Two Safety Groups Earn Combined $1M in Texas Mutual Dividends
June 30, 2011 - Texas Mutual Insurance Company announced today that the Texas Machinery and Equipment Dealers (TMED) safety group earned an $892,432 dividend. In other dividend news, the Texas Home Builders (THB) safety group earned a $130,050 dividend.
Both workers’ compensation dividends were based largely on each group’s overall loss ratio.
In addition to potential dividends, safety group members have access to industry-specific workplace safety resources at texasmutual.com. They also get a discount on their workers’ compensation premiums.
Texas Mutual underwrites 28 safety groups representing a range of industries, including oil and gas, manufacturing, construction and health care. Any licensed Texas agent can submit qualifying clients for consideration.
For more information about TMED, THB and other safety groups, visit texasmutual.com/agents/group.shtm.
Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.
Back to topTexas Mutual Announces Premium Fraud Conviction
June 14, 2011 - Texas Mutual Insurance Company reported today that a Travis County district court sentenced Ellynn A. Ogilvie of Houston to five years of probation, 450 community service hours and a $2,000 fine for workers’ compensation fraud-related charges.
Ogilvie, who owned United Crane, Inc. and multiple related companies, was indicted in March 2009 for her role in concealing payroll and employees from Texas Mutual Insurance Company from August 16, 2001 to October 11, 2004.
Because workers’ compensation insurance premium is based, in part, on payroll, this type of scheme results in an employer being charged a lower premium than it actually owes. By hiding payroll, an employer can gain an unfair advantage over competitors.
Texas Mutual previously reported that Gary C. Quintinsky, who was also a participant in the scheme, was sentenced in March and received a two-year prison term for his role.
In 2007, a Travis County jury awarded Texas Mutual more than $5 million in actual damages and $2.5 million in punitive damages in a civil judgment against Quintinsky. The case was the largest premium fraud case in Texas Mutual’s history.
Back to topTexas Mutual Board Approves $155M Policyholder Dividend Distribution
May 25, 2011 - This afternoon, Texas Mutual Insurance Company’s board of directors approved the company’s plan to distribute $155 million in workers’ compensation dividends in 2011.
Dividends reward loyal policyholders who share Texas Mutual’s commitment to preventing workplace accidents and helping injured workers get back on the job.
“As a mutual insurance company, Texas Mutual is not publicly traded, and it does not answer to stockholders,” said Bob Barnes, chairman of Texas Mutual’s board of directors. “Our policyholders – the Texas entrepreneurs who put their trust in us every day - own the company. When Texas Mutual enjoys financial success, it has a solid history of sharing with those who have contributed to that success.”
Texas Mutual plans to begin distributing dividends in late July. The company anticipates that approximately 38,000 policyholders will qualify for a dividend based largely on their premium sizes, workplace safety records and history with the company.
By the end of this year, Texas Mutual will have paid more than $1 billion in policyholder dividends since 2000. That number includes a combined $260 million in 2008 and 2009, at the height of the recession.
Texas Mutual President Ron Wright said the company’s dividend track record is a direct reflection of policyholders’ efforts to keep employees safe and on the job.
“Texas Mutual is fortunate to have 50,000 owners who share its vision of a safer, more productive state,” said Wright. “Our policyholders have invested in their safety programs and supported injured workers during their recoveries. I hope this return on their investments will keep their businesses strong far into the future.”
Wright noted that Texas Mutual cannot guarantee future dividends, and the 2011 dividend plan requires Texas Department of Insurance approval.
Back to topTexas Mutual Announces Workers’ Comp Fraud Convictions
May 11, 2011 - Texas Mutual Insurance Company announced today that Travis County district courts sentenced two men, in separate cases, on workers’ compensation fraud-related charges.
Roberto Espericueta of McAllen must serve one year of probation and pay $3,500 in restitution to Texas Mutual.
Carlos J. Macias-Arango (aka Carlos J. Macias) of El Paso served two days in the Travis County jail. The court also ordered him to pay $3,000 in restitution to Texas Mutual.
Both cases involved a scam that investigators call double-dipping. Double-dipping happens when claimants collect benefits for being too injured to work when they are, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work.
Espericueta worked as a construction superintendent for ECAM Oilfield Service LLC in Mission. Macias-Arango was employed as a receiving clerk for J & M Sales, Inc. and FP Stores, Inc. in El Paso. Both men reported job-related injuries and claimed they were unable to work.
Meanwhile, Texas Mutual uncovered evidence that Espericueta had established and was operating his own oilfield service business while receiving income benefits. Macias-Arango was working as a support associate and kitchen helper with two different employers.
Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.
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