Spring 2006

TxOGA Purchasing Group Levels Playing Field
By David Wylie

Jim Sierra doesn’t lose much sleep worrying about competition from self-insured groups and other “alternative” workers’ compensation programs. Eleven years ago, he partnered with Texas Mutual Insurance Company to form a purchasing group for members of the Texas Oil and Gas Association (TxOGA). His clients have been happily reaping the benefits ever since.

“From my experience, Texas Mutual has hit a home run with its purchasing groups,” said Sierra, the master agent for the group. “As TxOGA’s membership continues to grow, we hope more employers will take advantage of this program. It really helps level the playing field, especially for small businesses.”

Each TxOGA purchasing group member receives a premium discount based on the premium volume of the entire group. Members retain their own experience modifiers, and they are all eligible to participate in the individual and purchasing group dividend programs.*

Group members also have access to a safety plan designed specifically for the oil and gas industry. TxOGA reinforces the importance of safety by participating in the South Texas Exploration and Production Safety Network, an organization dedicated to improving safety in the oil and gas industry.

This year, Sierra is taking advantage of the newest benefit of Texas Mutual^® group coverage: industry-specific workshops. Each workshop features an overview of our new workers’ comp health care network option and a safety presentation developed for the members’ common operations. Workshop guests also get practical information on managing claims, fighting fraud, and helping injured workers return to productive employment.

“These workshops are a great benefit for current purchasing group members. TxOGA has done a good job of using them as a marketing opportunity for prospective members as well,” said Jack Ogden, purchasing group manager at Texas Mutual Insurance Company. “We’ve held two TxOGA workshops so far this year, and both were well-attended.”

Sierra markets the group largely through trade shows and direct agency visits with approximately 140 agents across the state. To date, around 35 percent of TxOGA’s 2,000 members have joined the group. You and your clients can take advantage of the benefits of TxOGA group coverage, too.

TxOGA is an open program, which allows any agent to place a qualifying client into the group, with the purchasing group underwriter’s approval. For more information about TxOGA and other purchasing group programs, click here.

*Past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

MUTUAL INTERESTS - SPRING 2006
Five Tips for Helping Clients Benefit from Network Option
TxOGA Purchasing Group Levels Playing Field
Workshops Provide Network Updates, CE Credit
Texas Mutual Responds to TRIA Extension
Ken's Corner

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