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					            Workers’ Compensation Questions and Answers
1. Workers’ Compensation alternatives

    The Ohio Bureau of Workers’ Compensation permits several alternative premium
    payment programs for individual employers. While larger companies (generally
    500 or more employees) may choose to be self-insured, small to moderate size
    organizations must pay premiums to the Ohio State Insurance Fund operated by
    Ohio Bureau of Workers’ Compensation.

    Small and moderate size businesses, however, do have some alternatives when it
    comes to workers’ compensation. These employers may select one of the
    following rating programs: 1.) Individual base/merit rating; 2.) Individual
    retrospective rating; or 3.) Group rating.

    Group rating plans offer favorable rates for employers.

2. What is Group Rating?

    Ohio Bureau of Workers’ Compensation permits employers with better-than-
    average claim histories to join together through a sponsoring organization for the
    purpose of being rated as a larger group. By participating in the group rating
    plan, employers enjoy a much lower premium rate than they could achieve

3. How can My Company Determine the Value of Group Enrollment?

    Comprehensive Risk Management (CRM), the group plan administrator, provides
    employers with a no-obligation estimate that outlines the potential saving a group
    rating plan offers. Each year beginning in March, CRM distributes AC-3 FORMS
    To interested employers. By signing this form, you authorize CRM to obtain your
    organization’s loss history from the state and assemble an analysis of your
    projected group rating plan savings. The analysis will be sent to you for your
    Completing and returning the AC-3FORM does not obligate you in any way to
    join a group. After receiving and reviewing the analysis, you have the
    opportunity to complete enrollment forms.

4. What if My Company is Already in Another Group?

    Even if your company is currently a member of a different group, you can
    obtain a comparative analysis from Comprehensive Risk Management.
    However, you may enroll in only one group per year. You are permitted to switch
    plans on an annual basis by completing an AC-26 Application for Group Rating
    for the group you wish to join. For more information or assistance in your
    transition to a CRM group, please contact our Group Rating Dept (216) 901-0066
  5. How Much Can My Company Save?

       Groups administered by Comprehensive Risk Management have realized
       saving between 40% and 90% on individual company premiums. No two
       group rating plans offer the same savings, and the actual savings a group
       experiences are dependent upon the type of business, final loss figures, enrollment,
       and reported payroll of participating individual members. Study estimates are
       based on the most recent loss information available and are developed
       conservatively. Because statewide rules dictate that group enrollment must occur
       six months before Ohio Bureau of Workers’ Compensation publishes the actual
       group rate, no group program can guarantee the final savings.

6.   What is the Enrollment Process?

       All group programs follow the same approximate time table. The enrollment
       process consists of completing a study authorization, receiving an estimate of
       potential savings, and completing an enrollment application FORM AC-26 and
       contract prior to January 31.

       March-July            Employer completes study authorization AC-3

       July-August           New rates are released by BWC
                             Group Administrator reviews and performs study

       October-November Group administrator mails study results with
                        Enrollment application to employer

       January 1             CRM Claim Management Service begins
                             Procedures manuals mailed to all group members

       January 31            BWC’s enrollment deadline

       July 1                New group payroll rate effective
                             Reduced premiums payable February 2007
                             and August 2007

  7. Will I Receive Any Additional Services by Enrolling in the Group Program?


       While your organization retains its individual risk account and ability to decide
       on its own claims, Comprehensive Risk Management provides cost control
       services and will work with you in administering your program. CRM’s team of
       specialized representatives is available to assist with any workers’ compensation
       problems including legal representation at scheduled hearings and assisting you in
    improving your safety practices. A full outline of available services is provided
    with the group analysis.

    Yes----Managed Care Organization.

    Ohio Bureau of Workers’ Compensation requires employers to select a Managed
    Care Organization (MCO). Your group plan sponsor may recommend an MCO,
    but the sponsor cannot require you to select any particular MCO as a
    prerequisite for participating in the group rating plan.

    No additional cost is required to enroll with the Managed Care Organization. An
    MCO’s revenues are paid a percentage of employer premiums.

8. General Comments

    The decision to participate in a group plan is made annually. An existing
    participant must notify CRM each year to continue enrollment. Should an
    individual member leave the group either voluntarily or because of poor history,
    the individual company will be rated based upon its own claim history as is the
    current practice.
    You must return all requested information to Comprehensive Risk Management to
    enroll. The applications will be filed in January and reviewed by Ohio Bureau of
    Workers’ Compensation to ensure compliance with specific Bureau rules.

9. Ohio Bureau of Workers’ Compensation Rules and Regulations

    In addition to acceptance into the group, each employer must maintain an
    account in good standing with Ohio Bureau of Workers’ Compensation:

          Any outstanding premium balances, assessments or partial payment plan
           amounts must be paid in full by January 31 unless a written protest of the
           balance has been filed with Ohio Bureau of Workers’ Compensation prior
           to the application date.

          Applicants must not have cumulative coverage lapses of more than 59
           days within the 18 months preceding the January 31 application deadline.
           Coverage must be active and in effect as of July 1. 2007.

          The formation of the group must improve claims handling procedures and
           accident prevention. All group participants must agree to improve both
           safety practices and claims management via procedures established by the
           IMPORTANT: An individual company may not enroll in more than one
            group plan. Ohio Bureau of Workers’ Compensation can reject those who
            join more than one group plan.

10. What Does it Cost to Join a Group?

     Upon enrollment in a group, you must pay administrative fees. These fees are
     calculated based upon the projected savings. The amount you pay covers claims
     management services for the period beginning in January and is for
     professional services provided by the plan administrator.

     Legal representation is included (whenever needed) until the case goes into
     the Court of Common Pleas. This means that CRM incurs all attorney costs
     at the District Hearing, Staff Hearing, and Industrial Commission Hearing

     Additionally, plan participants must be members in good standing of the
     sponsoring organization and agree to remit dues to the association according
     to its by-laws.

     Comprehensive Risk Management

     Comprehensive Risk Management specializes in the area of workers’
     compensation claims control, aggressively representing employers in all matters
     before Ohio Bureau of Workers’ Compensation and Industrial Commission of
     Ohio, while using attorneys instead of hearing representatives at NO additional
     cost to you. Comprehensive Risk Management is the only company in the state of
     Ohio whose registered representative is a law firm. United States Supreme Court
     dictates that only lawyers may cite statutes and case law, and cross-examine
     witnesses at court hearings. In addition, CRM’s experienced claims staff and our
     access to advanced computer capabilities including on line links to Oho Bureau of
     Workers’ Compensation allow Comprehensive Risk Management to effectively
     assist in managing your fees as well as your claims.