FREQUENTLY ASKED QUESTIONS
of
THE MICHIGAN WORKERS' COMPENSATION PLACEMENT FACILITY
1. How do I apply for coverage through the Placement Facility?
By completing the Facility application and submitting payment for the premium deposit. Payment cannot be drawn against the applicant's account. A cashier's check, certified check, money order or agency check must be submitted.
2. How do I determine the deposit premium?
By calculating the premium according to the steps indicated on the application. The classifications appear in the Basic Manual for Workers' Compensation Insurance and the Facility rate schedule appears in the Facility Information and Procedures Handbook. If you need assistance please call 734-462-9600.
3. How do I determine what modification factor and surcharge to use on the application?
If you are submitting an application for Facility coverage, you may call the Facility for a tentative modification and surcharge.
4. What is the Facility's Expense Constant?
On policies effective on or after January 1, 1999, the Assigned Risk Expense Constant is $180.
On policies effective on or after January 1, 2005, the Assigned Risk Expense Constant is $200.
5. Premium Discount Tables
6. The application requires an employer's federal identification number (FEIN). If the insured does not have such a number, can this section be left blank?
No. The FEIN is required on all forms filed with the Michigan Dept. of Consumer & Industry Services. The FEIN may be obtained from IRS by phone with an SS-4 Form, which should be available from a bank, post office or local IRS office. The Social Security Number is acceptable for a sole proprietor.
7. On minimum premium policies, is the expense constant included in the minimum premium?
Yes. All the minimum premiums listed in the rate schedule include the expense constant.
8. Who are the Assigned Risk Carriers?
The Assigned Risk Carriers are:
L M Insurance
P.O. Box 8090
Wausau, WI 54402-8090
1-800-653-7893
Fax 1-715-843-2649
Amerisure Mutual Insurance Company
Work Comp Assigned Risk Dept
PO Box 9201
Farmington Hills, MI 48333-9201
248-615-9000
Fax 248-426-7796
St Paul Travelers
Baldwin Point
2420 Lakemont Ave
Orlando FL 32814
1-800-443-4404
Fax 407-388-7851
9. Can the agent or employer request a particular servicing carrier?
The Facility assigns policies to each servicing carrier on a rotating and proportionate basis. The agent or employer may request a certain servicing carrier and that carrier may be assigned to service the policy. However, the Facility retains the right to assign applications to whichever carrier it deems appropriate.
10. When will coverage be effective?
The day after the application and payment for the premium deposit are received and accepted by the Facility.
11. How long does it take for a policy to be issued?
The policy will be issued by the insurance carrier we have assigned to the applicant. Between 14 and 30 days represents the average time involved for a carrier to issue a policy.
12. How do I obtain a Certificate of Insurance?
The Facility does not issue certificates. The servicing carrier must be contacted and will issue certificates within five working days of receipt of request. Certificates can also be obtained from your agent.
13. How much of the minimum premium is refunded if the audit determines the insured has had no payroll for the period the policy was in effect?
If the insured has had no earned payroll, the minimum premium minus the expense constant will be refunded.
14. If agency funds were submitted with the application and the insured's check to the agency has bounced, can the agent request cancellation of the policy?
No. Unless there is a signed finance agreement which assigns cancellation rights, the agent may not request cancellation for non-payment.
15. How do I secure a supply of forms frequently used for Facility business?
The Facility Information and Procedures Handbook has a form section which may be photocopied for your use. You may also call 734-462-9600 (Option 5) to order specific forms.
16. How do I obtain a copy of the Facility Information and Procedures Handbook?
The Facility Information and Procedures Handbook is updated annually to include changes in procedures and rate revisions for the following year. The updates are traditionally mailed the beginning of December. The cost of the entire handbook is $10.00 per copy. If you already have the handbook and wish to receive update pages only, the cost is $5.00 per copy. Checks must be made payable to the Michigan Workers' Compensation Placement Facility (MWCPF).
17. Can the insured increase the limits of liability?
Employers Liability Coverage - Part Two is restricted to the standard limit of liability of $100,000 unless the insured requests higher limits of $500,000 or the maximum limit of $1,000,000.
Limit of Percentage Minimum Charge $ 500,000 1% $50 $1,000,000 2% $75 Additional charge is based on the total premium and added before the experience modification.
visitors since February 2006