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New options for writing business

SAIF will open higher tiers to employers that previously did not qualify.

As you know, SAIF has traditionally insured more high-risk accounts than other carriers in the state as part of its mission to make insurance affordable and available to Oregon employers.

In reviewing our risks and exposures, we have determined that we can open our higher tiers (G = 1.60 and H = 1.74) to accounts that previously did not qualify by adjusting our underwriting standards and making more frequent use of deposits. G and H will now be available for small business accounts in the service center. By using G and H, we will have more ability to absorb losses or higher frequency of injuries than previously.

For accounts in the Assigned Risk Plan with SAIF, there will be less of an emphasis on the “intent to cancel” history of a policy in deciding whether an account can be written into G and H. In addition, accounts that have telecommuting only or personal election only may be eligible for coverage in G and H.

This change is effective for policies renewing January 1, 2019, and later, and will be evaluated on an ongoing basis. Policies will be written in to G and H at renewal; we will not accept submissions until 90 days prior to renewal.

Consistent with current policy, we will not offer coverage to employers with outstanding debts to SAIF, with a persistent record of nonpayment or late payment of bills, or for short-term policies.

If you have any questions, please contact your underwriter or the service center.

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Cannabis update

We don’t plan to change our cannabis underwriting guidelines or service based on the U.S. DOJ memo.

The U.S. Department of Justice issued a memo in January 2018 that gave U.S. attorneys greater control in the enforcement of federal marijuana laws.

According to the announcement, U.S. attorneys are directed to enforce laws enacted by Congress in 1970, which generally prohibit the cultivation, distribution, and possession of marijuana.

Since the announcement, however, members of Congress have pushed back, concerned with applying federal law to an industry regulated by individual states, including Oregon.

SAIF currently covers 592 cannabis-related operations in the voluntary market. As one of the only workers' comp insurers in Oregon that covers cannabis, we've been watching this issue closely and have been communicating with our state partners to determine the impact on our business, and our potential next steps, if any.

We currently have no plans to change our cannabis underwriting guidelines or the service that we provide to this industry. If we decide that we have to make changes, we will notify you.

If you have questions, please contact Steve Ringstad, UW technical adviser-supervisor (503.373.8754), or Judi Croft, safety services supervisor (503.373.8379).

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Buyer beware

What companies should look for before purchasing another company

When a business is being purchased, it's important to gather as much information as possible from the buyer. We know some of this information is confidential, but the more our underwriter knows, the better advice they can provide on how the purchase will impact the existing policy.

Here's a list to get you started:

• What's the name of the business being purchased?
• What's the name of the new employing entity? 
• Will the payroll and location of the new purchase be added as an assumed business name to your client's existing policy? 
• Is a new entity being filed with the Corporation Division by your client? 
• If the actual corporation is being purchased, are the articles of incorporation being changed after the purchase?
• Are the assets and liabilities of the business being purchased?
• What's the workers' comp experience of the business being purchased? We recommend your client request a current copy of the workers' comp experience (with the injured workers' names redacted).

The National Council on Compensation Insurance (NCCI) requires that an ERM-14 be completed; the assistant underwriter or insurance representative can provide you with the form. NCCI will determine if the workers' comp experience of the purchased entity will pass to your client's ER mod. Sometimes the ER mod will increase, so it's important to explore this aspect of the sale ahead of time.

The answers to the questions above help the underwriter determine whether the business operations will be added to your client's current policy, if a new business application needs to be submitted, or if your client takes over the selling entity's SAIF policy. Keep in mind that if we need to combine two or more policies for experience rating purposes, the underwriting department will need to change the renewal dates so that all align.

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Investing in return-to-work pays off

Both the injured worker and employer benefit from taking advantage of RTW opportunities.

Did you know the state of Oregon has unique programs with financial incentives that help employers bring employees back to work? One of these is the Employer-at-Injury Program, or EAIP.

In 2017 alone, SAIF policyholders received almost $11 million in EAIP reimbursements. In 2015, 79 percent of the employers who used EAIP were SAIF policyholders. The money comes from the Workers' Benefit Fund, which both employees and employers contribute to.

EAIP benefits employers who offer light-duty or modified work to their injured workers. When an injured worker returns to light-duty work, they maintain a connection with their employer, their rate of recovery may improve, and disability resulting from the incident may be reduced.

For employers, EAIP can help contain claim costs and can lead to reductions in premiums. Returning employees to work also minimizes indirect costs, which are anywhere from five to 52 times the cost of insurance. These noninsurance costs include rehiring, overtime, and retraining.

If your employers are already bringing injured workers back to work, please contact the insurer to see if they're eligible to receive wage subsidy assistance. If they aren't bringing injured workers back to work, one of our return-to-work consultants can help.  (Accessing the program requires the employer's consent.)

For more information, contact any SAIF RTW consultant; Rob Wallace, EAIP supervisor, (503.373.8307); or Jenny Bates, (503.315.3710).

Learn more about EAIP.

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How do employers get Business Online access?

Among the features: payroll reporting, claim filing, and bill paying

Employers can find many useful tools in Business Online, our secure application. They can:

• File a payroll report and update payroll figures in real time 
• Pay their bill
• Issue certificates of insurance
• File a claim (form 801) and see claim information 
• See policy details such as payroll, premium, and loss history information; change their address; or submit other policy changes

How do they sign up?

1. Go to saif.com/register.
2. Fill out the form and click Submit. This sends a validation email to the address they provided.
3. Click the link in the email.
4. Enter their password and click the Login button.

Learn more about our helpful online tools.

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Last-minute reports at hearing

Evidence can be—and often is—submitted at hearing.

Agents may wonder why SAIF attorneys often, at a hearing, request to consider settlement, when previously the case looked good to go forward. A recent case by the board presents an example.

In Marty J. Stark, the claimant’s attorney submitted a new report from a doctor five days before the scheduled hearing regarding the employer’s denial of claimant’s shoulder injury claim. The employer moved to postpone and/or continue the hearing to allow cross-examination of the doctor and for the opportunity to submit evidence responding to that report.

The employer also objected to the submission of the doctor’s report because all documents were to be submitted within 14 days before the hearing as provided under administrative rule. The administrative law judge (ALJ) allowed in the reports and only permitted a continuance to cross-examine the doctor.

Ultimately, the employer did not depose the doctor and the claim was found compensable based upon his report. The employer appealed, and the board agreed with the ALJ, ruling that the claimant’s counsel disclosed/submitted the report timely under the rule, which allows reports to come in within seven days of receipt.

The moral of this story: Last-minute evidence can be—and often is—submitted at hearing.

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News in brief

News and tips email 
Do you want to know what safety tips your policyholders are getting from SAIF? Sign up for our news and tips email.

Access to free on-demand trainings  
In the last issue we introduced the SAIF Learning Center, a new training resource where employers can customize content and track employee progress. Watch this short video to learn more. And watch the live webinar about the Learning Center, specifically for SAIF agents, on December 4.

Save the date 
SAIF's 2019 Workers' Comp Seminar will be April 3 at the Salem Convention Center.