| A list of questions frequently asked by Employers that purchase workers’ compensation insurance, and by Insurance Producers and Agencies that represent those employers. If your question is not answered here, contact Connie Faria (mailto:cfaria@hemic.com) via e-mail or by phone on Oahu at (808) 524-3642. Neighbor Islands call toll free 1 (888) 292-3642. Frequently Asked Questions by Insurance Producers and Agencies
How is HEMIC different from other workers' compensation insurance companies? Hawaii Employers' Mutual Insurance Company (HEMIC) is different in many ways that benefit the policyholder and the injured employee. * Hawaii Employers' Mutual is Hawaii's guaranteed provider. With few exceptions, any Hawaii employer that follows our safety recommendations and claim-handling procedures is eligible to be insured by HEMIC. HEMIC has multiple rating tiers and a Workers' Compensation Safety Credit Plan. HEMIC offers competitive premiums tailored to your company's business and loss experience every year – not just when things are going well. With HEMIC, the "feast or famine" workers' compensation cycles are a thing of the past. * HEMIC welcomes all employers, large and small, new and established. We tailor our service to meet your needs. All employers have access to our quality loss prevention and safety programs, medical cost management procedures and fraud prevention services. * HEMIC writes only workers' compensation insurance. We do not compromise our service, staff training, systems, or procedures to accommodate other types of insurance. And since we only provide to the Hawaii market, all our resources are dedicated to Hawaii. We have a stake in Hawaii's economy, in the financial health of your business and the physical health of your employees. How do I obtain a quote from HEMIC? There are two options for requesting a workers’ compensation quote from HEMIC. Ask your insurance producer to submit an application to us for quotation, or request a quote online. Each way, you will receive a prompt quote. If you use the online quote, our program will ask you pertinent questions regarding your business so the program may provide an accurate quote. Professional insurance producers add value with personalized service. If you prefer working through an insurance producer, but do not have one, you may refer to the list of Cornerstone Agencies. For your convenience, representation is available in all counties of Hawaii. Choosing producer representation is the employer's prerogative. HEMIC will not assign an independent producer or agent to your account. What if my Insurance Producer or Agency does not reside in Hawaii? We understand the employer's desire to handle his insurance with the producer of his/her choice. Your producer may access HEMIC even if not domiciled in the State of Hawaii by contacting us on Oahu at (1-808-52HEMIC), from neighbor Islands (1-888-292-3642), or by email to Connie Eder. My home-office is in the continental U.S.A. and I have employees residing in Hawaii. Do they require workers' compensation insurance coverage? With few exceptions, yes. Part I. General Provisions of The Hawaii Revised Statute 386-1 "Definition…unless the context otherwise requires, Employee means any individual in the employment of others." (as per HRS 386-1 Definitions). For further clarification see State of Hawaii - Dept. of Business, Economic Development & Tourism website. What are the costs of a workers' compensation policy? Costs and coverages for a workers' compensation policy will vary by insurance carrier. HEMIC offers workers compensation coverage as a guaranteed cost policy. That is, insurance is written for an estimated fixed premium without provision for assessments of insureds. Other factors that will determine policy premium is the expense constant, premium discount, credits or surcharges for loss experience and other rating plan eligibility. The resulting premium is called the estimated annual premium. How do HEMIC’s rates compare to other workers' compensation carriers in Hawaii? Our flexible rating plans allow us to competitively price any type risk. We employ a staff of highly qualified underwriters with extensive experience. Their expertise and professionalism ensures that each risk will be fairly evaluated and priced on its own merits. We developed five basic rate plans called tiers. Each application submitted is reviewed thoroughly for eligibility and placement into Tiers 1, 2, 3, 4 or 5 as a foundation upon which we build into the premium other credits and rating features. Hawaii Employers' Mutual Insurance Company has developed a new Workers' Compensation Safety Credit Plan. Your policy may qualify for one or more premium credits if you adopt certain safety and claim mitigation programs meeting HEMIC requirements. Why must I keep accurate payroll records? It is very important for the employer to maintain and report accurate payroll on your application to avoid additional premium charges at the end of the policy term. As an employer, you pay an estimated annual premium at inception of your policy. Your premium is labeled "estimated" because we determine policy premium by using payrolls that you think you will be paying. When your policy expires, our auditor will review your actual payroll records for the policy year. Final premium for the policy is then determined. You will either be charged additional premium or receive a refund based on the accuracy of your original payroll estimate. If I purchase coverage from HEMIC, what can I expect? We will issue your policy to you within seven working days of binding coverage. You can also obtain claim documents, including the Employer's Report of Industrial Injury form WC-1 by clicking on the Claims Tab on this website. If you have selected one of HEMIC’s installment plans, we will bill you directly. You will be invited to our "Pathway to Safety"® loss prevention seminar series. To best prepare for the seminar, you will be given a "Safety Program Checklist" to complete and bring with you. Attendance of the seminars and implementation of safety programs may qualify you for premium credits in the future. Forty-five days prior to your policy expiring, we will send you a renewal offer for coverage. Upon expiration of the policy, we will send you a request for a mail audit or schedule a site audit at your place of business. Then we can determine actual premium earned for the policy year. A premium audit is an investigation of your business that is conducted by mail or by visiting your place(s) of business for the purpose of verifying that we have an accurate picture of your business and your policy needs. For a discussion of the premium audit, visit the Audit page on this website. Are all Hawaii licensed Insurance Producers & Agencies guaranteed access to HEMIC? No. While all Hawaii employers who pay their premiums, follow our safety and claims guidelines, and interact with HEMIC in good faith are guaranteed access, insurance producers and agencies are not. We do attempt to accommodate all qualifying insurance producers and agencies through a selection process similar to, but more inclusive than, that of most other competitive insurance carriers. Hawaii licensed insurance producers and agencies that meet our qualifications and request an appointment may be contracted to represent their clients with HEMIC, receiving one of three commission schedules based on their qualifications and the role they assign to Hawaii Employers' Mutual. What is the eligibility and process an Insurance Producer or Agency must take to obtain an appointment with HEMIC? The producer or agency must be licensed and residing in the State of Hawaii. Hawaii Employers' Mutual may make the appointment, provided the following requirements are fulfilled:
The Insurance Division will respond to both HEMIC and the producer or agency when the appointment process is completed. What is the Cornerstone Agency Program? This is a program for top producing insurance agencies that have demonstrated proficiency when representing their clients with HEMIC. Cornerstone agencies receive an enhanced commission and other benefits. They also provide valuable feedback to HEMIC, so we may better serve our policyholders. Please e-mail Connie Eder for more information.
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A.M. Best Assigns "A" Ratings to HEMIC
OLDWICK, N.J., July 19, 2007—A.M. Best Co. has assigned a financial strength rating (FSR) of "A" (Excellent) and an issuer credit rating (ICR) of “A” to Hawaii Employers’ Mutual (more)
Traffic Accidents' Share of Workers' Comp Losses Grows
Work-related injuries due to traffic accidents are relatively costly and are on the increase as a growing share of workers compensation loss costs. (more)
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