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You are cordially invited to the Annual PRO GROUP Holiday Open House

  Thursday, December 4, 2008
  4:00 p.m. to 7:00 p.m.
  Hors d’oeuvres, Wine Tasting and Holiday Fun

LOCATION: At 575 S. Saliman Road, Carson City, NV 89701 and 175 E. Reno Ave., Suite C-9, Las Vegas, NV 89119. The favor of a reply is requested by calling (775) 283-4259, or by email: RSVP@pgmnv.com

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Attack on Well Funded Self Insured Groups in Nevada Levied by Employers Insurance Group

Some of Nevada’s SIG Members have received a letter from Employers Insurance Group questioning the liability of membership in a Nevada self insured group. It is interesting that the executive staff of Nevada SIG’s major competitor is choosing to use scare tactics rather than trying to succeed on their own merit. Many of Nevada’s small business operators remember the days of SIIS (later becoming Employers Insurance Company) and the lack of communication, bad claims practices, audit disputes and arbitrary cancellations experienced by its policy holders. Nevada SIG’s became available in 1995 through an act of legislation to offer a viable solution to the failing state run workers’ compensation monopoly. SIIS/Employers were not contributing to the success of the Nevada workers’ compensation policy holder.

Although it is important to know how SIG liability and the joint and several liability agreement may affect your business, established SIG’s are probably more secure than many private insurance companies, including Employers Insurance Group. To help our SIG Members better understand the workings of a self insured group the staff of Pro Group Management, Nevada’s largest self insured group administrator have addressed the “ten questions” that are suggested you ask your SIG administrator.  It is also important to understand that should you desire, a Pro Group Management staff member can meet with you in person to address any concerns you might have.

1. How well funded is my self insured group?

  • Your group has been authorized by the Nevada Commissioner of Insurance, assuring that it is a viable option for workers’ compensation coverage in Nevada. Statutes mandate a tangible net worth for the group of at least $2.5 million, that actuarial reviewed rates are charged and that the SIG purchase adequate excess insurance (both aggregate and specific) coverage, to protect the SIG from large loss exposure. The excess insurance must be purchased from an insurer approved by the Commissioner of Insurance of the State of Nevada. 
  •  The audited financial statements of the group are reviewed by the Commissioner on an annual basis. The SIG Board of Trustees receives a monthly financial statement for review. Quarterly actuarial reviews allow for appropriate determinations to be made regarding adequate rate structure given current claims level and the ability to pay claims that have occurred. The reviews also allow SIG Board Members to make informed decisions about potential rate increases or rate reductions. Your SIG has never experienced a rate increase and has benefitted from several rate reductions.
  • All self insured groups managed by Pro Group Management exceed the minimum standards required of self insured associations in the State of Nevada.  Please take notice that while traditional insurers domiciled in Nevada and other states have failed financially, no group self insurance program for workers’ compensation that is domiciled in Nevada has ever failed. 

2. How many claims have occurred while my company has been a member?

  • There are five self insured groups that are managed by Pro Group Management and the claims history is different for each SIG. The SIG’s claims history is shared with each Group Member by their account executive during annual program reviews. It is important to understand that the SIG’s managed by Pro Group Management have incurred loss ratios of less than 42% since group inception. 

3. What is the expected lifetime cost of each of these claims?

  • The lifetime cost of each claim is determined by the specifics of each claim. State law mandates that adequate claim reserves be established in accordance with maximum payout potential of the individual claim. In reviewing reserve submittals, The Nevada Insurance Commissioner’s primary concern is the payment of claims and the continued solvency of each self insured group. Any claims that exceed the SIG’s retention level are submitted to the SIG’s excess carrier for continued payment of benefits.
  • Historically, the payout on SIG claims are less than comparable insurance claim payouts due to members controlling the cost of their claims with better administration and their huge commitment to risk management and loss control. Less than 5% of Nevada Workers’ compensation claims remain open after 36 months and less than 1% are reopened for additional benefits.

4. What does Joint & Several Liability mean to my business?

  • All SIG Members take on an ownership role in their SIG. Similar to the ownership role a mutual insurance company might use. This ownership role joins them together with the other Group Members forming a responsibility of addressing claims that occur while they are Members of their SIG.
  • All Nevada SIG’s are required to have an appropriate level of excess coverage (both aggregate and specific) to assist in limiting the group’s liability on large claims. Additionally, a level of coverage is established to reduce potential liability caused by claims frequency issues.  Group liability generally falls between $300,000 and $500,000 per incident.
  • The SIG Board of Trustees and the Administrator have the responsibility of assuring the SIG is populated by appropriate group members considering the prospective group member’s potential risk to group stability. Information considered includes the prospective members’ safety record, implemented safety procedures, claims history, the ability to pay assessments and the overall attitude of the prospective member. Approximately 60% of potential SIG members applying for consideration in a Pro Group Management SIG are denied, either because of the potential risk to the SIG or because of the lack of a positive workplace safety attitude.    

5. What is my company’s exposure if another member of my self insured group has a claim?

  • As a member of a self insured group, your assessments are “pooled” with other members’ assessments for the payment of losses, loss adjustment expenses and other expenses.  The loss exposure is limited due to the mandated purchase of excess insurance.  This means that your group is responsible for meeting the self insured retention level of the group. This SIG requirement assists in limiting the consequences of any large loss that might occur, reducing exposure and liability of individual Group Members.  

6. Can a claimant sue my company for the full cost of a claim?

  • No.  Nevada has Workers’ Compensation coverage as the exclusive remedy for work-related injuries.  NRS 616A.020.

 7. Could my annual premiums be negatively impacted if another self insured group in my state goes out of business?

  • Not really. The likelihood of this happening is extremely remote. Before any member of a self insured group is assessed for the failure or cessation of another self insured association, all of the assets of that association and all of the security deposits held by the Commissioner for that association including all of monies paid by all SIG’s and held by the Commissioner in the Insolvency Fund would have to be expended first.

 8. What liabilities does my company have if I leave my self insured group?

  • A member remains liable for any obligations incurred by the association during their tenure as a member of the association.  Any additional assessment that may be considered would be based on the prorata share of unpaid obligations based on the Group Member’s annual assessment amount divided by the SIG’s combined annual assessments. For example: if your annual assessment is $10,000 and the groups’ annual assessments are $12,000,000, then you would divide your annual assessment by the Group’s annual assessment. The level of liability for the payment of additional assessments as outlined above, should they occur, would be .0008333333% of any additional assessment required. In the unlikely event that there was a $1,000,000 additional assessment placed on the SIG the prorata share would be $833.

9. What are the legal requirements of leaving a self insured group?

  • A member of an association may terminate his membership at any time by giving notice to the association’s administrator in accordance with Nevada Revised Statute 616B.386 (8). This involves a 120 day notice of intent to cancel.

10. Will I need to reinsure any costs related to claims that occurred while I was part of the self insured group?

  • No.

Additionally, the Self Insurance Institute of America or SIIA has taken exception to the survey conducted by Employers Insurance Group. The report "distorts the record of SIG performance and regulation" and "fails to recognize" the role they play in helping small and mid-sized employers obtain affordable workers' compensation coverage, according to SIIA, a national trade association representing companies involved in the self-insurance and alternative risk transfer market.

For more of this story, click on or type the URL below:
http://www.ifawebnews.com/articles/2008/10/22/news/property/doc48ff3857aeb4b557028572.txt

Pro Group Management is available to discuss this matter further if desired. For more information contact Cliff King, Director of Group Operations at (800) 859-3177 or by e-mail at cliffking@pgmnv.com.


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In This Issue

CLAIMS
SAFETY

 

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Dear Adjuster,

As a member of one of your self-insured groups, when I have an employee who has an accepted workers' compensation claim, is all medical testing they need throughout their claim automatically approved?

Signed, Curious

Dear Curious,

Thank you for asking.  This is a good question and brings up a couple of different situations that I can point out that come up often during a claim.  To answer your question, I will refer to NAC 616C.129.  A treating physician or chiropractor must request written authorization from the insurer before ordering or performing any service with an estimated billed amount of $200 or more.  This request must include an explanation of the need for each service being ordered or performed.  If any service is performed without the insurer’s written authorization, the insurer is not liable for the fee for the service, with the exception of the provider showing good cause for providing the services without prior authorization.  So, the answer to your question is no, treatment is not automatically approved. 

Furthermore, all services, regardless of cost, must be by a provider on our provider panel.  To safeguard your employees, it is important to help direct them to choose a panel provider.  The providers on the panel are on it because they are familiar with worker’s compensation laws and processes.  We want to make sure that the injured worker gets the best possible medical care. 


Dear Adjuster,

Are there any recent court decisions that my affect upcoming situations relating to workers' compensation?

Signed Interested,

Dear Intrested,

I will share a couple of recent Supreme Court Decisions that could potentially affect future situations in relation to worker’s compensation. 

Bob Allyn Masonry and S & C Claims Services vs David Murphy

Mr. Murphy’s employer requested that Mr. Murphy deliver equipment from his employer’s construction yard to the employer’s job site.  It is important to note that the employer requested that Mr. Murphy perform this delivery on Mr. Murphy’s scheduled day off just before he was to report to his second, unrelated employment.  Mr. Murphy delivered the requested equipment.  However, after leaving his employer’s job site and while on the way to his second employment, Mr. Murphy was involved in a motor vehicle accident and sustained serious injuries. 

While coming and going from work is typically not considered within the course and scope of employment, the Supreme Court ruled to expand the scope of the “coming and going” rule and allowed expansion of the existing “special errand” to provide for coverage of circumstances such as this.  Therefore, Mr. Murphy was found to be within the scope of his employment at the time of the accident.  The Supreme Court did, however, allow for this “special errand” to be carefully applied.

An employer must carefully weigh the potential liability when sending an employee on a special errand during hours that the employee is not regularly scheduled to work.  Associated Risk Management will review each case thoroughly prior to applying this new standard.

Vredenburg (Surviving Spouse) vs Sedgwick

Mr. Vredenburg injured his back while working for the Flamingo Hilton.  Subsequently, he reported suffering chronic intractable low back pain and his physician indicated this chronic pain contributed to his depression.  His depression reportedly led to his suicide.   His widow requested death benefits since she believed her husband’s death was a result of his injury and the related chronic pain and depression.  The TPA denied widow’s benefits since Mr. Vredenburg’s death was categorized as a “willful intention to injure himself” as defined in Nevada law.

The Supreme Court found that Mr. Vredenburg’s death may be compensable under worker’s compensation and adopted a new standard by which to determine “willful intention.”  The matter was sent back to the Appeals Officer to reconsider the facts and apply the new standard to this case. 

A TPA must be careful to identify potential depression and suicidal ideation in their chronic pain patients. 

Submit Claims Questions to Kelly Woodward at
Pro Group Tel: (800) 859-3177,
Fax (866) 439-9701 or email: kellywoodward@pgmnv.com


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BAWNSIG NEWS  
 

BAWNSIG NEW MEMBERS

Acacia Landscape
Cerretti Construction LLC
CNS Restoration
Efficient Space Planning Nevada, LLC
Graeagle Construction LLC
Lathrop Stoneworks
LB Builders
Newt Concrete Construction
Rambo Builders LLC


For those of you who are new members, have new employees handling claims, or just missed the previous workshops...

Pro Group Management, Inc. has scheduled Claims Workshops via Video Conferencing to take place on the following days in our Carson City and Las Vegas offices unless otherwise noted.

Seating is limited.

REGISTRATION - To reserve your seat for the training, please call Jackie Vogel at 1-800-859-3177, or Register online, View Live Reservation Form (PDF) or fax this form back to Pro Group Management, Inc.

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There is no Regional Training in November and December

PGM SAFETY SERVICES, LLC WILL DISCUSS THESE TOPICS IN THE JANUARY 2009 SAFETY SEMINAR 

Click Here to see our 2009 Safety Training Schedule for all Locations

  • OSHA #300 LOG RECORDKEEPING

OSHA #300 Log Recordkeeping Requirements:
Nevada OSHA requires that all employers maintain this log (no exemptions). 
Protect yourself from large fines over this important paperwork.  Paperwork discrepancies lead to some of the largest fines levied by OSHA.

  • NEVADA SPECIFIC SAFETY REGULATIONS

Nevada Specific Safety Regulations:
Nevada OSHES has implemented rules that go beyond those required by federal OSHA. 
Protect your company from potential fines by understanding these differences.  

DATES AND LOCATIONS
Carson City, January 14, 8am - 12 Noon
Crystal Bay, January 14, 1:30pm - 4:00pm
Reno, January 15, 8am - 12 Noon
Las Vegas, January 21, 8am - 12 noon

View Signup PDF for These Seminars and Locations

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PGM Safety Services  

Why Drugs and Safety Don't Mix
Communication and documentation are two of the keys to creating a successful testing program.

This is the second half of a continuing article from October 2008.

Ease of Use, Ease of Administration, and Immediacy of Results

Ease of use, ease of administration, and rapid results are terms associated with any successful business process employed in a workplace setting. Laboratory-based urine testing has been the accepted method for more than 20 years. The process involves sending individuals to a collection site to donate an observed urine specimen. This process requires two to four days at a minimum. Furthermore, this test is easily "cheated" because few specimen collections are actually observed, and as a result the process has been limited primarily to pre-employment situations. The process is also not gender friendly.

On-site tests for drugs of abuse can be conducted using various biological specimens (urine, hair, blood, and oral fluids). Oral-based tests have recently come to the forefront because of their ease of use, acceptance, and overall functionality for workplace environments. Oral-based testing can be done on site under direct observation of the test administrator and can yield a result in five to 15 minutes. This technology solves the problems typically associated with urine testing, such as sample adulteration and gender and dignity issues.

Communication & Documentation

While any new corporate program will probably be met with some degree of skepticism, a drug testing program can be an especially sensitive issue. Direct and open communication with all constituencies is a must.

Organizations need a clearly written drug testing policy that is distributed to all employees for their signed acknowledgement. The policy should detail that drug abuse creates economic and social consequences that are unacceptable in the workplace environment and should state that illegal drug use will not be tolerated and may result in adverse personnel actions. Sample policies are available from industry experts and can be customized to the needs of a corporation. Diligent communication also should include an education or orientation program for employees.

A comprehensive drug testing program can be viewed as the "operating manual" for a company's drug testing policy and drug-free workplace. It is important to have supporting documentation for all aspects of the program for legal purposes. Documentation can be broken down into two categories. The first is program documentation, which would include the drug testing policy, certification papers for the program administrator, and details of the EAP program. It is important to keep accurate and up-to-date documentation of drug test results for employees. Just as you would add disciplinary or performance review documentation to a personnel file, you must be sure to keep all testing results. It is also recommended that all tests be reviewed by a Medical Review Officer (MRO) who can validate the results.

The second category would be documentation that tracks the success of the program over a given timeframe. For example, information that highlights how the employee base as a whole is testing is important in evaluating the program's effectiveness.

Complete and accurate documentation is the best way to protect yourself from future lawsuits.

Employee Assistance

Drugs of abuse testing should be viewed as a means to help secure an employee's and the employer's right to a safe work environment. Should an employee be confirmed positive for drugs of abuse, an employee assistance program (EAP) can provide counseling and referral programs. It may be conducted and/or managed directly by the employer or by a third-party contractor. Programs are always operated in a confidential manner.

Many larger companies provide "first offenders" with access to EAP programs. Smaller businesses may provide access via the employees' health coverage plan. Drug testing during and after participation in an EAP program is common. Testing subsequent to completing an EAP program and returning to work is typically referred to as "return-to-duty" testing.

Pitfalls to Avoid

The benefits of a robust drug testing program are well established. However, organizations should not implement a drug testing program without:

  • A written and signed drug testing policy
  • Thoroughly reviewing federal, state, and local guidelines
  • Performing adequate due diligence of the drug test supplier/manufacturer
  • Using certified test administrators
  • An MRO service
  • Communicating the requirements and benefits of the drug testing program to everyone involved.

While every organization should clearly be advised of the potential risks in executing an improper drug testing program, a safe, secure work environment remains the overriding goal of any corporation. It is critical that every business develop quantitative metrics relative to substance abuse, including but not limited to: on-the-job accident rates, worker's compensation costs, health care utilization rates and associated costs, employee turnover and absenteeism, employee theft and/or inventory shrinkage, and the incidence of workplace violence.

This article appeared in the August 2006 issue of Occupational Health & Safety.

References
1. Substance Abuse and Mental Health Services Administration, Results from the 2002 National Survey on Drug Use and Health: National Findings, September 2003.
2. National Institute on Drug Abuse

 

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PGM Safety Services  

Safety Tips: Winter Driving

According to the Federal Emergency Management Agency (FEMA), the leading cause of death during winter storms is transportation accidents. Preparing your vehicle for the winter season and knowing how to react if stranded or lost on the road are the keys to safe winter driving. The following information was found on the U.S. Department of Transportation, National Highway Traffic Safety Adminis­tration (NHTSA) website at www.nhtsa.dot.gov and the Federal Emergency Management Administration (FEMA) website at www.fema.gov.

Before You Go On A Trip: Prepare for the trip!

Keep cars and other vehicles fueled and in good repair. Have a mechanic check the following items on your car: battery, antifreeze, wipers and windshield washer fluid, ignition system, thermostat, lights, flashing hazard lights, exhaust system, heater, brakes, defroster, and oil level.

Install good winter tires; Make sure the tires have adequate tread.  Know the requirements where you will be traveling. Some jurisdictions require that to drive on their roads, vehicles must be equipped with chains or snow tires with studs.

Keep these items available and in your car: a windshield scraper and small broom for ice and snow removal, flashlight with extra batteries, jumper cables, abrasive material (sand, kitty litter, even floor mats), shovel, warning devices (like flares), first aid kit with pocket knife, matches, brightly colored cloth to use as a flag, extra clothes, small tools, and blankets. For long trips, add food and water, medication, and cell phone.

Plan trips carefully. Allow plenty of time, listen to the radio or call the state highway patrol for the latest road conditions, be familiar with the maps/directions, and let others know your route and arrival time. Always travel during daylight and, if possible, take at least one other person.

During Your Trip: Protect Yourself:

Dress appropriately for the weather and in several layers of loose-fitting, lightweight, warm clothing rather than one layer of heavy clothing. Buckle up and use child safety seats properly.

If a blizzard traps you in your car: stay in the car and do not set out on foot unless you see a building close by where you know you can take shelter. Pull off the road, set hazard lights to flashing and hang a distress flag from the radio aerial or window.  Turn on the inside dome light so rescue teams can see you at night. Be careful not to run the battery down. Occasionally run the engine to keep warm. Beware of carbon monoxide poisoning, keep the exhaust pipe clear of snow, and open a downwind window slightly for ventilation.

 

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PGM Safety Services Regional Safety Training Classes

NEW RULES FOR SAFETY TRAINING ATTENDANCE

A lot of time is dedicated to preparing and holding frequent regional safety seminars for our Group Members. The safety seminars offered are available to assist in complying with Federal and State Regulatory Standards and to assist in developing a safer work environment that always results in a lower injury incident claim rate. We encourage and expect all Group Members to take advantage of the Training Seminars as needed.  The only training with a minimal fee for materials, (only $15), is CPR First Aid Certification Training.

Although most training offered is a benefit of SIG Membership, PGM Safety Services has had to implement a requirement for advanced notification of guaranteed attendance. Class space has often been limited, with some members being turned away. Since all members are offered the opportunity of participating in the safety seminars, we are asking that Group Members take attendance seriously.  Please help by pre-registering for all Safety Seminars you plan on attending.  You will note that a charge of $25 dollars will be applied if the registrant fails to attend the pre-registered seminar without a 5 work-day notice of cancellation.  What better deal could anyone ask for:  “The class is free as long as you guarantee attendance and show up for the seminar.” 

Click on this link: 2009 Regional Safety Training Schedule - All Locations  for the 2009 PGM Safety Services’ Regional Training Schedule.  Take the time to select the classes you want to attend in 2009 and set aside the time for training that will help reduce your overall claims exposure.  Blast faxes will be sent out monthly for training seminars offered that month for pre-registration.   For more information on available safety training or to review the attendance policies contact Bob Arnold by email at bobarnold@pgmnv.com or by phone at (800) 859-3177.

"If you think training is expensive, try ignorance!"

 

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Group Self Insurance
575 S. Saliman Rd.
Carson City, NV 89701

1-800-859-3177

SIG ALERT

A Publication of Pro Group Management, Inc.

This Newsletter is published for members of the self insured groups administered by Pro Group Management, Inc.
Reproduction for member use is encouraged

Did you know you may be causing yourself un-needed risk? A good number of group members filling out required claims forms, like the C-3, fail to complete the form in it’s entirety. They assume that the information is readily available to the reader of the form.

What these group members maybe missing is that the State of Nevada has regulatory control over your self insured group and may choose to audit Claim files at any time. When performing the audit one of the things the State looks for is “missing information” on claims forms. The State is serious about this issue and fines for information left blank is up to $1,000 for every box absent information on the claim form.

Pro Group Management offers Claims Training on a monthly basis to assist our members in understanding the importance of providing accurate and complete information when a workers’ compensation claim occurs. If you are unsure of how to complete a required claim form please call Kelly Woodward of Pro Group Management at (800) 859-3177 or check this months SIG Alert to see when the next Claims Training Workshop is taking place.

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