Self Insured Groups:
Workers Compensation Self Insurance


Today there is a whole new alternative solution called Group Workers’ Compensation Self-Insurance

Approved by the State of California, Self-Insurance is an alternative vehicle that provides the medium size companies within the same standard industrial codes (SIC) the same opportunity that large national companies have enjoyed for years.



   About Workers Compensation Self Insurance

Get control over your insurance premiums!

Business in your own industry with excellent loss experience and solid financials are partnered as a group to provide its members cost effective Workers’ Compensation coverage. A Group Administrator and a third party claims administrator (TPA) are hired to manage both the group and the claims process. Excess Insurance will be purchased to protect the group against any major claims.

Group Self-Insurance is the most effective way to control your short and long term Workers’ Compensation costs:

  • Group programs must be approved, meet and operate under stringent requirements of the State of California as administered by the Department of Industrial Relations (DIR) www.DIR-SELF INSURANCE WEBSITE
  • Established as a “not-for-profit” mutual benefits corporation, the program is owned and operated by its members and elected Board of Trustees
  • The group is protected from catastrophic losses by financially sound excess and re-insurance carriers
  • There is No Capital Investment required




   How Do Self Insured Groups Work?
  • Members contribute to a fund, which is conservatively invested and tracked by policy year. The group pays each policy year expenses (administrative, loss prevention, claims, reinsurance etc.) from the funds collected. The surplus and investment income is returned to those members who were participants in that program year.
  • This program provides the medium size company the traditional opportunity that large self-insured companies have enjoyed for years.
  • Self-Insurance has traditionally out performed the private, captive and high deductible program alternatives by 20 to 40% Members are no longer at the mercy of the private insurance carriers and their cycles.




   How Do Self-Insurance Groups Succeed?

The program is operated for the benefit of member businesses within their own industry

  • Members must meet strong safety, financial, experience modification and loss history criteria established by the Board of Trustees.
  • Claims are handled aggressively including fraud and subrogation. The third party claims administrator is contracted directly by the Board of Trustees who has the ability to take action if superior services are not provided. Claim Reserves are accurate and fair - no profit is built into cost.
  • In-depth Risk Management services are provided by qualified safety professionals experienced within your own industry.
  • Detailed Financial and Loss Reports are provided to all members.
  • Future rates are based on the success of the group in holding losses to a minimum




   California Truckers Safety Association (CTSA)
California Truckers Safety Association (CTSA)



   CTSA Member Comments

— Here's what some of the members of our self–insured Workers Compensation group have to say about the program:

"When we formed the group, in 2003, our goal was to provide ourselves with insurance coverage at affordable prices and forever free us from outside market cycles.  I have no doubt that this was one of the better business decisions I have made in my over fifty years in the trucking business.

  We have benefited from claims handling second to none.  All claims are handled promptly and members interests are always the first priority, with all injured employees taken good care of. We have built a solid financial base with sufficient assets to take most all of the Risk out of our self-insured group.  And the frosting on the cake is that we have been able to return a large amount of premium contributions back to our members in the form of dividend distributions.

  The California Workers' Compensation marketplace have evaporated again and rates have been spiraling upward.  California Workers' Comp insurance company combined operating ratios for 2009, 2010, 2011 and 2012 are 136%, 137% and 136% and 127% respectively and continue to have adverse development. The results are several Work Comp Companies have left the market and the remainder have dramatically raised their rates. Because of our successful and stable reputation and operational profitability, we are now in the drivers? seat in selecting new members to slowly continue our profitable growth.

CTSA is a company owned by the Trucking Industry and operated for the benefit of the Trucking Industry and will continue to be here and remain competitive when the other players have driven away."

Walt Keeney
Food Express, Inc.
Arcadia, CA




"Our Company has been in the CTSA program since 2010. Our experiences with their claim management personnel have been exceptional.  The transition to work programs they facilitate have minimized our claim exposure and gets our people back to work quicker. Something we had not experienced with our previous insurance carriers.  With membership comprised of trucking companies, we have the opportunity to network and share knowledge and experiences with those who share the same mindset of safety"

Joe Giammona
JSG Trucking
Acampo, CA




"I like the opportunity to network with the many successful trucking company members who attend the CTSA Annual Meetings. Safety Consultant, Grant Campbell, has shared many of his ideas on how to make our operation safer and eliminate employee injuries and help me build a safer and stronger company. We certainly appreciate the money we save by being a member owner of the CTSA. I like reviewing CTSA's many years of superior results compared to the traditional California workers Compensation Insurance Companies. I am pleased to be associated and participate with the multi-generational family owned trucking company partners."

Mark Woods, Jr.
Wildwood Express
Kingsburg, CA




"I am happy to be a part of the group. Claims people are absolutely night and day over the State Fund. We can actually talk to the same claim examiner all the time. Interaction has been very positive from both an injured employee that needs the care and a business stand point. We are not just a number like we were at State Fund."

Mike Morgan
Operations Manager
R. D. Reed Heavy Transport
El Cajon, CA




"First thing I have to say, we are very comfortable with the people we are working with.  They are very approachable and are truly interested in helping and doing everything they can to remedy the situation.  They take the time to explain everything along the way.  I truly enjoy working with the CTSA people.  In my experience over the years, I have never dealt with any people that are better. Joining the CTSA Work Comp group is the right step for  Truckers."

Lyndon Watt
Wattrans, Inc.
Fontana, CA




"We were pleasantly surprised and very happy that we received dividend checks. You guys are really efficient and it is a pleasure working with you.

Bob Fowler
K. B. Fowler Trucking, Inc.
Camarillo, CA




"I like the idea that we are owners of this company. It's great having access to all of the Board of Trustees which is one of the reasons we joined. I appreciate the thorough screening of new members which gives me additional security."

Charlie Ramorino
Roadstar Trucking, Inc.
Hayward, CA




"Excellent, excellent, excellent program in controlling my costs. I get money back and I have a say in how the company is run and how the claims are handled. In my 40 plus years in the trucking business, this is the most aggressive claims handling I have ever experienced."

Lee Jennings
Lee Jennings Target Express, Inc.
Manteca, CA




"I like the fact that we as carriers have more control. We appreciate the efforts of the Board of Trustees and are proud to be part of this group"

Michelle Johnson
Johnson Trucking
Alpine, CA




Jeff' s comment upon receiving news of a recent dividend disbursement:

"I am tearing up I' m so happy"

"I am happy about the results of an aggressive investigation and undercover video surveillance on a driver's injury claim.

We believed that this claim was fraudulent and now have the evidence to reduce the loss and pursue prosecution against the driver.

I have steam coming out of my ears and I am almost tempted to play the undercover surveillance video on a closed loop in the driver' s room "

Jeff Fenton
Durkee Drayage Company, Inc.
Richmond, CA




"Money, Money, Money – Savings and dividends.

The claims handling is fantastic. Claims are watched and closed efficiently which helps me get my guys back to work and saves me money."

Dan Hubbard
Keeney Truck Lines, Inc
Maywood, CA




"We have been in the CTSA Group since it began in 2003.  The greatest aspect is that we have direct access to our claims adjustor and that we have the ability to make good business decisions in settling claims. The group itself and how it is run with AVI Risk Services. and Allen Lawrence & Associates is superior to any other workers' comp program I have ever been in. Gosh, more than $5,000,000 in dividends is always nice too."

Jim Harrison
Harrison Nichols
Azusa, CA




"Tremendous value on the claim side – you control your destiny on where the claims begin and where they end. The superior claims handling reduces our costs and the group' surplus profits are distributed back to our member owners in dividends. This is definitely a classy organization."



Jon Cramer
CFL, Inc.
Certified Freight Logistics, Inc.
Santa Maria, CA




"I like all aspects of the program that I've dealt with. More Specific? The one on one personal service. Susan has always been there for me to answer questions and help with situations. She makes you feel like you're the only one she's working with. Another refreshing quality is how claims are taken seriously. A claims isn't treated like a leisure issue that will be paid off without investigation."

Tom Chorbagian
Neal Trucking, Inc.
Riverside, CA




"Our dad, Jack Jones, started Jack Jones Trucking back in 1971 with a commitment to the safety of our employees and the community. The CTSA is comprised of trucking companies that make safety their top priority, too. As a member–owner, our workers' comp rates have decreased, we enjoy sharing in the dividends and working with CTSA's professional staff."

Valerie Liese & Erin Craig
Jack Jones Trucking, Inc.
Ontario, CA




"CTSA worker's comp program and the claims' department exceed in their professionalism and dedication. We are grateful for your commitment to personal customer service, dependability, and exceptional communication. Your attention to our company's needs and the needs of our employees are second to none. Participating in the CTSA program has saved our company company significant amounts of money on our annual premium. Thank you for your exceptional and supportive customer service."



Martin Gordon and Rosemarie Wood
Valley Spreader, Inc.
Brawley, CA




"Very friendly and cooperative people that run the CTSA program. We enjoy working with the whole team. We appreciate how professionally our claims are handled..."

Tracy Pfaff
Gileno Distribution
Mira Loma, CA





   Food Products Group
Self Insured Groups-Captives: FPCA

Food Products of California Worker's Compensation Program, Inc. (FPCA)

— Group Program Benefits

Innovative Approach To Traditional Workers’ Compensation Insurance For Food Products

  • Accepted standard industry code (SIC) 20: meat & meat products, confectionery, dairy products and related products
  • Rates can be reduced as much as 30% less than traditional insurance or State Fund rates
  • Future premium savings, as well as savings from reduced administrative costs
  • Improved cash flow through elimination of advanced premium payments
  • Approved and regulated by California Department of Industrial Relations
  • Excess and aggregate insurance coverage provided by “A” rated national insurance carrier
  • State certified and approved Safety and Loss Control programs
  • Improved loss experience through more effective loss prevention and loss control
  • Board of Trustee participation through underwriting review and approval process
  • Improved service and control through specialized Workers’ Compensation Industry professionals
  • Industry specific, dedicated and experienced program administrators and claims’ management adjusters
  • Long-term stability, as well as potential for dividend returns from loss and expense-fund surpluses
  • Self-Insured program with 100% group surplus and interest income owned by its members

— Initial Submission Requirements

  • Accord and program application inclusive of SIC code and experience modification
  • Five years of currently valued loss information
  • Description of losses in excess of $50,000
  • Five years of historical payrolls and premiums
  • Estimated payroll for 2006-2007 by class code
  • Latest year-end financial statement
  • Supplemental information may be required

— Eligible Classes

Class Code Description Class Code Description
0034 Poultry Raising 2109 Fruit-dried fruit packing
2002 Macaroni Mfg 2111 Canneries
2003 Bakeries & Cracker Mfg. 2113 Canneries-fish
2014 Grain or Rice Milling 2116 Fruit Juice Mfg.
2014 Feed Mfg. 2117 Vegetable or Fruit Processing - Frozen
2030 Sugar Mfg. or Refining-beet/cane 2121 Breweries or Malt Houses
2063 Creameries & Dairy Products Mfg. 2142 Wineries
2095 Meat Products Mfg - NOC 2142 Distilling
2102 Fruit or Vegetable Dehydrating 2142 Vinegar Mfg.
2106 Olive Handling 2150 Ice Mfg. Or Ice Dealers
2106 Pickle Mfg. 2163 Bottling- Beverages
2107 Fruit-fresh fruit packing 6504 Confections & Food Sundries Mfg. Or Processing
2108 Fruit-citrus fruit packing 8021 Meat Dealers Wholesale
 


 

 

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