Drivers

Texas

8391   Automobile Repair Shop & Parts Dept Employees, Drivers

5200   Cement Work-Sidewalks, Cellar Floors or Driveways

8868   College: Professional Employees & Clerical

5190   Electrical Wiring-Within Buildings & Drivers

5183   Plumbing NOC & Drivers

Virginia

9060   Club-Country, Golf, Fishing or Yacht-& Clerical

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

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

Wisconsin

8835   Home Health

3632   Machine Shop NOC

Rate Changes

Core States        

The following core states have a pending rate change. 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.

State Effective   Date
Georgia 03/01/17
Illinois 01/01/17
Indiana 01/01/17
Iowa 01/01/17
Kansas 01/01/17
Maryland 01/01/17
Michigan 01/01/17
Minnesota 01/01/17
Mississippi 03/01/17
Missouri 01/01/17
Tennessee 03/01/17
Texas 01/01/17

Rate Changes in Production

Michigan – The Wisconsin Compensation Rating Bureau (WCRB) is implementing a rate change effective Oct. 1, 2016, with an overall rate level decrease of 3.19%. The new rates became available in our eLink system on Aug. 29.

South Carolina – Effective Nov. 1, 2016, Accident Fund is adopting NCCI’s voluntary loss costs in South Carolina with a slight modification to our Loss Cost Multiplier. Please note that rates will vary by class. New rates became available in our e-business system on July 25, 2016.

Wisconsin – The Wisconsin Compensation Rating Bureau (WCRB) is implementing a rate change effective Oct. 1, 2016, with an overall rate level decrease of 3.19%. The new rates became available in our eLink system on Aug. 29.

Accommodation States

State NCCI/ Bureau Impact Effective Date
New York +9.3% 10/01/16
Oklahoma +3.4% 07/01/16
Rhode Island -7.5% 08/01/16

 

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

Hall of Fame

Arkansas

BHC Insurance, Fort Smith

Cashion Co. Inc., Little Rock

Georgia

Risk Innovations, LLC, Atlanta

Strawn and Company Insurance LLC, McDonough

Illinois

Assurance Agency, Ltd, Schaumburg

Southpoint Insurance Agency Inc, Mokena

Indiana

Gibson Insurance Agency, Inc., South Bend

Shepherd Insurance, LLC, Carmel

Iowa

Harper Insurance Agency, LLC, Manchester

Miller, Fidler & Hinke Insurance Agency, Inc., Clive

Kansas

Robert E. Miller Insurance Agency, Inc., Overland Park

Sims Insurance Services, Maize

Maryland

Early Cassidy & Schilling, Inc, Rockville

Georgetown Insurance Services, Inc., Silver Spring

Michigan

Arthur J. Gallagher Risk Management Services, Inc., Grand Rapids

Ieuter Insurance Group, Midland

Minnesota

Arthur J. Gallagher Risk Management Services Inc., Bloomington

RJF, a Marsh & McLennan Agency LLC Company, Minneapolis

Mississippi          

Bottrell Insurance, Jackson

Ross & Yerger Insurance, Inc., Jackson

Missouri

Risk Innovations LLC, Lees Summit

W.E. Walker-Lakenan, Cape Girardeau

Nebraska

Arthur J. Gallagher Risk Management Services Inc, Omaha

Ryder – Rosacker – McCue & Huston, Grand Island

North Carolina

Senn Dunn Ins, a Marsh & McLennan Agcy LLC Co, High Point

Sentinel Risk Advisors LLC, Raleigh

South Carolina

Southern Risk Insurance Services LLC, Anderson

Turbeville Insurance Agency, Inc., Columbia

South Dakota

Boen & Associates, Inc., Sioux Falls

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

Tennessee

HMP Insurance, Germantown

Shafer Insurance Agency, Inc., Knoxville

Texas

Hibbs – Hallmark & Company, Tyler

Swingle Collins & Associates, Dallas

Virginia

Integrated Insurance Solutions, Inc., Ashburn

Straus Itzkowitz & LeCompte Insurance Agency, Inc., Richmond

Wisconsin

Insurance Marketing Group of Wisconsin, Inc (IMAGE), Saint Germain

R & R Insurance Services, Inc., Waukesha

Legislative Updates

National

The National Association of Insurance Commissioners (NAIC) has produced a second draft of the Insurance Data Security Model Law, which would set standards for insurance companies, agencies and brokers about how and when to notify consumers when a security or data breach occurs. AF Group Government Affairs, in coordination with our Information Security team, remains engaged in the national cyber debate as an active participant in the American Insurance Association’s (AIA) Cyber Task Force. On a weekly basis, the task force of industry representatives and technology subject matter experts convenes to hear current events and developments taking place in the cyber arena.

At this time, the industry continues to highlight the priority concern of uniformity to NAIC. AF Group’s primary concern with the NAIC Insurance Data Security Model Law pertains to uniformity and the fact that NAIC cannot make the current landscape more complicated for insurers by creating an additional layer of potentially conflicting security and breach requirements. We recognize a need to establish security standards for the industry, but we need a well-drafted law that gives insurers a clear path to compliance without imposing burdens that do not help consumers. We believe it is essential that any model that is adopted by the NAIC and enacted in the states reflect reasonable and practical breach response protocols, protect consumers, and be adopted uniformly throughout the country.  AF Group will continue to remain engaged nationally as cyber rules and regulations are developed.

Oklahoma

Oklahoma’s workers’ compensation alternative, the “Oklahoma Option”, which was established in the 2013 overhaul of the state’s workers’ comp system, has been ruled unconstitutional by the Oklahoma Supreme Court. The court ruled it was an unconstitutional “special law” that gave employers the ability to provide inequitable treatment for their injured workers.  The law had allowed employers to “opt-out” of the state’s workers’ compensation system by offering an alternative private plan. This decision ultimately leaves Texas as the only state that allows employers to not carry workers’ compensation insurance.

Although the industries opposition efforts of legislative opt-out proposals have been successful to date, we anticipate renewed challenges in 2017 from proponents in Tennessee, South Carolina, and potentially Wisconsin.  AF Group will continue to keep you informed as opt-out initiatives gain attention and momentum throughout the 2017 legislative cycle.

Missouri

The 2016 legislative session has brought a modification to the Missouri Workers’ Compensation Law. Under current Missouri law, the employer has the option to pay the entire medical cost associated with a medical-only claim (no lost-time benefits) that does not exceed $1,000. If the employer exercises this option, then the claim will not impact the calculation of the experience modification (though the employer maintains an obligation to report the injury). Under enacted law SB 700, as of Aug. 28, 2016, the maximum amount for a claim to be eligible for this option would be increased from $1,000 to 20% of the experience rating split point, or $3,200 based on the currently approved split point of $16,000 in Missouri. Since the split point may change annually due to inflation adjustments, the maximum amount for a claim to be eligible for this option would be expected to increase over time.

Click here to view the enacted legislation. The new language of significance is on pages four and five.
Sources:  NCCI, AIA, MIRS, WorkCompCentral

If you have any questions, email us at [email protected]!