Frequently Asked Questions

Participating in a self-insured group (SIG) is a new concept to Nevada employers. There are often many questions associated with becoming a member of a SIG. 

To help provide a better understanding of the self-insured group option, Pro Group has identified several frequently asked questions asked by potential group members. All of us at Pro Group hope that the following information will help you with your decision to join a self-insured group for your business's workers' compensation coverage in Nevada. 

Should you find that not all of your questions are answered, please utilize the e-mail icon and allow us to answer your specific question or you can call us at our office located in Carson City at (775) 887-2480 or in Las Vegas at (702) 740-4380. We look forward to hearing from you and helping you make an informed decision for your workers' comp needs. 

Q) How does a Nevada self-insured group work?

A) A trade association sponsors a self-insured group or SIG for the purpose of providing workers' compensation coverage to the association members. The SIG is a not-for-profit entity with the goal of only collecting enough assessments to cover the losses. Any excess funds, not being used for claims expenses, are returned to the group members in the form of dividends, payment holidays or rate reductions. As a result of strict underwriting and safety programs offered as a part of group membership, safety increases and claims costs drop. This results in educated employers, a manageable program and reduced costs. To make the SIG work effectively the sponsoring association needs to make the right choices in the beginning. This means choosing the right Group Administrator. That is why the first self-insured groups accepted in Nevada chose Pro Group to develop and manage their SIGs.

Q) What is Joint and Several Liability?

A) Joint and Several liability, or JSL, is not unique to self-insured groups. All mutual insurance companies, including the old state system, had a JSL clause in their workers’ compensation policy. The JSL clause is required by the insurance commission to make sure the state will not take on the liability of covering losses of a bankrupt insurer. JSL is best described by the example of considering a group of employers that become "blood brothers" with a pooled sharing of risks. As "blood brothers," all members have an interest in the other members well-being. They take on the commitment to cover any of the groups losses by agreeing to be financially responsible for the group’s performance. Groups have operated successfully for nearly 40 years nationwide.

The primary reasons are:

• Strong underwriting guidelines
• Risk management guidelines
• Annual audits
• Quarterly and actuarial projections
• Strong investment policies
• Specific and aggregate excess insurance coverage
• All SIG’s are regulated by the Insurance Commissioner

JSL should not be a barrier to joining a self-insured group. It should be considered your commitment to the group’s safety program. Achieving significant savings, reducing your business’s workers’ compensation losses, and providing a safe work environment for your employees

Q) Can a smaller Nevada employer join a Self-insured group?

A) Yes, but there are some additional qualifications that need to be met. With the changing workers’ compensation market in Nevada, many smaller employers are finding themselves being cancelled or dropped from their previous insurance coverage because it was determined that it was no longer profitable for them to be carried. Certain small employers can join a group if they are able to meet the group's tangible net worth requirements. If your business’s premium is below the assessment amount required by the group and you qualify under the tangible net worth guideline, your company will have a minimum premium assessment depending on the group for which you qualify. This minimum premium assessment is set for the protection of the group to allow smaller Nevada employers the opportunity to take advantage of the group’s services and benefits.  

Q)  My current premium is below the group’s premium qualification level and my business may not have the necessary tangible net worth to qualify for the SIG. Can my business still join the SIG?