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April 14, 2008 GDI Insurance Agency, Inc Adopt a Teacher Program Grant Davis, President of GDI Insurance Agency

and his son are dyslexic. “My son and I have both benefited over the years from the extra help given to us by many kind teachers, who have employed a variety of teaching methods and given freely of their time and talents to help us develop learning strategies to overcome our learning disabilities.” Today, we find that many of the educational aids which were very helpful to Grant and his son are now beyond the current budget restraints of our local schools. Leaving some students without hope of gaining the basic learning skills most people take for granted. Many great young people don’t know what to do without the extra help a caring teacher can provide. They don’t recognize how or that they can succeed, despite their learning disabilities and simply give up. The employees of GDI have created a local Adopt a Teacher Program. The program is designed to simply support our local teachers in what ever way we can. Teachers don’t have to be working with dyslexic students to qualify. They just have to have a need that would help their students that is not being met by our local school districts funding. “Sometimes our teachers are so close to reaching a student that even a little extra help can make a big difference!” As we looked into setting up a program we were interestingly met with several road blocks and red tape. As months have gone by without being able to offer any assistance we (GDI) just decided to do it ourselves, “without anyone’s permission!” As such, GDI will provide the assistance directly and personally to each teacher to be used for their students. GDI will provide up to $250 per classroom to help teachers fund the little extras that help their students. GDI has set up a small panel of educators to meet once each month. GDI will have no input other than to facilitate the meeting and send the donations out. When applying please be very specific as to what it is you are in need of and how it will benefit your students. Your requests will be prioritized based on the information you provide and funding amounts set by our selected panel. Our hope is to be able to fully fund every request we receive. The reality is that we are doing this ourselves and will naturally have some limitations on what we can do. Grant is also available to encourage students and talk with others about dyslexia. Any educator may apply for assistance by requesting a submission form from any member of GDI’s staff. By calling 888-991-2929 or mailing a request to 801 Geer Road, Turlock, CA 95380. For more information you may also send an email to: GDIadoptateacher@zipdrip.com

Insuring Your Teen Driver
Risks, Suggestions and Insurance Considerations
Presented by: GDI Insurance Agency, Inc.

Teen Driver Statistics
• Almost 5,000 teens ages 16 to 19 died from injuries caused by motor vehicle crashes in 2004. • Nearly 400,000 teens ages 16 to 19 involved in automobile accidents sustained nonfatal injuries that were severe enough to require treatment in the emergency room in 2005. • The risk of motor vehicle accidents is higher among 16- to 19year olds than among any other age group – they are four times more likely to crash than older drivers. • The motor vehicle death rate for male drivers ages 16 to 19 was one and half times that of female teenage drivers in 2004. • Teenage drivers are most likely to have an accident during their first year of driving.

Source: Centers for Disease Control and Prevention (CDC)

Risks for Teen Drivers

Risks for Teen Drivers
Teens get into motor vehicle accident for the following reasons:  Teens underestimate hazardous or dangerous situations, or are not able to recognize potentially hazardous situations.  Teens are more likely to speed and to follow too closely to the driver in front of them. (Males tend to do these behaviors more than females).  Teens have the lowest seat belt use of all drivers.

Source: CDC and Insurance Information Institute (III)

Risks for Teen Drivers
Teens get into motor vehicle accident for the following reasons:
 Teens have a greater danger of getting into accidents between 9 p.m. and 6 a.m. because of a lack of night driving experience.  Teens succumb to peer pressure from passengers to drive dangerously such as speeding or racing with other vehicles.  The 2005 National Institute of Mental Health claims that the part of the brain that weighs risks, makes judgment decisions and controls impulses is not fully developed until age 25.

Source: CDC and III

Risk for Teen Drivers
Teens get into motor vehicle accident for the following reasons:
 Teens with a blood alcohol level (BAC) of any concentration are at a greater risk of crashing compared to older drivers.  Over half of all teen drivers use cell phones while driving, which inhibits their ability to drive safely.

Source: CDC and III

Accidents by Age of Drivers
Age Group Under 20 20-24 25-34 35-44 45-54 55-64 65-74 Over 74 TOTAL Number of Drivers 9,396,000 16,886,000 36,003,000 40,394,000 39,851,000 26,685,000 16,492,000 12,793,000 2,015,000,000 Percent of Total 4.70% 8.40% 17.90% 20.00% 19.80% 14.70% 8.20% 6.40% 100.00% Drivers in Fatal Accidents 6,300 8,900 11,300 10,400 9,600 6,600 4,200 5,000 62,300 Percent of Total 10.10% 14.30% 18.10% 16.70% 15.40% 10.60% 6.70% 8.00% 100.00% Drivers in All Accidents 2,490,000 2,640,000 3,820,000 3,420,000 3,060,000 1,610,000 800,000 560,000 18,400,000 Percent of Total 13.50% 14.30% 20.80% 18.60% 16.60% 8.80% 4.30% 3.00% 100.00%

Note: Percentages do not add up exactly because of rounding; drivers under the age of 16 are not included.

Source: National Safety Council, 2005

Graduated Drivers Licensing (GDL) Program

Graduated Drivers Licensing (GDL)
Teens gradually receive their drivers’ licenses in 3 phases:
• Receive a supervised learners’ permit – Teens remain in this stage for an average of six months – Learners’ permit is required while driving with adult supervision – Must pass a vision and knowledge test before receiving intermediate license – Must always wear a seatbelt – Must have no traffic and/or alcohol offenses – Cannot drive at night Receive an intermediate drivers’ license – Restrictions on the number of passengers allowed in the vehicle and night driving – Zero tolerance for alcohol offenses and traffic violations – Can drive unsupervised in limited situations Full driving privileges granted

Graduated Drivers Licensing (GDL)
Benefits of GDL Programs:
 CDC found that the GDL program in North Carolina reduced hospitalizations and hospital costs for teen drivers by more than one third.  Injury and fatality rates were 20 percent lower in states with passenger and nighttime driving restrictions.

Source: III

Graduated Drivers Licensing (GDL)
Johns Hopkins Bloomberg School of Public Health found that states with the following elements in their GDL program had a 20 percent reduction in fatal crashes by 16-year old drivers:
 Minimum age of 15 ½ to receive learners’ permit  Waiting period of at least three months before applying for an intermediate license after receiving learners’ permit  Minimum of 30 hours of supervised driving  Must be at least 16-years old before obtaining intermediate license  Must be at least 17-years old before obtaining full license  Restrictions on number of passengers allowed in vehicles with teens

Source: III

Suggestions for Parents

Suggestions for Parents
• Enroll your child in a private driver education course taught by a professional. • Have your child obtain his/her learner’s permits as soon as possible and get as much experience as they can throughout the next year. • Require your child to drive with a learner’s permit for a full year, even if your state only requires this for six months. • Have your child practice driving under various conditions such as at night, during bad weather and in heavy traffic.

Suggestions for Parents
• Restrict the number of passengers allowed in the car with your teen driver. The more passengers, the greater the risk. • Do not allow your child to drive with new, teen drivers until they have had permits for at least one year. • Purchase a sensible, safe vehicle for your child to drive and/or allow them to drive one of your vehicles that fits that description. • Do not give your child his/her “own” car. Allow them to drive a “family vehicle” that is everyone’s to use. This will divert them from treating it more haphazardly.

Suggestions for Parents
• Set firm rules about driving privileges and stick with them. Relax the rules as your child becomes a better driver and maintains a clean driving record. • Make sure your teen gets enough sleep before driving; this will lessen his/her chance for an accident. • Set a good example in your own driving by abiding traffic laws, not talking on a cell phone while driving and not carrying on in-depth conversations while on the road with your teen in the car. • Create a driving contract between you and your child.

Parent/Child Driving Contract
Driving contracts satisfy the following: 1. Send the message that driving is a privilege that should be taken very seriously. 2. Eliminate any confusion about your rules regarding driving. 3. Provide consequences for children who break driving rules.

Parent/Child Driving Contract
Contracts should contain the following (at a minimum):
        Curfew restrictions Where the teen may/may not drive Cell phone use, radio use, MP3 player use restrictions Seat belt usage Consequences of having or receiving accidents, tickets and fines Consequences of driving under the influence of alcohol and/or drugs Passenger restrictions Consequences of violating any parts of the contract

Insurance Options and Obtaining the Best Rates

Motor Vehicle Insurance
Automobile insurance is an absolute must!
When determining your buying limits, consider: • How much you can afford to pay in premiums • Your obligation to someone who is injured in an auto accident

Obtaining the Best Rates
How can consumers get the best rates for their teens?
• Make sure teens attend driving schools approved by the insurance company. There are discounts for passing approved courses. Teens should maintain at least a “B” average (3.0 or higher) in school. Ask about our “Good Student Discount.” Select a higher deductible, which lowers your premium. Opting for a $250, $500 or $1,000 deductible can save a significant amount. Determine whether you can afford out-of-pocket costs in the event of an accident. Pay for minor damages yourself.

• •

Obtaining the Best Rates
• Avoid buying teens their “own” vehicle; have them drive a family car instead. The car should be in solid mechanical order, a fourdoor vehicle and no less than five years old (avoids adding collision insurance). These cars are also less likely to be stolen and do better in crash tests. • Keep all cars in parents’ names because they typically have more assets, which equals lower premiums. • If parents have good driving records, add teens to their current policy and pay an increased premium. If parents’ driving records are spotty or they drive extremely expensive cars, it’s best to purchase a separate policy for teens. • Only assign teens to one, less expensive car. Do not, under any circumstances, allow them to drive cars that they are not insured under.

Obtaining the Best Rates
• Check with GDI Insurance Agency, Inc. to see when we classify teens as adults and, consequently, lower premiums (varies between age 23 to 25). At this time, check to see if teens should have their own policies. • Inquire about our “safe driving programs.” Teens go through the program and sign a contract promising not to drink and drive. Completion of these programs can reduce premiums. • Ask GDI Insurance Agency, Inc. about discounts for teens who go off to college at least 100 miles away and do not keep a car on campus.

Best Practices
Consider these best practices before your teen starts driving: As soon as your teen is ready to get his/her learner’s permit, contact GDI Insurance Agency, Inc.. If your child gets into an accident, we will generally cover it but may charge a higher premium retroactively if you did not notify them that your child was driving. In rare cases, your coverage may be revoked. Do not lower your liability coverage drastically to combat rate increases. It simply does not make sense to carry less liability for a high risk driver, like teens. Plus, you will be forced to cover damages out-of-pocket if your child gets into an accident without enough coverage.

Personal Liability Umbrella Policy
In addition to an automobile insurance policy, consider purchasing a: Personal Liability Umbrella Policy (PLUP).
This policy will protect you against litigation if your teen accidentally injures someone or damages property. Even though your auto policy has substantial limits, it is common for juries to award damages that far exceed these limits. PLUPs supplement existing policies to provide additional liability protection.

Questions and Comments

GDI Insurance Agency, Inc. thanks you for your attendance and participation. Please let us know how we can help you and your new teen driver!

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Mod Services Portfolio

Is your current broker taking proactive steps to help you lower your mod?
We will help you control your mod through a comprehensive risk management plan, which seeks to reduce your workers’ compensation premium by acting on all its contributing factors, from loss control to cost containment.

How do you plan on building a culture focused on safety?
Get everyone on board, from upper management on down, by leveraging our robust risk management tools to highlight the financial benefits of workplace safety and its need for continued support to ensure long-term success.

209-634-2929

How effective is your current return to work program?
The evidence is clear: the longer a claim stays open, the more it will cost you. We can help you implement a robust return to work program that provides employees with appropriate care and facilitates quick recovery.
http://www.gdiinsurance.com/ 801 Geer Road, Turlock, CA 95380
© 2013 GDI Insurance Agency Inc. All rights reserved.

Sample Documents

Table of Contents
Policies, Programs and Manuals
Return to Work Program Guide............................................................................................... 3-4 Return to Work Policy ................................................................................................................. 5 Drug-free Workplace Policy ........................................................................................................ 6

Employer Resources
Understanding Your WC Experience Modification Factor....................................................... 7 Work Comp Insights: NCCI Changes Primary-Excess Split Point for 2013........................... 8 Work Comp Insights: Five Steps to Reducing WC Costs........................................................ 9 15 Warning Signs of Workers’ Compensation Fraud............................................................. 10 Drug Testing Proves Positive Results in Decreasing WC Mods ..................................... 11-12 Comprehensive Safety & Health Inspection Checklist ..................................................... 13-14 Top 10 Ways to Control Your WC Mod .................................................................................... 15

Presentations
Your Experience Modification Factor ................................................................................. 16-17 Preventing Workplace Accidents: A How-to Approach.................................................... 18-19 Impact of Return to Work Programs ................................................................................... 20-21 Financial Impact of Work-Related Injuries ......................................................................... 22-23

RETURN TO WORK PROGRAM
A Comprehensive Guide to Developing an Effective Plan

Provided by: GDI Insurance Agency, Inc. ◊ 801 Geer Road Turlock, CA 95380 Tel: 209-634-2929

This guide is merely a guideline. It is not meant to be exhaustive nor be construed as legal advice. It does not address all potential compliance issues with Federal, State, local OSHA or any other regulatory agency standards. Consult your licensed Commercial Property and Casualty representative at GDI Insurance Agency, Inc. or legal counsel to address This is a sample document provided by GDI Insurance Agency, Inc. possible compliance requirements.

3

WHERE TO BEGIN
The following guide will help you construct an effective Return to Work Program and create meaningful work assignments for workers injured both on and off the job. It includes background statistics to support the program, steps to take before execution, how to manage the program and implementation recommendations.
Step 1: Know the Facts Supporting your Return to Work Program with evidence that it will help save money is the best way to convince upper management to get on board. Obviously, injured employees drive up company costs in the form of lost work days and compensation costs. Studies clearly demonstrate that employees who are off work because of injury for more than 16 weeks seldom return to the workforce, and companies get stuck paying hundreds of thousands of dollars each year in unnecessary costs. Step 2: Gather Data Before you institute a program, research your company culture to understand what current employee attitudes are toward injury and returning to work. That way, after you create an official Return to Work Program, it will be easier to evaluate and determine whether there has been a positive mindset shift. Get to know your company culture at all levels and from a range of perspectives. Visit worksites and talk to employees to understand how your current Return to Work Program – or lack thereof – functions. Develop a needs assessment to determine how much work you need to do to shift company culture and practice. Step 3: Demonstrate a Commitment to Early Return to Work Make sure all levels of employees recognize that early return to work after an injury speeds up the recovery process and reduces the likelihood of permanent disability. Everyone from upper management to hourly employees should understand the goals, purpose and background on the program. There is no use taking large strides to enact a program if management does not support and recognize the need. These elements are the foundation and support for your Return to Work Program. Take plenty of time for these steps before moving on to create your program.

RETURN TO WORK PROGRAM ELEMENTS
Steps 4 through 7 of this guide will go straight into your written Return to Work Program, as they are the elements that will help you take action and establish a plan.
Step 4: Create Goals State ’s purpose in creating the program and emphasize management’s commitment to making it work. Keep it positive, but be sure employees understand the Return to Work Program is a serious initiative. This is also the place in your written program to define what type of duty you offer or require – your program can revolve around transitional duty, alternate duty or both. Example Goal Statement: ’s Return to Work Program is in place to accommodate injured workers by identifying new duties or modifying jobs to meet

This is a sample document provided by GDI Insurance Agency, Inc.

4|RETURN TO WORK PROGRAM GUIDE
4

Return to Work Policy
Prepared by: GDI Insurance Agency, Inc. Location: _________________ Effective Date: Revision Number: 2 PURPOSE
This policy is in place to ensure provides meaningful work activity for employees who are temporarily unable to perform all, or portions, of their regular work assignments or duties. This policy applies to employees suffering from either work or non-work related injury or illness. The goal is to allow valued company employees to return to productive, regular work as quickly as possible. By providing temporary transitional or modified work activity, injured employees remain an active and vital part of the company. Studies show that a well-constructed Return to Work Policy reduces lost time days, allows workers to recover more quickly and makes for a more positive work environment.

SCOPE
All active employees who become temporarily unable to perform their regular job due to a compensable work related or non-work related injury or illness may be eligible for transitory work duties within the provisions of this program. Return to work tasks may be in the form of: Changed duties within the scope of the employee’s current position Other available jobs for which the employee qualifies outside the scope of his or her current position An altered schedule of work hours

DEFINITIONS
Transitional duty is a therapeutic tool used to accelerate injured employees’ return to work by addressing the physical, emotional, attitudinal and environmental factors that otherwise inhibit a prompt return to work. These assignments are meant to be temporary and may not last longer than 90 days, though permits multiple 90-day assignments back-to-back if it is medically warranted. Alternate duty is a part of ’s Return to Work Policy that is designed as a placement service for individuals who have reached maximum medical improvement and are still unable to perform the essential functions of their pre-injury job.

-

APPLICABILITY
Length of Duty If work is available that meets the limitations or restrictions set forth by the employee’s attending practitioner, that employee may be assigned transitional or modified work for a period not to exceed 90 days. Transitional or light duty is a temporary program, and an employee’s eligibility in these reduced assignments will be based strictly on medical documentation and recovery progress. Daily Application An employee’s limitations and restrictions are effective 24 hours a day. Any employee who fails to follow his or her restrictions may cause a delay in healing or may further aggravate the condition.

Prepared by:

Date:

Approved by:

Date:

This is a sample document provided by GDI Insurance Agency, Inc.

This Return to Work Policy is a guideline. It does not address potential compliance issues with Federal, State or local OSHA or any other regulatory agency standards. Nor is it meant to be exhaustive or construed as legal advice. Consult your licensed commercial Property and Casualty representative at GDI Insurance Agency, Inc. or legal counsel to address possible compliance requirements.

5

Drug-free Workplace Policy

Location: Effective Date: Revision Number: 1

Prepared by: GDI Insurance Agency, Inc.

recognizes that employees are our most valuable asset, and the most important contributors to our continued growth and success. We are firmly committed to the safety of our employees. will do everything possible to prevent workplace accidents and is committed to providing a safe working environment for all employees. To further this goal, has developed a Drug-free Workplace Policy effective . The program will consist of three components: Post-Offer Drug/Alcohol Screen, Reasonable Cause Drug/Alcohol Screen and PostIncident Drug/Alcohol Screen. This policy applies to all candidates for employment as well as all current employees. This policy also serves to reinforce the ’s intolerance for illegal drug use and working under the influence of alcohol. Post-Offer Testing believes accident prevention and a safe work environment begin with hiring. As such, all applicants offered employment will be required to undergo a Drug/Alcohol Screening. Employment is conditional on the results of the Drug/Alcohol Screen. Procedure Any applicant the Company hires will be directed to the proper clinic, at Company expense, to undergo a Post-Offer Drug/Alcohol Screen. The clinic will release the results to the Human Resources Manager, who in turn will notify the candidate of the results. The test will consist of a breath alcohol test along with a urine analysis test for any nonprescribed illegal substances listed in Exhibit ‘A’ below. Consequence In the event the drug test comes back positive, the Medical Review Officer (MRO) will review the report and contact the applicant to determine if any extenuating circumstances, relevant at the time of the test, could have resulted in a false positive. The MRO will determine if the applicant will be re-tested. If any applicant tests positive with a blood alcohol level exceeding .02 or any non-prescribed illegal substance listed in Exhibit ‘A’, will withdraw their offer of employment. If any applicant refuses to submit to the tests, the offer will be withdrawn.

Prepared by:

Date:

Approved by:

Date:

This drug-free workplace policy is a guideline to reduce substance abuse in the workplace. It may not prevent substance abuse from occurring. It does not address potential compliance issues with Federal, State or local OSHA or any other regulatory agency standards. Nor is it meant to be exhaustive or construed as legal advice. Consult your licensed commercial Property and Casualty representative at GDI Insurance Agency, Inc. or legal counsel to address possible compliance requirements. © GDI Insurance Agency, Inc. All rights reserved.

This is a sample document provided by GDI Insurance Agency, Inc.

6

GDI Insurance Agency, Inc. Your Workers’ Compensation Partner

Understanding Your Workers’ Compensation Experience Modification Factor
The key to calculating a workers’ compensation premium is the experience modification factor, also known as your mod. Understanding your company’s mod and the data used to obtain it helps you identify ways to minimize your workers’ compensation premium. Who calculates the mod factor? Most states use the National Council on Compensation Insurance (NCCI) to collect data and calculate the experience modification factor. NCCI is a private corporation funded by member insurance companies. However, the following states have their own independent rating bureaus that are separate from the NCCI: California, Delaware, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Pennsylvania, Texas and Wisconsin. will be added to your premium. A mod factor less than 1.0 is a credit mod, which means losses are better than expected, resulting in a discounted premium.

What is the experience rating period? The mod is calculated using loss and payroll data for an experience rating period. The experience rating period typically includes data for three policy years, excluding the most Understanding your company’s recently completed year. For example, for a mod factor mod and the data used to calculated on January 1, 2012, data would be used for the obtain it helps you identify January 1, 2008-2009, January ways to minimize your workers’ 1, 2009-2010 and January 1, 2010-2011 policy periods. The compensation premium. data for the January 1, 20112012 would be excluded. Three years of data is used to provide a more accurate reflection of the losses, smoothing out the impact of any exceptionally bad or good year for losses. The actual loss data is separated into primary and excess pools. Primary losses, which are the first $5,000 of every loss, measure frequency. Excess losses — or amounts more than $5,000 — measure severity. The formula penalizes loss frequency by including all loss amounts in the calculation. The reason for this is that these types of claims can be controlled through proactive loss control programs. Losses in excess of $5,000 are capped at levels that vary by state. This minimizes the impact that any single claim can have on your premium. In approved states, medical-only claims figures are reduced by 70 percent. NCCI has announced a proposal to raise the split point

How is a mod calculated? The process of calculating the experience modification factor is complex, but the underlying theory and purpose of the formula is straightforward. Your company’s actual losses are compared to its expected losses by industry type. The formula incorporates factors that account for company size, unexpected large losses and the difference between loss frequency and loss severity to achieve a balance between fairness and accountability. How does my mod affect my premiums? The mod factor represents either a credit or debit that is applied to your workers’ compensation premium. A mod factor greater than 1.0 is a debit mod, which means that your losses are worse than expected and a surcharge

This is a sample document provided by GDI Insurance Agency, Inc.

7

GDI Insurance Agency, Inc. Your Workers’ Compensation Partner

NCCI Changes Primary-Excess Split Point for 2013
correlate with claim inflation, which affects the experience rating plan. Many states have already approved this change to take effect with their annual rate and loss cost filing in 2013; a few states are still pending. The split point will also be indexed for claim inflation in the third and subsequent years of this transition. These changes will directly affect the 34 states and the District of Columbia currently using the NCCI’s rating system. Understanding the Primary-Excess Split The independent rating bureaus of Indiana, Michigan, In the experience rating process, Minnesota, New York, North each loss is divided into a Carolina and Wisconsin have If you’re not prepared, an NCCI also adopted the change, and primary and excess portion. Currently, the first $5,000 of independent bureaus increase of the primary-excess other every loss is allocated as a (Massachusetts and Texas) may primary loss, with everything re-evaluate their split points as split point could raise your over and above considered an well. The rating methods used by primary losses and negatively excess loss. For example, a California, Delaware, New Jersey $3,000 loss has no excess and Pennsylvania differ widely influence your mod. value. On the other hand, a loss from NCCI’s approach, so similar of $15,000 would have $5,000 in changes in those states are not primary losses as well as anticipated. $10,000 in excess losses. Primary losses are used as an indicator of frequency, and are counted in full as part of How Does This Affect My Organization? the mod calculation. Conversely, excess losses receive Whether your mod increases or decreases will depend partial weight in the mod calculation. This means that on whether you have an above or below average primary losses affect the mod more than excess losses number of losses under the split point. If most of your do. The rationale behind assessing primary and excess losses are under $5,000, you are likely to see a loss amounts is that “severity follows frequency,” or in decrease in your mod. If many of your losses exceed other words, an organization that displays a continual $5,000, you should prepare for an increase in your mod. pattern of loss has an increased chance of a severe loss in the future. Thus, a company with a large number of Analysts expect the split point change to result in a wider primary losses will have a higher mod than a company range of mods across each industry. Debit mods (those with the same amount of losses split between primary over 1.0) will tend to gain points; credit mods (those and excess. under 1.0) will more than likely see a decrease in points. Furthermore, many employers will see their minimum Upcoming Changes mod, or loss-free rating, decrease. NCCI has announced a proposal to raise the split point from $5,000 to $15,000 over a three year period to better Another minor change which will take effect with the split
This Work Comp Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2011 Zywave, Inc. All rights reserved.

The National Council on Compensation Insurance (NCCI) recently announced its plan to make a change in the experience rating formula. The primary-excess split point will be increased over a three-year transition period. The first stage of the transition will take effect with each state’s approved rate and loss cost filing on or after Jan. 1, 2013.

This is a sample document provided by GDI Insurance Agency, Inc.

8

GDI Insurance Agency, Inc. Your Workers’ Compensation Partner

Five Steps to Reducing Workers’ Compensation Costs
When a company experiences significant increases in workers’ OSHA-compliant programs have fewer accidents, more compensation costs, it usually triggers internal activities aimed productive employees and lower workers’ compensation costs. at reducing insurance costs and spending. The key to Integrate Programs into Daily Operations spending fewer dollars is more than just stopping a few accidents; it is having a sound safety program designed to Policies alone won’t get results; the program must move from continuously improve. This is where a safety program that, at a paper to practice to succeed. Putting a policy into practice minimum, is compliant with the Occupational Safety and Health requires a strategic plan clearly communicated to key Administration (OSHA) standards can yield significant savings participants, good execution of that plan based on developed for by reducing injuries and competencies, and a culture that illnesses, saving workers’ inspires and rewards people to do compensation dollars. their best. The key to spending fewer

WC claims dollars is more than When developing any business Building a Solid OSHA Program There are five entry-level steps can initiative, there must be an emphasis just stopping a few workplace take to have a well-rounded safety on frontline supervisors and helping program that produces a safe work them succeed. Every good business accidents; it’s having a sound environment, achieves OSHA person knows that any new program compliance, reduces accidents and - safety, quality or anything else safety program designed to ultimately reduces workers’ lives and dies with the frontline compensation costs. supervisor. If the frontline supervisor continuously improve. 1. Develop the various knows the program and wants to programs required by the make it happen, the program OSHA standards. succeeds; if not, the program is a 2. Integrate those programs into the daily operations. source of constant struggle, and an endless drain on resources 3. Investigate all injuries and illnesses. and energies. Providing supervisors with knowledge and skills 4. Provide training to develop safety competence in all through training is critical to the success of any program. employees. 5. Audit your programs and your work areas on a regular A solid OSHA program, integrated into the daily operation and basis to stimulate continuous improvement. led by competent supervisors is just the beginning. Successful safety programs focus on being proactive instead of always Develop Programs Required by OSHA Standards reacting to issues. Accident investigations provide an excellent Aside from being a requirement for general industry, the OSHA source of information on real or potential issues present in the standards provide a good pathway to incident reductions. A workplace. good number of accidents stem from poorly developed, trained Investigate All Injuries and Illnesses or implemented OSHA programs: slips or trips may come from poor housekeeping efforts or not keeping walking and working Workers’ compensation is designed to recompense employees surfaces clear, not using personal protective equipment may for injuries or illnesses that arise from or out of the course of result in excessive lacerations, and poor lifting techniques can employment. This should not come as a surprise, but result in strains. increasing claims drive up workers’ compensation costs. To reduce those costs, you must simply reduce your accidents. Many of the OSHA standards require some type of written And the ability to reduce accidents is significantly enhanced program be developed and then communicated to employees. Experience shows that companies with thoroughly developed

This is a sample document provided by GDI Insurance Agency, Inc.

9

15 Warning Signs of Workers’ Compensation Fraud
The WC (workers' compensation) insurance system is a no-fault method of paying workers for medical expenses and wage losses due to on-the-job injuries. While the majority of WC claims are truthful, the National Insurance Crime Bureau reports that billions of dollars of false claims are submitted each year. To help you detect possible WC fraud, experience shows a claim may be fraudulent if two or more of the following factors are present: 1. Monday Morning: The alleged injury occurs either “first thing Monday morning,” or late on a Friday afternoon but not reported until Monday. 2. Employment Change: The reported accident occurs immediately before or after a strike, a layoff, the end of a big project or at the conclusion of seasonal work. 3. Job Termination: If an employee files a post-termination claim: Was the alleged injury reported by the employee prior to termination? Did the employee exhaust his/her unemployment benefits prior to claiming workers’ compensation benefits?

4. History of Changes: The claimant has a history of frequently changing physicians, addresses and places of employment. 5. Medical History: The employee has a pre-existing medical condition that is similar to the alleged work injury. 6. No Witnesses: The accident has no witnesses, and the employee's own description does not logically support the cause of injury. 7. Conflicting Descriptions: The employee's description of the accident conflicts with the medical history or First Report of Injury. 8. History of Claims: The claimant has a history of numerous suspicious or litigated claims. 9. Treatment is Refused: The claimant refuses a diagnostic procedure to confirm the nature or extent of an injury. 10. Late Reporting: The employee delays reporting the claim without a reasonable explanation. 11. Hard to Reach: You have difficulty contacting a claimant at home, when he/she is allegedly disabled. 12. Moonlighting: Does the employee have another paying job or do volunteer work? 13. Unusual Coincidence: There is an unusual coincidence between the employee’s alleged date of injury and his/her need for personal time off. 14. Financial Problems: The employee has tried to borrow money from co-workers or the company, or requested pay advances. 15. Hobbies: The employee has a hobby that could cause an injury similar to the alleged work injury.

GDI Insurance Agency, Inc. ■ 801 Geer Road Turlock, CA 95380 Tel: 209-634-2929 ■ Web: http://www.gdiinsurance.com/

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Remember, these warning signs are simply indicators. If you are suspicious of a claim, alert your insurance carrier.
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Drug Testing Proves Positive Results in Decreasing Workers’ Compensation Mods
Study revealing the results of drug testing and its impact on in reducing workers' compensation experience-rating modification factors

Provided by: GDI Insurance Agency, Inc.

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Introduction
From international corporations to small local contractors, construction companies that test for drugs appear to be successfully reducing workplace injuries, according to a new Cornell University study. "While drug testing is controversial, the study provides useful data on a readily measurable outcome," says its author, Jonathan Gerber, a May 2000 graduate of Cornell's School of Industrial and Labor Relations. The study was part of his three-year independent research project. ILR Professor of Labor Economics, Robert S. Smith served as adviser to the study, which has caught public attention and is pending publication in a national journal. In the past 15 years, drug testing in the U.S. workplace has gone from ground zero to widespread employer acceptance. In 1983, less than 1 percent of employees were subject to drug testing. Today, about 49 percent of full-time workers are subject to some form of workplace drug testing, according to the Substance Abuse and Mental Health Services Administration, a division of the U.S. Department of Health and Human Services. This growth is particularly evident within the construction industry. High rates of drug and alcohol abuse in the industry, coupled with the high-risk, safety-sensitive nature of the industry for workers and the general public, have prompted many companies to implement a variety of safety strategies, including drug testing. In his study, An Evaluation of Drug Testing in the Workplace: A Study of the Construction Industry, Gerber proposed to test how effective drugtesting programs at construction companies were in making the workplace safer. He developed a survey that he sent in December 1999 to a randomly selected national sample of officials at 405 construction companies. Officials

at 71 companies responded. Gerber examined the data on injury incident rates and workers' compensation experience-rating modification factors compiled over a five-year period and supplied by National Council on Compensation Insurance.

The study's findings
On average, those companies in the study sample that tested workers and job applicants for drugs experienced a 51 percent reduction in injury rates within two years of implementing a drug-testing program, compared with only a 14 percent decline in injury rates in the average construction company in general during the same two-year period. Specifically the injury rate at construction companies that tested for drug use dipped from 8.92 incidents per 200,000 work-hours before the drug-testing program was put in place to 4.36 incidents afterward. Construction companies that test for drugs may save substantially on their workers' compensation premiums. As a result of fewer job site accidents and injuries, the average drug-testing company in the study sample experienced an 11.41 percent reduction in its workers' compensation experience-rating modification factor. At the same time, companies in the study sample that did not employ drug testing saw no such decline. Experience-rating modification factors are part of a program to help insurance companies establish workers' compensation premiums based on company safety records. Companies with an average safety record within their industry and state have an experience-rating modification factor of 1.0, while companies with a better than average safety record have a modification factor of less than 1.0. Drug testing is most effective in reducing workers' compensation experience-rating modification factors in the first three years following the implementation of a program.

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Comprehensive Safety & Health Inspection
For: Conducted by:
This inspection checklist is designed to help facilitate a walking inspection of your area(s) of responsibility. Answer each question as it pertains to your area. Negative answers indicate a potential safety concern and must be addressed and corrected as necessary.

Date:

Safety Administration
Employee Postings Is the required OSHA workplace poster displayed in a prominent location? Are emergency telephone numbers posted where they can be readily found in case of emergency? Where employees may be exposed to any toxic substances or harmful physical agents, has appropriate information concerning employee access to medical and exposure records and Material Safety Data Sheets been posted or otherwise made readily available to employees? Are signs concerning various hazards, such as room capacities, floor loading, biohazards, exposures to x-ray, or other harmful substances posted where appropriate? YES NO

Recordkeeping Is the company required to maintain an OSHA 300 Log? Is there a log that tracks all injuries and illnesses, including “first aid only” situations? Are all recordable injuries or illnesses posted on the OSHA 300 Log within six days of the incident? Is there an OSHA 301 (or suitable alternative) for every entry on the OSHA 300 Log? Is the OSHA 300A Annual Summary posted between February 1 and April 30 each year? Are employee medical records kept confidential? Are training records for employees maintained and accessible for review when required? Have arrangements been made to maintain required records for the legal period of time for each specific type record? (Some records must be maintained for 40 years.) Are operating permits up-to-date for such items as elevators, air pressure tanks and LPG tanks? Are operating permits posted in their proper locations?
st th

YES

NO

Safety & Health Program Management

YES

NO

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Do you have an active safety and health program in operation that deals with general safety and health program elements as well as the management of hazards specific to your worksite? Is one person clearly responsible for the overall activities of the safety program? In your department, does everyone clearly understand their responsibility toward safety? Do you have a safety committee that meets regularly and reports back on its activities? Do you have a working procedure in place for handling in-house employee complaints or concerns regarding safety and health issues? Are you keeping your employees informed of various safety improvements made within the company?

Medical Services and First Aid Is there a hospital or clinic in close proximity to the workplace? Are there people within your department who are trained in first aid procedures? Do those employees who are expected to provide first aid as part of their job responsibilities receive the necessary training and vaccinations as outlined in various OSHA standards? When employees have an exposure incident involving bloodborne pathogens, do you provide an immediate post-exposure medical evaluation? Are medical personnel readily available for advice on matters of occupational health? Are first aid kits easily accessible to each work area, with necessary supplies available? Are first aid kits maintained and replenished when necessary? When employees may be exposed to corrosive materials, such as acids, are means provided for quick drenching or flushing of the eyes and body?

YES

NO

General Work Environment
General Conditions Are all worksites clean and orderly? Are machines and work areas swept clean at the end of each shift or workday and are debris, scrap, and other waste picked up and removed from the work area? Are work areas adequately illuminated? YES NO

Walkways Are aisles and passageways kept clear and passable? Are aisles and walkways marked as required? Are working surfaces kept dry and free of wet or otherwise slippery conditions? Are wet or slippery surfaces, inherent to the production operation, covered with non-slip material or otherwise made safe? Are holes in the floor, sidewalk, or other walking area repaired properly, or otherwise covered to prevent slips, trips or falls? Is there safe clearance for walking in aisles where motorized equipment is used? Are materials or equipment stored in such a way that sharp objects will not project into the aisle and create a hazard?

YES

NO

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Top 10 Ways to Control Your Mod
Your experience modification factor, or mod, is an important component used in calculating your workers’ compensation premium. If you can control your mod, you can lower your price — so we’ve gathered top tips to help you impact your bottom line.
1. Investigate accidents immediately and thoroughly; take corrective action to eliminate hazards, and be aware of fraud. 2. Report all claims to your carrier immediately. Alert the carrier to any serious, potentially serious or suspect claims. Frequently monitor the status of the claim, and communicate with the adjuster to resolve them as quickly as possible. 3. Take an aggressive approach to providing light duty to all injured employees upon their release from treatment. Supervise light duty employees to ensure their conformance with restrictions. 4. In serious cases that involve lost time, communicate with the claims adjuster to demonstrate your interest in returning the injured employee back to gainful employment. 5. Set safety performance goals for those with supervisory responsibility. Success in achieving safety goals should be used as one measure during performance appraisals. 6. Develop a written safety program, and train employees in their responsibilities for safety. Incorporate a disciplinary policy into the program that holds employees accountable for breaking rules or rewards them for correctly following safety procedures. 7. Frequently communicate with employees, both formally and informally, regarding the importance of safety. 8. Make safety a priority – senior management must be visible in the safety effort and must support improvement. 9. Evaluate accident history and near-misses at least monthly. Look for trends in experience, and take corrective action on the worst problems first. 10. Hire GDI Insurance Agency, Inc. to ensure success

For more information, contact:
Grant Davis President 209-634-2929

PROVIDED BY:

GDI INSURANCE AGENCY, INC. 801 GEER ROAD TURLOCK, CA 95380
Tel: 209-634-2929♦ HTTP://WWW.GDIINSURANCE.COM/

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