Pro Group

Frequently Asked Questions

Participating in a self insured group (SIG) was a new concept to Nevada employers many years ago. Today, participating in a self insured group is a standard, viable and trustworthy option offered to handle your Nevada workers' compensation coverage requirements.

The professionals at Pro Group hope that the following information will help you with your decision to join a self insured group for your business' workers' compensation coverage.

Q) How does a Nevada self-insured group work?

A) A trade association sponsors a self insured group or SIG for the purpose of providing workers' compensation coverage to the association members. The SIG is a not-for-profit entity with the goal of only collecting assessments to cover the losses. Any excess funds, not being used for claims or expenses, are returned to the group members in the form of dividends, payment holidays or rate reductions. As a result of strict underwriting and safety programs offered as a part of group membership, safety increases and claims costs drop. This results in educated employers, a manageable program and reduced costs. To make the SIG work effectively the sponsoring association needs to make the right choices in the beginning. This means choosing the right group administrator. That is why the first self insured groups accepted in Nevada chose Pro Group to develop and manage their SIGs.

Q) What is Joint and Several Liability?

A) Joint and Several liability, or JSL, is not unique to self insured groups. All mutual insurance companies have a JSL clause in their workers’ compensation policy. The JSL clause is required by the insurance commission to make sure the state will not take on the liability of covering losses of a bankrupt insurer. JSL is best described by the example of considering a group of employers that become unified with a pooled sharing of risks. When united, all members have an interest in the other member’s well-being. They take on the commitment to cover any of the group’s losses by agreeing to be financially responsible for the group’s performance. Groups have operated successfully for over 40 years nationwide.

The primary reasons are:

Strong underwriting guidelines
Risk management guidelines
Annual audits
Quarterly and actuarial projections
Strong investment policies
Specific and aggregate excess insurance coverage
All SIG’s are regulated by the Insurance Commissioner

JSL should not be a barrier to joining a self insured group. It should be considered your commitment to the group’s safety program. Achieving significant savings, reducing your business’s workers’ compensation losses, and providing a safe work environment for your employees.

Q) Can a smaller Nevada employer join a self-insured group?

A) Yes, but there are some additional qualifications that may need to be met. With the changing workers’ compensation market in Nevada, many smaller employers are finding themselves being cancelled or dropped from their previous insurance coverage because it was determined that it was no longer profitable for them to be carried. Certain small employers can join a group if they are able to meet the group's tangible net worth requirements. If your business’s premium is below the assessment amount required by the group and you qualify under the tangible net worth guideline, your company will have a small minimum premium assessment depending on the group for which you qualify. This minimum premium assessment is set for the protection of the group to allow smaller Nevada employers the opportunity to take advantage of the group’s services, benefits and safety programs.

Q) My current premium is below the group’s premium qualification level and my business may not have the necessary tangible net worth to qualify for the SIG. Can my business still join the SIG?

A) Yes, your business can still be considered for membership in most of the SIGs. However, your business will have to post a bond, Letter of Credit or CD to help offset the tangible net worth criteria. Pro Group can refer you to a bond service. Costs for the necessary surety usually amount to 2% of the bond amount annually to maintain coverage.

Q) How does a Self Insurance Group succeed?

A) The program is operated for the benefit of Member businesses within their own industry and Members must meet strong safety, financial, experience modification and loss history criteria established by the Board of Trustees.

Claims are handled aggressively including fraud and subrogation. The third party claims administrator is contracted directly by the Board of Trustees who has the ability to take action if superior services are not provided. Claim Reserves are accurate and fair - no profit is built into cost.

In-depth Risk Management services are provided by qualified safety professionals experienced within your own industry.

Detailed Financial and Loss Reports are provided to all members.

FAQS