Frequently Asked Questions about Group Accident
When working with a TPA or broker for the first time, questions are bound to arise. At GWI, we have the knowledge backed by experience to answer all of your questions. Below are a listing of commonly asked questions, but if you find your question is not answered below, do not hesitate to speak with a member of our team. We are always just a phone call or e-mail away.
What Drives the Need for Accident Insurance?
Accident Insurance or Accidental Death & Dismemberment (AD&D) coverage is purchased by an employer for its employees or by individuals through their employer. This is typically accomplished as part of the employer’s benefits program. The need for Accident Insurance is driven by the following:
- Employer Need to Provide Insurance Protection to Employees for Catastrophic Accidents
There is no legal requirement for AD&D coverage; however the primary reason for coverage is fear of a catastrophic accident and the financial hardship that could result from an accident. - Employer Need to Offer Attractive Benefit/Risk Management Programs
Employers feel a need to provide AD&D coverage as part of their benefits and/or risk management program to employees. Some employers feel a financial and moral obligation to provide AD&D coverage in such cases as if an employee was killed while traveling on company business. Providing employees with AD&D coverage allows the company to convey the public message that it genuinely cares about its workers and wants to keep them safe. Today, most employers need to offer an attractive benefit/risk management program to attract and retain a talented workforce. Having AD&D coverage is part of their strategy to remain competitive. - Cost Advantages
Compared to other forms of insurance such as workers compensation and life insurance, accident insurance is relatively inexpensive.
What are some Typical Exclusions in an Accident Plan?
Each policy must be carefully read to understand how coverage does or does not apply. In the industry in general, benefits are not payable for any loss resulting from:
- Suicide or self-inflicted injury
- Disease (bodily or mental)
- Aircraft flight when the aircraft is owned by the employer – can be “bought back” for an additional premium.
- Aircraft flight when the employee is the pilot or crew member – can be “bought back” for an additional premium.
- Serving in the armed forces
- War (declared or undeclared) – can be bought back for an additional premium.
How long has GWI been underwriting Group Accident business?
GWI was formed in 2000, however, the company's predecessor began underwriting Group Accident business in 1975. Many of the former personnel form the core of GreenWood International Insurance Services, Inc.
Is there an advantage to working with GWI instead of a traditional carrier?
Of course! GWI does not carry the large overhead of a traditional carrier, i.e. large number of product lines to support or a large national sales force and the related expenses. Further, GWI provides direct broker access to decision makers. GWI’s personal approach allows for tailoring a client’s risk-management needs with creative and flexible options. Speed of response, direct access to key personnel, high expertise, focus on niche products, and operational cost controls are just some of the advantages of working with GWI.
What services does GWI perform?
GWI underwrites, distributes, issues policies, collects premium and pays commissions.
Does working with a Managing General Underwriter cost more?
Working through a Managing General Underwriter is no more expensive than working directly with an issuing carrier, and often can result in affordable costs and faster responses than working directly with a carrier.
What is the financial rating of your carriers?
ACE American Insurance Company, part of the ACE Group of Companies, underwrites the Accident Products comprised of Business Travel Accident, Basic Accident, Voluntary Personal Accident and Carve-Out Accident Plans. Illinois Union Insurance Company is also a part of the ACE Group of Companies and underwrites the Primary Employers Indemnity Plan. Both companies enjoy excellent ratings from the major insurance company rating services:
- A.M Best A+
- Standard & Poor’s A+
- Moody’s A2
- Fitch A+
These ratings are an indication of the company’s financial strength and ability to meet its obligations to customers.
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