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Group Size
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| Participation in a group program spreads your risk over a larger population. AGC has one of the largest groups representing group premium as high as $40 million. |
| Refund Potential |
Your Retro Refund potential is higher in a group Retro program due to the L&I loss conversion factor applied to the refund calculation that is based on the group premium and the percentage of premium the group risks in the event of a penalty. What this means is that with AGC's group premium of approximately $40 million and the L&I loss conversion factor at .809, members of our group are charged only 80 percent of their claim developed losses vs. 100 percent.
In addition, AGC distributes the refund 75 percent based on individual performance and 25 percent based on the company's contribution of premium to the refund. As a result of the distribution formula and AGC's low administrative fees (approximately 4 percent of the refund), AGC members have received refunds as high as 75 percent of their L&I premium. This performance-based refund approach ensures that those members who spend money upfront on safety incentive programs, kept-on-salary practices and light duty return-to-work efforts receive their highest refund potential!
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Performance
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AGC Retro members have received back net premium refunds averaging nearly 60% and as high as 70-75 percent in years before the Department of Labor and Industries made changes to the Retro program. While we don’t expect to get back to individual net refunds in the 70% range, we do anticipate we will continue to achieve outstanding results due to members shared commitment to safety, light duty accommodation, and claims management in conjunction with AGC safety and claims help.
AGC's program was set up as a service for AGC members and not for profit to the association. Because we only take what we need to run the program, our administrative fees are approximately 4% and include interest compared to competing plans that take a straight percentage off the refund and charge quarterly fees.
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| No Penalties |
In an individual program if your losses exceeded your premium (after the L&I factors based on the risk you chose), you would be charged a penalty. In the AGC Group Retro program, if your losses exceed your premium, you are not assessed a penalty. The entire group would have to go into a penalty before any penalty would be incurred by an individual participant.
To ensure maximum performance for folks investing in safety and return to work accommodation, we do put companies on notice if they have two negative years while we work to identify any trends in their losses and provide them resources to help them improve their safety programs. We have disqualified firms in order to protect the integrity of the group and ensure continued peak performance.
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| Return to Work and Retraining Services |
AGC has the most advanced temporary transitional return-to-work services in the state and offers retraining programs for workers who cannot return to their job of injury. Click here for details.
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| Shared Commitment |
As a member of AGC Group Retro, you would be among companies that are serious about safety. Retro members must qualify into the AGC Safety Team®. Safety Team® qualification involves a job-site and paperwork audit to ensure companies meet or exceed L&I safety standards. AGC Group Retro members must also have a return-to-work light duty policy and agree to keep injured workers on salary for a minimum of 30 days, as well as work with AGC Retro claims consultants for a "team" approach to resolving claims. Members also meet quarterly at Retro Think Tanks to discuss their current claims and exchange best loss control practices.
While kept on salary practices alone are not effective and must be accompanied by meaningful light duty work accommodation, there are times when due to the situation on a particular claim that AGC does grant an exception to the kept-on-salary requirement. |
| Underwriting |
Stringent underwriting is one of the key benefits of membership in AGC Group Retro. Complete underwriting criteria are:
- Must be an AGC of Washington member. However, Inland Northwest AGC members may contact Lauren Gubbe at toll free 888-227-3876 and/or Stacy Mullane at toll free 800-562-2868 for criteria and consideration of AGC of Washington Retro Membership.
- Must have an interview to asses the company's commitment to:
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- job-site safety and achievement of AGC Safety Team® membership;
- working with injured employees on return-to-work issues;
- working with AGC Retro and Safety Consultants to expedite resolution of claim and safety issues; and
- implementation of a 30-day kept-on-salary practice, as well as a light duty return to work policy.
- An analysis of loss trends is provided for purposes of targeting safety efforts and members will also receive resources and tools to assist them in reducing injury and/or occupational disease claim frequency.
- The company's three-year L&I loss history report will be reviewed by an Independent Underwriter, as well as the AGC Retro Director.
- AGC Safety Team® membership must be achieved within 11 months of enrollment qualification.
- The company must have a designated safety and claims contact person committed to work with AGC Safety and Retro consultants. This person is encouraged to attend AGC "Think Tank" meetings and claims training workshops, as well as Safety Forums.
- Must complete the "Application & Release" form. This will enable us to obtain your L&I three-year Premium and Loss History Report and provide you with the refund amounts you would have received had you been in the program. In addition, AGC's Independent Underwriter will review your premium and loss trend. The results of his review and AGC Retro Director recommendation are then reviewed with the AGC Retro Committee prior to qualification for AGC Retro membership.
- If your company qualifies for enrollment, a one-time refundable $2000 deposit is required. This deposit rolls over with each year you qualify for the AGC Retro program and is refundable at the time of your final Retro adjustment in the AGC plan.
- All AGC Retro members must re-qualify each year based on achievement of AGC Safety Team® membership, three-year premium and developed loss history trends, light duty and 30-day kept on salary efforts, and coordination and cooperation with AGC Retro and Safety staff regarding claims and safety issues.
- When re-qualifying, companies that are put on notice for performance have a full year to address any disqualification action. Unusual claim circumstances, L&I adjudication, etc. are taken into consideration when underwriting.
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