Texas Mutual Rewards Three Safety Groups With $435K in Dividends
March 8, 2012 - Texas Mutual Insurance Company announced today that three workers’ compensation safety groups have earned a combined $435,324 in dividends. The dividends were based largely on each group’s overall loss ratio.
The largest dividend, $261,132, went to the Texas Automotive Safety Group. The group has earned $651,000 in Texas Mutual dividends since 2010.
Members of the Texas Lodging Safety Group earned a $137,587 dividend, nearly doubling their 2011 dividend.
The $36,605 dividend check that went to the Texas Produce Association safety group marked the group’s seventh consecutive Texas Mutual dividend.
Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.
In addition to potential dividends, 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.
Texas Mutual Insurance Company Names Bill Huckaby General Auditor
March 7, 2012 - Texas Mutual Insurance Company, the state’s leading provider of workers’ compensation insurance, has announced Bill Huckaby as its new general auditor. Huckaby previously served as the company’s senior manager of finance and operations auditing.
In his new role, Huckaby will report directly to Texas Mutual’s board of directors to ensure the internal audit division provides independent, objective assurance and consulting services that add value and improve the company’s operations.
Huckaby joined Texas Mutual in 2005 as senior manager of finance and operations auditing, where he was instrumental in creating the company’s MAR initiative framework. He also helped develop an enterprise risk management program and restructured the finance and operations auditing process to a SOX-based methodology.
Prior to joining Texas Mutual, Huckaby spent 21 years as the director of internal control for a major health insurance company in Arkansas.
A graduate of the University of Arkansas at Little Rock, Huckaby is also a certified internal auditor, a certified control self-assessment auditor and a certified public accountant.
Texas Mutual Insurance Company Names
Senior Manager of Underwriting and Marketing
March 5, 2012 - Texas Mutual Insurance Company, the state’s leading provider of workers’ compensation insurance, announced today the hiring of Bill Jackson as senior manager of underwriting and marketing in Dallas.
Jackson will be responsible for managing marketing and underwriting policies and procedures in Texas Mutual’s Dallas regional office. In the role, he will focus on building agency relationships, creating revenue and developing staff.
Jackson has more than 20 years of experience in the commercial insurance industry. In prior positions, he was instrumental in adding new revenue streams and aiding in the development of coverages and programs, such as employment practice liability, cyberliability, hotels and restaurants. Jackson is a graduate of the University of Oklahoma.
Austin Business Hides Payroll, Ordered to Pay $250K to Texas Mutual
February 22, 2012 - Texas Mutual Insurance Company reported today that a Travis County district court sentenced Ronald (Ron) Rene Hernandez of Austin on workers’ compensation fraud-related charges.
The court sentenced Hernandez to six years’ deferred adjudication and 100 hours of community service. It also ordered him to pay $250,000 to Texas Mutual and a $2,500 fine.
Hernandez operated A & R Interests, Inc., a temporary employment agency in Austin.
A & R obtained workers’ compensation insurance through Texas Mutual from February 6, 2004, to July 2, 2007. During that time, Hernandez was involved in a scheme to conceal the number of employees and annual payroll of A & R Interests, Inc. from Texas Mutual.
Because workers’ compensation insurance premium is based in part on payroll, such a scheme results in a business paying less premium than it actually owes. By paying less premium, an employer can gain an unfair advantage over competitors.
Arlington Woman Sentenced for Workers’ Comp Fraud
February 16 , 2012 - Texas Mutual Insurance Company reported today that a Travis County district court sentenced Paula Schoolfield of Arlington, Texas on workers’ compensation fraud-related charges. The court sentenced Schoolfield to a one-year probated jail sentence and ordered her to pay $3,166 in restitution to Texas Mutual.
Schoolfield reported a job-related injury while working as a child case worker for Hill Country Youth Ranch in Ingram, Texas. She claimed she was unable to work as a result of the injury, and Texas Mutual began paying income benefits to her.
Texas Mutual uncovered evidence that Schoolfield was working as a secretary at a hospital 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.
Two Indicted in Travis County on Workers’ Comp Fraud Charges
February 9 , 2012 - Texas Mutual Insurance Company reported today that Travis County grand juries indicted, in separate cases, Curtis L. Blankenship, Sr. of San Antonio and Melody Tendayi of Austin on workers’ compensation fraud-related charges.
Blankenship, a Texas Mutual policyholder, reported a company fatality involving his son as a work-related accident. As a result, Texas Mutual began paying death benefits to him. Meanwhile, a Texas Mutual investigation uncovered evidence that Blankenship knew the fatality was not work-related.
The indictment alleges that Blankenship obtained $39,000 in workers’ compensation benefits he was not entitled to.
In an unrelated case, Tendayi reported a job-related injury while working as a youth care worker for Youth and Family Alliance in Austin. She claimed she was unable to work as a result of the injury, and Texas Mutual began paying income benefits to her.
Meanwhile, Texas Mutual uncovered evidence that Tendayi worked for another company while receiving income benefits.
The indictment alleges that Tendayi obtained $5,762 in workers’ compensation benefits she was not entitled to.
Note: A grand jury indictment is a formal accusation - not a conviction - of criminal conduct.
Texas Supreme Court Decision Reaffirms
Important Fundamental Workers’ Comp Right
January 30 , 2012 - In a decision that workers’ compensation experts say is good for Texas employees and employers alike, the Supreme Court of Texas issued a unanimous opinion on January 27, 2012, that bars negligence claims against policyholders. The Port Elevator-Brownsville v. Casados case reversed a previous judgment from the Corpus Christi Court of Appeals and rendered judgment for Port Elevator.
The Supreme Court upheld Texas’ main legal tenet that employers cannot, intentionally or unintentionally, split their workforce to leave some employees uninsured. The court’s opinion states that a key purpose of the rule against split workforces is that employees know whether they have the protections of workers’ compensation coverage.
“This decision is great for Texas workers because it assures them that they will be covered, and it reinforces a longstanding workers’ compensation rule,” Mary Barrow Nichols, general counsel and senior vice president for Texas Mutual, said. “This straightforward ruling from the Texas Supreme Court is also positive for Texas employers, because it strengthens the exclusive remedy protection given to workers’ compensation policyholders.”
Previously, the court of appeals awarded nearly $3 million in damages to the family of a temporary worker who died on the job at Port Elevator. Texas Mutual provided workers’ compensation insurance for Port Elevator, and the temporary staffing company had workers’ compensation through another insurance company. The plaintiffs claimed that Port Elevator intended to and did exclude the worker from its workers’ compensation coverage on various theories rejected by the court. The court held that an employee may have more than one employer, and each employer who has workers’ compensation insurance is entitled to the exclusive remedy as a bar to claims about the injury.
Midland Business Pleads Guilty to Hiding Payroll from Texas Mutual
January 27, 2012 - Texas Mutual Insurance Company reported today that AB Abatement, Inc. of Midland, Texas, pled to workers’ compensation fraud-related charges. A Travis County district court ordered AB Abatement, Inc. to pay $70,000 in restitution to Texas Mutual and a $1,000 fine.
Vanco Insulation, Inc., owned by Robert Crow of Midland, obtained workers’ compensation coverage through Texas Mutual from April 2003 to October 2006. During that time, related company, AB Abatement, Inc., misrepresented numbers of employees and payroll associated with the Vanco Insulation, Inc. policies to Texas Mutual.
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 Awards $300K in Safety Education Grants
January 26, 2012 - Texas Mutual Insurance Company has awarded a combined $300,000 in grants to Kilgore College, Midland College and College of the Mainland in Texas City. The grants will continue to fund free workplace safety courses for employers, employees and the general public through the colleges’ risk management institutes.
Since 1999 Texas Mutual—the state’s leading provider of workers’ compensation insurance—has awarded a combined $2.8 million in safety education grants, and 20,000 students have attended free safety courses at the three colleges over the past 13 years.
“We are grateful for the support that Texas Mutual continues to show Kilgore College and the emphasis the company places on safety education in the workplace,” said William Holda, Ph.D., president of Kilgore College. “Since the beginning of our partnership with Texas Mutual, the KC Risk Management Institute has been a valuable resource for area employees and employers. It has not only proved to be an important educational tool for participants, but has also helped to make them more competitive in today’s job market.”
Courses at the safety institutes include general topics, such as ergonomic safety and OSHA standards, but students may also choose to attend courses tailored to the dominant industries in the Houston, Midland and Kilgore areas.
In addition to these safety grants, Texas Mutual hosts free workers’ compensation workshops across the state for local employers. The workshops include a presentation by Texas Mutual safety professionals and an opportunity for continuing education on workplace safety, workers’ compensation and fraud prevention.
“These grants and workshops exemplify Texas Mutual’s ongoing commitment to workplace safety and prevention of workplace accidents through education,” said Bob Barnes, chairman of the Texas Mutual board of directors. “We recognize the value safety education provides to employers—giving them tools to keep their businesses, and more importantly, their employees safe. Safety education is always a sound investment.”
For more information about the workshops and safety courses, visit texasmutual.com/safety/workshops_cotm.shtm.
Texas Mutual Pays $450K Dividend to NFIB Construction Group
January 26, 2012 - Texas Mutual Insurance Company announced today a $450,058 workers’ compensation dividend to the National Federation of Independent Business (NFIB) construction safety group. The dividend was based largely on the safety group’s overall loss ratio.
“Entrepreneurs are the backbone of our economy,” said Bob Barnes, chair of Texas Mutual’s board of directors. “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 construction safety group have shared in $3.4 million in group dividends since 2003.
“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 NFIB/Texas Executive Director Will 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 last 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.
NFIB, Texas Mutual Partnership Pays $267K Dividend
January 19, 2012 - Texas Mutual Insurance Company announced today a $267,364 workers’ compensation dividend to the National Federation of Independent Business (NFIB) wholesale/retail safety group. The dividend was based largely on the safety group’s overall loss ratio.
“Entrepreneurs are the backbone of our economy,” said Bob Barnes, chair of Texas Mutual’s board of directors. “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 wholesale/retail safety group have shared in $1.6 million in group dividends since 2006.
“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 NFIB/Texas Executive Director Will 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 last 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.
Houston Man Pleads Guilty to Hiding Payroll from Texas Mutual
January 17, 2012 - Texas Mutual Insurance Company reported today that Marvin Solano of Houston pled guilty to workers’ compensation fraud-related charges. A Travis County district court ordered Solano to pay $140,038 to Texas Mutual, pay a fine of $1,000, serve 10 years of deferred adjudication and perform 300 hours of community service.
Solano owned Elamar, Ltd., doing business as Mastercare Gardens. He obtained workers’ compensation coverage through Texas Mutual from February 2006 to May 2008. During that time, he concealed payroll through various family operated companies he controlled.
Because workers’ compensation 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.
Workers’ Comp Fraud Scheme Costs Texas Business $149K
January 12, 2012 - Texas Mutual Insurance Company reported today that Granbury Contracting & Utilities, Inc., of Granbury, Texas, pled guilty to workers’ compensation fraud-related charges. A Travis County district court ordered the company to pay $149,000 in restitution to Texas Mutual.
Granbury Contracting & Utilities, Inc., owned by Wayne Wienecke, obtained workers’ compensation coverage through Texas Mutual from November 2003 to April 2008. During that time, Granbury Contracting & Utilities, Inc. misrepresented numbers of employees and payroll to Texas Mutual.
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 Serves up $1.4M Dividend to TRA Safety Group
January 9, 2012 - Texas Mutual Insurance Company announced today a $1,387,241 dividend to the Texas Restaurant Association (TRA) safety group. The dividend was based largely on the group’s overall loss ratio. Bob Barnes, chair of Texas Mutual’s board of directors, recently presented the check to TRA CEO Richie Jackson at Texas Mutual’s headquarters in Austin.
“The restaurant industry is an economic engine for Texas,” said Barnes. “Restaurants pump $36.6 billion into the economy and employ more than 1 million people. For every $1 million spent in restaurants, the state benefits from nearly 30 additional jobs. We hope this money helps TRA members continue to grow their businesses during challenging economic conditions.”
Members of the TRA safety group have shared in more than $17 million in group dividends since 1999.
Safety group dividends are separate from the $155 million in individual policyholder dividends Texas Mutual distributed in 2011. Since 2000, the company has injected more than $1 billion into the Texas economy through its group and individual dividend programs.
“Between individual policyholder dividends and safety group dividends, Texas Mutual makes participating in the workers’ compensation program in Texas a good business decision,” said Jackson.
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.
In addition to potential dividends, TRA safety group members get discounts on their workers’ compensation premiums. They also have access to workplace safety materials designed for the restaurant industry.
Texas Mutual notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.