Workers Compensation Trust
Who is eligible?
Only members of the New Hampshire Automobile Dealers Association may be eligible for NHADA Workers' Compensation Trust coverage.
Who is not eligible?
Any company involved in gasoline retail sales; any company and/or subsidiary outside of the state of New Hampshire.
What are the requirements for Workers' Compensation?
Under New Hampshire Workers' Compensation law RSA 281-A:5, every employer who has any employees, full or part-time, is required to cover these employees with Workers' Compensation insurance written by a carrier. It does not matter if the employees are related, such as a daughter, son, husband, wife, etc. nor does it matter if the business is a "non-profit" organization. Sole proprietors, partners, and self-employed persons are not required to carry Workers' Compensation on themselves.
Per RSA 281-A:2 VIII, a corporation or limited liability company (LLC) that has three or fewer executive officers or LLC members and no other employees, coverage is not mandatory. Once there is a fourth executive officer or LLC member, Workers' Compensation insurance must be obtained. Once coverage is in place, all persons, including all officers or LLC members, are considered employees and would automatically be covered. Up to three executive officers or LLC members may then elect to be excluded per RSA-A:18a.
How do I get a quote and what information do I need?
- Estimated payrolls by classification for a year
- Three years of loss runs
- Your current experience modification factor
If I like the quote and want to join the WCT, what's next?
You must complete a Workers' Compensation application. Once your application is received, our in-house Loss Prevention Department will visit your facility for a safety walk-through. Once the walk-through has been completed, you will be contacted regarding your status and eligibility.
How often do you bill?
For a new member, your first bill will be for two months of premium. You will then receive a monthly bill. Your Workers' Compensation premium is due by the 10th of every month.
How does my premium differ from the rest of the members?
Even though all members have the same rates, it is your individual payroll and your experience modification factor that determines your premium.
What is an experience modification factor?
An experience modification factor is a rating that recognizes the differences among individual insureds with respect to safety and loss prevention. It does this by comparing the experience of individual insureds with the average insured in the same classification. The differences are reflected by an experience rating modification, based on individual payroll and loss records for three years, which may result in an increase, decrease, or no change in premium.
Experience modifications are determined on an annual basis and are effective for a period of 12 months.
If my payroll has changed, can I get my billing revised?
Yes. If you have a significant change in payroll, we will be happy to revise your premium. We also send out a self-audit at the end of the second quarter. By reporting your payroll for the first six months, we hope to avoid large additional premiums due or large refunds at the end of the year.
When will my policy expire?
The WCT operates on a calendar year. All policies expire at midnight on December 31 and are automatically renewed for the new year.
When is an audit done?
An outside vendor conducts on-site payroll audits of each member annually. The audits are to be done in the first quarter of the new year. The audit information is critical in determining future funding requirements and rebates.
What is a rebate?
Rebates are a refund of premium based on your annual premium and loss history. Rebates are distributed on an annual basis, usually in May. Rebates may be distributed from any fund year.
Who determines the rebate?
An outside vendor does a complete actuarial analysis. The actuary determines the surplus based on a 99 percent confidence level and then makes a recommendation to the Board of Trustees. The Board of Trustees then votes on the amount of the return.
How is a rebate calculated?
The WCT uses a two-step formula to calculate individual participant rebates:
Step 1: Audited Premium - Administrative Expenses - Incurred Losses = Eligible Balance
Step 2: Eligible Balance x Return Percentage x Premium Return = Current Rebate
Using the above formula, rebates are allocated among those members with a positive balance, and members with a negative balance receive no rebate. Rebates distributed to a fund year are completed independent of all other years. So, if you have had one bad year, it doesn't mean you will not get a rebate for other fund years.
Can rebates be transferrred?
No. Rebates cannot be transferred to a succeeding corporation unless the sale includes assets and liabilities or the transfer is between family members (i.e., parent to child).
If I am no longer in business, am I still eligible for a rebate?
Members must be actively engaged in an automotive-related business within 120 days of the board approval of the rebate to be eligible.
If I am no longer a member of the WCT, am I eligible for a rebate?
No. Former members are not entitled to receive any rebates approved by the Trustees pursuant to the Trust Agreement.