Ct annual meeting 2011

Welcome to the
Second Annual Meeting
January 19, 2011
Contractor Self-Insurance Trust

Introductions
Audited Financial Statement Review
9/30/10 Statement
Current Events for Self-Insurance Groups
Current Regulations
The Truth about “Trust to Trust” Liability
Future Plans
Safety
Introduction Packet Review
MQM™
Large Loss Report
Survey Results
Questions and Answers
Agenda

Financial Review Balance Sheet

Financial Review Income Statement

Contractor Self-Insurance Trust Fully Funded
Trust Industry Shakeout
What we have learned from failed Trusts
Rates set too low
Selection criteria failures
Not enough AP & S services offered
No member underwriting
Trustees not involved enough
Current Events in the Self-Insurance World

In the past, not enough regulation
WCB actions to increase regulation
Trusts must be fully funded on a regulatory basis
Definition moved from 90% to 100%
Not all assets counted as regulatory
Statutory Security deposits
Assets pledged as collateral for bonds
A/R over 90 days old
Unearned premiums
Differed taxes and tax assets
Prepaid expenses
Current Regulations

All Groups must now use a January 1 fiscal year
Investment Restrictions
No limit on government obligations
Maximum of 25% in corporate stocks & bonds
Maximum of 5% in any one corporation
Maximum of 5% in foreign corporations
Strict reporting requirements
Before each fiscal year begins
Rate adequacy actuarial study required
Budget worksheet required
All fixed and variable expenses required
Budget must be approved 60 days prior to year start
Current Regulations (cont.)

Year End Reporting
Financial Statements
Actuarial Reports
Payroll by codes
Trustee meeting minutes
Dividend Distributions
WCB must approve
WCB distribution schedule (If period still fully funded)
Current Regulations (cont.)

Rumors about failed trusts bringing down healthy trust
Misunderstandings from carriers and agents
The Truth
NY Compensation system is paid for by assessments on self-insurers and traditional insureds
25A: Reopened Cases
15-8: Second Injury Fund
151: Administrative Expenses of WCB
IDP: Funds studies by the DOH and DOL
50-5: Expenses of the SID of the WCB, including payments to claimants of defaulted self-insurers
The Truth About “Trust to Trust” Liability

The Truth About “Trust to Trust” Liability (cont.)

Contractors Trust positioned very well
Fully Funded
Rates remain low
Payroll reporting method is unique
AP & S Services
MQM™ Program
Other challenges met
2007 WC Reform Law
Reduced rates by 33% from 2006 levels
Maximum claimant benefit doubled from $400 to $800
Pharmaceutical and medical costs increased
Recession reduced payrolls and premiums
Future Plans

Future Optimism
2010/2011 rates were increased 20% for our group signaling a beginning to the end to the soft market.
Medical Treatment Guidelines effective 12/1/10
Articles on the difficulty in writing WC insurance and carriers being disciplined in underwriting
OUR members have been excellent in preventing accidents and responding to our AP & S recommendations.
Future Plans (cont.)

Introduction Packet Review
AP & S Services
Tool Box Talks
Housekeeping Inspections (shop only)
Jobsite Inspections
Job Safety Training Certificate Forms
Accident Investigation Forms
Avoid and Minimize Hearing Loss Claims
Pre-Placement Physical Exams
Sample Disciplinary Action Policies
Safety Posters
Safety

MQM™ Program
Series of AP & S questions that are revised each year to respond to the ongoing safety needs of a member
65% of scoring
Combined with 5 year loss information
35% of scoring
Can lead to SAFETY discounts or surcharges of:
10%
5%
0%
5% surcharge
See current questions and score sheet.
Safety (cont.)

Scores of:
90 – 100 earning 10%; 21 members
0 – 45 earning -5%; 14 members
MQMTM 2010 Results

Safety (cont.)
Large Losses Report

Lifting Causes
Lifting 80 lbs bag
Moving pool heater
Moving ladder
Moving saw
Lifting door frame (2)
Struck with 2 x 6 from above
Lifting lid and turned wrong
Fell from ladder
Others (2)
Safety (cont.)
Large Losses Report

Summary of what to do to prevent a large loss
Excellent hiring practices
Pre-placement Physicals
Proper Training of new employees
Proper Lifting Training
When lifting something heavy “Ask for Help!”
Safety (cont.)
Large Losses Report

Customer Survey Results

Questions
Complete Questionnaire
Lunch
Questions and Answers

Ct annual meeting 2011

by erin_gregory

Accessibility

Categories

Upload Details

Usage Rights

Statistics

Ct annual meeting 2011 Presentation Transcript