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In 1989, MADA was approved by the Mississippi Worker's Compensation Commission to establish the first Trade Association Self-funded Worker's Compensation program in the State of Mississippi. Your Board of Directors determined that it was in the best long-term interests of the membership to create this program with the purpose of providing reliable coverage and controlling the escalating costs of Worker's Compensation. "SIF" stands for Self-Insurer's Fund. The MADA SIF is dealer-owned and dealer-managed.
Mississippi's Worker's Compensation Commission dictates that ONLY Regular dealer members of the association may participate in the fund. The Commission also requires that you must be a "dues" paying member of the Association to participate and that your "dues" must remain "current" to maintain eligibility.
The following is a list of some of the benefits of fund participation;
1. Established for new car dealerships, run by new car dealers.
2. Over 75% of the dealers in Mississippi participate in the MADASIF Work Comp Program.
3. Exceptional Claims Administration and Loss Control Services provided by Cannon Cochran Management Services, Inc. (CCMSI).
4. Monthly payroll reporting, to avoid year-end "surprise" audit results.
5. 21-30% discount for qualified accounts, plus an additional discount for implementation of Drug-Free Workplace Program.
6. Both Specific and Aggregate reinsurance provided by Safety National Casualty Corporation.
7. The State of Mississippi requires (statutory) Specific Reinsurance for any SIF...but the MADASIF Board of Trustees insists on Aggregate Reinsurance as well...for the reason outlined in item 9 below.
8. Specific Retention is $375,000
9. Aggregate Retention attachment point is 85% of fund premium. From a practical statepoint...this additional level of reinsurance effectively rules out any "joint & several" liability for participating dealers.
10. MADA/SIF loss ratios for the past 3 years, as of the end of our most recent fund year (6-30-07):
2006 = 25.33%
2005 = 26.98%
2004 = 57.33%
11. Every premium dollar not used for claims or administrative costs are returned as permitted by the State of Mississippi to participants in the fund.
12. Investment income earned by the fund is credited to individual participants based on their premium contribution to the total invested premium...with the exception of those participants whose loss ratio exceeded 100% during the fund year. These are YOUR investment earnings that competing commercial carriers keep for themselves!
13. Since the programs inception, $8,543,237 in Dividends have either been paid directly to participants or been used as credits to reduce their cost of insurance. An additional $250,000 dividend was approved by the Trustees for distribution on 6-17-07...subject to Commission approval.
14. The MADA/SIF is dealer-friendly and (although dealers leaving the fund give up their rights to future dividends) when participants leave the fund mid-cycle...they are not "short-rated" with penalties...as is the case with most commercial carriers.
Click here for a direct link to the MADA SIF website.
http://www.ccmsi.com/madasif/ |
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