By John Karlen, CPCU, APA, ARe, President

As MTM president, I report to the members of the MTM Board of Directors. Our Board members have a variety of skill sets. Some are MTM business owners and others are MTM member CFOs or Risk Managers. All are results-driven, which forms good benefits and returns for all 932 MTM members. The staff is reminded constantly that MTM only exists for the benefit of the MTM members. MTM has no outside investors or shareholders to worry about.

For the past 5 years, we have been delivering MTM member dividend checks most often in person to our members. This year we began hand delivering dividend checks on Tuesday, March 3rd and all seemed normal through Friday, March 13th. Nearly half of our dividends were delivered in this first 10 days.

Then due to the COVID-19 Coronavirus government orders were given to close all group venues: athletic clubs, theaters, all concerts, sporting events. On Monday, March 16th there were additional orders closing restaurants and banning gatherings where more than 50 people would be in attendance. On Friday, March 13th I had 18 deliveries. I was greeted with all smiles, many pictures, two shop tours, life was close to normal. Over the weekend rumors abounded that government orders would come Monday announcing the closure of restaurants/bars, theaters, athletic events and any event with more than 50 people in attendance. On Monday I had 11 deliveries scheduled. Still greeted by grateful members, but no handshakes, 3 office managers “can you slide the check under the door”. It was a watershed experience. New conditions were affecting everything. As I drove back from the day deliveries, I got with MTM management and office staff. We needed to change directions quickly so that money would be delivered to members as soon as possible.

A revised plan of express mailing to members was developed on Tuesday, March 17th. On Wednesday March 18th, the express envelopes were on their way. Many times, I have written that delivering member dividends is the best part of my job. This year it seems mailing is the correct answer for the present situation. We all have had to make significant adjustments to our work and life activities. This is the time where getting the MTM dividends to members quickly and efficiently is most needed. With that in mind combined with the reduction in social contact, we are mailing your MTM dividend. While most of our shops remain operating, it is more complicated and concerning. A common call we are getting from shop owners and office managers is whether or not COVID -19 is covered by Workers’ Compensation. Included in this newsletter is a very good non-legal worded article about COVID-19 and Workers’ Compensation. Our thanks to the author Chris Boggs for sharing this with our members. Stay healthy and safe. And of course, call me with any questions.

By Chris Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS

Published with the author’s permission.

A pandemic is defined as, an outbreak of a disease that occurs over a wide geographic area and affects an exceptionally high proportion of the population.” Although the media lives by the motto, If it bleeds, it leads,” declaring a pandemic anytime more than a few people contract a virus, this time even the World Health Organization (WHO) is warning of possible Coronavirus (COVID-19) pandemic. Coronavirus expert, Professor Gabriel Leung, Chair of Public Health at Hong Kong University, says that unchecked, the virus could infect 60 percent of the global population meeting the definition of a pandemic.

My intent is not to accuse the media of sensationalism, nor to intimate that WHO is overreacting (I don’t think they are); my purpose is to answer the question, what makes an illness an occupational illness” and thus compensable under workers’ compensation? More specifically, how does or might workers’ compensation respond to the Coronavirus?

Mark your calendars now so that you are sure to join us on Thursday, October 22, 2020.

More information will be available as we get closer so watch this newsletter and your mail for complete details as they are available!!

In the past I’ve written about the Michigan State Workers’ Compensation Experience Rating Modification. This is the state’s individual promulgated employer experience for every Michigan employer. Here is a couple things I have not shared with you about the experience modification. First, the experience modification was developed by a state nonprofit group called Compensation Advisory Organization of Michigan (CAOM). This agency was set up in 1944 and is funded by a service fee on insurance companies who write workers’ compensation in the State of Michigan. Each insurance company in Michigan is required to submit to CAOM payroll and loss data for each Michigan employer so that the agency can work up the individual employer’s experience modification. CAOM issues over 80,000 experience modifications every year. While MTM shows your experience modification on your policy and then also on the end of your year-end audit, if anyone requests it, we are happy to send you a copy of your individual experience mod worksheet. That worksheet shows the last experience in payroll and claims for three years of your company history.

CAOM has a Board of Governors. This Board has representatives from the State Insurance Department and leading workers’ compensation carriers in Michigan. MTM has the good fortune to be one of those lead carriers and our own Chris Doebler, who has been responsible for the financial reporting of MTM and the former MTA Workers’ Comp Fund for over 30 years and MTM’s CFO since 2013, is the representative for MTM and its members. Having Chris on the Board gives MTM members influence and insight into the Michigan Workers’ Comp Employer Rating System. On behalf of MTM and our members, thank you, Chris, for representing us.

2020 Dividend

Consistent with the last six years, the February MTM Board Meeting was filled with good news for MTM members. Last year the Board approved $4.5 million in member dividends and the dividend this year is the same. Over the last six years the member dividends have totaled $22.5M. Also like last year, there are three major dividend components.

• A dividend was declared as a loyalty dividend in which all members participate.
• A second dividend was declared for Association members that had a three year loss ratio that beats the MTM company loss ratio.
• If a member’s dividend does not meet a minimum using 1. And 2. above, a minimum dividend applies.

These three components are used to calculate the dividend and one check is issued. Interestingly of the known 932 current members, we had 926 number of dividend checks issued. Only a handful of new members with effective dates of January 1, 2020 or after, did not get a dividend check in this cycle.

The member dividend checks are to be printed by March 1 and delivery started immediately. In fact, by the time you get this newsletter we should have already started the delivery process. As I said before, delivering member dividend checks is the best part of my job and I will be on the road beginning March 2nd. In the next newsletter we’ll have some of the member dividend pictures.

One other piece of good news. At the February Board meeting the Board also approved some increased credits and reduced rates. These will automatically apply on your next MTM policy.

Now I will get back to setting my delivery routes. And I will see you soon.

By Chris Demeter, Senior Loss Control Consultant

Every once in a while my brother will send me a link to a YouTube video of a workplace mishap caught on film. Most of the videos he sends are involving forklifts. They range from a forklift overturning, an unstable load resulting in losing its load, using a forklift improperly to elevate personnel, and forklifes driving into a racking system causing them to fall like a stack of dominoes. This may be riveting to watch, but there is a good chance someone was seriously injured not to mention the thousands of dollars in damage. To put it in perspective, the average automobile weighs approximately 3,000 lbs. and the average forklift not including the load weighs close to 9,000 lbs. To prevent the forklift from tipping forward while lifting a load, forklifts are equipped with a counterweight in the rear of the vehicle. To accommodate narrow aisle and restricted area operations, forklifts are designed with a tight turning radius. With the tight turning radius, it’s common for the rear of the forklift to strike an object such as a storage rack causing damage. It’s common for the damage to go unreported for fear of an employee write-up.

By Donna Motley, Vice President of Claims

An Occupational Clinic plays a very important role in the world of Workers’ Compensation insurance. An Occupational Clinic differs from an Urgent Care Clinic. The treating personnel at Occupational Clinics, primarily, if not exclusively, treat work related injuries.

Work injuries greatly differ from an injury that may occur at home or result from a motor vehicle accident. Think about machine shops, foundries, stamping plants, etc. and all the equipment utilized to manufacture product within those facilities. Even a restaurant kitchen exposes an employee to more hazards than would be encountered at home. Work injuries can affect virtually every part of the human body (and we have seen it all!).

Occupational Clinic personnel “specialize” in work injuries. We encourage you to develop a close working relationship with your chosen Occupational Clinic. Invite a physician or therapist from your Occupational Clinic to tour your facility so they can see the type of work being performed; so they are familiar with the type of injuries that may occur; and thereby also aid them in determining whether or not the injured worker can return to work with restrictions. Most Occupational Clinics are very familiar with the rules governing Workers’ Compensation and attempt to treat accordingly. The personnel know a disability slip is required for an employee to provide to his employer. Occupational Clinics generally know authorization for testing is required prior to scheduling.

log on to our website: www.mtmic.com/blog and click login (located at top right side of page)

• Your user id = your company 9 digit FEIN number (no dash)
• Your password = the last 6 digits of your workers’ compensation policy number – found on the Declaration and Information pages of your policy.
• You can add additional user id and passwords in the Security section for staff that need access.

As we begin 2020, there are a few things to report on as we close out 2019. First let me cover the worker injury piece. In 2019 we saw a year of positive loss trends and it ended with no member worker fatalities for the year. This is only the second time in recent memory that our members have made it through the year with zero fatalities.

On serious injuries such as amputations, 2019 had two-third fewer amputations than in 2018. When looking at new claims reports as a barometer of member safety, 2019 was more than 16% lower in new claims reports than in 2018. So congratulations to you (and the MTM loss control staff) for the significant safety improvements in 2019.

While there were business changes everywhere, one area of stability our members could count on was MTM. As MTM enters its 45th year of operation, the MTM Board, management team and staff remain focused on bringing unparalleled services and value to our members. When MTM makes company profits, those profits are returned to the people that made the profit – that would be MTM members. This will be the sixth year in a row where the MTM Board has declared dividends to our MTM members.

The third leg on the MTM success stool is the MTM staff. My congrats to them on a good year. MTM ended the year with no staff departures for the year. Let me put an emphasis on that sentence in saying that there have been no MTM staff departures since a staff retirement in 2013. Staff stability is an important part of bringing services to our members. We spend no time in training the new staff members. Staff history and historical knowledge are valuable components. We do take time for continuing education and upgrade training of existing staff on new services and techniques that should be considered for our MTM members. The MTM budget clearly shows a Board and management desire to continuously upgrade staff members skill sets.

So – in summary – thank you for the great loss results of 2019. At the next Board Committee meeting and full Board meeting the member owners will be dealing with the distribution of MTM profits from 2019. As in past years, I expect the checks will be cut on March 1st and delivered during the month of March.

Best Wishes for 2020. And I will see you soon while on my dividend delivery routes. I pray for snow free roads.

By Travis Halsted, Loss Control Consultant

During our daily discussions within MTMIC’s Loss Control team, we are constantly looking for ways to help our policyholders identify ways to be proactive and compliant with MIOSHA’s standards. One area that comes up quite often are confined spaces. Whether it be construction or general industry,

MIOSHA regularly cites infractions for these often overlooked areas. Through the 10 years I have been involved in workplace safety, I have found the confined space topic to be the most difficult topic to complete, discuss, teach and interpret. Is it a confined space? If so, is the area a permit required confined space? If it is a permit required confined space then am I able to eliminate the need for the permit? These are all great questions and they often leave people with their head spinning. In many cases, the person just ends up not completing the necessary items.

By Donna Motley, Vice President of Claims

The New Year has begun! Some people may make “New Year’s Resolutions” while some people want to start the new year with a clean slate, and consider the new year as an opportunity to “clean house”, purge and get organized!

As an employer this may be a good time to clean house, purge and get organized, not just physical cleaning but take the time to review and address your company policies and procedures. As the State of Michigan has now legalized marijuana, you might want to review your current drug policy. Do you have a policy? Does the legalization of marijuana have an impact on your current policy? Is your current policy now outdated? How can it be adjusted? What about drug screening for new hires vs. work injuries? Don’t forget, drug screening includes more than just screening for marijuana.

Melanie English

Manager, LPT Program
Ext. 1317

Melanie’s insurance industry experience includes loss portfolio transfers, underwriting, captive/pool implementation and management. Melanie’s experience includes over 7 years working as an insurance company underwriter and 9 years in association management as an administrator. She has also worked for a manufacturing company as the Human Resources Administrator. In these jobs, Melanie worked with their Boards on strategic planning, annual meetings and budgeting. Melanie joined MTMIC in 2015 working behind the scenes on special projects and in 2016 began managing the new LPT Program. Melanie enjoys her family, friends and restoring older homes.

Djon Ljuljdjuraj

Marketing Assistant
Ext. 1316

Djon started as an intern with MTM in 2014 and is now part of the team as a Marketing Assistant. He will be graduating in 2020 with a Bachelor’s of Business Administration as a Finance Major from the University of Michigan – Dearborn. His experience with MTM has led him to be responsible for facilitating new business, as well as coordinating out of state and association policies with the Marketing Department. He also assists Finance and Accounting with payment processing, billing, recording of minutes, data security, and in-force policy management. Djon has a passion for cars, enjoys spending time with his siblings and dog Rocky.

Recently the MTM Board and staff lost one of our founders and longtime Board members. Doug Mack passed away December 8th. Doug although retired from his shop a few years ago, he was a long time shop owner, MTM member and Board member. Our longest term staff member, Glenda Moyle – 38 years, says Doug was HERE when she arrived. So his MTM history and support go back over 4 decades.

While Doug was battling cancer for a couple years, he always seemed to be winning and never missed a meeting. In October he attended the Annual Members’ meeting and Board meeting. At the meeting, he was ready to jump in for 2020 Board pictures. I was close to Doug. He was my Board contact for all Board and Board Committee nominations. For the last 6 years Doug and I worked together to complete interviews for every potential MTM Board and Board Committee member. We had many soup lunches around the state together. Doug was friendly, grounded in history and life experiences – I will miss him.

For 6th straight year – MTM Board declares members dividend – $3,500,000

By the time you get this the holidays should be winding down. I enjoyed some skiing time with my kids and like all of us with kids, they passed the parents long ago on athletic abilities. Since the kids could easily out ski me, I took break time to be the babysitter. I had several discussions with my 7 month old grandson about insurance company challenges. He did not seem to care much about Grandpa’s business issues.

Even during this fun break, MTM goals were front and center. On December 20th the MTM Board approved the Board Finance Committee’s recommendation for a $3,500,000 member dividend to be paid March 1st. While we do not yet know the exact MTM profit for 2019, if we declare a dividend BEFORE 12/31 it reduces MTM taxes. On $3,500,000, the tax savings is almost $750,000. This savings goes back directly to our members. Last year after the 2018 profit was confirmed up in January, the Board in February added $950,000 more dividend monies to the provisional declaration in December. We are hopeful to do the same thing this year.

So while Christmas has passed, like the last 5 years, a present is coming from MTM. We will be delivering member checks in March. Our delivery as usual includes pictures of members with their MTM check. As soon as I know the final dividend amount, I will let you know.

In the meantime, know that your annual MTM dividend is already in the works.

By Chris Demeter, Senior Loss Control Consultant

When is the last time you had to use your first aid kit at home? Of like me, do you know where it is located at? About a month ago my wife was cutting up vegetables for dinner when she calls out “Could you please come in here now”. As I enter the kitchen, she is standing at the counter with a wad of paper towels around her finger. Me being the concerned husband asking the obvious “What did you do”? I cut my finger; could you please grab the first aid kit please? Where is it? It is in the bathroom under the sink. After securing the first aid kit and saving her finger, I ask “what time will dinner be done”? Needless to say, I finished dinner and cleaned up.

The Occupational Safety and Health Administration (OSHA) medical services and first aid regulation, 29 Code of Federal Regulations (CFR) 1910.151(b) states, “In the absence of an infirmary, clinic, or hospital in near proximity to the workplace which is used for the treatment of all injured employees, a person or persons shall be adequately trained to render first aid. Adequate first aid supplies shall be readily available.”

In July of 2018, MTM and Michigan Manufacturers Association (MMA) began a partnership. This partnership seemed natural and in fact past due. Both entities have “manufacturing” as the key word in their organization’s name. Both entities have a long history of supporting Michigan manufacturers and both constantly search for ways to improve the working environment for Michigan manufacturers. The goals of each organization have been to constantly strengthen the organizational support for manufacturers in the state of Michigan.

I can say that after nearly a year and a half of the partnership, we have met our short-term goals. Our organizations talk every week and share data to strengthen each others’ activities. Recently, MTM and MMA have co-sponsored these events with additional events to be scheduled for 2020:

• Reasonable Suspicion Drug & Alcohol Training for Supervisors in Livonia and Lansing
• Drugs and Alcohol webinar available on the MTMIC portal

On November 7th, MMA held their annual Manufacturing Excellence Awards gala with over 300 people attending the event and celebration of Michigan Manufacturers. Here’s a list of the awards of the evening;

• Manufacturing Emerging Leader Award
• Manufacturing Community Impact Award
• Manufacturing Talent Champion Award
• Manufacturing Innovation Excellence Award
• Michigan Manufacturer of the Year
• Manufacturing Woman of the Year
• Coolest Thing Made in Michigan – People’s Choice Award
• Manufacturing Lifetime Achievement Award

Each of these awards included a story that was fascinating and educational. I recommend that you put this event on your checklist as a must-do for 2020. If you would like more information on the MMA and their events calendar, please contact Megan Brown @ megan.brown@mtmic.com/blog or (248)715-0012.

As this newsletter arrives we have already “enjoyed” our first single digit temp day. November was a bit early, but now we are ready for the cold snaps of winter. Let’s stay warm.

By Donna Motley, Vice President of Claims 

The path an injured worker’s claim can take, can go in many directions.

The perfect claim would be: an employee sustains an injury in the course of employment; it is reported immediately to the employer (supervisor or Human Resources) per company protocol; the injured worker is immediately sent to the Occupational Clinic for an evaluation, diagnosis and treatment plan; the claim is filed with the MTMIC Claims Department within 24 hours of the injury; the injured worker may be off the “rest of shift” and return to work the next day, with or without restrictions; the injured worker returns to the clinic, the injury has resolved, a full release and discharge from care has been given; medical bills are forwarded to MTMIC for payment; and the claim closes in 90 days or shortly thereafter!

It may sound somewhat “drawn out” but, basically, this is an example of a “simple” claim.

We are pleased to announce that MTMIC has joined forces with Graphic Media Alliance as of November 1st. Graphic Media Alliance (GMA), is the supported Printing Industry of America (PIA) affiliate servicing Michigan. GMA provides programs, offers services, and promotes a cooperative environment which assists members in improving profitability, adapting to the future and supporting the printing and graphics industry. Member-influenced programs are refined by GMA to best serve the needs and pain points of the industry professionals in our area. These programs range from insurance to temporary workers, from education to 401K, and many, many more.MTMIC policyholders that join any of our Association partner programs are eligible for an additional association discount on your workers’ compensation insurance premium. Please contact Megan Brown for more information: megan.brown@mtmic.com/blog or (248) 715-0012.

By Chris Doebler, CPA, MTM Chief Financial Officer

On December 5th, the MTM Board Finance Committee will have their year-end meeting. The Committee is made up of 6 MTM member representatives. This meeting is to put in place a couple items for 2020, the MTM 2020 Budget and most importantly an early look for available 2019 profits to be used for 2020 member dividends. To clarify timing, the Finance Committee and Board declare an MTM dividend based on an “early look” of 2019 profits. The details of the member dividend and exact amounts are confirmed at the February Committee and Board meetings. We declare a dividend amount in December to avoid paying taxes on the dividend amount. If we did not declare the dividend in December the amount of money available for member dividends would be reduced by taxes. Our declaration in December reduces (but does not eliminate) MTM taxable income for 2019. So December is a busy time in the MTM finance department. Our goal this year is the same as our prior 43 years. Bring as much value and financial rewards to MTM members as we possibly can.

Here is the MTM dividend history for the last 5 years:

• 2014 (paid March 2015) – member dividend – $2,500,000
• 2015 (paid March 2016) – member dividend – $3,500,000
• 2016 (paid March 2017) – member dividend – $3,500,000
• 2017 (paid March 2018) – member dividend – $4,000,000
• 2018 (paid March 2019) – member dividend – $4,437,920

I will have more to report after the Board Finance Committee.

By Gary Wood, Past President of MTMIC

T’was the month before Christmas and all through the place,
renewals were filling my desk, every space;

The adjusters were moving their claims to redemptions
with hopes that the state will approve, no exceptions;

Loss Control spent all their time early on
trying to make sense of MiOSHA’s next bomb;

Accounting was compiling their numbers with speed
to complete the filings required by need;

Sales efforts are running at full blast
in attempts to beat the numbers of the past;

When what to my wondering eyes appeared
but the end of the year and all that we feared;

The season is over and I can’t recall
that it even passed or what happened to fall!

(My apologies to Henry Livingston)