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Self-Insurance essentially cuts out the middleman and put the profits back into the members pockets
• State Specific
• Rates can be a low as 25-35% below current market rates
• AVI West Coast works in conjunction with existing Brokers
• Approval process time frame is approximately 60 to 90 days once submission is sent to the Department of Industrial Relations (DIR)
Individual Self-Insurance Requirements
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• Accord & program application inclusive of SIC code (Standard Industrial Classification code)
• Experience modification
• Five years of currently valued loss information
• Description of losses in excess of $50,000
• Five years of historical payrolls and premiums
• Current independently audited financial statements for the past 3 years with a demonstrated net worth of $5million
and an average of $500K net income for the past 5 year
• Current independently audited financial statements
• Supplemental information may be required
Group Self-Insurance Requirements
Self-Insurance Groups (SIGs) are created by employer members and exist only to protect those members against workers compensation claims. Commercial insurance companies are motivated by profit, which they earn by charging premiums higher than needed to cover losses and by investing those premiums and earning returns. When employers pay premiums to commercial insurance companies, that money is gone forever. Employer members of a self-insurance group contribute to a fund that remains within the group¦s control. Any money not spent to cover claims or operating costs is retained by the group members.
2 Similar business with the same first two digits of their SIC code (Standard Industrial Classification code).
• Accord & program application inclusive of SIC code
• Experience modification
• Five years of currently valued loss information
• Description of losses in excess of $50,000
• Five years of historical payrolls and premiums
• Estimated payroll for 2005-2006 by class code
• Current independently audited financial statements
• Current independently audited financial statements for the past 2 years demonstrating a combined net worth of $5million and a net income of $500K
If you are interested in learning more about group formation or to inquire if a group for your industry may already exist or be in formation, please click below and complete the form or contact us by calling 800.687.3869
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