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| Workers' Compensation
Program Renewals |
We have finalized coverage for SELF's Excess Workers' Compensation program
at the $1 million self-insured retention level (SIR). SELF avoided the
worst impact of the hard market on July 1 by retaining coverage in January
2002 at $.01. The discussion among members to extend the policy term received
the unanimous support of the Workers' Compensation Ad Hoc Committee and
was ultimately ratified by the Board. In so doing, program members were
able to benefit from an established rate, maintain statutory limits, and
in accord with renewal rates now being quoted saved a minimum of $1.3
million in premium. SELF's current policy expires on January 15, 2003.
The renewed policy will not include statutory limits since SELF's excess
insurer will not offer them.
The Excess Workers' Compensation market is still under hard market
conditions and could stay this way for the next 18-24 months. The reasons
for the current market conditions are due to the lack of profitability
of the insurers and the perception of California risk. California workers'
compensation claims costs far outweigh those of any other state. As
a result, underwriters are asking for substantially more underwriting
and claims processing information from our members.
SELF's underwriter, Republic Western, has indicated an initial renewal
of the program. It is subject to receipt of both the renewal and the
Third Party Administrator (TPA) applications prior to February 15, 2003.
Members who have not completed both the renewal and TPA applications
by this time will be deleted from the policy. If a member is unsure
whether they have submitted both of these forms, please call Tim Kern
at the SELF Office.
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