By

Brad Wilson, MarketingInsurance Benefits, Inc.

Gary Drewes, MarketingHagan Benefits, Inc.

Dan Mostek, Loss ControlSafety Benefits, Inc.

Workers Compensation is regulated by the Department of Labor

SDCL 62

It’s the

LAW

•Employees

•Elected & Appointed Officials

•VolunteersSDCL 62-1-5.1 states that Volunteers must be listed in the entity’s official minutes

Work-related injuries/illnesses

Doesn’t include mental injury arising from emotional, mental or nonphysical stress

Employment or employment related activities must be a major contributing cause Determined by SD DOL

Employee has 3 days to notify Employer

Employer has 7 days to notify Work Comp Carrier

Insurer has 10 days to notify the Department of Labor

This is according to South Dakota Codified Laws:

62-6-1 and 62-7-10 and 62-4-37

PLEASE REPORT ALL INCIDENTS

When Does A Claim Need To Be Reported?

Intoxication

Illegal use of Drugs

Self-inflicted Injury

Refusal to Use Safety Equipment

Hope this looks like an

accident!

WILLFUL Misconduct (Horseplay)

Medical (no deductible)

Disability (2/3 of Salary)2010-2011 Max. $630 Min. $315

Rehabilitation i.e. Retraining or Education

Death Benefits - $10,000

funeral expenses

The pricing is developed fromYOUR payroll!

Each job description has a separaterate. Example: Highway code is 5506 and the rate is $6.46 per

$100 of payroll

A mechanism to measure YOURclaims experience compared to all other insureds.

Frequency Severity

Experience Modifiers begin at a 1.00

Based on YOUR past 3 years of claims experience your pricing will go up

with frequent or severe claims or down with fewer claims

Class Description Payroll Rate ContributionCodes

5506 Streets & Road $100,000 $6.46 $6,4607720 Law Enforcement $100,000 $3.31 $3,3108810 Clerical $100,000 $0.38 $ 380

Total Contribution $10,150

Experience Modifier (BAD EXPERIENCE) 1.30

MODIFIED CONTRIBUTION $13,195

Class Description Payroll Rate ContributionCodes

5506 Streets & Roads $100,000 $6.46 $6,4607720 Law Enforcement $100,000 $3.31 $3,3108810 Clerical $100,000 $0.38 $ 380

Total Contribution $10,150

Experience Modifier (GOOD EXPERIENCE) 0.70

MODIFIED CONTRIBUTION $7,105

Contributions or Premiums are Calculated on an estimatedPayroll amount.

At the end of the year, an “audit”Is performed.

Employee’s Payroll is classified by theemployee’s job duties – NOT by Department

• Jail Employees – Code 7720• Clerical – Code 8810 – Incl. Dispatchers,

Hwy Dept Secretary & Commissioners• Assessor, Building Inspectors – Code 9410• Highway Workers – Code 5506• Miscellaneous Volunteers – Code 9015a• Volunteer vs. Paid Firefighter/EMT’s

1. Control – Must have flexibility in performing job function

2. Responsibility of costs to perform the job – supplies, equipment

3. NOT paid by payroll – an expensed item4. Written Contract

Discuss these Contracts with your States Attorney.

Request: Certificates of Insurance

If you DO NOT have those in your File, the cost of the Contract must be Added to YOUR Workers CompensationPremium – in addition injuriescan be assessed to your WC.

Any volunteer worker rendering services in or for any agency, department, institution, or instrumentality of the state or of any of its political subdivisions, including counties, townships, school districts, or municipalities, whose services have been duly recommended to the officer or appointed thereto by such officers or governing body, shall for purposes of this title be deemed an employee of the state or the political subdivision, as the case may be. The appointment shall be entered into the official records or minutes of the entity.

“Children” under 16 – CANNOT RUN MOWERS

“Children” under 18 –

CANNOT RUN POWER DRIVEN EQUIP SUCH AS POWER SAWS

CANNOT DRIVE VEHICLES OVER 6,000 LBSUCH AS DUMP TRUCKS

CANNOT BE AN UNSUPERVISED LIFEGAURD UNLESS RED CROSS CERTIFIED – NEVER HANDLE CHEMICALS

Reasonable accommodations

Part-time work

Return the employee to pre-injury income

Expedites recovery – self-esteem

Improves Morale – injuredEmployees & Co-workers!

Reduces Claim Costs thus Saves the Employer money

For every 1 spent by workers’ compensation

an additional 4 to 6 (not covered by insurance) is a COST TO YOU!

Examples: Time to file claims Overtime paid to get the job done Time to train replacement workers Morale issues with other employees

Easy first point of contact for injured worker Nurse will triage the injury Reduces the time lag for reporting the injury Gives the employer or medical provider a

contact number for authorizations Increases communication between everyone

involved in the claims process This will ultimately reduce the overall cost of

claims 85% of claims cost are caused by 15% of

claims

SDML Std Mkt Renewal Credits Yes No

Loss Control Credits Yes No

Equity Credits Yes No

SDML Std MktRates

Policy Fee NONE Yes

Taxes NONE YesLoss Control FREE NONE

Approximate Savings with SDML WC – 20%

Less More

368 Members368 Members 65 of the 66 Counties65 of the 66 Counties 44 Conservation Districts44 Conservation Districts

Dennis FalkenDennis Falken

Brookings CountyBrookings County Alvin FjeldheimAlvin Fjeldheim

Campbell CountyCampbell County Bob WilcoxBob Wilcox

SD Assoc of County SD Assoc of County CommissionersCommissioners

Francis Toscana, Francis Toscana, ChmChm

Lead-Deadwood Lead-Deadwood Sanitary DistrictSanitary District

Jodi FriedelJodi Friedel

City of SpearfishCity of Spearfish Karl AlbertsKarl Alberts

City of AberdeenCity of Aberdeen Mike GrosekMike Grosek

City of WebsterCity of Webster Stanton FoxStanton Fox

City of WatertownCity of Watertown Yvonne TaylorYvonne Taylor

SDMLSDML

Insurance Benefits, Inc.

Karen Ripperda, AdministratorBrad Wilson, Marketing

800-233-9073

Hagan Benefits, Inc.

Gary Drewes, Marketing Ladene Bachtell, Underwriter

Christa Lee, Underwriter Jeff Pederson, Administrator

877-273-1712

What is a Pool?

• A group of similar exposures formed to share losses.

• Authorized by the Joint Power Act.• Owned, by the members – Governmental

Entities of the State of South Dakota

Risk-Sharing!!

South Dakota Public Assurance Alliance

• Gary Drewes, Marketing• Ladene Bachtell, Underwriting• Christa Lee, Underwriting• Jeff Pederson, Administration

Who is Covered??

County Employees

Elected & Appointed Officials

Volunteers

What is Covered???

Counties

Cities/Towns

Special Districts i.e.Townships/ Conservation Districts

SDPAA Lines of Coverage

General Liability

Public Officials Liability

Law Enforcement Liability

Auto Liability

Auto Physical Damage

Property Coverage

Boiler & Machinery

SDPAA Specialized Features

Employment Practices Liability – Included

Civil Rights Violations - Included

Volunteers are Included as Employees

Blanket Property Limits

Replacement Cost

How much does the SDPAA Pool Cost??

The pricing is developed from

YOUR budget, exposures, equipment & property!

Liability rates have not changed since

1987 – thus a stable market!!

Does your Liability and Property

Claims Experience Matter?

Contributions can be reduced with

Good Claims Experience

Jeff Jares, Claims Administrator

PROFESSIONAL

CLAIMS HANDLIN

G

Member/Claim Involvement

Adjuster & Member

Discuss Settlement

The Best Interest of the

Member is Considered

Doug Kirkus, Loss Control Administrator

FREE!!

Property Surveys

Buildings valued correctly

New Buildings covered

Old Buildings deleted

What are YOUR Benefits of a POOLING CONCEPT!

Stabilized RatesNo taxes and feesProfits belong to the MembersRetention nearly 100%

SDPAA Board of Directors

• Dennis Olson, Chm., City of Brandon• Tracy Turback,

City of Sioux Falls• Mike Hall, • City of Sioux Falls• Jim Borszich, • City of Huron• Jeff Heinemeyer, • City of Madison • Jerry Krambeck, City of Spearfish

• Ted Eggebraaten, Brookings County

• Terry Weisenberg, Lawrence County

• Mike Wiese, Brown County

ENDORSES

SDML WC Fund and the SDPAA

Dan MostekSafety Benefits, Inc.

(888) 313-0839

Introduction

Doug Kirkus has been involved with providing safety and loss control services for the Pools since 1995

Today we have 7 staff working with Pool membersDoug Kirkus - Dan CarlsonDan Mostek - Janet Sporrer Todd Everson - Sue Kirkus Kelly Everson

Employment Practices Hotline

SDPAA entities currently carrying Government Officials Liability coverage can use service

Questions that concern employment practices will be takenHiring, discipline, terminationQuestions concerning personnel policy and

employee manuals

SDPAA has contracted with 2 law firms with expertise in employment law

Services Overview

Member is entitled to 1 hour of free legal service for each SEPARATE inquiryIf more than 1 hour is needed, the Member may

extend the use of the service at their own expense

When a call is accepted, Member entity becomes a client of firm for purpose of call and attorney/client privilege is activated

Only information about call that is necessary for billing purposes will be provided to SDPAA

How Does Service Work

Contact SBI at (888) 313-0839

You will be asked a series of questionsWho is callingYour locationExact nature of the call

Once approved, attorney from one of approved law firms will return call and consult caller about inquiryLisa Marso – East RiverDon Knudsen – West River

Voter Redistricting HotlineWorks the same but deals with redistricting issues

Counties have to complete redistricting by February of 2012

SDPAA members are entitled to 2 hours of legal advice for each situationSara Frankenstein of Rapid City one of the Midwest’s

leading legal experts

Counties that have larger minority populations and Commissioners that are elected by Districts are really going to be watched by ACLU

To activate contact our office at (888) 313-0839

Law Enforcement Policy ProjectPATC developed model policies and procedures

in 12 high risk critical areas of law enforcement specifically for South DakotaHave added several new policies since the initial project

SDPAA funding updates for 3 years

Entities receive 5% loss control credit on Police Professional Liability coverage for signing participation agreement

PATC provides free monthly training webinars for SDPAA members

Free video training downloads will be able within the next 30 days

Jail Policy ProjectPATC has developed 31 model policies and

procedures specifically for SD jails in several high risk areasDraft manual is completed and is now being

reviewedTrain-the-trainer classes sometime in May or

June

These will be available free to all jails covered by the SPAA

On-Site Surveys

By contract we visit each member once every 3 yearsVisit members with highest loss ratios more often

Designed to assist members with safety and loss control

Make written recommendations designed to make the workplace as safe as possible for employees and reduce your chances of being sued

Loss Control Credits are given for cooperation and responding to our recommendations

Property Valuations

2008 - Completed on-site valuations for all SDPAA members with Property Coverage

Process of revisiting everyone started in 2009 and will complete in 2012

Important to do self-inspections of facilities

Report any new additions or acquisitions to Hagan Benefits

All Day Safety Training - MSHA

Offer 35 classes that began on January 5th7 hours of training

These classes qualify towards 8 hours of MSHA Annual Refresher training requirementsMost County Highway Departments have to

comply with MSHA

MSHA compliance officers are busy2 SD counties fined last summer

Other On-Site Training Classes

DDCEVOC – Police, Fire,

AmbulanceHarassment Prevention

for Employees and Supervisors

Back Injury Prevention Jail Suicide PreventionForklift SafetyAccident Investigation

for SupervisorsBloodborne PathogensSafety CommitteesSelf-Inspections of

Facilities

PPELockout/TagoutConfined Space EntryCoaching the CDL OperatorErgonomicsPlayground Equipment

InspectionsTrenching/Excavation

SafetyNon-Violent Crisis

InterventionPublic Officials Liability Improving Performance

AppraisalsCustomer Service

ATV Safety Training

New “hands-on” class being offered this yearFree to Pool members

Participants will be certified through the ATV Safety Institute

Encourage all ATV operators to attend this training especially County Weed and Search and Rescue employees

“Take Time for Safety”

37 different training topicsIncludes Trainer Outline, Handout, Quiz,

Answer Sheet, Attendee Roster and Training Certificate

Have added 8 new topics this year

Available on CD or subscription service

DVD-Video Library

Can be accessed through Pool websites and ordered on-linewww.sdmlwcfund.comwww.sdpaa.org

Have 100s of titles available

Add new titles each year

On-Line Training

Access through Pool websiteswww.sdpaa.orgwww.sdmlwcfund.com

22 general courses

4 supervisory level courses

Free to Members

Easy to navigate

Safety Awards

Can qualify for 3 different levelsBronze, Silver and GoldNot competing against any other entityJust have to meet criteria for each level

Platinum LevelCombined Loss Ratio - < 60%

Presented at annual Safety Award Luncheon sponsored by the SDPAA and SDML WC FundNews release sent to local newspapers

2010Bronze – 7; Silver – 7; Gold – 35; Platinum - 20

Annual Safety Conference

Sponsored by the 2 Pools, Insurance Benefits, Claims Associates and Safety Benefits

Different safety and loss control topics are covered

2011 Conference is at Cedar Shores – Oacoma on November 16th & 17th

Essential Physical Job FunctionsYou don’t want to hire someone that is

physically unable to do the job or has a pre-existing condition

Cannot legally ask an applicant “how is your health?” or “have you had previous work comp claims?”

Can ask them if they can perform the essential physical functions of the job

SDML WC FundHas hired occupational health experts to develop

these and they have been validatedMembers can obtain a copy from us

How can you tell if the applicant is being truthful?

Pre-Employment/Post-Offer PhysicalOnly has to be performed on the person you are offering

the job to and job offer can legally be withdrawn if can’t physically do the job

Cheapest investment that you will ever makeAlso valuable in protecting the County when bringing back

an injured employee or an employee who has health issues

Dan Mostek Dan Mostek Safety Benefits, Inc. Safety Benefits, Inc.