Texas Mutual Board Approves $150M Policyholder Dividend Distribution

On May 23, 2012, Texas Mutual Insurance Company’s board of directors approved the company’s plan to distribute $150 million in workers’ compensation dividends. This marks the 14^th consecutive year the board has approved a dividend distribution to qualifying policyholder owners. By the end of 2012, Texas Mutual will have paid $1.2 billion in dividends since 1999. The majority of that total – more than $1 billion – will have been paid since 2005.

Dividends reward loyal policyholder owners who share Texas Mutual’s commitment to preventing workplace accidents and helping injured workers get back on the job.

“As a mutual insurance company, our responsibility is to our policyholders,” said Bob Barnes, chairman of Texas Mutual’s board of directors. “They own the company, and this money belongs to them. We are proud to share Texas Mutual’s success with those who have contributed to that success.”

Texas Mutual plans to begin distributing dividends in late July. Dividends are based largely on policyholders’ premium sizes, workplace safety records and histories with the company.

Texas Mutual President Ron Wright said the company’s dividend track record is a direct reflection of its financial strength, as well as policyholders’ efforts to keep employees safe.

“Our status as a mutual company gives us the freedom to focus on what matters most: preventing workplace accidents and their associated costs,” said Wright. “Texas Mutual is fortunate to have more than 51,000 owners who share our vision. I hope this return on their investments will keep their businesses strong far into the future.”

Wright noted that Texas Mutual cannot guarantee future dividends, and the 2012 dividend plan requires Texas Department of Insurance approval.

Four Tips for Controlling Your Workers’ Comp Costs

You probably don’t think much about your workers’ compensation policy until you file a claim or pay your premium. You may be surprised to learn that you can take small steps during the year to help control your workers’ comp costs.

Join a safety group

Your insurance carrier might offer safety group opportunities. Safety groups allow employers in similar industries to get premium discounts and industry-specific safety plans. Some groups also reward safety-conscious employers with dividends.

Prevent workplace accidents

The best way to manage claims is to prevent accidents. Effective safety programs are all-inclusive. Everyone, from the president to front-line workers, follows safety procedures and helps continuously improve the safety program.

Focus on return-to-work

The longer injured employees are off work, the higher the costs for their employers in terms of workers’ comp benefits and lost productivity. Meanwhile, injured employees tend to get bored, stressed and depressed. Their job skills often suffer, along with their incomes.

A return-to-work process helps injured workers return to productive employment. If they are unable to perform all of their normal job duties, the process provides alternative productive work they can do while they recover.

Fight workers’ comp fraud

Fraud costs the Texas insurance industry about $24 million a year. Those costs trickle down to everyone in the form of higher premiums.

Fraud is lying for financial gain. Workers’ compensation fraud can be committed by claimants, employers, health care providers and anyone else who has a stake in the system.

If you suspect fraud, contact your insurance carrier, or visit the Texas Department of Insurance at www.tdi.texas.gov/fraud/onlinereport.html.

Texas Mutual Announces Fourth Indictment in Health Care Provider Fraud Case

Texas Mutual Insurance Company announced today that a Travis County grand jury indicted Michael T. Douglas of Denton, Texas on aggravated perjury charges. The indictment alleges that Douglas, a medical technician, presented false testimony on matters relating to the investigation of his sister, Barbara A. Douglas, and her company, Western Medical Evaluators.

Barbara A. Douglas, her company and her father, Howard T. Douglas, III M.D., were indicted in August 2010 on felony workers’ compensation fraud-related charges. Western Medical Evaluators provided functional capacity evaluations to injured workers in Texas.

Those indictments alleged that between February 2007 and July 2008, Barbara A. Douglas, Howard T. Douglas, III M.D. and Western Medical Evaluators overbilled Texas Mutual for the time taken to perform evaluations.

The Western Medical Evaluators, Barbara Douglas and Howard Douglas investigations were part of the Texas Mutual zero tolerance for fraud policy. Texas Mutual maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.

Note: A grand jury indictment is a formal accusation, not a conviction, of criminal conduct.

National Electrical Safety Month Tips

Look around your workplace. If you’re on a construction site, you probably see power saws, drills and other electrical tools. If you’re in an office, you’re surrounded by computers, telephones and coffee pots.

The point is that regardless of your industry, you use equipment that runs on electricity. If you do not have safety procedures in place, that equipment can cause serious workplace injuries, up to and including death. The most common emergencies associated with electricity are shocks, burns, fires and explosions.

Electricians are trained to avoid the risks associated with working around electricity. The rest of us can follow a few simple tips to stay safe on the job.

 

Inspect and maintain equipment

Damaged or malfunctioning equipment increase your employees’ risk of getting injured. Before using power tools, cords and other equipment, make sure it is in good condition.

• Check tools for broken casings, as well as loose screws, nuts, bolts and moveable parts.
• Inspect power cords for exposed wires, cracked casing, and bent or broken prongs.
• Make sure receptacle outlets are not cracked or broken, and have cover plates in place.
• Ensure breaker panels have covers, and breakers are labeled.
• Keep equipment clean and lubricated.

Texas Mutual Announces Fraud Indictment

Texas Mutual Insurance Company announced today that a Travis County grand jury indicted Howard T. Douglas, III, M.D. of Hurst and his company, North Texas Medical Evaluators of Carrollton, on felony workers’ compensation fraud-related charges.

The indictments were the results of an investigation conducted by Texas Mutual.

North Texas Medical Evaluators provided functional capacity evaluations to injured workers in Texas. The indictments allege that, between December 2007 and December 2009, Douglas and North Texas Medical Evaluators overbilled Texas Mutual for the time taken to perform evaluations.

Douglas was indicted in August 2010 for his part in a similar scheme involving Western Medical Evaluators and his daughter, Barbara A. Douglas of Denton.

The North Texas Medical Evaluators and Western Medical Evaluators investigations were part of the Texas Mutual zero tolerance for fraud policy. Texas Mutual maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.

Note: A grand jury indictment is a formal accusation – not a conviction – of criminal conduct.

Texas Mutual Gives Schools, Manufacturers Combined $1M Boost

Texas Mutual Insurance Company announced today that the Texas Schools Group and Texas Association of Manufacturers safety groups earned a combined $1,094,336 in dividends. The workers’ compensation dividends were based largely on each group’s overall loss ratio.

The largest dividend, $780,305, went to the Texas Association of Manufacturers safety group. The group has earned $3.4 million in Texas Mutual dividends since 2008.

Members of the Texas Schools Group earned a $314,031 dividend, a 61 percent increase over their 2011 dividend.

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

In addition to potential dividends, safety group members get discounts on their workers’ compensation premiums. They also have access to workplace safety materials designed for their operations.

Texas Mutual notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

Eliminate Distractions Behind the Wheel

Auto accidents are the leading causes of on-the-job fatalities across the country. Many of those fatalities—between 20 and 50 percent, according to reports—could have been prevented if the drivers had simply been paying attention.

Everyday tasks such as eating, putting on makeup, using the cell phone and changing the radio station divert our attention, putting us, our passengers and fellow drivers at risk.

In fact, a 2009 study by the Virginia Tech Transportation Institute found that people who send text messages while driving are over 23 times more likely to have an accident.

The monetary costs of on-the-job accidents are easy to quantify. Nobody, however, can put a price on the human costs.

Fortunately, most auto-related accidents are avoidable if employers and employees do their part.

What can employers do?
Employers are responsible for putting qualified drivers behind the wheel, whether they are using company cars or their personal vehicles:

• Implement a company policy that includes basic safe driving rules and criteria for employee driving records. The policy should require employees to wear their seat belts while driving on company time and prohibit them from sending text messages while driving.
• Check employees’ driving records before you begin allowing them to drive on company time, and at least annually thereafter, to ensure they meet your standards.
• Remind drivers not to answer cell phones while they are driving. Require employees to return phone messages while they are not operating a vehicle.
• Have drivers agree not to use their cell phones or do other things that might distract them while driving.
• Sign the National Safety Council’s pledge to drive cell-free.

What can employees do?
Most importantly, remember that no distraction is worth your life. Don’t risk the consequences your family could face if you are involved in an auto-related accident:

• Buckle up every time; it could save your life.
• Avoid distractions such as eating, texting or changing the radio station while the vehicle is moving.
• Turn your cell phone off, or put it on silent when you get behind the wheel.
• If the phone rings, let it go to voice mail. Pull off the road to a safe place, and return the call.
• If you must take a phone call while driving, use a hands-free device, keep it short and let the caller know you will call them back as soon as you can get to a safe place. Remember, however, that most studies show hands-free devices are of limited value in reducing distractions.
• Sign the National Safety Council’s pledge to drive cell-free.

Observe National Distracted Driving Awareness Month

April is National Distracted Driving Awareness Month. The National Safety Council offers free safety materials at http://tinyurl.com/ckr529v.

The site includes a pledge to drive cell-free.

Safety is Music to Our Ears During SXSW

It’s an annual rite of spring in Austin. Throngs of guitar-toting musicians from across the globe descend on the city for the South by Southwest (SXSW) Music Festival. A fortunate few will land record deals. Others will earn loyal fans.

All will have the privilege of saying they were selected to participate in one of the most prestigious music events in the world.

If you’re braving the crowds this week, enjoy yourself, but keep these safety tips in mind.

Protect your ears

You will be able to hear much of the music from the street. If you go inside a venue to really soak it up, protect your hearing with earplugs:

• Foam earplugs are among the least expensive options. You can get a pack for a few dollars at most pharmacies and grocery stores. All you have to do is squish them, put them in your ears and let them expand.
• High-fidelity earplugs preserve the quality of the music better than foam earplugs. They’re also inexpensive and easy to find.
• If you want to take your listening experience up a few notches, look into custom earplugs. They’re more comfortable than over-the-counter options, and they preserve music quality even better. Many hearing aid stores and health care facilities that specialize in hearing can make custom earplugs. 

Celebrate responsibly

On Saturday, March 17, the festival overlaps with St. Patrick’s Day events. If you drink alcohol, do it responsibly:

• Drink plenty of water.
• Do not drink alcohol on an empty stomach.
• Don’t drive if you are not sober. If you are sober and you do drive, be careful; other drivers may not be as responsible as you.
• Festival organizers will unveil a bike share program this year for select attendees: http://sxsw.com/attend/getting_around/overview. The rest of us can take a cab or use one of Austin’s other public transportation offerings: http://sxsw.com/attend/getting_around/public_transport.

Be careful in crowds

In 2011, more than 126,000 people attended the festival. Many spent the bulk of their time on and around Sixth Street. Crowds and confined spaces are a recipe for accidents:

• If you go into a venue, make sure you know where the fire exits are in case of an emergency.
• Stay toward the back of the crowd to avoid getting shoved.
• Bring hand sanitizer or hand wipes to limit exposure to germs.
• During events that draw large crowds, basic pedestrian safety sometimes gets overlooked. Cross only at designated crosswalks, and look both ways before you cross.
• Do not wander off by yourself into isolated areas.
• Put your money and ID in a travel pouch that has a zipper.

Texas Mutual Rewards Three Safety Groups With $435K in Dividends

Texas Mutual Insurance Company announced today that three workers’ compensation safety groups have earned a combined $435,324 in dividends. The dividends were based largely on each group’s overall loss ratio.

The largest dividend, $261,132, went to the Texas Automotive Safety Group. The group has earned $651,000 in Texas Mutual dividends since 2010.

Members of the Texas Lodging Safety Group earned a $137,587 dividend, nearly doubling their 2011 dividend.

The $36,605 dividend check that went to the Texas Produce Association safety group marked the group’s seventh consecutive Texas Mutual dividend.

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

In addition to potential dividends, safety group members get discounts on their workers’ compensation premiums. They also have access to workplace safety materials designed for their operations.

Texas Mutual notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

Introducing Bill Jackson, Our New Underwriting/Marketing Manager in Dallas

Texas Mutual Insurance Company, the state’s leading provider of workers’ compensation insurance, announced today the hiring of Bill Jackson as senior manager of underwriting and marketing in Dallas.

Jackson will be responsible for managing marketing and underwriting policies and procedures in Texas Mutual’s Dallas regional office. In the role, he will focus on building agency relationships, creating revenue and developing staff.

Jackson has more than 20 years of experience in the commercial insurance industry. In prior positions, he was instrumental in adding new revenue streams and aiding in the development of coverages and programs, such as employment practice liability, cyberliability, hotels and restaurants.  Jackson is a graduate of the University of Oklahoma.