Vectors and 3D Models
Local Search - Business
Weather Information
Get the App for Smartphones and Tablets

Go Back


WhmSoft Free Articles Directory
Free Articles for Reprint
Free Articles to Publish
Free Articles for Newsletters
Videos to Watch


Page Generation Date and Time:
09/21/2017 21:39:10

 
Free the Animation VR / AR
Play to reveal 3D images and 3D models!
   
 
vlrPhone / vlrFilter
Project of very low consumption, radiation and bitrate softphones, with the support of the spatial audio, of the frequency shifts and of the ultrasonic communications / Multifunction Audio Filter with Remote Control!



 
 
Alexa Data
 

Go To Articles Directory Home Page

To get the current article, - See Below (at the bottom of the page) -.
For top news titles, see below.
Web sites and videos listed in this page are frequently updated.
If you find that this page is useful (quality of web sites, images and videos, ...), you can add it to your favorites.
Bookmark Page !

Tell a Friend:



With your mobile phone (WAP / I-Mode / iPhone / PDA), for free:
The Top News - http://www.whmsoft.net/services/wap/news.php
The Daily Files - http://www.whmsoft.net/services/wap/get.php
All the Directory Files - http://www.whmsoft.net/services/wap/choose.php

Web version of feeds:
Podcast Music - http://www.whmsoft.net/services/web/wpodcast.php
Daily Files - http://www.whmsoft.net/services/web/wget.php

You can play the Guitar Drum Revolution game (flash game) by following the link below:
Play Guitar Drum Revolution Game


You can play free online games (flash games) by following the link below:
Free Online Games

Play the samples below:
Whack A BossPhoenix RevengeCastlevaniaLa Maison D AlixPuzzle Farter

You can view the people (celebrities) news and the front page news (with videos, images and constant updates) by following the link below:
View Recent News
or by visiting the WhmSoft Service blog:
News Photos Slideshows


Article Keyword Videos to Watch
Business
Click on the image to start the video.



Related Topics
Images - Links - Articles

Dallas


Related Images



Article Category Videos to Watch
Business
Go to the Videos Pages


Dirty Little Secret of Workers Compensation Insurance

Workers Compensation Insurance agents are paid commission based on the size of your company premium. The bigger the premium you pay the bigger your agent's commission. Your agent may never cause your premium to go up unnecessarily but has he done everything he can to reduce it and reduce his commission?

The first workers compensation law was enacted in the United States in 1911 by the State of Wisconsin. By 1948, every state had some form of "workman's comp." Basically this is a government mandated social insurance pact between employers and employees. Employers are forced to cover medical care and provide wage replacement for employees hurt on the job: in return workers compensation benefits becomes the only remedy available for workers. Even though courts have upheld this concept for almost one hundred years occasionally in cases of bad faith courts have over ridden this exclusive remedy.

Workers compensation is compulsory insurance in every state but Texas. With some few exceptions, all employers are mandated by law to carry workers compensation insurance.

Workers Compensation Insurance premium is calculated by how employees are classified by their specific work and the rate assigned to each employee classification.

Workers Compensation insurers attach a premium rate to each employee classification code. These rates must normally be approved by the state insurance regulatory agency in the state the policy is in effect in. Agency approval of the rate is based on numerous items. One of the items taken into account is adequacy of the rate. Rates must be adequate to maintain the financial condition of an insurance company. Adequate rates allow the insurance company to maintain surplus to meet current and future claims..

The classification code and its corresponding premium rate are part of the formula. The premium rate itself is expressed as dollars and cents per 0 dollars of payroll. The payroll for each classification code is estimated and then each 0 is multiplied by the rate. The calculated amount is the base premium. The base premium is then modified (change up or down) using rating plans and experience modification.

The experience modification is calculated from losses that the company has reported in the past.
The insurance company used a government-approved formula to calculate an experience modification for each employer. The formula looks at paid losses, reserves necessary for claim made and payroll amounts for the past three years (usually). The experience modification shows average loss experience of employers with similar classified employees and works as a way to compare employers. The experience modification is added to the class rate, along with any other modifications and an estimated premium rate is created. This is called prospective rating and is the most commonly utilized rate plan.

The total premium for a workers compensation insurance policy is not certain until the policy period is complete and all payroll has been reported.

Now you know how the rates are calculated what is the "Dirty Little Secret"? In thirty years of working with companies I have never gone into a company of any size and found that its employees are correctly classified. The classification process is many times as much of an art as it is a science. Different people can look at the same job and classify it differently sometimes with extremely different results to the premium. Many classification titles are very similar but with much different rates. There are many jobs that don't have a specific classification but have to be fitted into something that makes sense. If the insurance company decides the classification do you think it will be the best possible choice for the employers lowest premium?

If an employer is not only knowledgeable but also aggressive about classifications who is going to see to it that they are the lowest possible premium rates. The insurance company makes more money out of higher premium rate classifications. The risk to the insurance company does not rise if the employee is misclassify into a classification that commands a premium rate of say .13 per 0 of payroll as say a rate of .01 per 0 of payroll. The insurance company just makes ten times as much revenue. If there is a claim it will be paid at the same amount regardless of what the premium was.

The insurance agent that supposedly has the employer's interest at heart makes ten times the commission if an employee is misrated as in the paragraph above. Is he going to take his time, energy and effort to deliberately cut his commissions by suggesting rate changes over his company's objection?

If as an employer you don't have an intimate knowledge of classification and ratings you need to either get the knowledge or hire someone who has it. You can't trust your agent to be objective about this. You are talking about taking money out of his pocket and out of the pocket of people that pay him. You don't pay him the insurance company does. It pays him a commission on what he sells you. Not necessarily on what you need. Your agent may be doing a bang up job but wouldn't you like to be sure?


About the Author: Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice.
Mr. Read is the author of “How to Start a New Business.”

To find professional payroll service at a budget price go to www.PayrollonaBudget.com a paperless payroll company.

For a full service payroll bureau with CPA’s on staff visit www.CustomPayroll.com .

See an excerpt of Mr. Read’s interviews from William Shatners “Heartbeat of America” television show on the web sites linked above.




Recommended Web Site(s):

Easy Articles Home Page - Articles Directory

Recommended WhmSoft Web Sites, Feeds and WAP Address:

WhmSoft Software Home Page - Software
WhmSoft Services Login Page - Music and Images
WhmSoft Moblog Home Page - Blog - Photo Gallery
WhmSoft Free Online Games Home Page - Flash Games
WhmSoft Services RSS Feed - Daily Music, Image and 3D Flash Animation
Classical Music with Drum RSS Feed - MIDI and MP3 Files
Classical Music with Drum Podcast Feed - MP3 and MP3 Files
WAP / I-Mode / PDAs - Daily Music, Image and Flash Animation

Home Pages:

WhmSoft Free Articles for Reprint Home Page
WhmSoft Services Home Page - Music and Images
Copyright (C) 2006-2017 WhmSoft - All Rights Reserved.