In This Issue:
- More Benefits and Savings: Put Group Insurance to Work for You
- The Group Discount: It’s Your Money
- Safety in Numbers
- An Easy Way to Find Your Group
- How to Enroll in Group Insurance
- Group Profiles: A Tradition of Partnership and Service
   - California Farm Bureau Federation
   - Golden State Builders Exchanges
- Alternative Dispute Resolution (ADR) Group Programs
- Learn More About Groups

More Benefits and Savings: Put Group Insurance to Work for You

Whoever came up with the phrase “power in numbers” could have been referring to State Fund group insurance. When you become a member of one of our association partners, you may be eligible for a group workers’ compensation insurance policy and can tap into the power of lower premiums and added benefits. State Fund’s group insurance program is available through more than 200 associations. Our group partners represent the vast majority of industries in California, including construction, agriculture, manufacturing, and services.

Group insurance is designed to promote and reward safety and safe work practices. We’ve been working with California trade associations since shortly after our inception in 1914 because it is mutually beneficial for our policyholders and us. Historically, our group policies have recorded lower claims losses than individual policies, providing California businesses with cost savings and safer workplaces.

Direct Benefits for You

On top of the dedicated policy and claims services that are included with every State Fund policy, employers receive additional benefits by participating in group insurance:

• An upfront 6 percent premium discount (and, for small employers with few employees, lower minimum premiums).
• Custom safety programs and services tailored to meet the needs of your industry.
• Support and assistance from experienced group insurance specialists.
• Association benefits that may include supplier discounts, trade shows, marketing events, legal assistance, and lobbyist representation.

Convert Your Policy to a Group

If you currently have an individual policy with State Fund, it is easy and cost-effective for you to convert to a group policy on your next renewal date. This issue of COMPonents details your group insurance options and the many ways a State Fund group policy can help your business. You can also contact your broker for group information, or call the State Fund Customer Service Center at (877) 405-4545.

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The Group Discount: It’s Your Money

As a group member, you automatically receive a 6 percent discount on your State Fund policy. This discount is combinable with other discounts and credits for which your policy qualifies, including:

• Experience modification (ex-mod) rating. Depending on actual historical payroll and losses, your ex-mod may be a credit (under 100%) or a debit (over 100%). We are required to apply your ex-mod as determined by the Workers’ Compensation Insurance Rating Bureau. In our example below, we will use a credit ex-mod, indicating an above-average safety record for your industry.
• Claims Free Credit or Merit Rating Discount (granted to employers with good safety practices and claims records).
• ADR program discount (if applicable).
• Premium discount (an automatic credit factor for premium levels above a certain threshold).

Do the Math

To show you the savings power of group insurance, let’s look at a real-world sample comparison:

• Employer 1 has an annual base premium (based on payroll and classifications) of $50,000, an ex-mod of 88%, and a Claims Free Credit of 10%. The final premium is $35,690.20.
• Employer 2 has the same base premium, ex-mod, and Claims Free Credit and also belongs to a State Fund group program. The final premium is $33,582.69—a savings of more than $2000 just for joining a group.

It’s simple: The group insurance discount lets you keep more of your hard-earned money in your business.

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Safety in Numbers

Safety was the original purpose of group insurance. By bringing together employers in similar kinds of businesses, group programs could target industry-specific safety services and reduce on-the-job injuries. It’s a formula that has worked out quite well over the years.

With group insurance, you have access to relevant information and services that can help you create a safer work environment for your employees and comply with industry safety regulations. Our association partners provide safety services over and above the high-quality resources available to individual policyholders. So in addition to State Fund’s tailored services—such as industry-specific newsletters and safety meeting topics—you can enjoy group member benefits that may include:

• Safety committees that monitor claims costs and loss trends.
• Claims reviews and additional help with managing claims costs.
• Loss control professionals with experience in servicing group accounts and specialized industry expertise in making your operation safer.

With all these safety services at your disposal, group membership makes it easier for you to save costs and protect your employees.

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An Easy Way to Find Your Group

As a State Fund policyholder, you have access to a convenient listing of State Fund group programs through State Fund Online. The Group Lookup tool lets you search for State Fund group insurance partners that are a good match for your business.

If you have registered your policy for State Fund Online, it’s easy to begin using Group Lookup:

1. Log in to State Fund Online.
2. On your Welcome screen, look for the Policy menu and select Group Lookup.
3. You will come to a page where you can search by trade association or group name or by classification code.
4. Your search results will direct you to association membership information and eligibility requirements.

If you have not registered for State Fund Online, you can do it for free in just a few minutes.

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How to Enroll in Group Insurance

1. Join a qualifying association for your industry and pay the annual dues. You must have 51% or more of your payroll in a governing classification approved for that association. Group Lookup (see related article) will give you a list of associations in your industry.
2. Have an experience modification (ex-mod) and loss ratio that meet group thresholds. An ex-mod and loss ratio are calculations that factor in your premium and claims history. Typically groups require an ex-mod of 125% or less and a four-year average loss ratio of 65% or less, but requirements may vary from group to group, if applicable.
3. Convert your policy on its renewal date. (Note: Most groups allow you to retain your annual rating date no matter what the group’s anniversary date is.)

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Group Profiles: A Tradition of Partnership and Service

California Farm Bureau Federation

With more than 90,000 members, the California Farm Bureau Federation is the largest agricultural organization in the state. One of the many ways the Farm Bureau serves farmers and ranchers is through its group workers’ compensation insurance program with State Fund.

Since 1943, this partnership has provided Farm Bureau members with accessible, competitively priced workers’ compensation coverage as well as valuable services such as field safety. These benefits help farmers and ranchers protect their employees, grow their businesses, and contribute to California’s agricultural abundance.

Helping Farmers Grow

If you have a farm-related business but are not yet part of the State Fund-Farm Bureau group program, we encourage you to take a closer look.

• Savings. Group members automatically receive a 6 percent premium discount on their State Fund policy. For small farm employers with low payroll, the group’s minimum premium starts at just $150.
• Safety focus. State Fund works closely with the Farm Bureau to offer agriculture-specific safety training and consultation in English and Spanish. We develop new safety products each year that help farmers and ranchers prevent hazards and injuries. State Fund loss control specialists who work with Farm Bureau group members are experts in agricultural safety and ergonomics.
• The “voice of agriculture.” The Farm Bureau is an influential advocate for farmers and ranchers on essential industry and regulatory issues such as water, endangered species, zoning, and more.

You can find out more about the many benefits of membership at the Farm Bureau Web site. For more information on converting your State Fund policy and securing all the advantages of the Farm Bureau group program, contact your broker or call State Fund at (877) 405-4545.

 “Sixty-six years ago, the California Farm Bureau Federation began a partnership with State Fund to develop, promote, and reward on-farm safety. Credible, reliable, and responsive workers’ compensation insurance coverage has provided a worry-free framework for Farm Bureau members.”
 -Paul Wenger, 1st Vice President of the California Farm Bureau Federation, State Fund policyholder since 1984

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Golden State Builders Exchanges

Since 1995, State Fund and the Golden State Builders Exchanges (GSBE) have been working together to provide workers’ compensation insurance to construction employers. GSBE is composed of 26 regional builders exchanges and associations throughout California, giving it a broad-based membership of businesses that have made the State Fund/GSBE partnership the largest State Fund group program.

Construction-industry employers trust the GSBE group program for its stability and its member benefits, particularly in the areas of safety and training. These employers receive much more than a 6 percent group discount of their premium. Because worker safety is the foundation of the group program, the total value of membership extends to workers’ compensation cost savings and long-term protection of valued employees.

• Each local builders exchange or association conducts safety training and seminars.
• Through the group program, State Fund offers construction-specific loss control and safety services.
• GSBE and the regional builders exchanges and associations provide online resources such as safety newsletters, safety meeting topics, video safety clips, and Cal/OSHA updates and information.

The Choice of Construction Employers

Additionally, GSBE gives members a full range of other benefits and services, including professionally staffed plan rooms, weekly publications containing industry information on projects out to bid, building permits, legal notices, construction news updates, and representation of industry interests in government. You can find out more at the GSBE Web site.

If you are a State Fund policyholder in the construction industry, you may be eligible to convert your current policy to the GSBE group program. We invite you to join thousands of other construction employers who get value from the group program every working day. Contact your broker for a conversion quote, or call State Fund at (877) 405-4545.

“In our three decades of association with the builders exchange and State Fund, they have provided the finest in safety and training programs to help us prevent accidents and injuries. The competitive rates, experience, and professionalism we get from this partnership have been an integral component of our success.”
 — Dennis Micheletti, owner of Micheletti Electric in Sacramento, GSBE group participant and State Fund policyholder since 1977

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Alternative Dispute Resolution (ADR) Group Programs

The Alternative Dispute Resolution (ADR) program is a special branch of State Fund group insurance. The name comes from the program’s procedure for resolving disputes between employers and employees outside of the traditional workers’ compensation system. Because of their cost-control measures, ADR group programs can offer employers the advantages of reduced premiums and claims costs.

ADR programs are available only to employers who have signed a union collective-bargaining contract as well as an addendum agreeing to implement the ADR for workers’ compensation. Currently State Fund offers 20 ADR groups to serve construction industries and unions.

Savings Add Up

For employers, an ADR program pays immediate bottom-line benefits that can help you stay competitive in managing operations and bidding for contracts:

• In addition to the 6 percent group discount, you get an automatic ADR premium discount of up to 10 percent.
• Because the ADR claims process constrains medical and legal costs, you stand a better chance of earning a lower experience modification, which will keep saving you premium dollars down the road.

Efficient Claims Management

When an employee has a claim, the ADR system provides dedicated resources to expedite medical treatment. Experienced State Fund adjusters service the claims of ADR group employers exclusively. An ADR ombudsperson provides free confidential advice to injured employees, reducing their need to hire outside attorneys.

As a result, ADR employers can count on these additional gains:

• Greater communication options for injured employees so they can better understand how to receive the care they need promptly and can return to work more quickly.
• Fast, fair, and cost-effective resolution of disputes without expensive litigation.
• Improved labor-management relationships and job security.

If your business is eligible for the ADR program, you owe it to yourself to explore the benefits. To find out more, check the Group Lookup tool on State Fund Online, ask your broker for an ADR group quote, or call State Fund’s ADR underwriting department at (866) 383-6920.

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Learn More About Groups

We’d love to tell you more about how you can upgrade to a group policy and save more on your workers’ compensation insurance. To find out about the group choices available to you, we invite you to contact any of the following resources:

• State Fund: Your next renewal date may be the perfect time to convert your State Fund policy to a group program. Contact the regional office that services your policy, or call our Customer Service Center at (877) 405-4545. For ADR program inquiries, call (866) 383-6920.
• Broker: If you are represented by a broker for your current policy, your broker may assist you with group insurance too.
• Online: For complete information on State Fund’s group partners, go to State Fund Online and select the Group Lookup tool.

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