Georgia Restaurant Mutual Captive Insurance Company (GRMCIC) was formed on January 1, 1997 from the merger of two independently successful self-insurance trusts- Restaurant Owners Self- Insurance Association (ROSA) SIF and Georgia Fast Food Association (GAFFA) SIF. Both trusts had been in operation since 1993. Coverage has been continuous since 1997 retaining its core membership. Premiums have risen from approximately $1,100,000 in 1997 to $4,500,000 in 2006. Loss ratios have historically been profitable by plan year, consistently outperforming the traditional market. The cumulative net loss ratio since 1997 is currently 42% excluding IBNR reserving. Over $2,800,000 has been returned to policyholders in approved dividends since 1993.

The Captive currently writes about $3,300,000 in Georgia business and about $1,200,000 for members in adjoining states, where coverage is provided for Georgia operations.

Overview of the Program

The program is owned and managed by restaurant policyholders and exists solely for the benefit of its policyholders. The emphasis of the program is on quality – quality in the selection of member policyholders, quality in the brokers who understand the nature of self-insurance, quality in the providers who provide services and oversight in all aspects of the plan, and quality in the management process to achieve and maintain desired results.

The Captive must meet the same requirements in fulfilling its legal obligations under the workers compensation law as a traditional insurance company. However, that is where the likeness ends. As a Captive, policyholders are represented at monthly meetings by the Executive Committee and the Board of Directors, who are all restaurant owners and policyholders themselves. They review pending open claims and oversee administrative operations, and make decisions with the member policyholders in mind. Rather than focusing just on costs that affect administration like a traditional company, the focus is primarily on preventing and managing the claims to the fullest extent the workers compensation laws allow. There is no open checkbook policy for paying or settling claims without regard to the policyholder.

Corporate Philosophy

The corporate philosophy of GRMCIC is to underwrite properly and consistently, price adequately to insure financial integrity, increase surplus through profitability to support growth and ultimately to return profits by plan year in the form of dividends to members in accordance with a prescribed dividend formula to be approved by the Board.

In addition, GRMCIC realizes the importance of the relationships with the various regulatory authorities and its key providers, and places a premium on professionalism, integrity, cooperation and loyalty. To that extent, GRMCIC is involved in the selection process of its vendors and of staffing with the program administrator.

The Captive has chosen to deal with independent agents licensed with the Captive who have demonstrated knowledge in the self insured workers compensation arena. Growth is projected on the basis of maintaining surplus to policy holder writings in line with NAIC IRIS ratio guidelines.

Program Administration

Program Administration Specialists, Inc. has been contracted for administrative services for all aspects of the program including policy administration, regulatory and financial filings, and correspondence with members and their agents. In addition, PAS assists and acts as a liaison between the claims administrator and managed care providers. John Mamalakis, CPCU, CWCP, has been the program administrator since 1997. He is a licensed insurance agent with over 30 years of experience.

Board of Directors

Emil Brignola
Norman Heidt
Charlie Hill
Tim Hilliard
Carl Hoover
Duane Hoover
Larry Robbins
Alex Salgueiro
Dale Seefeldt
David Sovchen
Bob Turner
Matt Van Paepeghem