GDI Insurance Agency In Action

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April 14, 2008

GDI Insurance Agency, IncAdopt a Teacher Program

Grant Davis, President of GDI Insurance Agency and his son are dyslexic. “My son and Ihave 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 andtalents 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 andhis son are now beyond the current budget restraints of our local schools. Leaving somestudents 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 teachercan provide. They don’t recognize how or that they can succeed, despite their learningdisabilities 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’thave to be working with dyslexic students to qualify. They just have to have a need thatwould 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 canmake 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 assistancewe (GDI) just decided to do it ourselves, “without anyone’s permission!” As such, GDIwill provide the assistance directly and personally to each teacher to be used for theirstudents.

GDI will provide up to $250 per classroom to help teachers fund the little extras that helptheir students.

GDI has set up a small panel of educators to meet once each month. GDI will have noinput 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 yourstudents. Your requests will be prioritized based on the information you provide andfunding amounts set by our selected panel. Our hope is to be able to fully fund everyrequest we receive. The reality is that we are doing this ourselves and will naturally havesome 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 anymember 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: [email protected]

mailto:[email protected]

mailto:[email protected]























Insuring Your Teen DriverRisks, Suggestions and Insurance Considerations

Presented by: GDI



Teen Driver Statistics

• Almost 5,000 teens ages 16 to 19 died from injuriemotor vehicle crashes in 2004.

• Nearly 400,000 teens ages 16 to 19 involved in auaccidents sustained nonfatal injuries that were sevrequire treatment in the emergency room in 2005.

• The risk of motor vehicle accidents is higher amon

year olds than among any other age group – they more likely to crash than older drivers.

• The motor vehicle death rate for male drivers agesone and half times that of female teenage drivers i

• Teenage drivers are most likely to have an accidenfirst year of driving.

Source: Centers for Disease Control and Prevention (CDC)



Risks for Teen Drivers




Teens get into motor vehicle accident for the followin

Teens underestimate hazardous or dangerous situnot able to recognize potentially hazardous situati

Teens are more likely to speed and to follow too cdriver in front of them. (Males tend to do these be

than females). Teens have the lowest seat belt use of all drivers.

Source: CDC and Insurance Information Institute (III)




Teens get into motor vehicle accident for the follow

Teens have a greater danger of getting into accid9 p.m. and 6 a.m. because of a lack of night drivi

Teens succumb to peer pressure from passengersdangerously such as speeding or racing with othe

The 2005 National Institute of Mental Health claimof the brain that weighs risks, makes judgment dcontrols impulses is not fully developed until age

Source: CDC and III



Risk for Teen Drivers

Teens get into motor vehicle accident for the follow

Teens with a blood alcohol level (BAC) of any conca greater risk of crashing compared to older driver

Over half of all teen drivers use cell phones while dinhibits their ability to drive safely.

Source: CDC and III



Accidents by Age of Drivers

Age Group Number of Drivers

Percent of

Total

Drivers in Fatal

Accidents

Percent of

Total

Dri

A

Under 20 9,396,000 4.70% 6,300 10.10%

20-24 16,886,000 8.40% 8,900 14.30%

25-34 36,003,000 17.90% 11,300 18.10%

35-44 40,394,000 20.00% 10,400 16.70%

45-54 39,851,000 19.80% 9,600 15.40%

55-64 26,685,000 14.70% 6,600 10.60%

65-74 16,492,000 8.20% 4,200 6.70%

Over 74 12,793,000 6.40% 5,000 8.00%

TOTAL 2,015,000,000 100.00% 62,300 100.00%

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





Graduated Drivers Licensing (GD

Teens gradually receive their drivers’ licenses in

• Receive a supervised learners’ permit

– Teens remain in this stage for an average of six mon

– Learners’ permit is required while driving with adult

– Must pass a vision and knowledge test before receivlicense

– 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 innight driving

– Zero tolerance for alcohol offenses and traffic violatio– Can drive unsupervised in limited situations

• Full driving privileges granted




Benefits of GDL Programs:

CDC found that the GDL programin North Carolina reducedhospitalizations and hospital costs

for teen drivers by more than onethird.

Injury and fatality rates were 20percent lower in states withpassenger and nighttime drivingrestrictions.

Source: III




Johns Hopkins Bloomberg School of Public Health fouwith the following elements in their GDL program hpercent reduction in fatal crashes by 16-year old d

Minimum age of 15 ½ to receive learners’ permit

Waiting period of at least three months before applyintermediate license after receiving learners’ permit

Minimum of 30 hours of supervised driving

Must be at least 16-years old before obtaining interm

Must be at least 17-years old before obtaining full lic

Restrictions on number of passengers allowed in veh

Source: III



Suggestions for Parents




• Enroll your child in a private driver education coa professional.

• Have your child obtain his/her learner’s permits possible and get as much experience as they canthe next year.

• Require your child to drive with a learner’s permyear, even if your state only requires this for six

• Have your child practice driving under various coas at night, during bad weather and in heavy tra




• Restrict the number of passengers allowed in theteen driver. The more passengers, the greater th

• Do not allow your child to drive with new, teen dthey have had permits for at least one year.

• Purchase a sensible, safe vehicle for your child toallow them to drive one of your vehicles that fitsdescription.

• Do not give your child his/her “own” car. Allow t “family vehicle” that is everyone’s to use. This wfrom treating it more haphazardly.




• Set firm rules about driving privileges and stick Relax the rules as your child becomes a better dmaintains a clean driving record.

• Make sure your teen gets enough sleep before dlessen his/her chance for an accident.

• Set a good example in your own driving by abidnot talking on a cell phone while driving and notin-depth conversations while on the road with ycar.

• Create a driving contract between you and your



Parent/Child Driving Contract

Driving contracts satisfy the following:

1. Send the message that driving is a privilege ttaken very seriously.

2. Eliminate any confusion about your rules rega

3. Provide consequences for children who break





Parent/Child Driving Contract

Contracts should contain the following (at a mini

Curfew restrictions

Where the teen may/may not drive

Cell phone use, radio use, MP3 player use restric

Seat belt usage Consequences of having or receiving accidents, t

Consequences of driving under the influence of adrugs

Passenger restrictions

Consequences of violating any parts of the contra



Insurance Options and Obtaining the



Motor Vehicle Insurance

Automobile insurance is an absolute m

When determining your buying limits, consider:• How much you can afford to pay in premiums• Your obligation to someone who is injured in an au



Obtaining the Best Rates

How can consumers get the best rates for their t

• Make sure teens attend driving schools approved insurance company. There are discounts for passincourses.

• Teens should maintain at least a “B” average (3.0school. Ask about our “Good Student Discount.”

• Select a higher deductible, which lowers your premfor a $250, $500 or $1,000 deductible can save a amount. Determine whether you can afford out-ofin the event of an accident.

• Pay for minor damages yourself.




• Avoid buying teens their “own” vehicle; have themcar instead. The car should be in solid mechanical door vehicle and no less than five years old (avoidcollision insurance). These cars are also less likelyand do better in crash tests.

• Keep all cars in parents’ names because they typicmore assets, which equals lower premiums.

• If parents have good driving records, add teens topolicy and pay an increased premium. If parents’ dare spotty or they drive extremely expensive cars,purchase a separate policy for teens.

• Only assign teens to one, less expensive car. Do n

circumstances, allow them to drive cars that they under.




• Check with GDI Insurance Agency, Inc. to see wheteens as adults and, consequently, lower premiumbetween age 23 to 25). At this time, check to see have their own policies.

• Inquire about our “safe driving programs.” Teens g

program and sign a contract promising not to drinCompletion of these programs can reduce premium

• Ask GDI Insurance Agency, Inc. about discounts fooff to college at least 100 miles away and do not kcampus.



Best Practices

Consider these best practices before your teen s

As soon as your teen is ready to get his/her learcontact GDI Insurance Agency, Inc.. If your can accident, we will generally cover it but may

higher premium retroactively if you did not noyour child was driving. In rare cases, your covrevoked.

Do not lower your liability coverage drastically toincreases. It simply does not make sense to cliability for a high risk driver, like teens. Plus,

forced to cover damages out-of-pocket if youinto an accident without enough coverage.



Personal Liability Umbrella Policy

In addition to an automobile insuranconsider purchasing a:

Personal Liability Umbrella Policy

This policy will protect you against litigation if your teinjures someone or damages property. Even though yhas substantial limits, it is common for juries to awarfar exceed these limits.

PLUPs supplement existing policies to provide additioprotection.



Questions and Comments

GDI Insurance Agency, Inc. thankyour attendance and particip

Please let us know how we can h

and your new teen driver





























GDI Insurance Agency, Inc.

Mod Services Portfolio

http://www.gdiinsurance.com/801 Geer Road, Turlock, CA 95380

© 2013 GDI Insurance AgencyInc. All rights reserved.

Is your current broker taking proactive steps tohelp you lower your mod?We will help you control your mod through a comprehensive riskmanagement 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 onsafety?Get everyone on board, from upper management on down, byleveraging our robust risk management tools to highlight thefinancial benefits of workplace safety and its need for continuedsupport to ensure long-term success.

How effective is your current return to workprogram?The evidence is clear: the longer a claim stays open, the more itwill cost you. We can help you implement a robust return towork program that provides employees with appropriate careand facilitates quick recovery.

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 allpotential compliance issues with Federal, State, local OSHA or any other regulatory agency standards. Consult yourlicensed Commercial Property and Casualty representative at GDI Insurance Agency, Inc. or legal counsel to addresspossible compliance requirements.

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

3



4 | R E T U R N T O W O R K P R O G R A M G U I D E

WHERE TO BEGIN

The following guide will help you construct an effective Return to Work Program andcreate meaningful work assignments for workers injured both on and off the job. Itincludes background statistics to support the program, steps to take before

execution, how to manage the program and implementation recommendations.

S t e p 1 : K n o w t h e F a ct s

Supporting your Return to Work Program with evidence that it will help save money isthe 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 injuryfor more than 16 weeks seldom return to the workforce, and companies get stuck

paying hundreds of thousands of dollars each year in unnecessary costs.

S t e p 2 : G at h e r D a t a

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 determinewhether there has been a positive mindset shift. Get to know your company culture atall 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 shiftcompany culture and practice.

St e p 3 : D em o n s t r a t e a Co m m i t m e n t t o Ea r l y Re t u r n t o W o r k

Make sure all levels of employees recognize that early return to work after an injuryspeeds 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 aprogram if management does not support and recognize the need.

These elements are the foundation and support for your Return to Work Program. Takeplenty 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 WorkProgram, as they are the elements that will help you take action and establish aplan.

S t e p 4 : Cr e a t e Go a l s

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 todefine 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 accommodateinjured workers by identifying new duties or modifying jobs to meet


4



Prepared by: Date: Approved by: Date:

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.

Return to Work PolicyPrepared 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 unableto perform all, or portions, of their regular work assignments or duties. This policy applies to employeessuffering from either work or non-work related injury or illness. The goal is to allow valued companyemployees to return to productive, regular work as quickly as possible. By providing temporary transitional ormodified work activity, injured employees remain an active and vital part of the company. Studies show that awell-constructed Return to Work Policy reduces lost time days, allows workers to recover more quickly andmakes for a more positive work environment.

SCOPE

All active employees who become temporarily unable to perform their regular job due to a compensable workrelated or non-work related injury or illness may be eligible for transitory work duties within the provisions ofthis 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 byaddressing the physical, emotional, attitudinal and environmental factors that otherwise inhibit aprompt return to work. These assignments are meant to be temporary and may not last longer than90 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 DutyIf work is available that meets the limitations or restrictions set forth by the employee’s attendingpractitioner, 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 thesereduced assignments will be based strictly on medical documentation and recovery progress.

Daily ApplicationAn employee’s limitations and restrictions are effective 24 hours a day. Any employee who fails tofollow his or her restrictions may cause a delay in healing or may further aggravate the condition.


5



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 fromoccurring. It does not address potential compliance issues with Federal, State or local OSHA or any other regulatory agencystandards. Nor is it meant to be exhaustive or construed as legal advice. Consult your licensed commercial Property and Casualtyrepresentative at GDI Insurance Agency, Inc. or legal counsel to address possible compliance requirements.© GDI Insurance Agency, Inc. All rights reserved.

Drug-free

Workplace PolicyPrepared by: GDI Insurance Agency, Inc.

Location

Effective Date

Revision Number: 1

recognizes that employees are our most valuable asset, and the most important contributors to ourcontinued growth and success. We are firmly committed to the safety of our employees. will doeverything 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 ofthree components: Post-Offer Drug/Alcohol Screen, Reasonable Cause Drug/Alcohol Screen and Post-

Incident Drug/Alcohol Screen. This policy applies to all candidates for employment as well as all currentemployees. This policy also serves to reinforce the ’s intolerance for illegal drug use and working underthe influence of alcohol.

Post-Offer Testing

believes accident prevention and a safe work environment begin with hiring. As such, allapplicants 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 HumanResources 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 non-

prescribed illegal substances listed in Exhibit ‘A’ below.

Consequence

In the event the drug test comes back positive, the Medical Review Officer (MRO) will reviewthe 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 theapplicant 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 ofemployment. If any applicant refuses to submit to the tests, the offer will be withdrawn.


6



Understanding your company’s

mod and the data used to

obtain it helps you identify

ways to minimize your workers’

compensation premium.

Understanding Your Workers’ Compensation Experience Modification Factor

The key to calculating a workers’ compensation premiumis the experience modification factor, also known as yourmod. Understanding your company’s mod and the dataused to obtain it helps you identify ways to minimize yourworkers’ compensation premium.

Who calculates the mod factor?

Most states use the NationalCouncil on CompensationInsurance (NCCI) to collect dataand calculate the experiencemodification factor. NCCI is aprivate corporation funded bymember insurance companies.However, the following stateshave their own independentrating bureaus that are separatefrom the NCCI: California,Delaware, Indiana,Massachusetts, Michigan, Minnesota, New Jersey, New

York, North Carolina, Pennsylvania, Texas andWisconsin.

How is a mod calculated?The process of calculating the experience modificationfactor is complex, but the underlying theory and purposeof the formula is straightforward. Your company’s actuallosses are compared to its expected losses by industrytype. The formula incorporates factors that account forcompany size, unexpected large losses and thedifference between loss frequency and loss severity toachieve a balance between fairness and accountability.

How does my mod affect my premiums?The mod factor represents either a credit or debit that isapplied to your workers’ compensation premium. A modfactor greater than 1.0 is a debit mod, which means thatyour losses are worse than expected and a surcharge

will be added to your premium. A mod factor less than1.0 is a credit mod, which means losses are better thanexpected, resulting in a discounted premium.

What is the experience rating period?The mod is calculated using loss and payroll data for anexperience rating period. The experience rating period

typically includes data for threepolicy years, excluding the mostrecently completed year. Forexample, for a mod factorcalculated on January 1, 2012,data would be used for theJanuary 1, 2008-2009, January1, 2009-2010 and January 1,2010-2011 policy periods. Thedata for the January 1, 2011-2012 would be excluded.

Three years of data is used to provide a more accurate

reflection of the losses, smoothing out the impact of anyexceptionally bad or good year for losses.

The actual loss data is separated into primary andexcess pools. Primary losses, which are the first $5,000of every loss, measure frequency. Excess losses — oramounts more than $5,000 — measure severity. Theformula penalizes loss frequency by including all lossamounts in the calculation. The reason for this is thatthese types of claims can be controlled throughproactive loss control programs. Losses in excess of$5,000 are capped at levels that vary by state. Thisminimizes the impact that any single claim can have onyour premium. In approved states, medical-only claimsfigures are reduced by 70 percent.

NCCI has announced a proposal to raise the split point


Your Workers’ Compensation Partner


7



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.

If you’re not prepared, an NCCI

increase of the primary-excess

split point could raise your

primary losses and negatively

influence your mod.

NCCI Changes Primary-Excess Split Point for 2013

The National Council on Compensation Insurance(NCCI) recently announced its plan to make a change inthe experience rating formula. The primary-excess splitpoint will be increased over a three-year transitionperiod. The first stage of the transition will take effectwith each state’s approved rate and loss cost filing on orafter Jan. 1, 2013.

Understanding the Primary-Excess SplitIn the experience rating process,each loss is divided into aprimary and excess portion.Currently, the first $5,000 ofevery loss is allocated as aprimary loss, with everythingover and above considered anexcess loss. For example, a$3,000 loss has no excessvalue. On the other hand, a lossof $15,000 would have $5,000 in

primary losses as well as$10,000 in excess losses. Primary losses are used as anindicator of frequency, and are counted in full as part ofthe mod calculation. Conversely, excess losses receivepartial weight in the mod calculation. This means thatprimary losses affect the mod more than excess lossesdo. The rationale behind assessing primary and excessloss amounts is that “severity follows frequency,” or inother words, an organization that displays a continualpattern of loss has an increased chance of a severe lossin the future. Thus, a company with a large number ofprimary losses will have a higher mod than a companywith the same amount of losses split between primaryand excess.

Upcoming ChangesNCCI has announced a proposal to raise the split pointfrom $5,000 to $15,000 over a three year period to better

correlate with claim inflation, which affects theexperience rating plan. Many states have alreadyapproved this change to take effect with their annual rateand loss cost filing in 2013; a few states are still pendingThe split point will also be indexed for claim inflation inthe third and subsequent years of this transition. Thesechanges will directly affect the 34 states and the District

of Columbia currently using the NCCI’s rating system.The independent rating bureaus of Indiana, Michigan,

Minnesota, New York, NorthCarolina and Wisconsin havealso adopted the change, andother independent bureaus(Massachusetts and Texas) mayre-evaluate their split points aswell. The rating methods used byCalifornia, Delaware, New Jerseyand Pennsylvania differ widelyfrom NCCI’s approach, so similarchanges in those states are not

anticipated.

How Does This Affect My Organization?Whether your mod increases or decreases will dependon whether you have an above or below averagenumber of losses under the split point. If most of yourlosses are under $5,000, you are likely to see adecrease in your mod. If many of your losses exceed$5,000, you should prepare for an increase in your mod.

Analysts expect the split point change to result in a widerange of mods across each industry. Debit mods (thoseover 1.0) will tend to gain points; credit mods (thoseunder 1.0) will more than likely see a decrease in points.Furthermore, many employers will see their minimummod, or loss-free rating, decrease.

Another minor change which will take effect with the split


Your Workers’ Compensation Partner


8



The key to spending fewer

WC claims dollars is more than

just stopping a few workplace

accidents; it’s having a sound

safety program designed to

continuously improve.

Five Steps to Reducing Workers’ Compensation Costs

When a company experiences significant increases in workers’compensation costs, it usually triggers internal activities aimedat reducing insurance costs and spending. The key tospending fewer dollars is more than just stopping a fewaccidents; it is having a sound safety program designed tocontinuously improve. This is where a safety program that, at aminimum, is compliant with the Occupational Safety and Health

Administration (OSHA) standards can yield significant savings

for by reducing injuries andillnesses, saving workers’compensation dollars.

Building a Solid OSHA Program

There are five entry-level steps cantake to have a well-rounded safetyprogram that produces a safe workenvironment, achieves OSHAcompliance, reduces accidents andultimately reduces workers’compensation costs.

1. Develop the variousprograms required by theOSHA standards.

2. Integrate those programs into the daily operations.3. Investigate all injuries and illnesses.4. Provide training to develop safety competence in all

employees.5. Audit your programs and your work areas on a regular

basis to stimulate continuous improvement.

Develop Programs Required by OSHA Standards Aside from being a requirement for general industry, the OSHAstandards provide a good pathway to incident reductions. Agood number of accidents stem from poorly developed, trainedor implemented OSHA programs: slips or trips may come frompoor housekeeping efforts or not keeping walking and workingsurfaces clear, not using personal protective equipment may

result in excessive lacerations, and poor lifting techniques canresult in strains.

Many of the OSHA standards require some type of writtenprogram be developed and then communicated to employees.Experience shows that companies with thoroughly developed

OSHA-compliant programs have fewer accidents, moreproductive employees and lower workers’ compensation costs.

Integrate Programs into Daily Operations

Policies alone won’t get results; the program must move frompaper to practice to succeed. Putting a policy into practicerequires a strategic plan clearly communicated to keyparticipants, good execution of that plan based on developed

competencies, and a culture thainspires and rewards people to dotheir best.

When developing any businessinitiative, there must be an emphasison frontline supervisors and helpingthem succeed. Every good businessperson knows that any new program- safety, quality or anything else lives and dies with the frontlinesupervisor. If the frontline supervisoknows the program and wants tomake it happen, the programsucceeds; if not, the program is a

source of constant struggle, and an endless drain on resourcesand energies. Providing supervisors with knowledge and skillsthrough training is critical to the success of any program.

A solid OSHA program, integrated into the daily operation andled by competent supervisors is just the beginning. Successfusafety programs focus on being proactive instead of alwaysreacting to issues. Accident investigations provide an excellensource of information on real or potential issues present in theworkplace.

Investigate All Injuries and IllnessesWorkers’ compensation is designed to recompense employeesfor injuries or illnesses that arise from or out of the course o

employment. This should not come as a surprise, buincreasing claims drive up workers’ compensation costs. Toreduce those costs, you must simply reduce your accidents

And the ability to reduce accidents is significantly enhanced

GDI Insurance Agency, Inc.Your Workers’ Compensation Partner


9



GDI Insurance Agency, Inc. ■ 801 Geer Road Turlock, CA 95380

Tel: 209-634-2929 ■ Web: http://www.gdiinsurance.com/

Rem em be r, these wa rning signs a re simp ly ind ica tors. If you a re suspic ious of a claim , alert your insuranc e c arrier.© 2007-2010 GDI Insurance Agency, Inc. All rights reserved.

The WC (workers' compensation) insurance system is a no-fault method of paying workers for medica l 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 c laims 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 c laimant has a history of frequently changing physicians, addresses and places of

employment.

5. Medical History: The employee has a pre-existing medica l 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 medica l history or

First Report of Injury.

8. History of Claims: The c laimant has a history of numerous suspicious or litigated claims.

9. Treatment is Refused: The c laimant refuses a diagnostic procedure to confirm the nature or extent of an

injury.10. Late Reporting: The employee delays reporting the c laim 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.

15 Warning Signs

of Workers’

Compensation Fraud


10



Drug Testing Proves Positive Results in Decreasing Workers’

Compensation ModsStudy revealing the results of drug testing and its

impact on in reducing workers' compensation

experience-rating modification factors

Provided by: GDI Insurance Agency, Inc.


11



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 CornellUniversity 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 drug-

testing 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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Provided by: GDI Insurance Agency, Inc.

801 Geer Road Turlock, CA 95380

209-634-2929 http://www.gdiinsurance.com/

Comprehensive Safety & Health

InspectionFor: Date:

Conducted by:

This inspection checklist is designed to help facilitate a walking inspection of your area(s) of responsibility. Answer eachquestion as it pertains to your area. Negative answers indicate a potential safety concern and must be addressed andcorrected as necessary.

Safety Administration

Employee Postings YES NO

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 appropriateinformation concerning employee access to medical and exposure records and Material Safety DataSheets been posted or otherwise made readily available to employees?

Are signs concerning various hazards, such as room capacities, floor loading, biohazards, exposures tox-ray, or other harmful substances posted where appropriate?

Recordkeeping YES NO

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 1st and April 30

th 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 specifictype 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?

Safety & Health Program Management YES NO


13



Do you have an active safety and health program in operation that deals with general safety and healthprogram 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 concernsregarding safety and health issues?

Are you keeping your employees informed of various safety improvements made within the company?

Medical Services and First Aid YES NO

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 thenecessary 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 quickdrenching or flushing of the eyes and body?

General Work Environment

General Conditions YES NO

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, andother waste picked up and removed from the work area?

Are work areas adequately illuminated?

Walkways YES NO

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 orotherwise made safe?

Are holes in the floor, sidewalk, or other walking area repaired properly, or otherwise covered to preventslips, 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 andcreate a hazard?


14



Your experience modification factor, or mod, is an importantcomponent used in calculating your workers’ compensation premium.If you can control your mod, you can lower your price — so we’vegathered top tips to help you impact your bottom line.

1. Investigate accidents immediately and thoroughly; take correctiveaction to eliminate hazards, and be aware of fraud.

2. Report all claims to your carrier immediately. Alert the carrier to anyserious, 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 dutyemployees 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 injuredemployee back to gainful employment.

5. Set safety performance goals for those with supervisory responsibility.

Success in achieving safety goals should be used as one measureduring performance appraisals.

6. Develop a written safety program, and train employees in their

responsibilities for safety. Incorporate a disciplinary policy into theprogram that holds employees accountable for breaking rules orrewards 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 thesafety 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 problemsfirst.

10. Hire GDI Insurance Agency, Inc. to ensure success

Top 10 Ways to Control Your Mod

For more informat

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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