What You Need to Know
To Elevate and Unite Automotive Professionals, andGive Them Voice 

California Department of Insurance Files Suit Against Workers' Comp Insurer      


You may have heard that the CA Department of Insurance has recently filed a lawsuit against two Zurich entities for issuing illegal Workers' Comp policies. Rest assured, it is highly unlikely that this affects you. The suit is aimed at a very niche type of policy called the "High Deductible Workers' Comp Policy" (HDWCP). It does not affect any of their other products, including their standard Workers' Comp policies nor their garagekeeper/liability policies. This is a relatively minor lawsuit and should have no lasting effects on the future financial solvency of Zurich-though we will continue to monitor the situation closely. If you do not know what kind of workers' comp policy you have, then you have a standard policy. Here are some notes on HDWCP's:


1)      High Deductible Work Comp Policies (HDWCP) are designed for larger employers with a minimum 100+ employees and spend a minimum of $250,000 a year on premiums

2)      HDWCP's are designed for employers that are testing the waters for self-funded workers' comp insurance.

3)      They work very well for low claim and safe environments as employers typically get to "share" in a good year with some form of return of premiums.

4)      Employers must go through a rigorous credit check to qualify. Proving that they can pay a $25-$50 thousand dollar deductible if needed.


It is always a good idea to continually review your insurance policies or double-check that your broker is doing his or her due diligence. Please feel free to use Armstrong as a resource to ensure that you are properly covered and not overpaying.


If you still think you might be affected by the Zurich lawsuit, please have a conversation with your broker and don't hesitate to get us involved.


Provided by:

Brad Davis, CEBS

Director, ASC Insurance Program

Armstrong & Associates Insurance Services  

CA Lic # OF42919






Older Employee Claims Less Costly than  Previously Thought

A newly released study has found that workers' comp claims of older workers aren't as costly as once thought. Earlier studies had found that older workers tend to be out longer on workers' comp after suffering on-the-job injuries than their younger counterparts, resulting in higher claims costs. The studies also found that older workers suffered fewer injuries in the workplace, largely due to this age group better knowing limits and also due to their experience in knowing how to protect themselves.


The latest report, "Workers' Compensation and the Aging Workforce," was authored by Tanya Restrepo and Harry Shuford of the National Council on Compensation Insurance, a workers' compensation rating agency. It notes that while older workers generally have higher loss costs per worker, the main cost difference appears to be between younger workers in the 25-34 and 35-44 age groups.


"These are reassuring findings in that an aging workforce may have less negative impact on loss costs per worker than originally thought," says Restrepo and Shuford.


Findings show that workers aged 35 to 64 have similar costs in terms of workers' comp claims costs per worker. Other findings include:

  • The longstanding belief that younger workers have much higher injury rates in no longer true. Cost differences in injury frequency by age have all but disappeared, so such differences are reflected instead by severity of injuries.
  • The big differences in frequency of claims among age groups found in the 1990s were absent by 2009. The study found better workplace safety -  and not different jobs held by older and younger workers - was the biggest factor in fewer injuries across all worker ages.
  • Older workers tend to have more rotator cuff and knee injuries, categorized as above average in severity for indemnity and medical. Younger workers tend to have more back and ankle sprains, which are below average in severity.
  • Higher wages and different jobs are key factors leading to higher costs for older workers, as are more medical treatments per claim. Claims severity (the cost of an injury) is about 50% higher for older workers. But the report finds that "older" is really not that old, and seems to start at age 35.


Additionally, the study notes that from a workers' compensation perspective, some of the higher costs are offset "at least to some extent" by the higher premiums for older workers, linked to the higher wages they earn.


While the average weekly wage tends to increase with age, it typically maxes out when employees hit their early 50s, and then declines gradually from ages 60-64.


In tracing the age of the workforce, the study found workers 45 and older make up an increasing share.


The amount of workers 55 to 64 is "growing steadily," and those aged 45 to 54 show a modest increase.


Overall, the share of workers 45 and older increased from 34% in 2000 to 42% in 2010.


Reprinted from The Armstrong Report 


New Bills to Watch

AB 2065 (Galgiani) - This bill would delete repairing and changing tires from the exclusion of BAR registration.

SB 1224 (LaMalfa) - This bill would exempt vehicles manufactured prior to 1981 from biennial smog inspection.


CA Dept. of Insurance Files Suit
Older Employee Claims Less Costly
New Bills to Watch

Calendar of Events


Legislative Day
April 18, 2012

Sacramento, CA
Click here for registration form.


ASCCA Summer Educational Conference 
June 22-24, 2012

Hilton Irvine, Orange County Airport

Room Rate: $99
Hotel Reservation: Call 800.445.8667 and ask for ASCCA room rate.
Reservation deadline: June 5, 2012 
2012 Exhibitor Brochure


Team Weekend 
September 29-30, 2012

Embassy Suites, Sacramento
Hotel Reservation
Room Rate: $149
Reservation deadline: September 7


Team Weekend 
December 8-9, 2012

Embassy Suites, Sacramento
Hotel Reservation: COMING SOON
Room Rate: $149
Reservation deadline: November 16


Visit Our Sponsors

Visit our
Diamond Sponsors  

Refer a Member and Earn Cash!

ASCCA is a strong organization today because of members like you! Remember - use the ASCCA Advantage to highlight member benefits and savings when speaking to potential members.
Earn a $75 referral fee to be paid directly to you or applied to your renewal dues! 

ASCCA Has a New Facebook Page 

Like us on Facebook

Please visit us on our new Facebook page. We look forward to your comments and shared experiences. We will be posting information, links and events as a way to continue supporting our community and advancing our industry. We look forward to hearing from you soon!


Special Thank You to ASCCA's Diamond Sponsors!

One Capitol Mall, Suite 320
Sacramento, CA 95814
(800) 810-4272