Producers Guide

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					Producers' Guide




    3900 Singer Boulevard NE
  Albuquerque, New Mexico 87109
         (505) 345-7260
                                                           TABLE OF CONTENTS



ITEM                                                                                                                                              PAGE
    OUR MISSION .....................................................................................................................................3
General Information...................................................................................................................................6
New Mexico Mutual Company Selections ...............................................................................................7
General Procedures ....................................................................................................................................9
Assigned Risk Billing...............................................................................................................................11
    Assigned Risk ......................................................................................................................................11
          New Business                                                                                                                                   11
          Endorsements and Premium Audits                                                                                                                11
          Wage Reporting                                                                                                                                 11
          Renewals                                                                                                                                       11
          Final Audit                                                                                                                                    11
Voluntary Business Installment Billing ..................................................................................................12
Interest-Free Programs ............................................................................................................................12
          Final Audit Billing                                                                                                                            12
Voluntary Business...................................................................................................................................13
Wage Reporting Programs ......................................................................................................................13
Voluntary Business...................................................................................................................................14
“Pay as you go” for Approved Payroll Companies ................................................................................14
Cancellation Procedures ..........................................................................................................................16
    For Non-Payment of Premium...........................................................................................................16
    For Non-Reporting of Wage Statements...........................................................................................16
    Policy Reinstatement ..........................................................................................................................17
Ineligible Classes......................................................................................................................................18
Deductibles ...............................................................................................................................................21
Large Deductibles ....................................................................................................................................22
          Eligibility                                                                                                                                    22
          Guidelines for submissions                                                                                                                     23
          Calculation of Deductible Factor                                                                                                               23

                                                                             I
                                                            TABLE OF CONTENTS
Merit Rating Plan .....................................................................................................................................24
           Premium Financing .........................................................................................................................26
           Employee Leasing Situations...........................................................................................................27
Certificates of Insurance ..........................................................................................................................28
Lack of Cooperation on Audits ...............................................................................................................28
Forms.........................................................................................................................................................28
Out-of-State Program..............................................................................................................................29




                                                                              II
NEW MEXICO MUTUAL                                                                             PRODUCERS’ GUIDE




OUR MISSION
To provide access to quality, cost-effective workers’ compensation insurance and services for
our customers.



OUR GUIDING PRINCIPLES
We believe                      that the interests of our policyholders and their employees are of primary
importance. They provide the reasons for our existence and the rationale for the resources with which we
operate.




We believe                 we have an obligation to provide leadership in the field of workers’ compensation by
which others are measured; we further believe in value-based management in all of our dealings with our
stakeholders.




We believe                 the long-term success of New Mexico Mutual is dependent upon people. We believe
our employees are our most valuable asset and that the continued enhancement and increased diversity of our
work force is to be valued and celebrated.




We believe                  in a strong statewide presence by cultivating progressive relationships with local
agents and their communities.




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NEW MEXICO MUTUAL                                                                               PRODUCERS’ GUIDE




OUR VALUES
We are dedicated to SERVICE EXCELLENCE.
Consistently exceed the expectations of our customers, community and each other.
• Actively listen, define expectations and continuously build relationships.
• Demonstrate that no job is too small.
• Perform with a sense of urgency.
• Exhibit dedication, enthusiasm and passion.
• Solve problems to overcome barriers to exceptional customer service.




We believe TRUST is essential.
Deliver on our promises through transparent, ethical and respectful interactions with our
customers, community and each other.
• Always do what you say you will do.
• Establish and communicate clear expectations.
• Contribute constructively and candidly.
• Consistently act with honesty and integrity.




We proudly take OWNERSHIP of our mission.
Embrace personal responsibility and demonstrate commitment to the long-term viability,
success and growth of New Mexico Mutual.
• Hold yourself and others accountable for behaviors, actions and results.
• Lead by example by offering solutions and following through.
• Think like an owner ensuring that all resources are managed in a responsible and effective manner.
• Take the initiative to be informed and inform others.
• As a steward, take responsibility for the ongoing sustainability of the Company.

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NEW MEXICO MUTUAL                                                                  PRODUCERS’ GUIDE




We are ONE TEAM.
Work together to deliver a seamless, high-quality customer experience.
• Share agendas, objectives and expertise in a collaborative manner.
• Create an environment that values diversity of thought and background.
• Include others affected by a decision.
• Give positive feedback, recognize contributions and celebrate team success.
• Take initiative with customers outside area of responsibility.




We embrace BOLD thought and action.
Anticipate the needs of the market by embracing innovation with swift, confident actions.
• Learn new methods and grow from successes and failures.
• Use information technology and best practices to exceed industry standards.
• Demonstrate creative thinking to challenge the status quo.
• Relentlessly pursue knowledge in all areas of workers’ compensation insurance.




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NEW MEXICO MUTUAL                                                                    PRODUCERS’ GUIDE


                                         GENERAL INFORMATION

Mailing Address: PO Box 27825
                 Albuquerque, NM 87125

Phone Numbers: Office: (505) 345-7260 or (800) 788-8851
               Dial either number above and ask for the Department that you need assistance from.

Fax Numbers:        General Fax: (505) 345-0816
                    Claims: (505) 345-0656
                    Underwriting: (505) 345-3451

Web Address:        www.newmexicomutual.com
                    Information available on New Mexico Mutual On-Line include: Current Rates for all
                    Tiers, Loss Runs, Supplemental Applications, Experience Rating Manual, Acceptance
                    of Coverage form, ERM form, WCA forms and Deductible Election forms.

                                          Claims Information

All claims are to be reported to our office. A First Report of Accident form, an Accident Investigation
Report and Notice of Accident form must be completed within 24 hours or next business day and sent
to:
                                            New Mexico Mutual
                                             P.O. Box 27810
                                         Albuquerque, NM 87125
                                         Phone: (505) 345-7260 or
                                             1-800-788-8851
                                            Fax: 505-345-0656

E-1 forms can be submitted by visiting our website, www.newmexicomutual.com and click on “Report
an Injury” and login as a guest.

All claims will be assigned as necessary. Losses of a serious nature should be telephoned to our Claims
Department at once.

Agents have no authority to settle or assign claims.

                                           Loss Information

Policyholder loss runs are only available to the insured, the Agent of Record or the Servicing Agent.
Agents can access loss information for their accounts through New Mexico Mutual On-Line by logging
in with their username and password. Once logged on, type insured’s name under “search” and click on
insured’s name and their information will appear. Go to “actions” on the right side of screen and click
on “loss runs” to retrieve loss information. If you do not have a log-in, please contact our Marketing
Department.

                                  WCA Annual Safety Inspection
Can be requested on our website, www.newmexicomutual.com.
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NEW MEXICO MUTUAL                                                                        PRODUCERS’ GUIDE


                                          NEW MEXICO MUTUAL
                                          COMPANY SELECTIONS

New Mexico Premier Insurance Company (NMPIC) is for the above average to superior account
generating a minimum NMMCC manual premium of $75,000. These accounts must have three-year
loss ratios of less than 25% to qualify. This company is not subject to merit credit and has the lowest
loss cost multiplier. Eligible accounts will have a minimum of five years prior coverage. They will have
demonstrated a strong commitment to employee training and workplace safety. They will also have
formal safety programs. Generally, accounts placed in this company will require a pre-survey,
exceptions must be approved by the Director of Underwriting.


New Mexico Assurance Company (NMAC) is for the above average to superior account and is not
subject to merit credit. This company has a loss cost multiplier slightly lower than NMMCC. Accounts
placed into this company will tend to be low-hazard exposures, such as: retail, service, artisan
contractors and medical, dental or legal offices. However, other types of accounts may qualify for this
company based on positive loss history, strong safety commitment and programs, good payment history
and overall cooperation with the carrier.


New Mexico Mutual Casualty Company (NMMCC) is the preferred company, is owned by its
policyholders, and is not subject to merit credit. This company is for the small to medium-sized above
average to superior account. These accounts will mainly have at least three years of prior coverage,
acceptable loss ratios and cooperative management attitudes. Accounts placed into this company will
tend to be low-hazard exposures, such as: retail, service, artisan contractors and medical, dental or legal
offices. However, other types of accounts may qualify for this company based on positive loss history,
strong safety commitment and programs, good payment history and overall cooperation with the carrier.


New Mexico Employers Assurance Company (NMEAC) is for the above average account with
acceptable loss ratios. The company is not subject to merit credit. Eligible accounts may be somewhat
higher hazard classes of business that would generally not qualify for NMMCC. Eligible accounts will
generally have at least five years of prior coverage, with a minimum of three years. They will have
demonstrated a strong safety commitment and have formal safety programs.


New Mexico Southwest Casualty Company (NMSCC) is the standard company with a loss cost
multiplier between NMEAC and New Mexico Foundation Insurance Company (NMFIC). NMSCC is
subject to merit credit. This company is for the average account with acceptable loss ratios. These may
be somewhat less experienced businesses (less than three years prior coverage), those with past payment
problems, artificially low experience modification factors and somewhat higher hazard classes that
would not qualify for NMMCC or NMEAC. Contracting accounts with sufficient premium sizes (over
$5,000) and a steady payroll are good candidates for this company, as well as : oil/gas business, truckers,
home health care, convalescent homes, retirement living and assisted living centers, non-profit and
charitable organizations, governmental entities, municipalities, fire, police and security guard services,
farm/ranch accounts and accounts with aircraft exposure.



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NEW MEXICO MUTUAL                                                                         PRODUCERS’ GUIDE
New Mexico Foundation Insurance Company (NMFIC) is the company with the highest loss cost
multiplier and is not subject to merit credit. The rates are generally lower than those in the assigned risk
pool and there is no assigned risk surcharge. This company is for average to below average accounts,
businesses lacking prior workers’ compensation history, new ventures and those considered to be higher
hazard risks that do not qualify for NMSCC. Contracting accounts with no prior coverage but with
industry experience in the craft will be considered for this company. Contractors with very small
payrolls, regardless of prior history, should also be in this company.


To properly evaluate and price a risk we must understand the operations of the insured.
Therefore, it’s important to provide a detailed, complete description of the insured’s operations.




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NEW MEXICO MUTUAL                                                                    PRODUCERS’ GUIDE




                                        GENERAL PROCEDURES

Rates: See our web page at www.newmexicomutual.com and click on New Mexico Mutual On-Line
(username and password required).

1. SUBMITTING AND BINDING OF RISKS
    The underwriting, quoting and issuance will be done by New Mexico Mutual. All applications must
    be submitted on the New Mexico Mutual On-Line internet system. Additional information including
    loss runs and experience modification exhibits may be mailed, emailed or faxed to the company at
    (505) 345-3451. We also have available Document Upload in the CompQuick system.
    Producers do not have binding authority until the application is approved by Underwriting. After an
    application is approved, the producer may bind the application on the New Mexico Mutual On-Line
    internet system only after they have received the down payment and a signed Acceptance of
    Coverage form.

2. ENDORSEMENTS
    All policy changes must be made on the New Mexico Mutual On-Line internet system.

3. ACCEPTANCE OF COVERAGE FORM
    Every new account must have the Acceptance of Coverage form signed and sent to NMM.
    Renewals need not have an Acceptance of Coverage form signed unless a new producer is writing
    the account.

4. MULTIPLE PRODUCER SUBMISSIONS
    Identical quotes will be given to all producers that have tendered a complete submission. NMM will
    determine class codes, payrolls, deductibles and E. L. limits based on the information at our
    disposal. The producer who obtains a signed Acceptance of Coverage form and premium will be
    recognized as the Agent of Record. There is no "lock-out" by being the first in with a submission.
    Also, if an account is declined and another producer resubmits the account within the next 90 days,
    NMM is required to notify the declined producer if NMM is willing to entertain the account.

5. WAIVER OF SUBROGATION
    Blanket waiver of subrogation - $250
    Individual waiver of subrogation - $250
    Policy maximum Waiver charge - $250

6. ALTERNATE EMPLOYER ENDORSEMENT
    Alternate Employer Endorsement - $25

7. TERRORISM ENDORSEMENT
    Rate is $.02 per $100 payroll.
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NEW MEXICO MUTUAL                                                                      PRODUCERS’ GUIDE


8. EMPLOYERS LIABILITY
    $1,000,000./$1,000,000./$1,000,000. – Maximum Limit allowable.

9. PROCEDURES FOR TAKING OVER AN ACCOUNT
    When a NMM insured requests that another producer represent them for their workers'
    compensation needs, the following procedures apply:
    Voluntary Business:       Per the contract between NMM and producers, the agent of record is the
                              agent who is recognized on the acceptance of coverage form.
                              Renewal:        When changing producers at renewal, all that is needed is
                                              a signed Acceptance of Coverage form submitted to
                                              NMM prior to the renewal date.
                              Mid-term:       If an account is switched mid-term, the new producer
                                              may service the account, but receives no commission.
                                              Because of E & O consideration, copies of endorsements
                                              will continue to be sent to the old producer/agency. The
                                              interim-servicing agent will also receive (or will have
                                              access on the system to) copies of endorsements. The
                                              renewal will then go to the new producer. Both the AOR
                                              and servicing agent will be able to view the account on
                                              New Mexico Mutual Online until the account renewal.
    Assigned Risk Business:   Assigned Risk procedures are per the NCCI New Mexico Assigned Risk
                              Supplement
                              Renewal:        An Agent of Record letter must be submitted to NMM at
                                              least 30 days prior to the policy expiration date. At that
                                              time, a letter is sent to the existing agent, giving them 10
                                              days to obtain a countermanding letter.
                              Mid-term:       When changing agents mid-term, the new agent may
                                              service the account, but receives no commission. At
                                              the time of renewal, the assigned risk renewal quote will
                                              be provided with the new agent name shown on the
                                              quote. The commission on the renewal would go to the
                                              new agent.

10. SUPPLEMENTAL APPLICATIONS
    We require supplemental applications for the following operations:
                Aircraft                      Oil & Gas Drilling
                Charitable Institutions       Oil & Gas Operator
                Home Health Care              Oil & Gas Roustabout
                Municipal Institutions        Oil & Gas Well Servicing
                Nursing Homes & Hospitals
    These can be located on our web page at www.newmexicomutual.com and by clicking on New
    Mexico       Mutual       On-Line       (username    and       password        required).


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NEW MEXICO MUTUAL                                                                        PRODUCERS’ GUIDE


                                         ASSIGNED RISK BILLING

On a monthly basis, account holders receive a Statement of Account reflecting any financial activity for
the preceding month. Insured’s billing statements are printed on the same day each month. Producer
commission statements are printed on the second day of each month.
Producer commissions are posted based on insured paid amounts. Each payment activity on the
insured's Statement of Account creates a commission entry on the producer's statement. Insured's are
responsible for payment of any amount due on their accounts. Credit balances of over $5.00 are
returned to the insured via NMM check.
The following activities will be reflected on the insured’s Statement of Account as noted:

ASSIGNED RISK

    New Business
    The first statement will show the billing of the policy premium or deposit premium and receipt of
    payment from the NCCI.

    Endorsements and Premium Audits
    Any premium adjustments created will be reflected on the next statement.

    Wage Reporting
    Wage reports are due in our office no later than 20 days after the reporting period ends. The insured
    is responsible for sending the full payment with the report. The next statement will reflect the billing
    of the report and receipt of the payment.

    Renewals
    The policy premium or deposit premium must be paid from the furnished renewal quote. At policy
    renewal, the next statement will bill the premium and show verification of receipt of payment.

    Final Audit
           If payment is not received within one month, we send the first collection letter giving the
            insured 15 additional days to pay.
           If payment is not received the insured is sent to collections within 5 working days per NCCI
            guidelines.




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NEW MEXICO MUTUAL                                                                        PRODUCERS’ GUIDE


                           VOLUNTARY BUSINESS INSTALLMENT BILLING
                                  INTEREST-FREE PROGRAMS


Installment billing is best suited for those accounts with relatively stable payrolls. Those accounts with
difficult to estimate payrolls such as seasonal or construction risks are best suited for one of the payroll
reporting programs.


These guidelines are intended to be fairly inclusive, but eligibility for each payment plan is subject to
underwriting discretion and can be varied based on objective criteria such as: payment history, insured’s
ease of doing business, and expiring policy payment plan.


Options:


        a)   Annual
        b)   10% down with 10 installments – all accounts
        c)   25% down payment with 5 installments
        d)   25% down payment with 9 installments

Final Audit Billing
            If payment is not received within one month, we send the first collection letter giving the
             insured 15 additional days to pay.
            If payment is not received within 15 days, on the 16th day we send the final collection letter
             giving the insured 10 additional days to pay. We will turn the policy over to an outside
             collection agency if payment is not received.




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NEW MEXICO MUTUAL                                                                          PRODUCERS’ GUIDE

                                     VOLUNTARY BUSINESS
                                   WAGE REPORTING PROGRAMS


Those accounts with difficult to estimate payrolls such as seasonal or construction risks are best suited
for one of the payroll reporting programs. Installment billing is best suited for those accounts with
relatively stable payrolls.


These guidelines are intended to be fairly inclusive, but eligibility for each payment program is subject to
underwriting discretion and can be varied based on objective criteria such as: payment history, insured’s
ease of doing business, and expiring policy payment program.


1. Options:


        a) 35% deposit with 3 quarterly reports for accounts with premium greater than $5,000
        b) 20% deposit with 10 monthly reports for accounts with premium greater than $10,000
        c) 10% deposit with 11 monthly reports for accounts with premium greater than $10,000

2. Mechanics:


        a) For each reporting period, a payroll reporting form will be mailed directly to the insured. It
           will list all of the class codes, rates and a combined modifier so that the insured can calculate a
           reasonable estimate of how much is owed by completing the report. The insured then mails
           back the form, with payment, to NMM within 20 days after the end of the reporting period.
        b) If the payroll reports are not received within 20 days after the end of the reporting period,
           see “Cancellation Procedures for Non-Reporting of Wage Statements” (pages 13-14).
        c) NMM will re-figure the premium for each report. The calculated premium will be billed on
           the insured’s next Account Statement and netted against the payment received with the
           report.

(Note: a combined modifier is used to simplify the computation. This calculation still results in an
“estimated” premium because the modifier is generated strictly through cumulative multiplication of the
existing modifying factors at the time the wage report is generated. These factors are subject to change,
especially the premium discount factor. The final earned premium will not be calculated until
completion of the final audit for the policy term.)




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NEW MEXICO MUTUAL                                                                        PRODUCERS’ GUIDE

                                    VOLUNTARY BUSINESS
                      “PAY AS YOU GO” FOR APPROVED PAYROLL COMPANIES




NMM originally implemented “Pay as You Go” as a 24 month pilot program to evaluate the potential
benefit to be gained by capitalizing on efficiencies associated with obtaining reliable policy term payrolls
and resulting earned premium payments in a consistent and timely process. This program is subject to
termination if so determined by our Chief Business Officer.


1. Pay as You Go Program:


        a) this program is only accessible by licensed insurance agencies that are contracted to place
           voluntary business with NMM
        b) the program is available only in regard to Payroll Companies that have received prior
           approval by NMM
        c) agencies interested in presenting a Payroll Company for consideration can do so by initiating
           a meeting with authorized representatives of the Payroll Company, the NMM CBO, and
           Directors of Underwriting and Marketing
        d) the approved Payroll Companies must secure written authority from their clients to have all
           wage reports and policy documents distributed to the Payroll Company (NMM currently
           does not have the systematic ability to mail only wage report documents to the Payroll
           Company. Agents and participating Payroll Companies will be notified should this
           requirement change.)

2. Options:


        a) 0% deposit and 12 monthly payroll reports for accounts that generate a manual premium of
           at least $2,500
        b) accounts that generate less than $2,500 manual premium will be subject to our standard
           voluntary payment plans
        c) all accounts will be underwritten on their own merit and accepted or declined based on
           NMM Underwriting/Pricing Guidelines

3. Mechanics:


        a) For each reporting period, a payroll reporting form will be mailed directly to the Payroll
           Company. It will list all of the class codes, rates and a combined modifier so that the Payroll
           Company can calculate a reasonable estimate of how much is owed by completing the
           report. The Payroll Company then mails back the form, with payment, to NMM within 20
           days after the end of the reporting period.


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NEW MEXICO MUTUAL                                                                      PRODUCERS’ GUIDE


        b) If the payroll reports are not received within 20 days after the end of the reporting period,
           see “Cancellation Procedures for Non-Reporting of Wage Statements” (pages 13-14).
        c) Any policy cancelled for non-reporting will no longer be eligible for the program and will
           not be reinstated.
        d) NMM will re-figure the premium for each report. The calculated premium will be billed on
           the insured’s next Account Statement and netted against the payment received with the
           report.



(Note: a combined modifier is used to simplify the computation. This calculation still results in an
“estimated” premium because the modifier is generated strictly through cumulative multiplication of the
existing modifying factors at the time the wage report is generated. These factors are subject to change,
especially the premium discount factor. The final earned premium will not be calculated until
completion of the final audit for the policy term.)




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NEW MEXICO MUTUAL                                                                          PRODUCERS’ GUIDE


                                     CANCELLATION PROCEDURES

NMM’s cancellation procedure for non-payment of premium and failure to submit wage reporters are
listed below. The producer will receive a copy of the notice to the insured so that they will be able to
assist in correcting the problem area(s) and minimize the number of notices necessary. The following
information is provided so that you will be aware of the procedures that will be followed.

FOR NON-PAYMENT OF PREMIUM
1. Cancellation notices are sent for past due balances.
2. If the full payment for the Balance Due on the Statement of Account is not received in our office
   by the next billing date:
    a) A Notice of Cancellation is printed and sent to the insured, with a copy to the producer, in
       addition to the normal direct bill Statement of Account.
    b) The notice gives the insured 15 days to make full payment of the Balance Due.
    c) If full payment is received by the 15th day, the termination process is halted.
    d) If full payment is not received by the 15th day, the policy is terminated, effective 12:01 a.m. the
       following day (the 16th day).
           A WC 89 06 09 B “Termination/Cancellation/Reinstatement Notice” is printed and sent to
            the insured, with a copy to the producer.
           A Statement of Account will be generated until final audit or reinstatement.

FOR NON-REPORTING OF WAGE STATEMENTS
Wage Reporters are due in our office no later than 20 days after the reporting period ends. If the Wage
Reporter is not received by the end of the 23rd day:
1. A Notice of Cancellation stating “Non-Compliance - Delinquent Payroll Report” is printed the
   following morning and sent to the insured, with a copy to the producer.

 The Statement of Account will continue to be sent on the normal statement date.
2. The notice gives the insured one month to submit the delinquent report before policy termination.

 As always, payment must accompany the payroll report.
3. If the report is not received within the one month deadline, the policy is terminated effective
   12:01 a.m. the following day.

 A WC 89 06 09 B “Termination/Cancellation/Reinstatement Notice” notice is printed and sent to
    the insured, with a copy to the producer.
4. If the reporter and payment are received within the one month deadline, the termination process
   for non-compliance is halted and billing and reporting continue as normal.




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NEW MEXICO MUTUAL                                                                        PRODUCERS’ GUIDE
POLICY REINSTATEMENT
1. Policies that have been “Terminated” for non-payment or non-compliance may be reinstated with a
   lapse in coverage between the termination date and the reinstatement date.

 Policies that are reinstated with a lapse in coverage, and do not require wage statements, will
    continue to Bill as previously scheduled catching up invoices if necessary and billed on their next
    Statement of Account.
2. Reinstatement will create a WC 89 06 09 B “Termination/Cancellation/Reinstatement Notice” that
   will be sent to the insured, with a copy to the producer.
3. If a policy is reinstated without a lapse in coverage, normal billing procedures will resume.
4. If policy has been cancelled and reinstated two or more times, the policy will be reinstated only at
   underwriter discretion.




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NEW MEXICO MUTUAL                                                                                                                                      PRODUCERS’ GUIDE


                                                                        INELIGIBLE CLASSES

The following classes are currently not eligible for placement with New Mexico Mutual. The classes
are listed in alphabetical order according to the Workers’ Compensation and Employers’ Liability
manual.
These classes may be ineligible due to our reinsurance treaties exclusions or require other exceptions.
Note: Some ineligible classes may be written. However, enough lead time, at least 30 days prior to
expiration, is needed if a pre-survey is required.
If you feel an exception is warranted, please contact the Director of Underwriting.
     Class Description                                                                                                                                 Code
     Aircraft or Helicopter Operation:
        Aerial Application – Flying Crew ............................................................................................. 7420
        Air Carrier-Commuter – Flying Crew ..................................................................................... 7431
        Air Carrier Scheduled – Flying Crew ....................................................................................... 7405
                 ......................................................................................................................................... 7403
        Public Exhibitions – Flying Crew ............................................................................................ 7420
       Sales or Service Agency – Flying Crew..................................................................................... 7422
        Transportation of Personnel – Flying Crew........................................................................... 7421
        Helicopters – Flying Crew......................................................................................................... 7425
        Other than Helicopters – Flying Crew .................................................................................... 7422
     Amusement Device Operation NOC. .......................................................................................... 9180
     Amusement Park or Exhibition Operation.................................................................................. 9016
     Amusement Carnival or Circus Device Operator ....................................................................... 9186
     Asbestos Abatement Contractors .................................................................................................. 5473
     Athletic Teams .................................................................................................................................. 9179
                 ......................................................................................................................................... 9178
                 ......................................................................................................................................... 9182
     Atomic Energy & Nuclear Energy ................................................................................................ 9984
                 ......................................................................................................................................... 9985
     Blasting Agents – Preparation or Distribution ............................................................................ 4777
     Boat Building or Repair – Federal ...............................................................................................6824F
     Boat Building – Wood – Federal .................................................................................................6801F
     Breakwater or Jetty Construction................................................................................................... 6005
     Bridge or Tunnel Operation ........................................................................................................... 9019
     Chemical Blending or Mixing ......................................................................................................... 4828
        Chemical Mfg NOC ................................................................................................................... 4829
     Coal Mining ....................................................................................................................................... 1005
     Cofferdam Work............................................................................................................................... 6252
     Concrete Construction Bridges or Culverts ................................................................................. 5222
     Dam or Lock Construction............................................................................................................. 6017
        Dam or Lock Construction Earth Moving............................................................................. 6018
        Timber Cutting in Conjunction with Dam or Lock Work................................................... 2702
     Dike Construction ............................................................................................................................ 6005
     Explosives or Ammunition Mfg.
        Exclude All Classifications:
        Bag Loading ................................................................................................................................. 4770
           Black Powder Mfg................................................................................................................... 4799
           Cap Assembly .......................................................................................................................... 4779
           Cartridge Charging .................................................................................................................. 4775
           Cartridge Mfg. or Assembly .................................................................................................. 3574
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NEW MEXICO MUTUAL                                                                                                                                        PRODUCERS’ GUIDE
          Cartridge or Shell Case Mfg................................................................................................... 3315
          Fireworks Mfg. ........................................................................................................................ 4776
          High Explosives Mfg.............................................................................................................. 4773
          Projectile Loading ................................................................................................................... 4776
          Shell Case Loading .................................................................................................................. 4775
          Smokeless Powder Mfg. ......................................................................................................... 4774
          Explosives Distributors.......................................................................................................... 4777
     Fireworks Exhibitions...................................................................................................................... 9180
     Inspectors – U.S. Act.......................................................................................................………8709F
     Levee Construction .......................................................................................................................... 6045
     Marinas – U.S. Act .........................................................................................................................6826F
     Marine Railway Operation ............................................................................................................6872F
     Mining N.O.C. Underground ......................................................................................................... 1164
     Nuclear & Atomic Energy .............................................................................................................. 9984
               ............................................................................................................................................. 9985
     Offshore Oil/Gas
        Painting – Ship Hulls – U.S. Act ............................................................................................6874F
        Revetment or Dike Construction............................................................................................. 6005
        Ship Building – Naval...............................................................................................................6845F
     Oil Refining – Petroleum ................................................................................................................ 4740
     Pharmaceutical or Surgical Goods Mfg. NOC ............................................................................ 4693
               ............................................................................................................................................. 4825
               ............................................................................................................................................. 4611
     Ship Building – Iron or Steel ........................................................................................................6842F
     Ship Repair Conversions
          U.S. Act...................................................................................................................................6872F
          State Act.................................................................................................................................... 6882
     Ship Scaling
          U.S. Act...................................................................................................................................6874F
          State Act.................................................................................................................................... 6882
     Steamship Line or Agency
          Superintendents, Captains, etc. ...........................................................................................8725F
          Talliers, Checking Clerks, etc ..............................................................................................8709F
          State Act only........................................................................................................................... 8719
     Stevedoring by Hand......................................................................................................................7317F
          Containerized Freight ...........................................................................................................7327F
          Explosive Materials...............................................................................................................7323F
          Freight Handling ...................................................................................................................7350F
          Talliers.....................................................................................................................................8709F
     Subaqueous Work
     Subway Construction
     Tunnel Operations ........................................................................................................................... 9019
     Tunneling – Not Pneumatic ........................................................................................................... 6251
     Tunneling – Pneumatic.................................................................................................................... 6260
     Underground Mining
     United States Armed Forces – Civilian Employees ..................................................................9077F
     Wrecking
          Buildings and Structures......................................................................................................... 5213
               ............................................................................................................................................. 5057
               ............................................................................................................................................. 5022
               ............................................................................................................................................. 5403
          Piers or Wharves ..................................................................................................................... 6003




                                                                                               19

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NEW MEXICO MUTUAL                                                                      PRODUCERS’ GUIDE




In addition to the above, NMM does not want to write the following types of exposure.
    1. PEO’s or Employee Leasing when written on a master policy.
    2. Employee leasing clients. Clients coming out of an employee leasing company may be declined
       because it will be difficult to measure prior experience. (Please refer to the Employee Leasing
       Section).
    3. Accounts that have extensive uninsured volunteer worker force. NMM will not be providing
       volunteer coverage at this time. Blanket Accident and Health policies are available for this
       coverage.
    4. Accounts that have prior cancellations due to non-payment of premium or non-cooperation
       with carrier.
    5. Anyone in the business of asbestos-related work.
    6. Long Haul Truckers.
    7. Extensive use of uninsured subcontractors.
    8. Minimum Premium accounts with no employees.
    9. Any account manufacturing, handling, loading transporting explosives.
    10. Insured’s whose primary operation is refining of petroleum and its products.
    11. Insured’s whose primary operation is Wrecking or demolition of buildings, structures or vessels.
    12. The manufacturing, storage, or transportation of fireworks, ammunition, nitroglycerin or other
        explosive devices.
    13. Professional sports teams.
    14. Offshore drilling.
    15. Mining either above or below ground; except quarry work where the use of explosives by the
        Insured is not part of the standard operation.
    16. Aviation exposures; except for Industrial Aid with 8 seats or less.
    17. Manufacturing of any pharmaceutical or chemicals.
    18. Amusement Parks and exhibitions including fireworks, carnivals or circuses except for family
        fun centers.
    19. Temporary Employment Agencies, except for those risk whose primary exposure is office
        support.




                                                        20

REV. 2/11
NEW MEXICO MUTUAL                                                                   PRODUCERS’ GUIDE




                                             DEDUCTIBLES

NM Mutual’s (NMM) has deductible options ranging from $500 to $250,000. Deductible credits up to
the $10,000 deductible level are in Miscellaneous Values of the rate pages. Please refer to New Mexico
Mutual On-line. For deductibles above $10,000, please refer to Large Deductible Program on page 20
of this producer guide.




                                                     21

REV. 2/11
NEW MEXICO MUTUAL                                                                       PRODUCERS’ GUIDE




                                                LARGE DEDUCTIBLES

Purpose of Large Deductible Program – To better serve the workers’ compensation insurance
marketplace in NM by offering a deductible plan which begins where small deducible options leave off
and ends where many other large deductible plans begin. Traditionally this has been a segment of the
market ignored for deductible workers’ compensation insurance.
NM Mutuals’ (NMM) large deductible program is a combined self-insurance and insurance program.
The intent is to have the insured absorb the more predicable losses with an insurance company to back
them up for the unpredictable losses. The maximum deductible available is $250,000.
Deductibles must not be used simply as a method to achieve premium reduction. The insured must
understand that they will, ultimately, be responsible for each and every claim up to the chosen
deductible amount. Any offsetting premium reduction should not be viewed as a premium savings tool.
The claim shall be paid by NMM, which shall then be reimbursed by the employer for any deductible
amounts paid. The employer shall be liable for reimbursement up to the limit of the deductible chosen.
The payment or nonpayment of deductible amounts by the insured employer to NMM shall be treated
under the policy insuring the liability for workers’ compensation in the same manner as payment or
nonpayment of premiums.

Upon written request to NMM the insured may choose to withdraw from participation in the deductible
program. Procedurally, this will be accomplished by cancelling the policy pro-rata, and rewriting with the
new ‘small’ deductible amount, if applicable. Any claims incurred before the cancellation date will be
the responsibility of the insured, up to the deductible and aggregate limits.




Eligibility
New Mexico Mutual Casualty Company and New Mexico Southwest Casualty Company are the only
two companies that are eligible to write policies with our Large Deductible Program
To qualify, the NMMCC or NMSCC policy must generate a minimum Standard Premium 1 * of $40,000.
Generally, to qualify for a deductible in excess of $10,000 the policy should generate a minimum
premium of $100,000. The minimum deductible available is $15,000 and the minimum aggregate limit is
100% of Standard Premium. The largest deductible available is $250,000. This plan must be fully
explained to the insured and agent prior to binding.


For deductibles of $50,000 or more, the following guideline documents and deposits will be required
unless waived by our Chief Business Officer. The guideline documents and deposits for deductibles
below $50,000 may be waived by the Director of Underwriting when supported by favorable financial
information.




                                                              22
1   * Standard premium does not include premium discount or expense constant
REV. 2/11
NEW MEXICO MUTUAL                                                                      PRODUCERS’ GUIDE


    Guidelines for submissions

Each deductible plan must be scrutinized closely and approved by the Underwriting Director and CBO.
D&B Reports will be ordered on all large deductible applicants. Guidelines for submissions are as
follows:


        1.      Must be willing to provide unrestricted letter of credit (Clean and irrevocable with an
                evergreen clause).


        2.      Must be willing to provide verifiable financial statements showing adequate assets and
                results to cover potential claim expenses. This should include CPA audited financials,
                and may also include a credit investigation if warranted.

        3.      The deductible amount requested has to make sense. As a general guideline, the
                standard premium should be a minimum of 2 ½ times the deductible amount. The
                account should generate a minimum of $100,000 premium in order to qualify for a
                deductible over $10,000.

        4.      Must be willing to provide a deductible security deposit, if required by NMM. The
                deposit typically consists of three months estimated paid losses and exists to offset the
                delay in the deductible billing process.

The agent must provide us with at least 30 days lead time to review the financials and develop a quote.


Calculation of Deductible Factor


The program that NMMCC/NMMSCC has filed is a formula, based on Table M loss groups, which are
an element of retrospective rating.


Aggregate coverage’s are offered on all large deductible plan amounts. The minimum aggregate amount
is 100% of standard premium.


The Large deductible plan is not eligible for either Schedule or Merit credits since the program is based
on a loss rating approach.




                                                       23

REV. 2/11
NEW MEXICO MUTUAL                                                                        PRODUCERS’ GUIDE




                                           MERIT RATING PLAN


Merit Rating Plan is only available under New Mexico Southwest Casualty Company.


Qualifying Criteria

Any policyholder meeting all of the following six qualifying criteria will be given a Merit Rate
Credit to be applied independent of any applicable Schedule Rate Modification, Experience
Rate Modification or Deductible Credit:

        1. One or more consecutive years insured with verifiable loss history;

        2. Consecutive three year Loss Ratio of 45% or better (History-to-date loss ratio for
        policyholders which have not yet been insured 3 years);

        3. No outstanding Loss Prevention Recommendations;

        4. Never been canceled with coverage lapse for non-payment of policy premiums or deductible
        premium due under the policy in the expiring policy term;

        5. Meet all New Mexico Southwest Casualty Company (NMSCC) underwriting guidelines;


Application of Merit Rate Credit

For NMSCC the amount of the Merit Rate Credit shall be:
      Level 1     7.5%
      Level 2     15%

        Level 1         A policyholder insured with NMSCC that meets the above-stated
                        criteria but has not received a Merit Rate Credit on the expiring policy period
                        is eligible for a Level 1 Merit Rate Credit on the renewal policy period.
                        A policyholder insured for one year with insurers other than NMSCC, and
                        meeting the above criteria is eligible for a Level 1 Merit Rate
                        Credit.

        Level 2         A policyholder insured with NMSCC that meets the above-stated
                        criteria and has received a Merit Rate Credit on the expiring policy period is
                        eligible for a Level 2 Merit Rate Credit on the Renewal policy period.

                        A policyholder insured for 2 or more consecutive years with insurers other
                        than NMSCC and meeting the above criteria is eligible for a
                        Level 2 Merit Rate Credit.




                                                        24

REV. 2/11
NEW MEXICO MUTUAL                                                                  PRODUCERS’ GUIDE


                    A policyholder that has a Level 2 Merit Rate Credit applied to the current
                    policy period and fails to meet the above criteria for the ensuing policy
                    period for any reason other than cancellation with coverage lapse or nonpayment
                    of amounts due under the policy shall receive a Level 1 Merit Rate Credit in the
                    ensuing policy period. If the policyholder continues to not meet the above
                    criteria after that policy period, the Merit Credit will then be withdrawn on the
                    next ensuing policy period.




                                                   25

REV. 2/11
                                              PREMIUM FINANCING



NMM has several payment plans and therefore, there is little, if any need to finance premiums in the
voluntary market. The employer may elect to finance the entire estimated annual premium. When this is
done, there are several concerns for the producer and the company.
First, the finance company will require the employer to sign a finance agreement. This will usually require
the employer to sign over to the finance company two important rights:
   1. The right to cancel the policy should the employer fail to meet a payment as required in the
      agreement.
   2. The right to receive return premiums, whether the policy is canceled or not.


Any changes to the policy or final audit are direct bill to policyholder and not subject to premium
financing.


NMM must receive a valid copy of the actual finance agreement signed by the employer. If the producer
helps the employer to obtain financing, the agreement should be readily available. The agreement must be
the “official” legal agreement, signed by the employer and containing the full terms of the agreement.
Without having such a copy in its files, NMM cannot acknowledge the finance company’s rights.
The finance company may request that a cancellation take effect on a certain date. NMM, because of legal
cancellation requirements, may have to make the cancellation date effective at a later date.
A request for cancellation from the finance company is considered a pro rate cancellation.




  REV. 2/11                                                26
                                    EMPLOYEE LEASING SITUATIONS



Leased employee situations present a number of underwriting and claims problems. As a result, we will
need more lead-time than usual to underwrite and quote any situations involving leased employees. For
underwriting purposes, we can divide leasing situations into three different groups.


#1 Leasing companies
NMM is not a market for employee leasing when written on a master policy.


#2 Employers coming out of leasing companies
We can consider companies coming out of leasing arrangements subject to having:
    1. Currently dated loss runs from insurance companies.
    2. Completed tentative experience modification worksheets.
    3. New policies would be subject to providing complete payroll and loss information to NCCI
       within 30 days of inception.
    4. We will usually require loss control and test audits to insure correct classifications.
    5. We will need complete submissions 45 days prior to inception date.

#3 Companies who lease employees
We will consider companies who lease employees subject to:
    1. NMM must write all of the employees of the employers, including the owners.
    2. We must have a current verifiable experience modification exhibit.
    3. We must have currently dated insurance company loss runs.
    4. We will need a pre-survey by premium audit to determine that we can obtain payroll
       information, including employee prior six-month wages.
    5. Loss control surveys will be required prior to quoting.
    6. We will need complete submissions 45 days prior to the inception date.




REV. 2/11                                              27
CERTIFICATES OF INSURANCE
NMM does not issue certificates of insurance nor does NMM maintain copies of certificates issued by
producers. Certificates of insurance are the responsibility of the producer. Any changes to a policy must
be completed on New Mexico Mutual On-Line.



LACK OF COOPERATION ON AUDITS
Our audit department makes at least three efforts to obtain final audit information. Cooperation on
audits is a requirement of the policy. Accounts that do not respond to these efforts will be sent a notice
of cancellation. No return premiums will be made on accounts that have not cooperated in providing
the information needed to conduct a final audit.



FORMS
Forms can be found on our website at www.newmexicomutual.com and by clicking on New Mexico
Mutual On-Line. A username and password are required. Please contact our Marketing Department if
you do not have a log-in.




REV. 2/11                                                 28
                                         OUT-OF-STATE PROGRAM

Out-of-State Program is for policyholders whose majority of operations are in New Mexico but have out of state
exposure.
All states are eligible for the other states coverage program except the “monopolistic states” of North Dakota,
Ohio, Washington and Wyoming.

Submission requirements
Accord Application
Loss Runs – 3 to 5 years
E-mod Worksheet
We must write the New Mexico portion of the account

Installment plans
Annual
25% Down 3 Installments
25% Down 5 Installments
25% Down 9 Installments

Requirements to bind
Signed Accord Application
Down Payment
General agent broker agreement with our out of state partner and licensing for the state in which we are writing
the out of state policy

Billing information contact
Midlands Management Corporation
Patricia Songer
405-840-0074 or 800-800-4007

Premium Audit
Audits will be handled by New Mexico Mutual and/or its vendors.

Loss Prevention
Loss prevention will be provided by Midlands Management Corporation or its vendors if requested by New
Mexico Mutual or if required by state
Claims Handling
Reported to:                                  Handled by
New Mexico Mutual                             Midlands Management Corporation -
Dave Onuska                                   Customer Service Center & Gallagher-
daveo@newmexicomutual.com                     Bassett Services
(505)343-2826                                 1-888-476-2666

Other Information
Certificates of insurance can be issued by agency copy must be sent to NMM
One policy for New Mexico portion and one policy for all multi-states
Request loss run information through New Mexico Mutual


REV. 2/11                                               29

				
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