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' the Minnesota School Boards Association anti offers a fully qualified staff <br />in all areas of workers' compensation administration. The cost of <br />administration of the program is 10d of standard premium. <br />' Services provided by the administrator include: <br />1. Determination of premium for participants. <br />' 2. On -site safety inspections and development of loss control program. <br />3. Claims processing, investigation and payment. <br />4. Legal counsel for disputed claims up to the Appeals Court trial. <br />5. Loss reports to individual participants and to VICIT. <br />6. Preparation of reports required by state authorities. <br />REINSURANCE <br />To protect LMCIT from the adverse effects of catastrophic and abnormal <br />claims, LMCIT purchases reinsurance from two sources for a total cost of <br />7.4% of standard premium. The state Workers' Compensation Reinsurance <br />' Association provides individual excess coverage at a cost of 4.7 %. This <br />covers workers' compensation claims arising out of any single occurrence <br />which exceed $350,000 with no upper limit. LMCIT also purchases $3,000,000 <br />' aggregate excess coverage from General Reinsurance Corporation (Gen Re) a <br />cost of 2.7 %. Gen Re is a Minnesota- licensed insurance company, rated <br />A +, XV. <br />' ADVAFTAGES OF THE PROGRI*] <br />1. Lower operating costs. Conventional insurance carriers typically allow <br />between 302 and 40% of the premium dollar for administrative costs. The <br />total cost to LMCIT for administration, reinsurance, and commissions 'is <br />well under 20 %. <br />2. Investment Income. Earnings on investments accrue to the benefit of <br />participants. Due to the long -term nature of certain workers' compensation <br />claims, substantial reserves are built up in the program. These reserves, <br />along with premium deposits, are invested; the investment income further <br />reduces the program costs. <br />3. Loss Control. A specialized approach to loss control provides practical <br />assistance in reducing losses. <br />4. Non- profit. Since the LMCIT program is non - profit, all excess funds are <br />available for distribution to participants. <br />PARTICIPATION <br />This program is offered to cities through independent agents. (The agent <br />does not have the power to bind coverage, however.) In order to receive a <br />quotation for participation in the program, simply fill out the Self- Insured <br />Workers' Compensation Quotation Data Sheet available from <br />Employee Benefit Administration Co. Peter Tritz <br />6750 Wayzata Blvd., Suite 430 or League of Minnesota Cities <br />Minneapolis, NN 55426 183 University Avenue East <br />Phone: (612) 544 -0311 St. Paul, MA 55101 <br />Phone: (612) 227 -5600 <br />or <br />