The sole purpose of THE ELEC-CON TRUST is to serve
the workers’ compensation needs of the electrical construction industry.
This group need not share resources and attention with other industries,
will not concern itself with shareholder or political distractions, nor
subsidize other interests or operations. The rates will be based upon
the experience as developed by the membership— a membership of firms
that have met the requisite underwriting guidelines, and that actively
participate in claim reduction.
Flexibility and control are the hallmarks of self-insurance, and we
intend to make prudent use of those advantages. Working together, the
Association and our administrator (First Cardinal Corp.) will actively,
openly, and responsibly manage all the activities of this group. All
assets, liabilities, expenses, investments, claims, and service issues
are constantly monitored. Accurate and complete trust data is regularly
furnished to the trustees, allowing for unprecedented decision making
capabilities. Our use of skilled and recognized outside actuarial and
accounting firms lend further credibility and expertise to operating the
Trust.
In addition to operational efficiencies, genuine rate reduction rests
with the member. Many of our participants wish to play a more active
role in the handling of their claims. It is in this regard that the
Trust excels. Members will be contacted and kept informed of all
developments on lost time cases. Moreover, it is expected that the
member will communicate, cooperate and otherwise assist the Trust in
resolving claims. Through greater efforts by all parties, the human and
dollar cost of workplace accidents will be reduced. Every dollar of
reduced costs, is a dollar that will be returned to the membership.
Costs
Each firm is quoted individually based upon
underwriting review, including the most recent five years of loss
information. Each qualified participant starts with the applicable base
rate as published by the NY Compensation Rating Board (i.e. current base
rate for code 5190 is $6.03 per $100 of payroll)
Program discounts are applicable
based upon underwriting review
All members are exempt from the “Payroll
Limitation” program
» The Territory 1 surcharge of 8.5% does not apply
» The Territory 2 surcharge of 6.8% does not apply
» The Territory 3 surcharge of 4.0% does not apply
The member’s individual Experience Modification
will be applied
The member’s individual construction “PAP”
credit will be applied
The NYS Assessment is included in the quoted
rates
All members will participate in future surplus
distributions/ dividends
There is no separate group administration fee
No deposit required when you take advantage of
Cardinal Easy-Pay plans, such as automatic withdrawal from your
bank account or coordination with your payroll service.
Underwriting Guidelines
Your business must have a governing classification
in one of the following codes:
3643 - Electrical Power or Transmission
3724 - Electric Apparatus Installation & Repair
3737 - Electrical Apparatus Repair
5190 - Electrical Wiring Within Buildings
5191 - Low Voltage, Office Machinery
Or be classified under one of the following Standard Industrial Codes
(SIC)
3993 - Signs & Advertising Specialties
1731 - Special Trade- Electrical Work
7629 - Electrical & Electronic Repair Shops
In addition:
Must be a member in good standing of NYSAEC
New York operations only
In business three or more years
No loss in excess of $125,000 within previous
five years
No Line work. Incidental work at heights
examined on case by case basis
No leased employees
No aircraft flight or ground operations
No asbestos manufacture, installation or
removal
No operations which fall under the Jones Act
and/or Admiralty Act
No handling, storage or use of explosives
No wrecking or demolition of buildings,
structures or vessels
Services
All billing, claim handling, underwriting, safety &
loss control, customer service, and auditing functions are handled by
our administrator First Cardinal Corp. Cardinal is headquartered in
Albany, with offices in Buffalo, Rochester, Syracuse, White Plains, New
York, and Long Island. First Cardinal Corp. is the largest and most
recognized administrator of workers’ compensation group trusts in New
York State.
The Association’s licensed professionals are also available to answer
questions, and review or resolve any issues that relate to your workers’
compensation coverage with THE ELEC-CON TRUST.
Q & A
Q: Must new members pay an entry fee or post a security deposit as a
condition of joining the Trust?
A: NO. The Association has posted the required security with the
Workers' Compensation Board so the members need
not raise those funds individually.
Q: Where can information on the funding adequacy of this Trust be
obtained?
A: The NYS Workers' Compensation Board performs an annual audit and
review of each group self-insurance trust
licensed in New York. The e-mail address of the contact for such
information at the Workers' Compensation Board can
be obtained by contacting the Association office. Additionally, the
audited financial statements of this trust will
be reviewed with any prospective member upon request.
Q: Must I disclose financial information?
A: YES. The financial condition of each participant is reviewed to
protect the existing members and the integrity
of the Trust. Member financial information is held in strict confidence,
and under no circumstances will financial
information ever be made available or shared with any other member of
the Trust. We request the first 4 pages of the
most recent corporate tax return to make a determination of the
entrant's financial stability.
Q: Will my individual experience modification rating and construction
adjustment credit be applicable in the Trust?
A: YES. In the case of the EMR, the factor published by the appropriate
rating authority will be applied. Upon
expiration of your pre-trust experience, your EMR will be calculated by
the Trust using the exact same factors and
formula. Should a participant ever leave the Trust, we will furnish the
appropriate rating authority with the
necessary payroll and loss experience to continue the EMR.
Since the Trust does not "cap" payroll, our members enjoy a significant
advantage in the EMR calculation, which
leads to increased savings.
Q: What is the anniversary date of the Trust, and what if my
current policy renewal date is different?
A: January 1 is the common anniversary date for THE ELEC-CON TRUST. A
firm may join at any time, being issued a
pro-rata policy for the period of inception to January 1.
Q: Understandably this is a selective program, but what happens if I
have a poor loss year? Will I be non-renewed?
A: The Trust will certainly be monitoring the claims of each of our
participants. The main purpose it to keep the
member informed and to encourage their participation in reducing the
impact of those claims. Individual claims over
$25,000 and/ or an aggregate loss ratio greater than 40% will generate a
contact from the risk management
department. Together the member and the Trust should be able to identify
and correct the conditions leading to the
losses. Non-renewal would be a last resort if the member is not
cooperating or the loss pattern continues over
several periods.
Q: Does THE ELEC-CON TRUST have any protection against adverse or
unforeseen claim volume?
A: YES. The Trust is protected by two types of excess insurance
policies. One policy caps each individual loss at
$600,000. A second policy provides aggregate protection, should the
total of all claims during the year exceed
written Trust premium. The key difference is the attachment at Trust (or
discounted) premium rather than manual
premium. Many trusts are faced with a gap between their discounted rates
and the excess carrier's attachment at
manual rates. That is not the case with THE ELEC-CON TRUST.
Q: Then what is all the fuss with joint and several liability if the
Trust has excess insurance that attaches at
trust premium?
A: Joint and several is a reality of self-insurance, not to be taken
lightly. The combination of our long and
favorable "real world" experience with First Cardinal's highly respected
claim and underwriting departments enabled
our Trust to obtain extensive excess coverage at reasonable cost. We're
fortunate to be in a position to effectively
manage the joint and several responsibility, but it can not be
eradicated.
Consider that over the thirty years that this Association has
administered group workers' compensation, there has
not been a single year where claims and expenses have exceeded premium.
In fact, while there was no direct exposure
to THE ELEC-CON TRUST, our excess policies would have responded to the
terrible events of September 11, 2001. So
while we never have, and never expect to call upon our aggregate excess
coverage, it is in place for the piece of
mind and protection of the membership.
We put our money where our mouth is. The Association is a member of the
Trust, subject to the same joint and several
liability as our members.
Q: Is this Trust set up to return dividends?
A: YES. Surpluses will be returned upon approval of the Board of
Trustees. When a Trust year is completed, an
actuarial study will be performed to determine the cost of losses. In
addition to projecting the future development
of known losses, an additional reserve will be set aside for cases that
may have occurred but have not yet been
reported. ALL investment income on reserves will accrue to the Trust.
Dividends may compound themselves as favorable
experience of past years may create surpluses in addition to the most
recently completed year.
Q: What is the make-up of the Board of Trustees?
A: The Trustees are electrical contractors, elected by the members of
the Trust. Although not responsible for day
to day operations, the Trustees oversee and have final say on all
matters, including investments, to ensure that the
Trust is performing in the interests of the membership.
Q: Is there a minimum premium level for participation?
A: YES. While there is no set dollar value, the program is not designed
for contractors with no employees, or a
workforce of one or two.
Q: How do I access the program?
A: You can call the Association at 800-724-1904 and our staff will
assist you, or you may use the inter-net contact
form. It is best to give yourself plenty of time prior to the expiration
of your current policy, to allow for proper
quotation and application. You will need to obtain a 5 year loss history
from your current carrier, which may take
several weeks. You may also wish to arrange a visit to your office for
further presentation.
Beware if you are currently with the State Insurance Fund that you must
give 30 days written notice prior to
expiration. If proper notice is not given, you will be penalized should
you wish to place your coverage with this
Trust or anywhere else.
