Monday, December 17, 2012

LRA SIF Members to receive $2.7 million in dividends next year

It's workers' compensation coverage renewal time for many restaurant and business owners and the Louisiana Restaurant Association's Self Insurer's Fund for Workers' Compensation (LRA SIF) should definitely be on your list to quote your coverage.

Here's another great reason too. The Board of Trustees for the LRA SIF, during their final board meeting of 2012, voted to return a dividend to eligible members in the amount of $2.7 million to members.

The LRA SIF will have cumulatively returned approximately $99.2 million in surplus dividends and safety dividends to eligible members, having returned all premium not spent on claims or administrative expenses to members since 1988.

For the 25th consecutive year, there is a surplus in unused premium and interest income that can be returned to members. This surplus will be returned to eligible participants from the fund years 2010, 2009, 2008 and 2007 in April 2013.

“In the past two years, most of our workers’ compensation competitors have been implementing significant price increases,” said Stan Harris, President/CEO for the LRA. “In this time of rising claims expense, our recently announced rate decreases are a testament to the great safety practices and lower accident rates of our members. It is because of this that we are able to continue to return a surplus dividend to our SIF participants. Our SIF requires membership in the Louisiana Restaurant Association and we welcome more than 40 independent insurance agents who have joined our program and are utilizing it for the workers’ comp needs for their hospitality clients.”

For 31 years, the LRA SIF has established itself as one of the most secure and respected providers of workers’ compensation insurance in Louisiana. The fund’s continued and consistent commitment to servicing its membership on the highest level will help ensure its future.

To be eligible for a dividend, the member must be in good standing with the LRA and the LRA SIF and have a loss ratio that is equal to or less than 70 percent for the years declared as of March 4, 2013.

The LRA SIF is committed to responsibly operating a fund with its members’ fiscal health as a priority. In October 2012, the LRA SIF announced a rate reduction in the seven most impactful classification codes related to the hospitality industry, effective January 1, 2013. Those codes include: quickservice restaurants, bars, hotels, country clubs, drivers, food manufacturing and convenience stores. A similar rate reduction was also implemented in 2011.

To learn more about how the LRA SIF can help you reduce your workers’ compensation costs and to get a quote, call Babs Schultz at (504) 454-2277 today.

The Louisiana Restaurant Association is one of the largest business organizations in the state, representing restaurant operations and related businesses. The restaurant industry in Louisiana is one the state’s largest private employer, providing jobs to nearly 200,000 residents. Restaurants in Louisiana are expected to generate sales of $6.5 billion in 2012.                    

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