MALA Workers' Compensation Fund FAQ
The Michigan Assisted Living Self-Insured Worker's Compensation Fund Sponsored by MALA
Why is this worker's compensation insurance option right for you?
The Michigan Assisted Living Self-Insured Worker's Compensation Fund is the only state authorized self-insured fund that was created exclusively for our profession. It sets itself apart from other worker's compensation sources in the following ways:
- Its Board of Trustees is comprised of experienced providers;
- Excellent customer service;
- Sophisticated claims management;
- Highly competitive rates;
- Potential for dividend payments; Average 30% per year
- 13 years of experience; and
- The financial strength of approximately 100 participants pooling $2,800,000 in premium.
How does the Self-Insured Worker's Compensation Fund operate?
The State of Michigan approved the Michigan Assisted Living Self-Insured Worker's Compensation Fund as of October 1, 2003. It is an unincorporated association formed to pool the insurance premiums of the plan participants. The Fund is subject to strict state regulations and ongoing scrutiny by the state of Michigan.
The Board of Trustees of the Fund is comprised of providers who are Plan participants. The Board of Trustees creates a set of bylaws that governs eligibility for participation, organizational structure and operation of the Plan according to state requirements. The bylaws ensure that only properly screened and eligible providers can participate so as to avoid the risk of one or more providers harming the Plan with excessive claims.
From the pooled premiums, claims are processed, paid and challenged where appropriate. The services of a third party administrator are also obtained. Excess coverage is purchased by the Plan to protect its financial stability.
What other benefits are available through this Plan?
Comprehensive Risk Services (CRS) provides loss control to Plan participants at no extra cost. The loss control services include on-site safety and accident prevention consultation as well as seminars on related issues such as industrial hygiene, ergonomics, accident prevention and other risk management topics.
CRS dedicates specialized claims adjusters to the program to better manage, process and defend the claims. Included in the claims handling is the input from the Plan's Board of Trustees. The collective experience of the claims adjusters, Board of Trustees and seasoned worker's compensation insurance defense attorneys promotes timely and sound outcomes for both the Plan and the employer.
What occurs if the claims exceed the retention levels of the Self-Insured Worker's Compensation Fund?
State law requires that the Plan purchase "excess coverage." The Plan further protects its financial stability by purchasing insurance for individual catastrophic claims in excess of a designated amount. In the event any one claim exceeds the established threshold, the excess carrier pays the difference. Thus, the Plan is well protected above the amount available to pay claims.
How does the Plan stay competitive and cost effective?
Upon initiation, the Plan is very competitively priced. It is designed to provide stability over many years. It is projected not to experience the more dramatic highs and lows of the open insurance market. Its cost effectiveness and competitive nature are also enhanced by the potential for the return of dividends to Plan participants. Since the Plan's inception, Fund members have received a combined total of $5,000,000 in dividend payments. Please note that dividend payments are not guaranteed.
Where can I obtain more information?
Michigan Assisted Living Association
15441 Middlebelt Road
Livonia, MI 48154
Phone: 1-800-482-0118
Fax: 734-525-2453