I S S U E 02 Mar. 2011 Premium Threshold Reduced SCF recognizes the success that Mountain West Agency Services has had during its first year of operations, and to show its support of the broker community, it has lowered the threshold to do business. Brokers are now welcome to pursue and sign policyholders at a minimum (manual) premium threshold of $25,000. This change is because of your positive feedback, production and support of SCF to your clients and prospects, which is appreciated by SCF’s senior executives. Their response is to expand MWAS operations to allow the broker community additional opportunities. Because your efforts are being rewarded let’s kick our activity into high gear to capture this new found flexibility! Why SCF is an ‘Economic Engine’ Did you know that SCF won recognition as an “Economic Engine” for the state? There is a reason why the state’s largest workers’ compensation insurance was honored and has earned the reputation. SCF has made it a mission to look for new and innovative ways to keep the costs of workers’ compensation insurance as low as possible. Even as healthcare costs have been increasing steadily for the better part of two decades, SCF has managed to keep workers’ compensation rates in Arizona rather stable. This makes Arizona a more attractive place for companies looking to relocate to do business here. Through SCF’s focus on workplace safety, the company has been educating businesses statewide on how safe companies save money. SCF policyholders can view safety training videos from its website (www.scfaz.com) or order workplace safety materials. All this material is designed to keep workers safe. SCF’s Preferred Connection Network gives state employers access to more than 4,000 healthcare providers statewide that specialize on workplace injuries. And because they contract with SCF at fees often less than the Industrial Commission’s Medical Fee Schedule, the impact on an SCF policyholders’ loss ratio is lessened, which results in keeping the base premium lower. Finally, SCF has returned more than $1.5 billion to businesses in the form of safety dividends since 1970. All this adds up to SCF being an economic engine working to help Arizona’s business and economy grow. SCF Loss Runs Let SCF file that We’ve received some questions on the seemingly high “medical only” claims reserves and wanted to take an opportunity to explain why SCF does this. Beginning April 1, SCF will forward a copy of the Employers’ Report of Injury/First Notice of Loss (Form 101) received from its customers directly to the Industrial Commission of Arizona, eliminating the need for the policyholder to do it. SCF establishes a $2,000 medical only claim “reserve” for operational efficiency, which allows its system to streamline the bill paying process on the volume of small claims it receives. This $2,000 figure isn’t an actual reserve in the sense of the expected cost of the claim. Rather, it’s a figure set well above the average cost of a medical only claim, so that SCF’s system can process a vast majority of medical only claims efficiently and cost effectively, streamlining SCF Claims operation. The average cost of a medical only claim is $881 and usually closes within 100 days. When considering the timing of Unit Stat filings (~180 days after the policy expiration), you can see that nearly all medical only claims would be closed. Of course, we can all be good policyholder stewards and advocates to ensure all claims are closed prior to the Unit Stat filing. Secondly, SCF is looking at other system options to maintain operational efficiency. The bottom line is that SCF is working hard to keep its costs low, while timely and accurately adjudicating the high volume of medical only claims it receives each year from policyholders who entrust their workers compensation coverage to SCF. SCF Safety Works Expos Encourage your SCF clients to attend a Safety Works Expo near them. The annual Safety Works Expos are educational events that teach the latest in workplace safety to keep employees safe on the job. This year’s events are scheduled:  In Tucson, April 21  In Phoenix, May 24  In Flagstaff, Aug. 10 SCF’s general session the these events will feature a panel discussion on Arizona’s new medical marijuana law, featuring an attorney, a law enforcement officer and an HR compliance specialist. Sessions will provide attendees with valuable information about keeping employees healthy and on the job. Each attendee will receive access to a safety plan template. This saves policyholders time and makes it easier to comply with the ICA’s reporting requirements for filing a workers’ compensation claim. Previously, an employer had to send the form to its workers’ compensation provider and a copy of it to the ICA. SCF becomes one of only a handful of workers’ compensation insurance carriers in Arizona that can provide this service. “It’s really about customer convenience,” says Phyllis Senseman, SCF director, Marketing and Training. “All they have to do is get it to us and we do the rest. It’s saving them time, money and resources.” Generally, the 101 forms are submitted to SCF either through standard mail, by phone or the web. Now, as they are received, SCF will copy them and send along to the ICA. EPLI Adds Value As we recently indicated via e-mail announcement, Mountain West Agency Services is presenting an EPLI coverage proposal quote – written on Beazley Underwriters paper out of London – to complement SCF workers compensation proposals via our broker channel. Matt Johnson spearheads this effort to estimate employee head count, identify limits and compile an EPLI quote, which includes coverage description, limits of liability options and pricing alternatives. Commission has been set at 12.5 percent for the new EPLI product. Please contact Matt by calling 602-631-2122 or e-mail him mailto:[email protected] to discuss the program. For information regarding Mountain West Agency Services contact: Don Kasper, 602.631.2789 Jim McErlean, 602.631.2792 Wendell Macnab, 602.631.2033 Matthew Johnson, 602.631.2122 Your clients can register by going to www.scfaz.com and click on the Safety Works Expo icon along the left panel. 3030 N. 3rd Street | Phoenix, AZ 85012 | 602.631.2781