SFM Agent Agenda

94 percent of SFM policyholders renewed in 2011, sustaining SFM's consistently high performance over the years in retaining employers including times of firming in the market.

Direct written premium totaled more than $123 million, up 12 percent from 2010.

In 2011, SFM served 14,982 employers in its five core states of Minnesota, Wisconsin, Iowa, Nebraska and South Dakota, including insured and self-insured.

SFM also serves 6,550 employers through the Minnesota Assigned Risk Plan.

Measure of satisfaction
"SFM's high customer retention is a measure of strong customer satisfaction, and we're proud of that. As the market continues to firm, we know we can count on our agents to work with us, and we thank you for being our partner. We are looking forward to working with you and to a strong 2012," Steve Sandilla, vice president, SFM Strategic Business Operations, said.

SFM welcomed 1,731 new SFM policyholders in 2011, accounting for $17.4 million in premium.

Workers nationally filed more charges of employer retaliation in 2011 than any other discrimination charge, according to the U.S. Equal Employment Opportunity Commission.

Charges of retaliation, up 3 percent from the prior year, were involved in 37 percent of all cases against employers.

Charges of race and sex discrimination remained the second and third most common charges, but both declined slightly in frequency from the prior year.

However, charges of disability discrimination and age discrimination increased. Each is involved in about a fourth of all charges against employers.

The EEOC said the overall total number of charges against employers in 2011 was flat compared to 2010. However, the overall total number of charges has risen 32 percent since 2006, when charges against employers began rising steeply.

Charges of retaliation are up 66 percent since 2006.

Most cases against employers go no further than arbitration or administrative hearing. But even in those early stages of the legal process, defense costs can be staggering for small businesses.

Typically, more than half of employment practices lawsuits are against small businesses.

As an agent, you are encouraged to talk with your small business clients about the growing risks of employment practices and recommend liability coverage through SFM.

Sales resources
EPL quote. Take advantage of the quote SFM sends to you as part of the workers' compensation policy renewal for small accounts. Pricing for EPL coverage starts as low as $39 per employee.

EPL sales sheet. A one-page walkthrough piece. Download or order in the agent Resource Catalog. Type "EPL" in the search box.

Website. Direct clients to sfmic.com > Employers > EPL Coverage. Includes an EPL resource center, legal hotline phone number, employee training modules, model employment handbook policies, and more. No charge as part of SFM's EPL package.

Use SAM. You can easily add EPL coverage as an endorsement when you submit the workers' comp policy online through SFM Application Manager.

Questions, please contact SFM Underwriting Director Brian Bent, (800) 937-1181 ext 4344 or email us.

Agents submitted nearly 6,000 applications through SAM, accounting for more than $67 million.

The percentage of larger accounts submitted through SAM grew slightly from prior years. Premiums ranged from minimum premium to more than $300,000.

SFM encourages agents to submit business of all types and sizes through SAM.

SAM enables agents to quote and bind policies, preview pricing, fine-tune the quote, attach supporting documents, and communicate with the underwriter.

Agents may also quote employment practices liability coverage through SAM. For more information, see the agents section of the SFM website, under Online Services.

Major new capabilities are being developed so you can get key information about your book of business through SAM. That includes performance metrics for your agency.

SAM will also be an easy way for you to get client information, including easy access to loss runs and other claims data. You can receive special alerts on FROIs, claim reserve changes, and more.

The name SFM Agency Manager will replace SFM Application Manager. It's still SAM for short, but it will reflect your ability to do much more than quote and submit business.

The new version of SAM is expected to launch later this year.

The webinar "Return-to-work: Two reasons why. Six steps how." is set for 11 a.m., Wednesday, May 9.

The free webinar is especially for new SFM policyholders or those individuals new to assisting with return-to-work in their organization.

SFM claims and legal experts will explain why returning an injured employee to work is usually the best business decision, and how to do it. A question-and-answer session follows.

SFM clients can register online at sfmic.com.

SFM, which handled 1,888 lost-time claims during the 12-month period, ranked No. 1 in prompt action among Minnesota insurers with more than 1,000 lost-time claims.

SFM's consistently high performance over the years reflects its responsiveness on claims from when they are reported on through to their resolution, ultimately helping control claim costs.

The annual state report tracks insurers' timeliness in paying or denying lost-time claims within the statutory 14-day period.

Jason Clausen, senior loss prevention representative, joined the Iowa-Nebraska team in January. Clausen has 13 years of safety and workers' compensation insurance experience. He has worked with customers in a variety of industries ranging from schools to manufacturing.

Kerri Fosenburg, senior claims representative, joined the team in February. She has 12 years' experience managing claims and subrogation.

The addition of a loss prevention representative and a claims adjuster will increase SFM's local service presence in the Des Moines area.

When working with a client that is acquiring another entity, here are some suggestions that can help avoid unexpected costs.

• The client should be prepared to discuss with you the agent and with SFM its strategy for managing the newly acquired risk, including such things as loss prevention.
• Policies are revisited when there is a change in ownership. In most mergers or acquisitions, a new policy will need to be written for the operation under new ownership.
• The client should understand that the workers' compensation experience of the acquired entity may be combined with the workers' comp experience of the acquiring entity to produce a single, new combined experience mod factor. The client will want to understand the financial impact of this new e-mod and may contact you, the agent, for guidance.
• The client's due diligence should include an awareness of any significant open workers' compensation claims of the acquired entity and what the future cost development of those claims looks like. The acquiring entity may want to limit its liability for the future development of those open claims in the acquiring transaction.
• Your client may decide to operate the acquired entity independently as a separate legal entity. That arrangement often is set up with separate insurance policies. But don't overlook considering whether a combined policy for both separate legal entities would make sense financially.

SFM's top five new-business-production agencies in 2011:

1. RJF, a Marsh & McLennan agency, Minn.
2. Garry Insurancenter, Minn.
3. Bearence Management Group, Iowa
4. A W Welt Ambrisco Insurance Inc., Iowa
5. Holmes Murphy & Associates Inc., Iowa

Gene Merriam has been named chair of the SFM Board of Directors.

Merriam, a former state senator and Department of Natural Resources commissioner, is president of The Freshwater Society.

Merriam, of Coon Rapids, Minn., has served on the SFM board since 1998.

SFM received nearly 21,000 claims in 2011.

Steve Scharfenberg, assistant chief defense counsel, will present "On the hot seat—case discussion," and Kathy Bray, senior defense counsel, will present "Permanent brain injury without trauma: New developments."

Insurance Rehabilitation Study Group, a national educational forum comprised of individuals who oversee medical-related issues in the insurance industry, has appointed SFM Medical Services Manager Rose Hatmaker as secretary.

SFM has expanded the opportunities for high-quality, lower-cost diagnostic testing through Wisconsin medical providers.

Through contracts with additional certified providers of MRIs and other diagnostic tests, SFM expects the amounts billed to be significantly less when injured employees choose those providers for diagnostic tests.

Diagnostic testing costs in workers' comp are not controlled by regulatory parameters, and providers often charge widely varying amounts for the same service.

Agents attending the Independent Insurance Agents of Wisconsin convention in May will have the opportunity to hear from SFM's Senior Marketing Underwriter Janelle Krainz about upcoming changes to the NCCI experience rating plan and how to explain those changes to their clients.

SFM Loss Prevention Technical Leader Joe Morin is scheduled to speak on workers' comp best practices at the May conferences of the Minnesota and Wisconsin organizations of school business officials, MASBO and WASBO.

The city of Minneapolis has invited Tim Collin, president and chief operating officer of CompRehab, an SFM subsidiary, to present several sessions on office ergonomics during February through April.