Risk Control Results
in Home Builder Group’s First Dividend
June 19, 2008 - Texas Mutual Insurance Company announced a $59,360 dividend to the Texas Home Builders (THB) workers’ compensation purchasing group today. The group’s first dividend was based largely on its first-year premium volume and loss ratio.
“We’re committed to the ongoing education of every Texas home builder so that they take full advantage of the workers’ compensation laws that were written exclusively for their industry,” said Anne Davis of Hotchkiss Insurance Agency, the group’s administrator. “The THB program allows the home builder to gain education, risk control and participate in the state’s best policyholder dividend programs.”
Any licensed Texas agent can submit qualifying residential general contractors for consideration in the group. Besides potential group and individual dividends, members get a premium discount and an industry-specific safety plan.
Texas Mutual Insurance Company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.
Sign Installer Pleads Guilty to Workers’ Comp Fraud
June 18, 2008 - Texas Mutual Insurance Company reported today that a Los Fresnos, Texas man pleaded guilty to workers’ compensation fraud-related charges.
A Travis County district court sentenced Hector Cuellar to two years’ deferred adjudication. The court also ordered Cuellar to pay $2,775 in restitution to Texas Mutual Insurance Company and complete 100 hours of community service.
Cuellar reported a job-related incident that caused multiple injuries while working as a sign installer in Pharr, Texas. He claimed he was unable to work as a result of his injuries, and Texas Mutual Insurance Company began paying him income benefits.
Meanwhile, Texas Mutual uncovered evidence that Cuellar was working as a journeyman sign installer for a sign company in Harlingen, Texas while receiving disability income benefits.
Investigators call this type of scam double-dipping because the claimant collects benefits for being too injured to work when he or she is, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work. Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.
The Cuellar investigation was part of Texas Mutual’s zero tolerance for fraud policy. The company maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.
For more information, visit the Fighting Fraud section at texasmutual.com.
Texas Mutual Equips Group With Dividend
June 17, 2008 - Texas Mutual Insurance Company announced a $45,697 dividend to the Texas Machinery and Equipment Dealers (TM&E) workers’ compensation purchasing group today. The group’s first dividend was based largely on premium volume and loss ratio after only one year in operation.
Texas Mutual Insurance Company underwrites TM&E, and The Roy Agency administers it. TM&E is open to qualifying including farm and industrial machinery, plumbing supplies, industrial engine sales and repair, welding supplies, material handling equipment, packaging and construction machinery, lift truck sales, and others whose primary payroll falls in class code 8107. Any licensed Texas agent can submit clients for consideration.
In addition to potential dividends, TM&E members get a premium discount and an industry-specific safety plan.
Texas Mutual Insurance Company has declared nearly $37 million in dividends to members of its group discount programs since 1999. Group dividends are separate from the $150 million in individual policyholder dividends the company declared this summer.
Texas Mutual Insurance Company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends. For more information about dividends, visit the News & Publications section at texasmutual.com.
New Purchasing Group
Accommodates Growing Industry
June 3, 2008 - Texas Mutual Insurance Company has partnered with Hilb, Rogal and Hobbs (HRH) to offer a workers’ compensation purchasing group for the hotel industry. Members of the Texas Lodging Group (TLG) get a premium discount, an industry-specific safety plan and potential dividends if they control their losses.
TLG is open to qualifying hotels, motels, bed and breakfasts, and hospitality groups. Texas Mutual Insurance Company underwrites the group, and HRH administers it. The group’s master agent, Michael Gabrielson of HRH, is a former Hilton hotel manager.
“One of the first things we considered before proposing this group to Texas Mutual was growth potential,” said Gabrielson. “Texas is a prime travel destination. We offer a wide range of tourist attractions located in diverse cities, and we host some of the biggest events in the world, such as the South by Southwest Music Festival.”
Texas lodging room revenues increased 44 percent between 2004 and 2007, according to a March 2008 report issued by the Office of the Governor, Economic Development and Tourism. Annual 2007 roomnights sold, the true measure of consumer demand, increased by 3.1 percent over 2006. The report attributes the industry’s growth in part to a healthy Texas economy.
Any licensed Texas agent can submit clients for consideration in TLG. For more information, click here.
Texas Mutual Insurance Company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.
Texas Mutual Board Approves
Record $150M Dividend Plan
May 28, 2008 - Today, Texas Mutual Insurance Company’s board of directors approved the company’s plan to distribute approximately
$150 million in policyholder dividends. Dividends reward safety-conscious employers who have favorable loss histories.
The dividend plan, the largest in the company's history, includes a
$75 million special dividend in recognition of the company’s excellent financial results in 2007.
“Texas Mutual management and board of directors are making two important statements with this generous dividend plan,” said Richard A. Cooper, chairman of the board.
“First, the company is financially stable and prepared to serve Texas long into the future. Second, when financial conditions allow, we will reward policyholders who share our commitment to preventing workplace accidents and controlling claim costs,” said Cooper.
The dividend plan still requires Texas Department of Insurance approval. Texas Mutual Insurance Company anticipates mailing dividend checks in late July. Qualifying policyholders’ shares will be based on their premium size, loss ratio and coverage history with Texas Mutual.
Texas Mutual Insurance Company has declared more than $595 million in individual policyholder dividends since 1999. The company has declared $36.2 million more in dividends to members of its group discount programs.
Texas Mutual Insurance Company is the state’s leading provider of workers’ compensation insurance, with offices in Austin, Dallas, Houston and Lubbock. The company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends before distribution.
Fraud Scheme Costs Texas Business Owner $67K
May 9, 2008 - Texas Mutual Insurance Company reported today that a Travis County jury found Sue Tennison of Lewisville and her business, All Metroplex Landscape Services Inc., guilty on workers’ compensation fraud-related charges. Tennison misrepresented the size of her payroll to lower her workers’ comp premium.
The court ordered Tennison to pay a $10,000 fine and $57,751 in restitution to Texas Mutual Insurance Company. The court also ordered Tennison to serve 10 years’ probation.
Workers’ comp premium is based in part on payroll. Tennison reported to Texas Mutual that some of her employees worked for an independent subcontractor. Because independent subcontractor payroll is not included in the premium calculation, the scam allowed Tennison to pay a lower premium than she owed.
Texas law requires employers to report all employees and payroll to their insurance companies. By hiding payroll, an employer can gain an unfair advantage against honest competitors.
Texas Mutual Insurance Company is the state’s leading provider of workers’ comp insurance. In 2007, the company recovered $1.1 million in premium fraud through its zero tolerance policy. It saved another
$4.7 million through its claimant and health care provider investigations.
For more information, visit the Fighting Fraud section at texasmutual.com.
Texas Mutual Wins United Way Employee Giving Award
April 24, 2008 -Texas Mutual Insurance Company has won United Way’s Corporate Partnership Best Practices Honorable Mention for Employee Giving.
“The honorable mention is a strong testament to the incredible work Texas Mutual’s team has done to ensure a highly engaging, organized, educational and successful employee giving campaign,” said Shelley Hardeman, United Way Capital Area account manager. “The educational nature of their employee giving campaign motivates employees to give of their time and talents, in addition to the generous financial contributions they make.”
In 2007, the company raised $145,377, surpassing its goal of $130,000. The company also had a record 62 leadership givers who donated $1,000 or more.
Texas Mutual Insurance Company has partnered with United Way for
14 years, raising a total of $1,330,339 in that time. This amount includes employee contributions to other United Ways, such as the United Way of Metropolitan Dallas.
In addition to breaking financial records, Texas Mutual is helping to break ground in the community. Many of the company’s 800 employees volunteer on committees and participate in United Way’s Day of Caring events across the state.
“Our employees’ generosity and giving spirit are really inspiring,” said Russ Oliver, Texas Mutual Insurance Company president. “Employees who gave a monetary donation or gave their time and talents to a United Way partner agency have helped change Texas for good.”
Texas Mutual Insurance Company representatives will accept the Corporate Partnership Best Practices Honorable Mention for Employee Giving at the 2008 Spirit of Caring Awards banquet on Monday, April 28 at the Long Center for the Performing Arts in Austin.
Texas Mutual Insurance Company is the state’s leading provider of workers’ compensation insurance. For more information, visit texasmutual.com.
Claimant Leaves Texas But Can’t Evade Fraud Team
April 17, 2008 - Texas Mutual Insurance Company reported today that a Travis County district court sentenced a Los Fresnos, Texas man on workers’ compensation fraud-related charges.
The court sentenced Frank Tisdale to five years’ probation. It also ordered him to pay $6,849 in restitution to Texas Mutual Insurance Company, $1,380 in extradition costs necessary to return him to Texas from Georgia for prosecution, and a $300 fine.
Tisdale reported a job-related injury while working as a market clerk for Richann Ltd., a grocery store in McAllen, Texas. He claimed he was unable to work as a result of the injuries, and Texas Mutual Insurance Company began paying him disability income benefits.
Meanwhile, Texas Mutual uncovered evidence that Tisdale was working as a butcher in a Georgia grocery store while receiving disability income benefits. Investigators call this type of scam double-dipping because the claimant collects benefits for being too injured to work when he or she is, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work.
Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.
Texas Mutual Insurance Company is the state’s leading provider of workers’ compensation insurance. In 2007, the company saved or recovered more than $6.7 million through its zero tolerance for fraud program.
For more information, visit the Fighting Fraud section at texasmutual.com.
Texas Mutual Gives $100K Grant to Kilgore College
April 7, 2008 - Texas Mutual Insurance Company announced a $100,000 grant to Kilgore College in Kilgore, Texas today. The grant will fund free health and safety courses through the college’s KC Risk Management Institute.
The institute is a division of the KC Workforce Development Program, which offers custom workforce training programs for East Texas employers.
“Many companies in the area have had to cut more and more safety courses out of their budgets,” said Martha Woodruff, director of KC Workforce Development. “We are just thrilled to get this grant to offer free, high-quality employee training to help businesses keep their workers safe.”
Texas Mutual employees who are certified by the Occupational Safety and Health Administration will teach the courses. The courses will focus on industry-wide safety topics, as well as topics designed around the oil and gas industry.
For more information, contact Ben Cammack, Kilgore College training coordinator, at (903) 983-8290 or bcammack@kilgore.edu.
Texas Mutual Insurance Company has given similar grants to Midland College and College of the Mainland in Texas City. The company also offers free workers’ comp workshops across the state. The workshops include a presentation by a Texas Mutual loss prevention consultant.
The grants and workshops are part of the company’s ongoing initiative to prevent workplace accidents.
“On-the-job injuries carry monetary and, most importantly, human costs,” said Russ Oliver, Texas Mutual Insurance Company president. “As the state’s leading provider of workers’ comp insurance, it is our responsibility to promote safe workplaces."
"Any time we have the opportunity to get that message to Texas employers, we consider it money well spent,” added Oliver.
For more information about safety training offered through Texas Mutual Insurance Company, click here.
TPA Loss Control Focus Produces Dividend
April 2, 2008 - Texas Mutual Insurance Company announced today that members of the Texas Produce Association (TPA) workers’ compensation purchasing group will share in a $53,732 dividend. The dividend is based largely on the group’s loss ratio.
TPA has earned more than $113,571 in dividends from Texas Mutual Insurance Company since 2006. Many group members have also qualified for individual policyholder dividends by controlling their personal loss ratios.
In addition to potential dividends, TPA members get a premium discount and an industry-specific safety plan. The group is open to qualifying produce growers, shippers and material providers. Any licensed Texas agent can submit clients for consideration.
For more information about TPA, visit the Agents section at texasmutual.com.
Texas Mutual Insurance Company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.
Oil and Gas Contractor Sentenced
for Workers’ Comp Fraud
April 1, 2008 - Texas Mutual Insurance Company reported today that an Arp, Texas business owner pled guilty in a workers’ compensation fraud-related case.
A Travis County district court ordered Jerry Don Calicutt, owner of ZIPCO Services Inc., to serve 18 months’ probation and perform 100 hours of community service. The court also ordered Calicutt to pay $61,461 to Texas Mutual Insurance Company and a $4,000 fine.
ZIPCO Services Inc. is an oil and gas contractor located in Kilgore, Texas. Calicutt misrepresented the size of ZIPCO’s operations and number of employees to Texas Mutual Insurance Company. Because workers’ compensation insurance premium is based in part on payroll, the scheme allowed the company to pay less premium than it actually owed.
The ZIPCO case is an example of premium fraud. By lowering their workers’ comp costs, companies that commit premium fraud gain an unfair advantage over their honest competitors.
Texas Mutual Insurance Company is the state’s leading provider of workers’ compensation insurance.
The company maintains three teams of full-time fraud investigators. In 2007, it recovered $1.1 million in premium fraud through its zero tolerance policy. It saved another $5.6 million through its claimant and health care provider investigations.