Texas Mutual Insurance Company

Bryan Man Sentenced on Workers’ Comp Fraud Charges

December 20, 2011 - Texas Mutual Insurance Company reported today that a Travis County district court sentenced Richard Merriman of Bryan, Texas on workers’ compensation fraud-related charges. The court sentenced Merriman to two years’ deferred adjudication and ordered him to pay $3,197 in restitution to Texas Mutual.

Merriman reported a job-related injury while working as a security guard for HVP Private Security, Inc. in San Antonio. He claimed he was unable to work as a result of the injury, and Texas Mutual began paying income benefits to him.

A Texas Mutual investigation subsequently determined that Merriman had lied on benefits application forms regarding his employment status, causing Texas Mutual to pay him supplemental income benefits he was not entitled to.

Texas Mutual Pays Combined $690K to Four Safety Groups

December 19, 2011 - Texas Mutual Insurance Company announced today that four workers’ compensation safety groups have earned a combined $690,036 in dividends: Texas Recreation Group, $278,353; Texas Construction Supply, $200,752; Texas Green Industry, $133,453; AgriComp, $77,478.

The dividends were based largely on each group’s overall loss ratio.

In 2011, Texas Mutual will pay approximately $15 million in safety group dividends. Group dividends are separate from the $155 million in individual policyholder dividends the company distributed this year. Many group members qualified for individual and group dividends.

Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.

Texas Mutual Board of Directors Elects New Officers

December 14, 2011 - The Board of Directors of Texas Mutual Insurance Company, the state’s leading provider of workers’ compensation insurance, recently elected two new officers—Linda Foster-Smith of Georgetown and Jay Eisen of Beaumont. These officers were elected on Wednesday, December 14 at the company’s December board meeting.

Foster-Smith has been appointed as Texas Mutual’s Board of Directors’ new vice chair. She was also appointed to Texas Mutual’s Board of Directors in 2008. Foster-Smith is retired from AT&T, where she worked for 37 years, the last 15 years as director of external affairs for the Permian Basin. She is a former member of the Board of Trustees for the Midland Independent School District, a former member and chairwoman of the Midland Chamber of Commerce, and former board chairwoman and campaign chairwoman for the United Way of Midland.

Eisen has been re-appointed as secretary of Texas Mutual’s Board of Directors. He has been a board member since 2008. He is president of Sampson Steel Corporation in Beaumont and a longtime Texas Mutual policyholder. Eisen is also a member of the Political Advisory Committee for the Texas Association of Business, a former member of the association’s statewide board and former chairman of the association’s southeast chapter.

NFIB, Texas Mutual Partnership Pays $819K Dividend

December 13, 2011 - Texas Mutual Insurance Company announced today an $819,218 dividend to the National Federation of Independent Business (NFIB) safety group for manufacturers. The dividend was based largely on the group’s overall loss ratio.

Bob Barnes, chair of Texas Mutual’s board of directors, and Ron Wright, Texas Mutual president, presented the check to NFIB/Texas Executive Director Will Newton this afternoon at Texas Mutual’s headquarters in Austin.

“Entrepreneurs are the backbone of our economy,” said Barnes. “As an independent business owner, I am proud of the partnership Texas Mutual has forged with the NFIB. Anytime we have the opportunity to invest in Texas entrepreneurs, we consider it money well spent.”

Members of the NFIB manufacturing safety group have shared in $2 million in group dividends since 2007.

“We at NFIB are very proud of our members for pulling together with Texas Mutual Insurance Company’s loss prevention team and achieving such a significant group dividend,” said Newton. “We are looking forward to more of the same in 2012.”

Unlike publicly traded insurance companies, mutual companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

Safety group dividends are separate from the $155 million in individual policyholder dividends Texas Mutual distributed this year. Since 2000, the company has injected more than $1 billion into the Texas economy through its group and individual dividend programs.

In addition to potential dividends, NFIB safety group members get discounts on their workers’ compensation premiums. They also have access to workplace safety materials designed for their operations.

Texas Mutual notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

Port Arthur Man Convicted of Workers’ Comp Fraud

November 22, 2011 - Texas Mutual Insurance Company reported today that a Travis County court sentenced Robert Rosette of Port Arthur, Texas on workers’ compensation fraud-related charges. The court sentenced Rosette to two years’ deferred adjudication, and ordered him to pay $1,597 in restitution and complete 60 hours of community service.

Rosette reported a job-related injury while working as a delivery driver and warehouseman for Affordable Rent-to-Own, LLC in Beaumont, 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 Rosette was working as a loss prevention officer for another employer 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 Promotes Jeff Lentz to Vice President of Underwriting

November 17, 2011 - Texas Mutual Insurance Company, the state’s leading provider of workers’ compensation insurance, announced the promotion of Jeff Lentz from senior manager of underwriting and marketing to vice president of underwriting.

In his new role, Lentz will be responsible for directing underwriting policies and procedures. In this capacity, he will oversee the integrity of the company’s risk selection and pricing decisions to achieve profitability, retention and growth. Lentz will also direct the company’s file review process, as well as strategies for enhancing the profitable growth of safety groups underwritten by the company.

Lentz joined Texas Mutual in 2004 as manager of underwriting and marketing in the company’s Dallas regional office.

“During his time in our Dallas regional office, Jeff has built strong relationships with Texas Mutual’s agent partners,” Steve Math, senior vice president of underwriting, said. “He has spent the past seven years listening and responding to their needs, and his experience will be valuable in Texas Mutual’s ongoing commitment to delivering excellent service to the agents we do business with.”

Lentz has more than 18 years of experience executing underwriting strategies and more than 11 years in management. Prior to joining Texas Mutual, Lentz held underwriting management positions for Royal & Sunalliance USA.

Texas Mutual Named One of 2012 Best Companies to Work for in Texas

November 9, 2011 - Texas Mutual Insurance Company, the state’s leading provider of workers’ compensation insurance, was recently named as one of the 2012 Best Companies to Work for in Texas. The awards program was created in 2006 and is a project of Texas Monthly, the Texas Association of Business (TAB), the Texas State Council of the Society for Human Resource Management (TSC-SHRM) and Best Companies Group.

This statewide survey and awards program was designed to identify, recognize and honor the best places of employment in Texas, benefiting the state's economy, its workforce and businesses. The 2012 Best Companies to Work for in Texas list is made up of 100 companies. Texas Mutual has been named one of the Best Companies to Work for in Texas for the second consecutive year.

“Texas Mutual is very proud of this accomplishment,” said Ron Wright, company president. “Texas Mutual is committed to creating an environment where work is meaningful, contributions are recognized, and all employees know they are appreciated. This recognition reflects the fact that our company culture supports our mission to be the carrier of choice for the employers of the state of Texas.”

To be considered for participation, companies had to fulfill the following eligibility requirements:

Have at least 15 employees working in Texas;
Be a for-profit or not-for-profit business or government entity;
Be a publicly or privately held business;
Have a facility in the state of Texas; and
Be in business a minimum of one year.

Companies from across the state entered the two-part survey process to determine the Best Companies to Work for in Texas. The first part consisted of evaluating each nominated company’s workplace policies, systems, philosophies, practices and demographics. This part of the process was worth approximately 25% of the total evaluation.

The second part consisted of an employee survey to measure the employee experience. This part of the process was worth approximately 75% of the total evaluation. The combined scores determined the top companies and the final ranking. Best Companies Group managed the overall registration and survey process in Texas and also analyzed the data and used their expertise to determine the final rankings.

Texas Mutual will be recognized and honored at the Best Companies to Work for in Texas awards ceremony on Thursday, February 2, 2012 as part of the Texas Association of Business’ 2012 Annual Conference in Austin, Texas. The final rankings will also be released in a special advertising section of the February 2012 issue of Texas Monthly.

For more information on the Best Companies to Work for in Texas program, visit www.BestCompaniesTX.com.

Texas Mutual Wraps Up $155M Dividend Distribution

November 8, 2011 - Today, Texas Mutual Insurance Company began distributing about $1.5 million in workers’ compensation dividends among approximately 2,800 new policyholders.

The early-qualifier dividends represent the final component of Texas Mutual’s $155 million 2011 dividend distribution. Approximately 77 percent of the company’s policyholders received a dividend as a reward for preventing workplace accidents and helping injured workers return to productive employment.

“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 has distributed 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 more than 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.”

Texas Mutual notes that past dividends are not a guarantee of future dividends. All dividend plans require Texas Department of Insurance approval.

Three Safety Groups Earn Combined $848K in Texas Mutual Dividends

October 10, 2011 - Texas Mutual Insurance Company announced today that three workers’ compensation safety groups have earned a combined $847,714 in dividends. The dividends were based largely on each group’s overall loss ratio.

The largest dividend, $398,186, went to the Lone Star Auto Dealers (LSA) safety group. LSA members have shared in more than $5 million in group dividends since 2002.

Meanwhile, the Lone Star Energy (LSE) safety group earned a $240,272 dividend, and the Hospitals of Texas (HOTComp) earned a $209,256 dividend.

Group dividends are separate from the $155 million in individual policyholder dividends Texas Mutual is distributing in 2011. Many group members have qualified for individual and group dividends.

In addition to potential dividends, LSA, LSE and HOTComp 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 30 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 in a group. For more information, 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.

Village Mills Man Sentenced to Jail Time for Workers’ Comp Fraud

October 4, 2011 - Texas Mutual Insurance Company reported today that a Travis County court sentenced Clifford K. Franklin of Village Mills, Texas on workers’ compensation fraud-related charges. Franklin fraudulently received $1,453 in benefits. The court sentenced Franklin to 180 days in jail and ordered him to pay court costs.

Franklin reported a job-related injury while working as an equipment operator for Odin Demolition and Asset Recovery, Inc. in Deer Park, 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 Franklin was working as an equipment operator for another employer while receiving income benefits.

Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.

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