State Fund Mutual to quote low-risk micro accounts in Assigned Risk Plan
State Fund Mutual plans to solicit small-premium, low-risk
policyholders in the Minnesota Assigned Risk Plan. Quotes and a simplified
application form are to be mailed in August for October renewals in the
ARP.
The application form asks for the name of the independent insurance agent with whom the policyholder works.
In addition, a personalized cover letter accompanying each quote tells the employer, "If you work with an Independent Insurance Agent, you're certainly welcome to forward the quote on to your agent for processing."
The August mailing is the first in a series of monthly mailings going out 60 days in advance of policy expiration dates to employers with Assigned Risk Plan policies for certain low-hazard classes and less than $5,000 in premium.
"We're talking about the micro business in the Assigned Risk Plan," said Fran Kaitala, SFM vice president, Insurance Operations. "State Fund has been focusing for several months on expanding the volume of very small employers it writes, and the pool is one place we're looking."
Of the Assigned Risk Plan's 42,428 policyholders, more than 35,000 have policies less than $5,000 in premium. About 16,000 of those have dominant payroll that falls within 125 low-hazard job classes. State Fund Mutual's August mailing will go out to about 1,600 of those small-premium, low-hazard policyholders. Most are "micro" accounts of less than $3,000 in premium.
Agents sending micro accounts
SFM's volume of new micro business already has been increasing.
For the past several months, SFM underwriters have been asking agents to submit micro business that falls within the 125 selected job classes. They explain to agents that the underwriting criteria for this lower-risk business has been greatly simplified. SFM prepares quotes and hopes to write the agency's entire book of micro accounts in those classes.
Agents are encouraged to continue submitting micro business. SFM underwriters are prepared to work with you to make the process as easy as possible. Some agencies send their entire lists of small accounts to SFM and let underwriters do the work of sorting out those in eligible classes. Another easy way is using SFM's simplified electronic "E-Z app." The "E-Z app" Word template and the list of the 125 job classes are available on the agent homepage of SFM's website www.sfmic.com. Or your underwriter can email them to you.
The application form asks for the name of the independent insurance agent with whom the policyholder works.
In addition, a personalized cover letter accompanying each quote tells the employer, "If you work with an Independent Insurance Agent, you're certainly welcome to forward the quote on to your agent for processing."
The August mailing is the first in a series of monthly mailings going out 60 days in advance of policy expiration dates to employers with Assigned Risk Plan policies for certain low-hazard classes and less than $5,000 in premium.
"We're talking about the micro business in the Assigned Risk Plan," said Fran Kaitala, SFM vice president, Insurance Operations. "State Fund has been focusing for several months on expanding the volume of very small employers it writes, and the pool is one place we're looking."
Of the Assigned Risk Plan's 42,428 policyholders, more than 35,000 have policies less than $5,000 in premium. About 16,000 of those have dominant payroll that falls within 125 low-hazard job classes. State Fund Mutual's August mailing will go out to about 1,600 of those small-premium, low-hazard policyholders. Most are "micro" accounts of less than $3,000 in premium.
Agents sending micro accounts
SFM's volume of new micro business already has been increasing.
For the past several months, SFM underwriters have been asking agents to submit micro business that falls within the 125 selected job classes. They explain to agents that the underwriting criteria for this lower-risk business has been greatly simplified. SFM prepares quotes and hopes to write the agency's entire book of micro accounts in those classes.
Agents are encouraged to continue submitting micro business. SFM underwriters are prepared to work with you to make the process as easy as possible. Some agencies send their entire lists of small accounts to SFM and let underwriters do the work of sorting out those in eligible classes. Another easy way is using SFM's simplified electronic "E-Z app." The "E-Z app" Word template and the list of the 125 job classes are available on the agent homepage of SFM's website www.sfmic.com. Or your underwriter can email them to you.
