Insurance Insights ~ March 1997

PA Compensation Rating Bureau Receives Approval for Rate Change

With Gov. Ridge pushing for the passage of the most comprehensive reform of the Pennsylvania Workers Compensation system in decades, Act 57 was passed by the Pennsylvania legislature last year. Since the enactment of Act 57, we have gradually witnessed the effects of regaining control over the escalating costs of medical expenses and lost wages associated with workplace injuries. Thanks to the combined affects of both Act 57 and the earlier Act 44, most Pennsylvania employers will enjoy an overall decrease in workers compensation premiums of approximately 25 percent.

Erie Insurance was at the forefront, establishing and implementing its own program designed to educate its agents and policyholders on workplace safety and medical management of injuries. Erie's Managed Care Program is a very well designed, comprehensive program meant to both educate employers on loss prevention as well as promote a strong return to work philosophy. The focus is where it should be, on the injured employee, by managing the rehabilitation process.

A few of the characteristics of the program are:

• Immediate reporting of claims by phone, instead of claim forms, which speed the response time to an injured employee.
• Encouraging employers to set up physician panels to provide access to prompt medical treatment.
• Implementation of workplace safety programs, utilizing the services of Erie's Loss Control Specialists.
• Focusing on early return to work programs, by encouraging light duty jobs or part-time hours to start.
• Utilizing the services of rehabilitation specialists and case managers to closely monitor the injured employee's progress.

We encourage all of our clients participation in this vital and worthwhile program. For more information, please e-mail us at info@gcwinsure.com.

Only by working together can we hope to establish the controlled environment needed to provide our policyholders with quality Workers Compensation coverage at the lowest cost possible.

Why Are Auto Insurance Rates Rising?

According to a statewide, county-by-county study done every year by the Pennsylvania Insurance Department, Erie Insurance's auto insurance rates are often the lowest you'll find!

Still, from time to time, Erie is forced to raise auto insurance rates to keep up with increasing expenses, such as:

• higher auto repair costs
• higher medical bills, and
• an increase in the number and size of lawsuits filed for auto accidents.

Even with the rate increase you may experience, you might still find that Erie's rates are the lowest around. After all, since 1991, Erie's rates in Pennsylvania have increased only 13.8% overall, while the Consumer Price Index increased 20.1% during that same time.

What can you do to keep your rates lower? A safe driving record is the best way to keep your auto premiums low. Selecting a higher deductible is another way. And a third way to keep your auto premium lower is qualifying for various premium discounts, such as those available for air bags, anti-lock brakes, age 55 and over, driver safety programs, multi-policy and multi-vehicle.

We truly appreciate your continued business with our agency, and want to remind you that in addition to Erie's traditionally low auto premiums and outstanding coverages, we offer you claims service that outshines the competition again and again. Erie's after-hours service team is available to take your claim 24 hours a day, 365 days a year by calling 1-800-367-3743. Now that's service!

MVR Service Available

As an added service to our commercial lines clients, our agency is happy to offer retrieval of Motor Vehicle Reports (MVR) for any prospective driver before you hire them or offer them a driving position. As a business owner, you want to make certain that your employees who have access to company-owned vehicles are the safest drivers possible. What better way to verify that information than by checking their state MVR? Any of our commercial insurance policyholders can take advantage of this service by calling our Commercial Lines Department at 215-257-9171 and speaking to your Customer Service Agent, or by sending an e-mail to us at info@gcwinsure.com. Information needed is the driver's name, license number, and state. The reports are generally available within 3 working days. Don't forget to let that person know that you intend to get this information!

Boating Safety

Ah! Spring has arrived, and that means taking your boat out of storage to enjoy the fishing trip you planned during the winter, or sailing on a quiet lake, or going waterskiing.

Before you put that boat in the water for its "maiden voyage" of the season, you may want to refresh your boating skills. The following pre-cruise safety checklist can help:

• Is all safety equipment aboard and accessible?
• Do you have one Coast Guard approved PFD for each person on board?
• Are all lines coiled and out of the way?
• Are all supplies and equipment securely stowed?
• Do tanks have enough fuel for the trip with plenty to spare?
• For outboards, are the portable fuel tanks and batteries secured and connected?
• Are there paddles or oars on board?
• Are lights, instruments, switches and whistles in good working order?
• Are the bilges clean, clear and free of gasoline vapors?
• Do you have a tool kit and extra parts aboard?
• Has the weather forecast been received and considered?
• Check cooling system. Is overboard discharge normal?
• If this is an extended cruise, did you file a "float plan" with friends?
• DO NOT OVERLOAD!

In addition, as captain of your ship, the following is your responsibility:

• have the hull checked by a qualified person for cracks and dry rot.
• have the motor/engine tuned and in top running condition at all times.
• neither power nor load your boat beyond its labeled specifications.
• see that all legally required equipment is aboard, even on rental boats.
• have adequate knowledge of boat handling, cruise anticipated, probable hazards to be encountered and weather to be expected.
• know your guests abilities and their health. You should inform them of shipboard rules and instruct them on use of equipment.
• assist others if not endangering your own craft, or to stand by until other help arrives.
• train at least one other person to operate the boat in case you become injured or incapacitated for any reason.
• keep a sharp and constant watch on maneuvering of other boats in your area.
• never leave port under the influence of alcohol or drugs, or when you know you are not physically able to operate your boat safely.

With that, you're underway -- have a good time. Remember that good sportsmanship and common courtesy are the fundamentals of good boating. Make your experiences and the experiences of others much more enjoyable by being courteous and considerate.

INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 3/1/97. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.

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To contact G.C. Weimer Insurance Agencies, e-mail info@gcwinsure.com.