insurance self For Your Employees

2007-03-08 10:33:40

( Insurance )



What is insurance self? It means by definition that you establish reserves for any future losses rather than purchase insurance. Insurance self could be purchased as health care self employed or for any other forecasted loss.

In a certain state there is a special office which offers insurance self plans. (You might even be interested in health care self employed).

This state has a significantly large insurance self workers’ compensation program. At the previously mentioned office there are self insured employers (including health care self employed) in both the private and public sectors.

In addition, there are a large number of public agencies who have insurance self. These employers have chosen to self-insure in terms of compensation liabilities for their workers because, not only is it cost-effective, but they can control their claims program and it offers increased safety incentives as well as improved loss control results.

The success of these programs depends on how effective the loss control activities are and on claims supervision. Some employers contract with a third party to administer these services.

To become self-insured in this manner, the employer must qualify upon application and fall under certain financial requirements.

What are the requirements if you want to become self insured in this state?

You need to apply to the previously mentioned office for approval.

The application for the private sector takes a few months.

During this time, the office evaluates the applicant’s:
• Proposed benefit delivery system
• Financial strength
• Loss prevention program.

Present financial requirements are:
• A specific amount of shareholder equity
• A certain average of net profits over a certain period of time
• Independently audited, certified financial statements.

A separate application must be filled by each affiliate company or subsidiary.

Non-affiliated companies in both the private and public sectors can take out group insurance.

Benefit Delivery System Administration

Insurers and self-insurers are both subject to audits to ensure that benefits are paid out on time and correctly to injured workers. Self-insured employers have to provide the same range of benefits as any insurance company.

Self-insurers are subject periodically to audits to verify the reported workers’ compensation liabilities as well as the security deposit which have been posted as security for payment of these liabilities.

New self-insurers have to use third-party administrators for a certain period, after which they can administer themselves.

Injury and Illness Prevention Evaluation

A program of this nature has to be evaluated by an independent, private, registered safety engineer and certified hygienist. At minimum, compliance with safety and health regulations is required.

Security Deposit

Private self-insurers have to have and keep up a minimum security deposit or even a larger amount based on expected future liabilities


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.