UNDERWRITING

Coverage

Hawaii Employers’ Mutual Insurance Company (HEMIC) provides coverage for workers' compensation in the State of Hawaii. As extensions to that coverage, HEMIC also provides United States Longshore and Harbor Workers Act coverage. For more information about this coverage, please reference the U.S. Department of Labor website

HEMIC can provide Employers’ Liability limits up to $1,000,000.

Pricing Philosophy

As part of our effort to help all policyholders run safer businesses, we offer direct cost savings to those policyholders that are less expensive to service and to those which have addressed the safety of employees in a formal plan.

HEMIC uses a five-tier rating plan. The applicable tier is determined by the policyholder's service requirements and other characteristics of the risk.

Workers Compensation Safety Credit Plan

Hawaii Employers' Mutual Insurance Company has developed a new Safety Credit Application.Your policy may qualify for one or more premium credits if you adopt certain safety and claim mitigation programs meeting HEMIC requirements.

HEMIC High Risk Rating Plan

Policyholders with a poor loss history and/or who refuse to implement reasonable safety and claims practices may be subject to HEMIC's high risk rating plan. This plan allows HEMIC to adjust those policyholders' premium upwards to cover expected increased safety and claims costs.

Premium Calculations

The premium is determined by multiplying the employer's payroll by a specified rate. This rate is based upon an industry-standard manual that classifies different types of employment. The standard rate is then modified in accordance with HEMIC's filed rating plans. Payrolls and premiums are estimated at policy inception and finalized with a final audit that is conducted when the policy expires.

Premium Audits

All workers' compensation policies are subject to an annual premium audit to verify factors that might call for a premium adjustment. Once a policy has expired, HEMIC will request and review the payroll records of the policyholder to determine final earned premium.

Submission Information

The submission to HEMIC should contain the following information:

  1. Acord 130 workers' compensation application.
  2. Four-year premium, payroll, and loss history (three prior years plus current).
  3. Loss runs from carriers for the past three years and current year.
  4. If there are no losses, a letter from the prior carrier will suffice.
  5. A copy of the current experience modification worksheet, if applicable. For quoting purposes, we will accept the prior experience modification worksheet if current is not available but will adjust premium upon its receipt.
  6. A copy of the last two quarters Hawaii Department of Labor form UCB6.
  7. Supplemental applications are required for Aircraft Exposures, Federal Exposures, Leasing Companies, Bar/Tavern Exposures and Owner Builders, and will be provided as needed.

As a mutual company, HEMIC is owned by our policyholders, and is here to serve you. If you need a quote, every effort will be made to provide it promptly. However, some quotes may be made subject to receipt of information, and in many cases coverage may not be bound without the missing information.

For more information, contact us at (808) 524-3642, or info@hemic.com.

 

 

 
Related Articles
HEMIC Rated A (Excellent) by A.M. Best
HEMIC, the leading provider of workers’ compensation insurance in Hawaii, was affirmed as rated A (Excellent) by A.M. Best Company for financial strength (more)
HEMIC Directors Declare $3.25 Mil Dividend
The Board of Directors of the Hawaii Employers’ Mutual Insurance Company, Inc. (HEMIC) has declared a $3.25 million dividend payable to qualifying policyholders. (more)
Lower Rates is Good News for Employers
HONOLULU April 12, 2009 - HEMIC CEO and President Bob Dove reports that the composite (average) rate for workers' comp insurance for the first quarter of 2009 was 57% lower than HEMIC’s corresponding rate six years ago. (more)