Comp Quotes | Fall 2019

Shedding tier restrictions for ARP

Last fall we told you about options for writing business into our two new tiers (G and H). At the time we restricted Assigned Risk Pool (ARP) submissions to 90 days prior to their renewal.

That's about to change: Effective January 1, 2020, we are removing the 90-day submission restriction for ARP.

Thank you for working with us as we opened these two new tiers and later when we added tier L. These have proven to be successful, and we'll continue to find ways to make workers' comp affordable and available to Oregon businesses.

Please contact our service center (888.598.5880) or your agency marketing specialist with questions.

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Important reminders about upcoming renewals

Now that we’ve started the process of moving our renewals into Guidewire—our new policy and billing system—here are a few reminders:

Renewal payrolls
If you do not submit estimated payroll figures for 60 days prior to renewal, we will increase the expiring payroll by an inflationary figure. For 2019, the inflationary figure is 6.2 percent.

Regional prepay policies
Updated payroll estimates are required before regional prepay proposals will be issued. For monthly prepay policies, payroll estimates will need to be received at least 60 days before the renewal effective date. Monthly prepays are billed over 10 installments. If the proposal is not issued more than a month prior to the renewal date, there is not enough time left to bill all the installments. Therefore, if the payroll estimates are not received at least 60 days in advance, the monthly prepay will no longer be available. Quarterly and annual prepay plans can still be considered.

Regional notices of elections
Signed notices of election will be required in the following situations:

• Individual retro plans
• Group retro plans
• Prepay plans
• Policies electing a group option for the first time. These policies will also require completion of the group enrollment form.

Regional combinations and notices of election
Except for individual retro plans, each policy within a combination will receive an individual proposal and notice of election. Requirements for notices of election on combinations will be:

• Group retro plans will require signed notices of election for each entity in the combination.
• Prepay plans: A notice of election will be required for the rate account along with the full prepay payment. If multiple options are proposed, you will need to identify which option has been elected and should note each policy number in your email requesting coverage be renewed.
• Policies electing a group option for the first time: A signed notice of election and completed group enrollment form will be required for each policy within the combination.
• Individual retro plans will continue to be quoted outside of Guidewire. All combined policy numbers will be included on one notice of election. It will need to be signed and returned to SAIF.

For additional information, please review the Guidewire FAQ for agents and the Guidewire edition of Comp Quotes. If you have questions, please contact your regional underwriter or your marketing representative. 

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Some policyholders are receiving two invoices ... and other good reasons to reread the FAQs about our new billing system

Back in February we sent you a special edition of this newsletter that was all about the transition to Guidewire, our new policy and billing system.

We did so because with such a colossal system change there are a lot of things we think you should know. For example: Existing policyholders who renew into our new system will have policies in both systems temporarily—so they may receive two different invoices, one for the expiring term and another for the renewal term. These will not be duplicates—both will require action.

That special edition included a handy list of frequently asked questions. It's been updated since February, so we encourage you to take a look at it again.

We realize that a major change like this impacts you, too. Thank you for your help and support through the transition process, and don't hesitate to reach out to us if there's anything we can do.

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Remember, we have redefined “adjusted rate”

What SAIF has historically referred to as “adjusted rate” has been redefined and includes class rate, modifiers, premium discount, terrorism, catastrophe, and DCBS assessment. What does this mean? A more simplified premium report for policyholders.

This new factor is being recalculated during the policy term after each policy change and/or actual payroll is reported, so that it's more accurate and to avoid reconciliation costs as much as possible. There are a variety of reasons the factor could change during the term, but the primary reasons include coverage additions or removals, or payroll reported higher or lower than estimated.

For policyholders who file their premium report online, this factor will not be used; we will handle the calculations for them as we do today.

Some policyholders used the old adjusted rate to not only calculate the premium report, but also to bid jobs. It's important that they understand the factor no longer represents standard premium; if that factor is needed, the formula is [manual class rate / 100 (x) each factor contained in standard premium].

Read the CQ article from winter 2018.

View an example of the new premium report.

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Transportation and Trucking Workers’ Comp group formed

In an effort to improve the health and safety of workers in the transportation and trucking industry, SAIF has worked with Oregon Business & Industry (OBI) and Oregon Trucking Associations (OTA) to form the Transportation and Trucking Workers’ Comp group. This is a renaming of the current OBIT group with OTA added as a partner.

While both OBIT and OTA had previously endorsed SAIF as their carrier of choice, only OBIT had a group discount product. This agreement will extend the current product to OTA members that meet underwriting criteria effective January 1, 2020. This product will continue with the current OBIT group discount of 2 percent.

When SAIF partners with industry associations, we look for alignment with our vision and values, those that are representative of their industry, and a strong marketing opportunity. Like SAIF, OBI and OTA are not-for-profit organizations that strive to improve worker safety. The addition of a group product for OTA provides SAIF with a new market opportunity, as they are the largest association for the trucking industry in the state, and the opportunity to work more closely with OTA on sharing our combined safety messages.

If you have questions, please contact Pat Morrill, agency and group program coordinator, or Lyn Zielinski-Mills, marketing manager.

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Making Oregon the safest state: emergency preparedness community training

Are you ready in the event of an emergency? Many of us talk about emergency preparedness, but how prepared are we? Tsunamis, earthquakes, and other natural disasters should be considered in every business' safety plan.

Please join us this November in Eugene, Medford, or Salem to learn how to prepare for emergencies. Steve Eberlein, resilience director of Tipping Point Resilience, provides an overview of the Cascadia subduction zone risk and leads a discussion about the cultural barriers that prevent us from talking about emergency preparedness. Steve also provides tools for building a workplace and family emergency plan and emergency kit building.

Steve is a global aid worker and a workplace and community resilience advocate, reaching over 20,000 people in more than 30 West Coast communities. He was a witness to the Sri Lanka tsunami in 2004.

This training is open to the public (not just SAIF policyholders), so we encourage you to tell other customers.

SAIF is committed to making Oregon the safest state, so be sure to check saif.com/training for additional training on safety, wellness, and risk-related topics.

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The law has changed for PTSD for first responders

Studies show that a majority of first responders experience traumatic events in the course of their employment—which is why the Oregon legislature passed Senate Bill 507 earlier this year.

The bill adds the presumption of coverage for PTSD and acute stress disorders as an occupational disease in certain situations for law enforcement officers, firefighters, emergency medical services providers, correction officers, and emergency dispatcher/9-1-1 operators employed by state or local government or other public agency who are full-time and paid.

The person must have been employed at least five years or have experienced a single traumatic event as defined in the criteria for PTSD set forth in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5). So, it's not expected to be much of a hurdle for a psychiatrist or psychologist to diagnose that there was a single or series of traumatic events.

Two tests will be required in evaluating compensability in these claims. First, the employee must establish through a preponderance of medical evidence from a psychologist or psychiatrist that they more likely than not have met the criteria in the DSM-5 for post-traumatic stress disorder or acute stress disorder. Issues around pre-existing conditions and other contributing factors will likely come into play in determining the correct diagnosis.

Second, an insurer or self-insured employer may rebut the presumption by establishing through clear and convincing medical evidence that the duties were not of real importance or great consequence in causing the diagnosed condition.

Feel free to contact Tracy Traeger, 503.315.3624, with questions.

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News in brief

It’s back (next spring)! Save the date for our annual Workers’ Comp Seminar, created specifically for agents. It’ll be April 23, 2020.