As a group member, you automatically receive a 6 percent discount on your State fund policy. this discount is co0mbinable with other dscounts and credits for which your policy qualifies, including:
- Experience modification (ex-mod) rating. Depending on actual historical payroll and losses, your ex-mod may be a credit (under 100%) or a debit (over 100%). We are required to apply your ex-mod as determined by the Workers’ Compensation Insurance Rating Bureau. In our example below, we will use a credit ex-mod, indicating an above-average safety record for your industry.
- Claims Free Credit or Merit Rating Discount (granted to employers with good safety practices and claims records).
- ADR program discount (if applicable).
- Premium discount (an automatic credit factor for premium levels above a certain threshold).
DO THE MATH
To show you the savings power of group insurance, let’s look at the real-world sample comparison:
- Employer 1 has an annual base premium (based on payroll and classifications) of $50,000, an ex-mod of 88%, and a Claims Free Credit of 10%. The final premium is $35,690.20.
- Employer 2 has the same base premium, ex-mod, and claims Free Credit and also belongs to a State Fund group program like our Construction Group . the final premium is $33,582.69–a savings of more than $2,000 just for joining our group.
It’s simple: The group insurance discount lets you keep more of your hard-earned money in your business.
Source: GROUPS, State Fund COMPonents 2009–Issue 4
