02 Premium Threshold Reduced

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