By Travis Halstead, Loss Control Consultant

As the warmer months are quickly approaching, many of your facilities will be directly affected by the increasing temperatures. As you do not have the ability to close your facility for the summer, it is essential that we try to identify the symptoms of heat related illnesses and ways to prevent them. Through proper training and some other proactive steps, there will be a better chance of reducing the possibility of your employees being exposed to heat stress.

By employees being exposed to extreme heat they are more apt to heat stress. While workers that are 65 years of age or older are at a greater risk of having heat stress, other individuals that are overweight, have heart disease or high blood pressure, or take medications may also be easily affected by extreme heat.

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It is June; and impossible to believe that nearly half of 2014 is gone. You might remember me, I am Gary Wood; I was the COO of the MTMIC and the Administrator of the MTA Workers’ Compensation Fund from 1998 to 2013. Last year I made the decision to step back when I recognized two things; 66 is more than a number and after 15 years there needed to be a new stimulus for growth.

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Experience Modifications have been used for decades as a method to adjust employer’s workers’ compensation premiums based on their own loss experience. Good experience would earn a credit experience modification, an experience modification below 1.00. Loss experience higher than anticipated in the rate results in an experience modification greater than 1.00. This is all old news. So what is new? Three inquires in the last 6 months from our policyholders about their experience modifications. That by itself is not usual. What was unusual is that all three had a significant panic in their call. In each case, the insured’s largest customer was letting them know that future work was being discontinued because their experience modification was above 1.00. (more…)

Early in 2014, MTMIC obtained its first independent rating organization evaluation. The rating agency is Demotech, Inc. of Dublin, Ohio and has nearly 30 years of insurance industry rating experience with a proven track record. Their review included analysis of MTMIC financials, investments, claims history, actuarial reports, reinsurance and staff experience. On April 22nd, Demotech, Inc. distributed an industry press release summarizing their review with an announcement that MTMIC was assigned an “A” (Exceptional) 2014 Financial Stability Rating

We, the MTMIC staff, are proud of our Demotech, Inc. rating in that it confirms what we know about the strength of MTMIC.

By Donna Motley, Director of Claims

Late reporting of employee injuries can be costly in multiple ways.

We received a claim on August 16, 2013 for a July 3, 2013 injury date – approximately 6 weeks after the injury allegedly occurred. The employee said they “bumped” their elbow on a part. The diagnosis was “post traumatic olecranon bursitis”. The employee did not lose time from work. The employee treated for the condition on July 3, 2013 (the day of injury), July 8, 11, 22, 29, and October 8, 2013 when they were discharged from care.

Notice there were five visits with the medical provider before we even received the injury report. Per the Workers’ Compensation Act, the W/C provider/insurance carrier exclusively directs all medical treatment for the first 28 days! In this particular case, we lost that opportunity. Could we have shortened the length of this claim and thereby the amount spent – very likely!

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…that you can now receive an email from us notifying you when a claim is received in our office and when that claim is closed? In order to receive the email alerts from us, please log in to the Client Portal at www.mtmic.com/blog. Select the Contacts tab and enter the email address of the individuals that would like to get the email alerts. For additional information, contact Patty Allen at patricia. allen@mtmic.com/blog.

By Glenda Moyle, Premium Accounting Manager

MTMIC is updating our Officer Exclusion procedure. Effective immediately, renewal policyholders will NOT have to fill out a new Officer Exclusion form. We will automatically renew the officer exclusions unless we hear different from the company or the company’s agent. Polices for new companies will still require the Officer Exclusion form. We hope you find that the elimination of the Officer Exclusion form on renewals will improve efficiency and effectiveness of the renewal process.

Just as a reminder, it is very important that you double-check your documents from us and let us know of any corrections that need to be made.

This month I will deviate from my normal Workers’ Compensation issues and use my column to welcome a new MTMIC Board Member, Karen Schluckebier. Karen became a Board Member in March and attended her first MTMIC Board meeting April 17th. The Board Members and the management team are delighted that Karen joined our Board. She brings some skill sets that are valuable to the Board and helpful to the management team. The following is a short bio on Karen:

Karen has worked for the Rogers Group in Clare, Michigan since 1999. The Rogers Group is a multi-company group including StageRight, Filcon, Rogers Athletic, World Sporting Good, and Tranquil Systems International. She currently holds the senior manager position as Director of Human Resources with human resource responsibilities for all Roger Group companies. Karen has played a key role with acquisitions and other risks to the company. Karen has worked in the area of human resources including training & development since 1985. (more…)

On June 5, 2014
9:00 am – 11:00 am

This FREE Coffee with MIOSHA event at Vis Ta Tech will include representatives from administration, wage and hour, general industry and construction. This is a great opportunity connect with MIOSHA to have your questions answered and meet MIOSHA staff. MIOSHA will also provide information on program services and resources.

Vis Ta Tech at
Schoolcraft Community College

18600 Haggerty Rd – Livonia, MI 48152
RSVP To: Jennifer Clark-Denson
clark-Densonj@michigan.gov

By Travis Halsted, Loss Control Consultant

As the season of melting snow begins and the use of air movement fans is once again seen, it is essential to determine how the risk of trips and slips resulting in falls in the workplace can be eliminated. According to the 2009 statistics from the Bureau of Labor Statistics, 605 workers were killed and an estimated 212,760 workers were seriously injured by falls to the same or lower level (Centers for Disease Control and Prevention, 2014). Occupational fall injuries result in approximately $70 billion spent annually between medical and workers’ compensation costs (Centers for Disease Control and Prevention, 2014). From these staggering numbers the need to prevent this type of injury is high on many safety committee lists.

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By Cindy Boyce, Senior Claims Adjustor

In the majority of Workers’ Compensation cases employees who are injured at work recover and return to work. In some cases employees do not return to work claiming that they are still disabled from the work injury. A small percentage will end up in court and enter into litigation by filing an Application for Hearing. Shortly after the Application is filed, it is processed by the Workers’ Compensation Agency and the employer will be served with an Acknowledgement and Notice of Hearing. Below are a few recommendations that will assist you in understanding the litigation procedure.

1. Once a claim is disputed, the employee may resort to filing an Application for Hearing.

When you are served with the Acknowledgement and Notice of Hearing, you will note the Magistrate assigned to hear the case, the hearing site and the date of the initial pretrial hearing. In most cases, the adjuster will also be served. However, it is recommended that you contact MTMIC upon receipt of the Application to confirm that we have been served.

Once we receive the Application for Hearing, we will retain an attorney to represent your company’s legal interests.

In most cases you will not be required to attend the pretrial or subsequent hearings unless we have notified you otherwise.

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Adverse Pricing Changes

A couple times a month our policyholders call me and ask me about adverse pricing. Their question is, “How did it happen to me, and what are the causes”? While this is not a frequent question, I have to say it is one where the customer is the most concerned and anxious for answers.

My answer to this question first starts with a review of company payroll/growth. Sometimes it is a simple review – the payroll for your company has gone up by 50%. There is no rate increase; your premium increased because your company and its payroll is growing. If there is no increase in payroll or the increase is minor, then we move to the two primary causes of adverse pricing/rate changes. Within these two causes, there can be an impact at your next policy renewal as well as an impact a year or two later.

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By Chris Demeter, Senior Loss Control Consultant

Flammable liquids are used in many different ways. They present unique hazards to the people that use them. Flammable liquids can cause a fire or explosion, and like many other substances, they can also cause serious health effects from overexposure.

Flammable liquids are liquids with a flash point of less than 100F. The flash point is the lowest temperature at which a liquid gives off enough vapor to form a flammable mixture with air. On the NFPA diamond label, a fire hazard rating of three or four denotes a flammable liquid. Other labels used to identify flammable liquids are red with appropriate wording and they usually contain a fire symbol.

The vapors of a flammable liquid often present the most serious hazard. The vapors can easily ignite or explode. Flammable liquid vapors are heavier than air and may settle in low spots, or move a significant distance from the liquid itself.

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Our 2013 financial results have been finalized with our actuary. The good news is that through loss control efforts and claims handling by our policyholders, MTMIC made a small underwriting profit for the year. A small underwriting profit is in line with a primary company goal of keeping our customer’s rates as low as possible. Additionally with some conservative investment of company funds, we added to that bottom line. Sometimes I am asked where do our mutual profits go? There are only two places: 1) a company surplus account and 2) policyholder dividends. Given the size of the profit, we have put the money in the company surplus account. This account provides a buffer if we have a year where the results do not generate a profit – that is, losses exceed our collected premium for the year.

In the workers’ compensation insurance business good results just don’t happen. It takes a wide range of people involved. It takes mutual policyholders who worry about loss control and their individual company claims experience. It takes professional insurance staff providing loss control support services to our policyholders. By the way, at MTMIC, we have one full time field loss control consultant for every 240 policyholders. This is a commitment and focus that no other Michigan insurer can match. Beside the focus of the staff, we provide safety training videos, training documents, ergonomic tools and written safety programs in the tool box to help our policyholders.

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INCLUSIONS:

1. Payroll wages and salaries, including retroactive pay.
2. Commissions.
3. Bonuses.
4. Stock bonus plans — Shares of stock in lieu of cash. (Not stock options)
5. Extra pay for Overtime — less the premium portion. (more…)

By Glenda Moyle, Premium Accounting Manager

Wow, can you believe another year has gone by. And what that means is its final audit time again for our January renewals. When we issued your policy, you gave us estimated payrolls by class codes on which we were to base your premium. The final audit will give us actual payrolls, by class codes, to see if you owe us more premium or we owe you a refund of premium. About half of our policyholde

rs will be going through their final audit in the next couple of weeks. If you haven’t already been contacted by our audit company, The Aprise Group, you will be shortly.

Your renewal packet consisted of all of your renewal documents as well as a sheet titled, “Guidelines for Your Premium Audit.” Please use that document as well as the information in the list of inclusions and exclusions on the back side of the newsletter when preparing for your upcoming audit.

For over 30 years I have been helping you with this process and I continue to be ready to answer your questions.

Patty Allen Sales & Marketing Assistant

As with our renewal process, many departments work together to get the Labor Law Posters prepared for delivery to our 725 policyholders. We provide these posters as a courtesy to all of our insured’s.
The Marketing department begins working on the process approximately six months in advance of the mid-January mailing. Our Loss Control team researches the labor laws to make sure that we have the most current information at the Federal and Michigan level. We then work with our printer to produce a poster in the correct size and font. Once the posters are printed and mailing tubes ordered; the posters are rolled and stuffed into the tubes with the mailing labels affixed to the outside. Additional care is taken so that you don’t receive an empty tube with no posters. We then complete the mailing by affixing the proper postage based on zip code and arrange for a special pick-up by the USPS.

By the time you are reading this article, your company should have received the updated 2014 State and Federal Labor Law posters.

We thank you for your continued business and if you need additional posters, please contact me at patricia.allen@ mtmic.com/blog.

By Donna Motley, Director of Claims

During my many years of handling Workers’ Compensation claims, I’ve dealt with all kinds of injured workers. Two claimants stand out in my mind as being the nicest people, and they sustained the most severe and tragic injuries.

One  case occurred in 1997. A 24 year old father of two (who had a pretty idyllic childhood) went on an early morning run to assist a company semi that had broken down on the side of the highway. The truck was 5-6 feet off the road, on the shoulder, with orange cones and triangles up and flashers on. The driver of a pick-up truck presumably fell asleep at the wheel and hit our insured while he was under the hood of the company truck, tossing him several feet into the highway. The injured worker had to roll himself out of the path of oncoming traffic to avoid being run over. The end result – the injured worker’s left leg was amputated and his right foot was crushed. The amputation was originally below the knee, but due to complications, ultimately ended up amputated at the thigh. At 24 years old, this gentleman was very active, was even a volunteer fire fighter. Yes, he sought the advice of an attorney (although he did not sue), yes he collected money from the automobile carrier of the vehicle that hit him, and yes, Workers’ Compensation insurance has paid (and continues to pay) all of his medical bills. He has a prosthetic leg and has had multiple surgeries on the right foot due to continuing pain – to the point he has asked on more than one occasion that we amputate the right foot.

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With the holidays and the January 1 renewal rush going on, I passed over a couple important staff changes at MTMIC. The good news is that these are changes with people you know and have worked with for years.

First Megan Brown, our Director of Sales & Marketing for the last 6 ½ years was promoted to Vice President of Sales & Marketing. Megan is the field presence and face of MTMIC. Our growth is the net result of Megan’s efficient and effective work. Prior to joining MTMIC Megan spent 15 years as a marketing manager and director in the field of occupational health. Megan obtained her Bachelor’s degree from Michigan State University. She has been active in a variety of associations. Her family including her husband, daughter and son are avid runners competing regularly in half and full marathons.

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Well, at this writing in the middle of December, I’m about fifteen feet from where I used to sit, sort of in a closet/ utility room.

My acquaintances know I have on occasion taken the liberty to comment on life in general; I have enjoyed that aspect of the position over the years and regret that I’ll lose this public forum which permitted my indulgences. Having acknowledged my weaknesses, I’ll try to avoid making bad puns or any other random acts of impropriety as I leave the job I have enjoyed for fifteen years. It may be difficult because after fifteen years you do get an extensive notepad of things better left unsaid.

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