Q: Who is eligible to join the MMA Work Comp Group?
A: Any employer who is a member or is willing to become a member of the Mississippi Manufacturers Association is eligible to apply for coverage in the Group. The minimum annual premium required for group membership is $5000. The Group's Board of Directors is responsible for approving applications.
Q: How are Group members' rates determined?
A: Participants are rated based on the National Council on Compensation Insurance (NCCI) employment classification codes used by the commercial insurance industry. The appropriate rate is applied to the employer's payroll for each employment classification.
Q: What about experience rating?
A: Employers entering the Group retain their current experience modification which is published by the NCCI. This modification must be used by all workers' compensation carriers. Future modifications continue to be calculated based on the employer's individual loss experience according to the NCCI formula.
Q: How do the premiums compare to commercial insurance premiums?
A: First, annual premiums may be up to 43% less than the cost for the same coverage written through a commercial insurance carrier on a voluntary basis. The exact discount depends on your loss history and the size of your operation.
Second, employers with coverage through the Assigned Risk Pool save the surcharge penalty.
Any volume discount available would also apply under the plan.
Q: How can the MMAWCG provide workers' compensation coverage more cost effectively than a commercial insurance carrier?
A: 1) The MMAWCG is a Non-Profit Corporation.
2) The Group has lower operating expenses and overhead than a commericial carrier.
3) The Group has strict underwriting standards for acceptability into the plan.
4) Safety makes self-insurance work. Free full-time Loss Control Specialists inspect all participating companies on a continuing basis.
5) An aggressive claim management program is an essential element of the Plan. Injured employees are quickly contacted and all questionable claims are investigated.
Q: What is Group's premium payment schedule?
A: Members with premiums ranging from $5,000 to $10,000 annually may pay in two installments. The initial premium payment is 60% with the remaining 40% due six months later.
Employers whose annual premium exceeds $10,000 may pay in quarterly installments of 25% each.
Members who choose to pay their premium on a semi-annual or quarterly basis will not be subject to any premium finance charge or other surcharge.
Each Group member's annual premium is calculated using payroll estimates that the employer provides. At year-end the premium is adjusted according to an audit of the member's actual payroll during that year. This is in accordance with NCCI rules and is the practice followed by commercial insurance carriers.
Q: Who operates the Group?
A: A Board of Directors comprised of MMA members has been established to oversee the Group. Board members are elected by the Group's Participants. Board members serve without pay. Jay C.Moon, CEcD, President & CEO of MMA, also serves as Administrator of the Group. Foster Welburn, Director of the Work Comp Group handles the day to day operations. CCMSI is the service company that handles claims management and loss prevention.
Q: What is joint and several liability?
A: Member Companies are individually and collectively responsible for Group's finanical obligations.
Q: Why is joint and several liability required?
A: State law requires this provision for all workers' compensation groups in Mississippi as protection for the Group and its members.
Q: Can member companies be assessed?
A: Yes. In the event that losses exceed anticipated levels assessmentscould be required. However, the Group's actuarial consultant reports to the Board of Directors on a semi-annual basis to ensure sound underwriting and rate adequacy. Most self-insured groups generate surpluses that are returned to their members.
Q: Has excess or reinsurance been purchased by the Workers' Compensation Group?
A: Yes. The Group is self-insured up to $750,000 per occurance. Excess insurance has been purchased to protect the Group against catastrophic losses above that amount. The Group's excess insurance carrier has an A+ rating with A.M. Best Company. Our excess carrier provides statutory workers' compensation benefits plus $2 million employer liability coverage.
Q: How does an employer join the Work Comp Group?
A: In order to join the Group an employer must be a member in good standing of the Mississippi Manufacturers Association. Employers who are not currently MMA members may obtain information about Association members from the MMA staff or website. CCMSI will provide prospective Group members with premium quotations.
Q: Is the Group required to accept all MMA members regardless of their loss experience?
A: No. All members may apply, but they must meet stringent underwriting guidelines established by the board.
All applications for Group membership are subject to approval by the Board of Directors and the Group's excess carrier.
Q: Must I Wait until the expiration date of my current policy to enter the Group?
A: You may cancel your current policy and join the Group at any time, or you may join the Work Comp Group when your current policy expires.
Employers whose current coverage is written through the Assigned Risk Pool may benefit by joining the Group immediately since there are no penalties for early cancellation of Assigned Risk policies.
Because of the Groups' discounts and services, companies with policies written on a voluntary basis may also benefit by joining the Group before their expiration date. Details as to whether early cancellation of a voluntary policy would be financially beneficial can be provided by CCMSI.
Q: Is more information available?
A: Yes. Please call the Mississippi Manufacturers Association at 601-948-1222.
Q: Who should I contact for general information about the Group?
A: Renee DeRusso, Sales Director
Telephone: 601-948-1222
Cell: 601-573-3636
Fax: 601-949-3320
Email: renee@mma-web.org
Q: Who should I contact for underwriting information?
A: Tom Luscomb, CPCU, AU, Underwriter
Telephone: 601-608-1008
Toll Free: 1-800-668-7542
Fax: 601-949-3320
email: tluscomb@ccmsi.com
Q: Conclusion?
A: The Mississippi Manufacturers Association has served its members for over 50 years and is pleased to offer the Work Comp Group as an exclusive benefit to Association members.
The Group undergoes rigorous financial auditing on a regular basis, including those conducted by an outside CPA firm, actuary firm and audits conducted by both our reinsurer and the Mississippi Workers' Compensation Commission.
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