UNDERWRITING SERVICES

UNDERWRITING SERVICES

On a daily basis, the Underwriting Services' staff provides assistance to agents, employers, carrier representatives, potential self-insured groups, state regulators and legislative representatives on a variety of issues relating to the workers' compensation industry. Through these efforts, we act as a valuable resource to all parties, offering information and assistance in virtually all areas of workers' compensation to persons in the voluntary as well as the assigned risk markets. In addition we remain committed to developing products and services that better serve our customers while providing our staff with challenges and opportunities for professional growth.

Following are some of the achievements we realized in 1998:

M Johnson
Marie A. Johnson
Director

Assigned Risk Plan

During the past year, the number of new applications remained steady even though the total number of employers in the Plan decreased by 4,146 and the total premium volume decreased by $9,680,772. This represents a 27 percent decrease in premium volume with an 11 percent decrease in total employers for the Assigned Risk Plan. By comparison, the Plan's

premium volume in 1993 was five and a half times that of 1998 while the number of employers was only one and one third times higher. (Note: premium figures shown are based upon estimated annual premiums.)

Effective April 1, 1998, the Department of Commerce ordered an overall premium rate level decrease of 2.3 percent. In addition to the new rate schedule, the Assigned Risk Plan 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 $1,105/weekly ($57,460/annually); and the Minimum Individual Remuneration for family members to $166/weekly ($8,632/annually) effective 4-1-98 for new and renewal business.

1998 ASSIGNED RISK ACTIVITY
Month	New Applications	Premium Volume	Item Count
January	708	34,518,636	37,059
February	662	34,130,104	37,259
March	890	34,026,960	37,094
April	1,005	32,152,717	36,425
May	944	30,541,677	35,370
June	1,021	28,364,715	33,208
July	978	29,154,299	34,841
August	860	29,520,346	36,240
September	772	29,052,604	35,964
October	808	28,391,104	35,708
November	690	27,332,716	35,020
December	672	25,801,333	33,553
Total	10,010

MCPAP

As a result of our efforts in 1998, MWCIA was able to propose changes to improve the Minnesota Contractors Premium Adjustment Program (MCPAP) and obtain approval from Minnesota's Department of Commerce to implement these changes with the support of our membership as well as the membership of the contracting industry at large. Consequently, MCPAP will undergo a facelift in 1999 to improve the enrollment process for employers eligible to apply for a MCPAP credit factor in the year 2000.

Among the changes, the enrollment period has been moved from the busy summer season to the first quarter of each year. Beginning with the year 2000 enrollment period, application packets will be mailed to employers in mid-January with the deadline for enrollment set at April 1. Employers applying after April 1 will incur an increased late penalty adjustment that may affect the amount of their credit.

We will continue to take an active role by checking applications for accuracy and by providing assistance as needed to employers throughout the application process.

Products & Services

Throughout 1998, demand remained strong for services (experience modification factors, 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, classification surveys, test audits, etc.). Movement of new accounts into the Assigned Risk Plan remained steady even though the total number of employers and premium volume continued to decrease. (See Assigned Risk Plan)

Field Services


Year	Inspections	Test Audits
1995	681	348
1996	597	367
1997	610	290
1998	604	262