For more information on Group 690: 707/442-3708; Email: charlene@humbx.com  
For rates, contact your broker or State Compensation Insurance Fund

Workers Compensation Insurance Group
Account Management Guideline
and New Member Criteria 

Workers Compensation insurance is a big cost item to all contractors. As a service to our members, the Humboldt Builders’ Exchange has a Workers’ Compensation Insurance Group Program managed by a Committee. The Insurance and Safety Committee uses the following Account Management Guideline and New Member Criteria to help control costs and maximize group bonus dividends. 

A. Purpose

The guidelines have been developed to serve to motivate and assist the Exchange's participating members in organizing and implementing safety activities that will reduce both their experience modifications and the cost of their workers compensation insurance and maximize the group insurance dividend.

B. Membership Requirements

Accounts meeting three of the following criteria are eligible for the Builders' Exchange Group Workers Compensation Program. Determination of eligibility will be made based on available data.

1. Average loss ratio does not exceed 50% for the previous two policy years.
2. Most recent experience modification does not exceed 110%.
3. Frequency rate of claims does not exceed an average of one injury per $2,000 premium for the previous two policy years.
4. Positive loss control efforts and operating practices.
   

C. Biannual Review Criteria

Twice a year, all participating members will be reviewed on these criteria:

1. A loss ratio over 50% on the recently completed policy year or a loss ratio over 50% on two of the last three completed policy years.
2. Current policy year experience modifications exceeds 110%
3. Current policy year loss frequency and/or negative loss control attitude on part of the employer as noted in district files, particularly if to be surcharged.

D. Action

The Insurance Committee may initiate one or more of the following items:

1. Watch and assist
2. Schedule either a safety visit or letter. (Depending on premium size.)
3. Issue a probationary warning to the employer.
4. Place on two year probationary period. Participant may appeal.

   If the Loss Ratio exceeds 50% at any time during those two years it may constitute cancellation of membership in the group.

E. Exceptions

1. Those companies, within the Workers Compensation Group Program, whose ownership splits, may be allowed to use the former company's experience when applying for eligibility. These applicants will be considered on a case by case basis.
2. Accounts which do not meet the stated membership requirements may be admitted with written approval of the Insurance Committee.

 For more information on Group 690: 707/442-3708; Email: charlene@humbx.com.
For Rates contact your broker or State Compensation Insurance Fund