On January 1, 2002 , the California Department of Industrial
Relations, Office of Self Insurance Plans (DIR OSIP) approved
the group application for AD-COMP and issued the group its
formal Certificate of Consent to Self-Insure. Upon the issuance
of that Certificate, AD-COMP became the first private sector
self-insurance group in California history to become permissibly
self-insured for Workers' Compensation.
"I am delighted
to approve the first private group self-insurer", said
DIR Director Stephen J. Smith. "We expect to see further
expansion among new car dealers and the group self-insurance
concept to other industries. Group self-insurance has worked
for over 20 years among cities, counties, and schools and
should work equally well among private employers."
After approval by the State in January 2002, AD-COMP opened
its doors and began providing coverage and services for
new automobile dealers accepted into the program. AD-COMP
began with 4 dealerships, and has grown to the point that
it now has over 270 new car dealerships throughout the State
of California with annual contributions of over $15,500,000.
The AD-COMP program provides a long term, stable alternative
to the roller coaster ride that is the California commercial
workers' compensation insurance market. The program allows
fiscally sound and safety conscious dealers to pay reasonable
rates, receive better service, and share in potential profits
(all members own the mutual benefit, non-profit corporation).
The AD-COMP program is designed to stabilize workers' compensation
costs and provide long term financial advantage by:
1. Streamlining administrative costs;
2. Helping to reduce losses before they occur by implementing
appropriate risk control programs;
3. Funding conservatively to cover losses that do arise;
4. Purchasing appropriately placed excess insurance;
5. Administering claims effectively and efficiently once
they occur;
6. Providing oversight of the claims process to help control
the ultimate cost of claims;
7. Marketing the program to qualified members that have
the same philosophy as the current members and are committed
to reducing their workers' compensation exposures; and
8. Adhering to the strict guidelines mandated and regulated
by the DIR OSIP.
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