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Location

66 Guild Street 512B, Great North Town.

Phone Number

(+44) 123 456 789 (+1) 234-567-9874

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FAQs

Workers’ Comp Self‐Insurance Group FAQs

CRMBC was formed on December 1, 2004.
As of May 31, 2024, CRMBC has 135 affiliate members.
There are approximately 500 locations operated by the affiliate members.
Membership Consists of many types of restaurants and food service-related companies including fast food chains, fine dining, fast-casual, etc.
The minimum commitment is 1 consecutive full Coverage Year (January 1st to December 31st).
a. Notice of voluntary resignation required 4 months ahead of upcoming Coverage Year (by September 1st).

b. If a member seeks to terminate its membership mid-year, the minimum penalty is the amount of contributions still due for the remainder of that Coverage Year.

c. Members remain financially liable after withdrawal from the Group. This includes liability for assessments for years that the Member participated in the Group.
The existing membership accounts for approximately $17.8 million dollars in written premium.
The group consists of a wide range of member sizes. The range is as low as $25,000 annually, to upwards of $1,400,000 annually.
Since 2016, operating costs have averaged 48% of group revenue. The group continues to implement cost saving measures. Excess insurance has been a key cost to the group over the last decade; with the increase in retention limit, operating costs are targeted to be under 40% within the next 24 months.
The Board of Directors has a mission to expand the group in a very controlled manner that will lead to the continued long-term success of CRMBC.
The group currently uses Casualty Actuarial Consultants, Inc. for the required annual actuary report. This report is completed in March of each year for the preceding year. The group also uses Casualty Actuarial for a projection report in October of each year for rate and budget setting.
The actuary provides a central estimate as required by regulation that is utilized for future development. This calculates to roughly a 58% confidence level.
It is the group’s policy to distribute certain information to past or active members only; however, the group may provide you with specific information that you require, prior to becoming a member.
Regulations require that California self-insured groups carry excess insurance at a retention limit of $500,000 per occurrence, unless OSIP approves an exception. OSIP recently approved CRMBC to secure a retention limit of $1,000,000.
The group purchases Directors and Officers coverage annually. Currently, the management liability coverage is $5,000,000.
The group secured two separate loss portfolio transfers for all claims existing prior to 1/1/2016. Existing claims exposure are from 1/1/2016 to current.
The current active members’ average loss ratio for FY 2016 is 48.4%; FY 2020 is 45.2%; and 2022 is 49.9%. While FY 2023 is immature, the loss ratio reflects an improving trend of 34.2%. The group has made recent changes to include more aggressive claims management, with an expectation to reduce and maintain a loss ratio of 45% or better.
Yes, in 2012 CRMBC was required to assess its members due to mismanagement by third-party service providers resulting in an $80 million dollar deficit. The group’s Board of Directors immediately undertook a remediation plan to correct the deficit and to instill strong operational and financial controls going forward.
The group initiated a strong, committed Board of Directors that appointed a new administrator, implemented cost-cutting measures, and completely overhauled their claims management and loss control providers and procedures.
Assessments are always a possibility in self-insurance just as are surpluses. With strong management and corrections implemented by the Board of Directors, combined with solid budgeting and rate setting in place, future assessments are unlikely.
Assessments are only made in the event of a shortfall where contributions charges are less than what was required to cover claims and operating costs. So, they are limited to making up a deficit should one occur. Assessments are calculated based upon the contributions of each member, during a specific policy period, on a pro rata basis. A member can only be assessed for the period in which they were a member. They cannot be assessed for a deficit for any period of time they were not a member of the program.
Yes, if surplus distribution is declared by the Board of Directors and approved by OSIP, members are entitled to receive surplus distribution on a pro rata basis for the policy period declared.
Yes, in 2022 CRMBC issued a return of surplus for policy periods prior to 2016, totaling more than $7 million.
Yes, CRMBC has loss control services that assist members with safety in compliance, network resourcing, program development, loss analysis, and self evaluation accountability.
CRMBC will discuss the requirements and the program with any new member once they have been formally approved by OSIP.
CRMBC will provide financial information to active members as requested. Prospective members that have expressed interest in becoming a member are able to obtain a summary of the financial information in order to assist in decision making.
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CRMBC is a California Self-Insured Group (SIG) formed BY restaurant owners FOR restaurant owners. Choosing to opt out of commercial insurance that uses premiums to boost their substantial profits and overhead, CRMBC is a group of business-savvy restaurant owners who joined forces to self-insure their work comp for sustainable cost savings.

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Administrator:
The PATH Alliance Inc.

7060 N. Marks Avenue, #116 Fresno, CA 93711
Phone: 559-558-4800 Fax: 559-558-4888

Lock Box

P.O. Box 45783
 San Francisco, CA 94145
CRMBC is a California Self-Insured Group (SIG) formed BY restaurant owners FOR restaurant owners. Copyright ® 2024 CRMBC. Privacy Policy