1. WCTI Presentation of Services Angie Blakeney Senior Account Executive

2. What is Self Insurance? n Self insurance is a protected assumption of financial risk that enables an employer to increase control and stabilize insurance costs over time. The self insurance industry currently represents between 35% - 45% of the traditional insurance market place.

3. WCTI Structure n Loss Sensitive Funding - Members with Low Losses Experience the Greatest Savings n Owned by the Members n Governed by Board of Trustees – Determine Rates – Underwriting Criteria – Vote on New Members – Hire TPA n Regulated and Audited by Illinois Department of Insurance

4. WCTI Program Information Self-Insured Group that provides Workers’ Compensation for Illinois Manufacturers Established in 1981 120+ Members $14.6 million Standard Premium Loss Ratio for Group 35% Average Mod.84 Average Standard Premium $119,620

5. Sample Classes of Business n Metal Goods n Plastics n Precision Parts n Wire Goods n Machine Shops n Printers n Food/Sundries n Gear/Screw

6. Distribution of WCTI Standard Premium Dollars *Unused claims dollars are returned to the members.

7. WCTI Eligibility  Illinois Manufacturing or Related  Minimum $30,000 Standard Premium  In Business Minimum 5 years  Good Workers’ Compensation History  Minimal Chemical Exposure  Group Health Coverage Required

8. Reinsurance n Safety National Casualty Corporation – A+ (Superior) n Self Insured Retention $550,000 n Aggregate 80% Annualized Standard Premium for Group

9.  Minimum 4 visits per year  Representation at OSHA formal hearings  Tiered Safety Audit (MSAP) w/Ergonomics as Emphasis  Quarterly Train the Trainer and Task Force Meetings  Training (English and Spanish)  Employee Orientation  Accident Investigation  Forklift  On-line Training Safety & Risk Management Services

10.  Designated Claims Rep  Light Duty is Required  On line Claims Access  Case Management Nurses on Site  Control over Claims $  No Paying Small Claims Out of Pocket Claims Services

11. Acceptance Process n Underwriting & Excess Approval n Presentation of Quote to Insured n $500 Loss Control Inspection n Loss Control Committee Approval n Board of Trustees Approval

12. Why Self-Insure? n Potential for Return of Contribution n Decrease in Claims Cost n Customized claims and loss control service n Ability to exert control over claims administration process n Elimination of uncertainty in primary insurance market n 99% Retention Rate for WCTI

13. THANK YOU FOR YOUR TIME!