Equipment Dealers Dividend Grows 436 Percent in Third Year With Texas Mutual
June 22, 2010 - Texas Mutual Insurance Company announced a $471,031 dividend to the Texas Machinery and Equipment Dealers (TM&E) Safety Group today. The group’s third annual dividend grew $383,228 over last year, largely due to its growing premium volume and favorable loss ratio.
By committing to workplace safety and helping injured workers return to productive employment, TM&E members improve their chances of qualifying for future dividends.*
In addition to potential dividends, TM&E members get a discount on their workers’ compensation premium. They also have access to free industry-specific safety materials, including online videos, pamphlets, videos, DVDs and a written safety plan.
Any licensed Texas agent can submit qualifying clients for consideration in TM&E. For more information, visit texasmutual.com/agents/pr_tmed.shtm.
*Past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.
Texas Employers Realize ‘Great Victory’ –
Supreme Court Denies Review of Stop-Loss Case
June 2, 2010 - The Texas Supreme Court has declined to review a case involving the amount some hospitals marked up workers’ compensation-related bills under rules in effect until 2008.
“Texas employers realized a great victory today,” Mary Barrow Nichols, general counsel and senior vice president for Texas Mutual, said. “A small number of hospitals were marking up a $4,000 item to $40,000 or more, or they’d turn a two-day admission into a $120,000 bill. These inflated charges could have cost the system hundreds of millions of dollars and continued to affect the workers’ compensation premiums of every Texas employer.”
The interpretation issue in this case between Texas Mutual and Vista Medical Center affects any remaining fee disputes under the stop-loss exception to the now-repealed rule.
Hospitals that treat workers’ compensation patients in Texas are reimbursed under the state’s workers’ compensation in-patient fee schedule. The 1997 fee schedule, which was repealed in 2008, included a stop-loss exception. Under the stop-loss exception, hospitals could be paid more than the fee schedule if they met certain criteria. The dispute between Texas Mutual and Vista centered on those criteria.
Texas Mutual argued that the stop-loss exception should be applied to admissions involving charges of more than $40,000 and “unusually extensive services.” Vista countered that the exception applied to all admissions for which they charged more than $40,000. The 353rd Judicial District Court of Travis County ruled for Vista. Texas Mutual appealed to the Austin Court of Appeals, which reversed the lower court. Vista then asked the Supreme Court to review the case.
Texas Mutual Board Approves $100M Policyholder Dividend Plan
May 26, 2010 - This afternoon, Texas Mutual Insurance Company’s board of directors approved the company’s plan to distribute $100 million in workers’ compensation dividends. Dividends reward loyal policyholders who share Texas Mutual’s commitment to workplace safety.
Texas Mutual has declared $845 million in dividends during the past 12 years.
“We have a permanent, vested interest in helping Texas businesses thrive,” said Bob Barnes, chairman of the Texas Mutual board of directors. “In 1999, we were thrilled to pay our first dividend - $25 million. Today, that number has grown to $100 million. Our policyholders will use those funds to expand their businesses, create jobs, pay skilled employees and improve their safety programs.”
Texas Mutual plans to distribute dividend checks in late July. Approximately 38,000 employers, representing 80 percent of the company’s policyholders, will earn a dividend. The amount of each qualifying policyholder’s dividend check will be based largely on its premium size and workplace safety record.
Texas Mutual offers free services to help policyholders improve their safety programs. Employers can visit the Safety resource center at texasmutual.com to watch streaming videos on a variety of safety topics, evaluate their safety programs, correct the root causes of accidents and get training materials from the multimedia resource library. The company also offers free workshops that feature presentations by Texas Mutual safety professionals.
This year’s dividend announcement comes as the economy continues to climb out of the worst slump since the Great Depression. Texas Mutual President Ron Wright said that the company’s 12th consecutive dividend payout is a sign of its ongoing financial stability.
“Texas Mutual’s strong customer retention, conservative investment philosophy and commitment to controlling our costs have helped us weather the recession,” said Wright. “We have not been immune to its effects, but we remain well-positioned to keep our promises to our customers long into the future.”
Automotive Group Earns First Texas Mutual Dividend
May 17, 2010 - Texas Mutual Insurance Company announced a $178,267 dividend to the Texas Automotive Safety Group (TAPG) today. The group’s first dividend was based largely on its loss ratio.
By committing to workplace safety and helping injured workers return to productive employment, TAPG members improve their chances of qualifying for future dividends.*
In addition to potential dividends, TAPG members get a discount on their workers’ compensation premium. They also have access to free safety materials, including online videos, pamphlets, videos, DVDs and an industry-specific safety plan.
Any licensed Texas agent can submit qualifying clients for consideration in TAPG. For more information, visit texasmutual.com/agents/pr_targ.shtm.
*Past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.
Texas Mutual Announces Fraud Conviction
April 30, 2010 - Texas Mutual Insurance Company reported today that a Travis County district court sentenced Michael Mora of Brownsville, Texas on workers’ compensation fraud-related charges. The court sentenced Mora to 10 days in jail, three years’ probation and 100 hours of community service. Mora was also ordered to repay $3,533 in benefits to Texas Mutual.
Mora reported a job-related injury while working as a stocker/checker for Richann LTD, a grocery store in McAllen, Texas. He claimed he was unable to work as a result of the injury, and Texas Mutual began paying income benefits to him.
Meanwhile, Texas Mutual uncovered evidence that Mora was working as a restaurant crew member while receiving 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 Launches Safety Program for Teen Workers
April 28, 2010 - With the goal of reducing the number of workplace injuries among teen workers, Texas Mutual Insurance Company and its partners kicked off the “One Wrong Move” campaign in Bryan/College Station and Tyler.
Through brochures, billboards, radio commercials, mall advertising and the www.OneWrongMove.org Web site, the campaign will inform teens, parents and employers in the Bryan/College Station and Tyler areas about workplace hazards and how to avoid them. The message of the campaign is “Workplace Accidents Are a Pain. Work Smart.”
“With this campaign, Texas Mutual and its partners hope to educate people about how teen workers can avoid workplace accidents,” Ron Wright, president of Texas Mutual, said. “One wrong move in the workplace—a restaurant or a retail store, for instance—certainly can result in life-changing injuries for a teen worker.”
A cornerstone of the “One Wrong Move” campaign is an online workplace safety quiz. Teens in the Bryan/College Station and Tyler areas are invited to visit the campaign’s Web site, OneWrongMove.org, to take the quiz. After successfully completing the quiz, each participant will receive a free ticket to a movie at Cinemark Theatres.
About 80 percent of U.S. teens work during their high school years, many of them during the summer, according to the American Society of Safety Engineers. Approximately every three minutes, a teen is injured on the job, according to Workers’ Comp Insider.
According to the United States Department of Labor Occupational Safety & Health Administration (OSHA), approximately 158,000 teens sustain work-related injuries and illnesses each year. About 70 teens die on the job, and another 70,000 end up in emergency rooms.
Young workers are exposed to many of the same on-the-job risks as their adult counterparts, but they are more likely to be injured at work, the American Society of Safety Engineers reports.
Data from Texas Mutual policyholders shows the most common injuries among all employees, including those under age 21, are strains and injuries from lifting, and cuts, punctures and scrapes. Among those policyholders, businesses in the leisure and hospitality industry account for the bulk of work-related injuries among teen workers.
Bryan/College Station participating employers, insurance agents:
- The Children’s Museum of the Brazos Valley
- Any Time Analysis
- Kieschnick General Contractors
- KNDE Radio
- KBXT Radio
- Anco Insurance
- WE Gibson Insurance
Tyler participating employers, insurance agents:
- Texas Industrial Manufacturing
- Broadway Square Mall
- KBLZ-FM
- KTYL-FM
- Snelling Staffing Services
- Crown Civil Construction
- Titanium Environmental Services
- North Creek Animal Hospital
- Lone Star Harley Davidson
- Hibbs Hallmark & Company
- Ark Insurance Group
- Bosworth & Associates
- David Johnson Insurance
- Service Insurance Group
Two Texas Mutual Claimants Sentenced for Fraud
April 21, 2010 - Texas Mutual Insurance Company reported today that Travis County district courts sentenced two claimants, in separate cases, on workers’ compensation fraud-related charges.
Allen Brown of Cedar Hill was sentenced to serve five years’ probation, perform 200 hours of community service and repay $2,701 to Texas Mutual. Wallace Sorrells of Giddings was sentenced to 60 days in the county jail.
Brown and Sorrells reported job-related injuries while working for Texas Mutual policyholders. Brown was an electrician for P1 Resources LLC of Dallas, and Sorrells was a driver for Brumley Professional Employer Services of Bulverde. Texas Mutual began paying income benefits to Brown and Sorrells.
Meanwhile, Texas Mutual investigators uncovered evidence that Brown and Sorrells were working while collecting 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.
State law requires injured workers to notify their insurance carrier when they return to work.
Produce Group Earns Fifth Texas Mutual Dividend
April 16, 2010 - Texas Mutual Insurance Company announced a $47,725 dividend to the Texas Produce Association (TPA) Safety Group today. The dividend was based largely on the group’s loss ratio.
TPA has earned $223,690 in dividends since 2006.
By committing to workplace safety and helping injured workers return to productive employment, TPA Safety Group members improve their chances of qualifying for future dividends.*
In addition to potential dividends, TPA members get a discount on their workers’ compensation premium. They also have access to free safety materials, including pamphlets, videos, DVDs, streaming videos and an industry-specific safety plan.
Any licensed Texas agent can submit qualifying clients for consideration in TPA.
*Past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.
Texas Mutual Announces Three Fraud Indictments
April 9, 2010 - Texas Mutual Insurance Company reported today that a Travis County grand jury indicted three claimants, in separate cases, on workers’ compensation fraud-related charges. The claimants allegedly collected a combined $7,443 in benefits they were not entitled to.
The indicted claimants are Janet Fanning of Kirbyville, $2,843; Sergio Garcia of El Paso, $2,935; and Margarito Robles of San Antonio, $1,665.
All three cases involved a scam that investigators call double-dipping. Double-dipping occurs when claimants collect benefits for being too injured to work when they are, in fact, gainfully employed. State law requires injured workers to notify their insurance carrier when they return to work.
Note: A grand jury indictment is a formal accusation – not a conviction – of criminal conduct.
Schools Group Tops $1.5M Texas Mutual Dividend Mark
April 1, 2010 - Texas Mutual Insurance Company announced a $312,893 dividend to the Texas Schools Group (TSG) today. The workers’ compensation Safety Group dividend was based largely on TSG’s loss ratio.
TSG has earned $1,539,738 in dividends since 2005.
“Texans trust TSG members with educating the next generation. We take that responsibility seriously,” said Philip Bruce of Perry Hunter Hall, Inc., the group’s administrator. “This money will help our member schools continue to provide quality education to our state’s future workforce.”
By committing to workplace safety and helping injured workers return to productive employment, TSG Safety Group members improve their chances of qualifying for future dividends.*
In addition to potential dividends, TSG members get a discount on their workers’ compensation premium. They also have access to industry-specific safety materials, including pamphlets, videos, DVDs, streaming videos and a written safety plan. The materials cover workplace violence, ergonomics, back safety and other topics that address the hazards school employees face on the job.
Any licensed Texas agent can submit qualifying clients for membership in TSG. For more information, visit texasmutual.com/agents/pr_tsg.shtm.
*Past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.