West Coast CUs Get Workers CompProgram

RANCO CUCAMONGA, Calif. - (08/05/04) -- The California CU League said it haspartnered with Gallagher Captive Services, Inc., to provide workerscompensation for credit unions in Hawaii, Nevada and California,where skyrocketing premiums over the last few years have causedmany providers to pull out of the market. The entities have formedC-U First Ltd., a licensed insurance company domiciled inWashington, D.C., and administered by Gallagher, based in Itasca,Ill. Business on the west coast, particularly in California, havebeen plagued in recent years by increases in workers comp premiumsof as much as 80%. Under the scheme at C-U First, premiums will bebased on an individual credit union's own experience, rather thanthe marketplace, as a whole. Members of C-First will also be ableto recoup their unused premiums, based on their individualexperiences. Organizers of the insurance program are looking atexpanding it to credit unions in other states.