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What SAIF's new policy and billing system means for policyholders

What SAIF's new policy and billing system means for policyholders
We've been working on the colossal task of replacing our policy and billing system. In February, we implemented the first phase, and now we're converting all current policyholders to the new system at their renewals.

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 (called Guidewire) will modernize our systems to meet our strategic business needs.

This change is a part of our commitment to 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 agent or our service center (888.598.5880) if you have questions or concerns.

Adjusted 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.

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.

If you file your 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.

If you use the current adjusted rate for internal projections or to bid jobs it is important that you understand the factor no longer represents standard premium; if that factor is needed the formula is: manual class rate / 100 (x) each factor contained in standard premium.

View an example of the new premium report.

Multiple entities on one policy
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 your, or SAIF's, best interest however, to create "multi-entity" policies. Therefore, it will be important that you understand the potential challenges before creating one. Contact your agent to learn more.

Changes to documents
We received requests to print or provide the full policy, including the contract, at each renewal. So as policies renew in our new system, you, or your agent will receive a full policy packet. The renewal packet will look and feel like what they 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.

Covered officer payroll
If you choose 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 policies and when updated estimates are provided at the 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.

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.

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 most cases you will 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 get multiple invoices from SAIF, you need to review, and take the appropriate action with, each invoice.

Reminder of exemption process
You, or your agent, 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