State's First and Largest Private Group Self-Insurance Program Returns $9.6 Million in Equity to Its Members

The Auto Dealers Compensation of California, Inc. (AD-COMP(R)) Making Great Strides

SACRAMENTO, Calif., Dec. 21 -- The Trustee Board of the Auto Dealers Compensation of California, Inc. (AD-COMP(R)), has announced an equity distribution of just over $9.6 million to current auto dealership members. AD-COMP(R), formed in 2002, is California's first and largest private workers' compensation group self-insured program. AD-COMP(R) currently covers 239 auto dealer members with over $1 billion in payroll and close to $30 million in annual contributions.

"We are obviously pleased with the financial rewards the self-insurance concept has made possible," said Chairperson Mike Johnson. "This great success can be attributed to all of our members taking advantage of the superb safety and loss programs to eliminate claims and to the tremendous impact of diligent claims management."

The AD-COMP(R) program provides a long-term, stable alternative to the roller-coaster ride that is the California commercial workers' compensation insurance market. The program allows fiscally sound and safety conscious dealers to pay reasonable rates, receive better service and share in potential profits (all members own the mutual-benefit, nonprofit corporation).

The AD-COMP(R) program is designed to stabilize workers' compensation costs and provide long term financial advantage by:

  1.  Streamlining administrative costs;
  2.  Helping to reduce losses before they occur by implementing "World
      Class" risk control programs;
  3.  Funding conservatively in accordance with state regulatory guidelines
      to cover losses that do arise;
  4.  Purchasing excess insurance for extremely large claims;
  5.  Administering claims effectively and efficiently once they occur;
  6.  Providing oversight of the claims process to help control the ultimate
      cost of claims;
  7.  Marketing the program to prospective members who are committed to
      reducing their workers' compensation exposures; and
  8.  Adhering to the strict guidelines mandated and regulated by the State
      of California, Office of Self-Insurance Plans.

Auto dealerships throughout California are members of AD-COMP, including dealerships in San Diego, Los Angeles, Palm Desert, San Jose, Sacramento, San Francisco, and the Central Valley.

AD-COMP is administered by Bickmore Risk Services in Sacramento who handles the day-to-day operations and oversight for the group. Claims are managed by Intercare Insurance Services, and brokerage and marketing services are provided by Dealer Cover Insurance Services.

To receive information on how to join AD-COMP, call Randy Foster, Dealer Cover Insurance Services, at (800) 936-7837 or visit the AD-COMP web site at www.adcompsig.org.