Agent News

Our 3 for 3 incentive program was designed to reward agents who increase their new business on policies under $25,000 in premium. Because the program was so successful in 2016, we’re extending it to 2017. Agents who increase their small business policies by three versus the same quarter of 2016 will earn an additional 3% commission on all new small business policies ($25,000 and under) for the quarter. That could equate to an additional 37% of commission per quarter on your small business accounts.

Program Details

• Small business policies eligible for the program must be $25,000 and under.
• Quarterly incentive will run through 2017.
• All classes of business are eligible.
• Pay out and goals are based on individual agency offices.

Program Participation

• Agents who were appointed in Q1 of 2016 are eligible for the incentive.
• AFXpress agents are not eligible for this incentive.
• All states are eligible.

Contact your business development consultant to discuss how you can maximize the benefits of this exciting program.  For more program details, visit our website.

Nearly one third of workers’ comp claims in the Midwest are caused by slips and falls on ice and snow. With the winter weather upon us, be sure your Accident Fund customers are taking advantage of our S.A.F.E: Slip and Fall Elimination campaign. This campaign increases awareness of winter weather-related slip-and-fall injuries and offers steps that can be taken to reduce their likelihood.

Throughout the winter season, you and your customers can access our WorkSafe Solutions e-blasts, as well as our newly updated website to gain valuable information on weather-related safety. We’re confident our array of materials will help your customers stay S.A.F.E. this winter, no matter what the forecast has in store.

Be sure to visit our campaign for more information and encourage your Accident Fund customers to do the same. If you have any questions, please contact me or your loss control consultant.

We’re proud to announce that AF Group – which includes Accident Fund and our three related brands (CompWest, Third Coast Underwriters and United Heartland) – has been selected as aBest Place to Work in Insurance for 2016 by Business Insurance. This year, AF Group earned second place in the large employer category (for the second year in a row) and first-place honors as an insurer/provider.

“We are pleased that for the sixth year in a row, our organization has been recognized by Business Insurance as one of the best places to work in insurance,” said Lisa Corless, president of AF Group. “This repeated honor is a reflection of our amazing team and their efforts to build a fun, collaborative workplace culture — one that is focused on providing the best possible service to agents, policyholders, injured workers and each other.”

Business Insurance launched the Best Places to Work in Insurance program in 2009 to identify and recognize high-quality employers in the commercial insurance industry and honor them for creating workplaces that encourage employees to thrive. Accident Fund Holdings and its brands have an excellent reputation for creating a positive workplace culture focused on open communication and a commitment to inclusion and innovation. This atmosphere encourages employees to work hard and best serve our agents and policyholders.

We were excited to see some of our agency partners make the list as well. Congratulations to the following for their ‘Best Places to Work’ recognition:

• Assurance Agency Ltd.
• Cambridge Consulting Group
• CBIZ Benefits and Insurance Services
• HNI Risk Services
• Holmes Murphy & Associates
• Hylant Group
• Smith Lanier & Co.
• Kapnick Insurance Group
• Lipscomb & Pitts Insurance LLC
• Lockton Companies LLC
• M3 Insurance
• Preferred Insurance Services Inc.
• SIG
• TexCap Insurance 

We are proud to once again be considered among the Best Places to Work in Insurance and pleased to share this recognition with our agency partners.

Arkansas

8391  Automobile Repair Shop & Parts Dept Employees, Drivers

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

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

Georgia

8380  Automobile Service or Repair Center & Drivers

5537  Heating, Ventilation, Air-Conditioning and Refrigeration

9083  Restaurant: Fast Food

Illinois

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

8835  Home Health

Indiana

8835  Home Health

4484  Plastics Manufacturing: Molded Products NOC

Iowa

8380  Automobile Service or Repair Center & Drivers

9014  Buildings-Operation by Contractors

5403  Carpentry NOC

3110  Forging Work-Drop or Machine

3118  Saw Mfg

Kansas

8380  Automobile Service or Repair Center & Drivers

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

8116  Farm Machinery Dealer-All Operations & Drivers

3076  Sheet Metal Mfg

8864  Social Services Organization – All Employees & Salespersons

Maryland

9101  College: All Other Employees

8842  Group Homes, All Employees, Salespersons & Drivers

8864  Social Services Organization – All Employees & Salespersons

Michigan

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

7380  Drivers, Chauffeurs & their Helpers NOC-Commercial

9058  Hotel: Restaurant Employees

9521  House Furnishings Installation NOC & Upholstering

5445  Wallboard Installation Within Buildings

Minnesota

5462  Glazier-Away From Shop & Drivers

8842  Group Homes – All Employees & Salespersons, Drivers

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

8864  Social Services Organization – All Employees & Salespersons

8033  Store: Meat, Grocery And Provision Stores Combined-Retail NOC

Mississippi

9101  College: All Other Employees

8833  Hospital: Professional Employees

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

Missouri

8391  Automobile Repair Shop & Parts Dept Employees, Drivers

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

7380  Drivers, Chauffeurs & their Helpers NOC-Commercial

5183  Plumbing NOC & Drivers

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

Nebraska         

8393  Automobile Body Repair

8380  Automobile Service or Repair Center & Drivers

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

8006  Store: Grocery Retail, Includes Rural General Stores

5445  Wallboard Installation Within Buildings & Drivers

North Carolina

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

5474  Painting or Paperhanging NOC & Shop Operations, Drivers

7855  Railroad Construction: Laying or Relaying of Tracks or Maintenance of Way by Contractor-No Work on Elevated Railroads

South Carolina

7390  Beer or Ale Dealer-Wholesale & Drivers

5479  Insulation Work NOC & Drivers

4484  Plastics Manufacturing: Molded Products NOC

South Dakota

5645  Carpentry-Detached One or Two Family Dwellings         16,370.00

5221  Concrete or Cement Work-Floors, Driveways, Yards or Sidewalks-& Drivers         30,085.00

3724  Machinery or Equipment Erection or Repair NOC & Drivers         24,004.00

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

7231  Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers         20,594.00

Tennessee       

5537  Heating, Ventilation, Air-Conditioning and Refrigeration

9083  Restaurant: Fast Food

8018  Store: Wholesale NOC

Texas

2003  Bakery & Drivers, Route Supervisors

6504  Food Sundries Mfg NOC-No Cereal Milling

5183  Plumbing NOC & Drivers

8017  Store: Retail NOC

7219  Trucking: Noc-All Employees & Drivers

Virginia

8861  Charitable or Welfare Organization Professional Employees

8106  Iron or Steel Merchant & Drivers

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

Wisconsin

8835  Home Health

3629  Precision Machined Parts Mfg NOC

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.

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.

Rate Changes in Production

Illinois – Effective March 1, 2017, Accident Fund is adopting NCCI’s proposed loss costs in Illinois with an overall average rate level decrease of 13.4%. In addition, we’re making some adjustments to our loss cost multipliers. The actual change will vary by class.  New rates became available in our system on Dec. 5.

Indiana – Effective Jan. 1, 2017, Accident Fund is adopting the Indiana Compensation Rating Bureau’s overall rate level change of -9.3%. Rates will vary by class.  New rates became available in our eLink system on Nov. 7, 2016.

Iowa – Effective Jan. 1, 2017, Accident Fund is adopting NCCI’s rate change in the state of Iowa with an overall industry rate level decrease of 4.7%. The actual change will vary by class. In addition, we’re making a slight adjustment to our rate deviation for Accident Fund Insurance Company of America from -3% to 0%. New rates became available in our eLink system on Oct. 17, 2016.

Kansas – Effective Jan. 1, 2017, Accident Fund is adopting the NCCI loss costs in Kansas. The overall average loss cost level decrease is 8.4% for the voluntary market, but rates will vary by class. These new rates became available in our eLink system on Dec. 5, 2016.

Maryland – Effective Jan. 1, 2017, Accident Fund will adopt NCCI’s loss costs in Maryland, resulting in an overall loss cost decrease of 9.9% for the voluntary market. The change will vary by class. New rates became available in our eLink system on Nov. 7, 2016.

Minnesota – Effective Jan. 1, 2017, Accident Fund will adopt the mandatory Minnesota Workers’ Compensation Insurers Association pure premiums, which reflect an overall average pure premium level change of -12.1% (individual risks will vary).  New rates became available in our e-business system on Nov. 7, 2016.

Texas – Effective Jan. 1, 2017, Accident Fund is modifying its Loss Cost Multipliers in the state of Texas. Rates will vary by class.  New rates became available in our eLink system on Dec. 5, 2016.

Accommodation States

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

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

Arkansas

Cashion Co. Inc., Little Rock

Meadors, Adams & Lee, Inc., Little Rock

Georgia

Starr – Mathews Agency Inc, Calhoun

The Norton Agency, Gainesville

Illinois

Critchell Miller & Petrus Inc, Elmhurst

Unland Co., Pekin

Indiana

Gibson Insurance Agency, Inc., South Bend

ISU Stewart Brimner Peters & Co., Fort Wayne

Iowa

Arthur J. Gallagher Risk Management Services, Davenport

The Hoffman Agency, Dunlap

Kansas

Conrade Insurance Group, Inc., Newton

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

Maryland

D’Camera Group, LLC, Annapolis

Georgetown Insurance Services, Inc., Silver Spring

Michigan

Capital Insurance Group, Bloomfield Hills

Oakland Companies, Clarkston

Minnesota

1. A. Price Agency, Inc., Eden Prairie

The Christensen Group, Inc., Minnetonka

Mississippi     

Ross & Yerger Insurance, Inc., Jackson

Insurance & Risk Managers, Brookhaven

Missouri

Risk Innovations LLC, Lees Summit

W.E. Walker-Lakenan, Cape Girardeau

Nebraska

Quinn Insurance Inc., Omaha

UNICO Group, Inc., Lincoln

North Carolina

Harold W. Wells & Son, Inc., Wilmington

Jake A. Parrott Insurance Agency, Inc., Kinston

South Carolina

Tidwell Agency, Inc., Lexington

Turbeville Insurance Agency, Inc., Columbia

South Dakota

Black Hills Insurance Agency Inc., Rapid City

Boen & Associates, Inc., Sioux Falls

Tennessee

Shafer Insurance Agency, Inc., Knoxville

William Blount & Associates, Knoxville

Texas

Insgroup, Inc., Houston

Lucien Wright Insurance Service, Inc., Fort Worth

Virginia

Engle Paxson & Hawthorne Ins Svcs, Leesburg

Preferred Insurance Services, Inc., Fairfax

Wisconsin

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

1. I. C. Inc., Onalaska

Federal

Sen. McCain Seeks Cybersecurity Committee; Views Cyber Attacks as “Acts of War”

U.S. Senate Armed Services Committee (SASC) Chairman John McCain (R-AZ) mentioned he intends to establish a new cybersecurity subcommittee, which he hopes Sen. Lindsey Graham (R-SC) will chair. McCain believes recent cyber attacks — including alleged Russian hacks, acts of industrial espionage, and military capabilities that foreign states have been able to crack — need to be viewed as an “act of war”

These comments and actions highlight the rise of cybersecurity as an issue carrying more importance in Congress. While the armed services committees will likely have little impact on issues pertaining specifically to property-casualty insurance, they could facilitate change in U.S. government policy toward cybersecurity within the national security context that could create momentum for shifts in policy for commercial entities. As we learn details, we will be sure to pass along.

Arkansas

Court Upholds Time Limit for Filing Workers’ Compensation Claims

The Arkansas Supreme Court has handed down a decision that upholds the three-year time limit for filing an injury/sickness claim after exposure. The court went on to say it was bound by the law as written, and if there is a problem with that, “it lies at the feet of the General Assembly,” thus, virtually inviting the Arkansas legislature to change it. The Arkansas Chamber hailed the decision as a major victory for the exclusive remedy of the workers’ compensation system.

Illinois

AIA Testifies in Support of Work Comp Reform Proposal

AF Group national trade partner, the American Insurance Association (AIA), testified in support of workers’ compensation reform proposal HB 4248 before the House Labor and Commerce Committee on Nov. 28. The Republican-sponsored legislation contains several important reform provisions including a study commission, a revised medical fee schedule and provisions for electronic claim filing. Although the industry supports these changes we noted additional improvements could be made to further their effect. No action was taken on the legislation. We expect the budget reform/workers’ compensation impasse between the governor and legislative leadership to continue indefinitely.

Florida

Court Order Voiding Workers’ Compensation Rate Increase is Stayed Pending Appellate Review

On Monday, Dec. 12, the Florida 1^st District Court of Appeals granted the Emergency Motions for Stay filed by the National Council on Compensation Insurance (NCCI) and the Florida Office of Insurance Regulation (OIR). As a result, the circuit court order voiding OIR’s approval of the 14.5% workers’ compensation rate increase is stayed pending the appellate court’s review. The appeal will proceed on an expedited basis with NCCI and OIR filing their initial briefs on Jan. 11, 2017, and the plaintiff’s answer due Jan. 23. Final briefs (NCCI and OIR’s reply briefs) are due by Feb. 2.

Workers’ Compensation “Opt-Out” Bill to Be Introduced in Florida

On Dec. 7, newly-elected Florida Rep. Cord Byrd (R) circulated an unfiled “workers’ compensation reform” bill that he stated would “prevent job destroying rate increases” and “allow more choices for both employers and employees.” The bill would permit employers to either provide workers’ compensation coverage in compliance with the workers’ compensation system or be subject to suit in the tort system.

Texas

District Court Issues Favorable Work Comp Ruling in Air Ambulance Case

On Dec. 15, the Travis County District Court issued a very favorable air ambulance case decision. The court held that the federal airline deregulation act does not preempt the Texas workers’ compensation medical fee schedule and related workers’ compensation laws and regulatory provisions relating to payment of medical fees. In addition, the court held that reimbursement under the medical fee schedule should be at 125% of Medicare, not the 149% previously decreed by State Office of Administrative Hearings.

Opt-Out

AF Group Anticipates Additional Opt-Out Initiatives in 2017

Although AF Group legislative opposition has been successful to date, we anticipate renewed 2017 challenges by proponents in Tennessee and other unknown states. Aside from individual state challenges, opt-out feeds into a negative narrative of the states capability to administer the workers’ compensation system and encourages an argument for federal standards or federal supervision of some kind. AF Group Government Affairs will continue to work with industry partners to oppose opt-out initiatives wherever they arise.