Underwriting Services

Marie A. Johnson, Director

As in past years, Underwriting Services continues to serve as a link between the Association, its membership, and Minnesota employers. The staff of the Underwriting Services Department has a combined experience in the workers’ compensation industry of more than 150 years. This depth of experience provides our staff with a solid basis for responding to inquiries from employers, agents, carriers, state and legislative representatives, and other interested parties.

Underwriting Services provides professional assistance and expertise in matters concerning workers’ compensation for both the voluntary and assigned risk markets.

Here are a few of the highlights of 1997 that had an impact on the responsibilities of the Underwriting Services Department:

Last Summer, the underwriting staff accepted a more active role in the Minnesota Contractors’ Premium Adjustment Program (MCPAP). Staff reviewed individual applications for accuracy and provided additional assistance to employers in the application process to assure the continued integrity of the program. In addition, Underwriting continued to respond to employer questions concerning MCPAP.

Underwriting continues it’s participation in the ACCCT project, seeking enhancements to the computer system that will increase our productivity and help us better serve our members.

Upon moving to the new facilities, the Underwriting Services Department became paperless. The department no longer accesses employer records in their original hard copy form. All files are “on-line,” enabling staff to quickly provide accurate and up-to-date information to our members and Minnesota employers.

The Underwriting staff includes, left-to-right in the front row: Maureen Wahlstrom, Jane Payne, Melodie LaChapelle and Kim Eckhart. Left-to-right in the back row: Marie Johnson, Gary Bauer, Jeff Kvam and Palmer Koosmann.

Underwriting Services

Demand for services (experience modification factors and worksheet requests, classification surveys, MCPAP factors, etc.) and assistance (classification inquiries, modification calculation inquiries, Assigned Risk application processing assistance, MCPAP application processing assistance, audit procedure inquiries, etc.) continued into 1997 at a high level. Movement of new accounts into the Assigned Risk Plan decreased slightly over the last year, while the number of total risks in the Plan remained steady. Premium volume, however, has decreased significantly although not to the extent of the prior year. (See Assigned Risk Plan, below.)

Test audit services and classification inspections continue to be in demand by companies, agents, and employers. Services provided include:

Assigned Risk Plan

Assigned Risk Plan activity was mixed in 1997. The number of new applications submitted in 1997 decreased slightly, while the number of total risks in the Plan remained steady. In the past year, the Assigned Risk Plan decreased by 2,294 employers while the total premium volume has decreased by $9,895,666 or a little over 20 percent. (The premium figures used here are estimated annual premiums and as such are only approximate.)

Effective April 1, 1997, the Department of Commerce ordered an overall premium rate level increase of five percent. In addition to a new rate schedule, the Assigned Risk Plan also increased the Maximum Individual Remuneration applicable to executive officers, partners, sole proprietors, members/owners of Limited Liability Companies, and athletic teams under Rules IXA4 IXB5, and IXA1 to $1,050 per week ($54,600 per annum); and the Minimum Individual Remuneration for family members to $180 per week ($8,164 per annum) effective 4-1-97 for new and renewal business.

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