800.285.8525 Contact us

Comp Quotes

Workers’ comp news for SAIF’s agents

New SAIF policy and billing system starts this month | What it means for agents

As we mentioned in the October 2017 issue of Comp Quotes, we've been working on the colossal task of replacing our policy and billing system. In February, we will implement the first phase—which will include new business submissions—and later this year we'll convert all current policyholders to the new system at their renewals.

This special edition of Comp Quotes covers many of the changes you, and policyholders, may see in the upcoming months and how these will be communicated. We'll continue to build on the FAQ (frequently asked questions) to make this transition as smooth as possible for everyone.


The basicsThe basics

Why are we replacing our policy and billing system?
Our existing system no longer meets our business needs, especially our ability to offer new products or features that you've requested. The new software will modernize our systems to meet our strategic business needs.

This change is a part of our commitment to continue our strong partnership with agents and provide exceptional service to our policyholders and injured workers as we move into the future. But we know change can be difficult, so as we implement the new system, please contact your agency marketing specialist (Pat Morrill, Kim Turner, or Erika Meier) if you have questions or concerns, or contact your underwriter or our service center (888.598.5880) if your question is policyholder-specific.

SAIF systems down
While we implement our new policy system, SAIF systems will be down from Friday, February 15 at 5 p.m. through Monday, February 18. (The 18th is Presidents Day.)

Submission process unchanged
The submission process itself has not changed. We prefer to receive them through saifQuote. Submissions submitted as of February 19, 2019, will be reviewed from within our new system, Guidewire. Submissions submitted prior to February 19, 2019, will be managed from our existing system.

SAIFPlus changes to prepay
When SAIF begins issuing service center installment policies in Guidewire, we will replace the SAIFPlus credit (1 percent with a max of $300) with a prepay credit. The prepay credit will be a fixed 1 percent credit with no premium cap. The estimated modified premium of the issued policy will be the basis for calculating the credit. The credit will not change, except in the case of cancellation. For cancelled policies, we'll recalculate the prepay credit using final modified premium for the coverage period.


Adjusted ratesAdjusted rates

What SAIF has historically referred to as "adjusted rate" will be redefined and include class rate, modifiers, premium discount, terrorism, catastrophe, and DCBS assessment. What does this mean? A more simplified premium report for policyholders.

This new factor will be recalculated during the policy term after each policy change and/or actual payroll is reported. It's being recalculated 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 if reported payroll is higher or lower than what was estimated.

For policyholders that file their premium report online, this factor will not be used; we will handle the calculations for them as we do today, since it's just as accurate.

Some policyholders use the current adjusted rate to not only calculate the premium report, but also to bid jobs. It will be 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.


Multiple entities on one policyMultiple entities

Our new system gives us the ability to write a single policy that covers multiple entities with common majority ownership. It's not always in the best interest of the customer or SAIF, however, to write multi-entity policies. Therefore, it will be important that our customer and agent understand the potential challenges before writing one.

In order to write a multi-entity policy, the entities must have common majority ownership and matching coverage:

  • Entity type: Entity type dictates owner subjectivity, so the entity types must all be the same.
  • Pricing: The tier and groups offered will be applied to all entities written on the same policy. If the tiers or group options don't match, separate policies must be written.
  • Employer's liability coverage: ELCB limits must match for all entities covered under one policy.
  • OCCPAP: We can't issue a multi-entity policy unless the OCCPAP discount is earned by each of the entities issued on the policy.
  • Coverage extensions: We cannot limit coverage (example: USL&H/FELA) to a single entity, so if we have entities with different coverage needs and we are not comfortable extending the coverage to all entities, they need to be written on different policies.
  • Payment plan type: The payment plan type must match for all entities covered under one policy.
  • Assigned risk and voluntary coverage: We cannot place entities priced in different markets on the same policy.
  • Unit stat: Coverage and claim details for all entities covered under a multi-entity policy will be reported as a single unit. For customers with many entity and ownership changes that affect combinability, a multi-entity policy will not be a good fit. Separate policies should be issued instead.

If there is any indication that payroll or claims data may need to be separated because an entity may be sold or a customer requests separation of the loss experience by individual entities/businesses, the policies should not be written on a multi-entity policy. If you write a multi-entity policy, all claim losses will roll to that primary entity/business—not each individual entity/policy.

  • If you write a multi-entity policy, all claim losses will roll to that primary entity/business-not each individual entity/policy.
  • If you write a multi-entity policy, all claim communication will be mailed to that primary entity/business-not each individual entity/policy. That includes acceptances, denials, hearing notices, etc. The use of location codes will not change the mailing of correspondence to the primary address. The addresses cannot be changed manually.

Agent online commission informationAgent online commission

The commission pages will include statements from both our policy systems. Like policyholder invoicing, each of our policy systems will manage commission calculations and payments.

If you download commission detail and upload to your internal system, the file format remains the same; however, we have removed some data items that were not needed.

View an example of the new commission statement page.


Changes to documents

We heard your requests to print or provide the full policy, including the contract at each renewal, so as policies renew in our new system you'll receive a full policy packet. The renewal packet will look and feel like what you currently see for new polices, which includes the contract, information page, and all endorsements.

This means more pages, but it does provide the full policy picture each year. If your agency hasn't signed up for paperless with SAIF, please click on the "Go paperless" link from your agency homepage.


Covered officer payroll

If a policyholder chooses personal election, SAIF will need to include the covered officer payroll in the officer class and not in the employee class. This applies to new submissions and when updated estimates are provided at your next renewal. This is how reconciliations currently show officer payroll.


Policyholder Profile

The endorsement page of Policyholder Profile continues to be a list of endorsements created for a term, but for terms issued from our new system the print link will not be available. To view policy documents, use the Policy Documents link on the left menu. The Policy Documents page includes a complete list including invoices, premium report, renewal documents, and policy changes.


More system changes coming

Delinquency process reminder
Regional policies will follow the same automated delinquency process as service center and assigned risk. What does this mean? If a premium report or payment is not received timely a pending termination letter will be sent to the customer. In the past there have been exceptions for some policyholders and they received personal phone calls prior to the termination letter being sent. This will no longer occur. As an agent you will continued to be copied on the termination letters that are sent to your customers.

Invoice changes
Existing policyholders who renew into our new system will have policies in both systems for a period of time. Invoices will continue to be generated from the system the term is written from, so in many cases a policyholder 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. If you receive a call regarding multiple invoices from SAIF, please make sure they understand they need to review, and take the appropriate action, with each invoice.

Learn more.

Conversion process and timing

Prior to converting renewal policies over to the new system, we'll send a mailing to all existing policyholders explaining the various changes. You'll also receive a copy.


Not new ... but still important

Reminder of exemption process
Policyholders or agents must designate in writing which eligible officers are exempt.

SAIF requires written confirmation of an exemption designation. Policyholders or agents must designate in writing which eligible officers are exempt from coverage and send the designation to SAIF.

When possible, we'd like to receive the signed exemption application form. This form provides the necessary information to help a policyholder or agent make the correct determination based on state law. If we don't receive the exemption documentation, we'll endorse the policy so that all working officers, partners, or members are covered and payroll will be required to be reported.

For additional information regarding exemption process