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Application Procedure
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Eligibility for Signal

Signal's Board of Directors has determined three basic guidelines for eligibility for Membership in Signal Mutual Indemnity Association.

These are:
  • A minimum Advance Call of $100,000
  • Signal will not provide coverage that is excess of a self-insured retention. However, for companies with a larger Longshore exposure, a deductible program is offered.
  • Signal will only provide quotations through a broker.

Information Required

If you have a company that you think would be interested in obtaining a quote from Signal, we will need the following:

  • Five years of gross (including overtime) LHWCA payrolls
  • Five years of claims listings showing paid and outstanding claims at a valuation date less than three months ago
  • A brief background history of the company
  • Three years audited or reviewed financial statements for the company, the latest being less than six months old
  • A copy of the company's safety program.

To request a prospect information kit for Signal, please click here.

Rating Process

Signal will review and evaluate financial data, claims history, and the safety program to produce a claims to payroll rate which will then be grossed up for the overhead factor. Overheads include reinsurance costs, management fee, brokerage and general administrative expenses. A rate will then be issued quoted as a percentage of payroll.

Binding Process

Once a rate has been developed, a Signal underwriter will visit the prospect to make a presentation along with the broker. Should the company then make a decision to join Signal, there are some administrative details which need to be completed prior to entry:

1. The new Member will complete the Application for Membership letter. This confirms their agreement to be bound by the Bye-laws and Rules.
Click here to access standard wording.

2. The new Member will complete the Application for Cover. This confirms their request for coverage for themselves and other related companies they wish to be covered under their Membership.
Click here to access standard wording

Advance Call and Security Requirements

The standard payment method for Signal Members is monthly in arrears. In other words, once the month has been completed the Member will submit a payroll report to Signal indicating the payroll for the prior month. This is then multiplied by the agreed rate to produce the Advance Call for the month. This should then be wired to Signal together with their payment for the DOL Assessment (currently 8.5% of Advance Call) by the 10th of the month. Members can alternatively pay quarterly or annually in advance.

New Members who pay monthly in arrears provide security of 35% of the projected annual Advance Call. This can be in the form of a Letter of Credit (click here for standard LOC wording (PDF Format)) or equivalent amount being placed into the Grantor Trust. The Grantor Trust can be a more cost-effective way for Members to fulfill Signal's security requirements.

Also a W-9 form must be completed as part of the application procedure. Click here for W-9 Form.

If you have specific questions or require more information, contact the following individuals on 800-826-4790 or at the email addresses shown:

Tim Johnston tim.johnston@signal-ctc.com
Scott Eppelman scott.eppelman@signal-ctc.com