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since 09/08/2005 |
FAQ
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Nonprofit Resources named Agent of the Year by Alliance
of Nonprofits for Insurance. Accepting the award are Debi Blue (left),
Louise Wise (center) and Leticia Ortiz (right). |
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General
Questions
- Does Nonprofit RESOURCES make a profit?
- It is structured as a for-profit company
and is licensed as a full-service insurance agency. Nonprofit RESOURCES does collect revenue from insurance carriers. The
net revenues of Nonprofit RESOURCES are used to support the work
of Colorado NONPROFIT Association.
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Benefits
- Can an employee continue their insurance benefits
after employment has terminated?
- Yes, the rules vary according to the size
of the employer group:
Colorado Continuation Coverage applies to employees of any employer
group policy, except a single self-employed group of one. Continuation
coverage is available if an employee has been continuously covered
under the employer's plan for six consecutive months. If covered
less than six months but more than three months, conversion is
available.
COBRA applies to firms with 20 or more employees on more than 50%
of the working days in the previous calendar year. COBRA is available
regardless of length of employment.
- Do we get a group discount or lower rate by
purchasing health insurance through Colorado NONPROFIT Association/Nonprofit
RESOURCES?
- The insurance division does not allow
associations to offer a "discount" on health insurance.
We get the same competitive rate as other agents. However,
we do work for Colorado NONPROFIT Association and the Nonprofit Sector. Your organization
can place all of its insurance needs in one place.
- I am a "Business Group of One"; can I purchase
health insurance from Nonprofit RESOURCES? How about other programs?
- Yes, "Business Groups of One" are eligible
to participate in health insurance (and other programs).
Special rules do apply. Please contact our office for
more information.
- Do dental plans have a maximum benefit amount?
- HMO dental plans generally don’t
have a maximum amount. A specified co-pay is established
for each procedure. However, indemnity dental plans usually
specify the maximum amount the carrier will pay during
a calendar year. As the cost of a dental procedure increases,
it’s an important item to consider when purchasing
dental insurance.
- If I leave my employment, will I lose my life
and disability coverage?
- Disability income plans are valid while
you are employed. If you change jobs, usually you are
unable to change that plan to an individual policy. Life
insurance policies normally have a conversion privilege.
The insurance carrier will allow you to keep the policy
by paying the premium requested. The premium is normally
higher than the amount charged to the group. If your
life insurance policy is portable, that means you may
take it with you at the same coverage and premium.
- Can I get disability income coverage for a small
group of employees?
- Most insurance companies will only offer
guaranteed issue policies (no medical questions asked)
to groups of 10 or more employees. Policies may be available
to groups of 3 to 10 employees. Frequently, some form
of medical screening is required. Check with Nonprofit RESOURCES
to find out if your small group would qualify.
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Worker's
Compensation
- How can we protect volunteers if they are injured
while volunteering for our organization?
- We have available a Volunteer Accident
Program for members of Colorado NONPROFIT Association. This policy provides limited
medical expense coverage if a volunteer is injured as
a result of a covered accident.
- What is an audit?
- When a new workers’ compensation
policy is issued, estimated numbers for payroll are used.
The carrier is allowed to charge premium based on the
actual numbers for that time period. At the end of your
policy year, the carrier will send you a form asking
for payroll numbers per class of employee during the
past year. Those numbers are compared with the numbers
used on your policy. If the payroll is lower, you will
receive a refund and vice-versa.
- Does my small organization need a safety committee?
- Every organization should establish a
safety committee. If you don’t have many employees,
you may want to select a safety coordinator rather than
a committee. That person is responsible for knowing what
to do if someone is injured on the job. Also, that person
would understand the basic tenets of safety. Regular
meetings with employees would be held to teach them how
to keep a safe workplace. Many small organizations incorporate
this information into the regular staff meetings.
- Does my insurance company determine my Cost
Containment Certification credit?
- The State of Colorado manages the Cost
Containment Certification program. All material is submitted
to the State and they tell the insurance carrier what
credit or discount to apply to your policy premium.
- How do I get a discount on my workers’ compensation
premium?
- If you select a physician or provider
from the network approved by your insurance company and
agree that your employees will use this provider when
injured on the job, you will get a 2.5% premium discount.
Members of Colorado NONPROFIT Association may receive a 5% premium discount by
enrolling through their association program. Nonprofit RESOURCES
is the designated broker for this program.
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Liability
- Why do I need Liability Insurance ?
- Liability may be defined as "any
legally enforceable obligation." Any time we operate
a organization of any sort, we subject ourselves to some
form liability. There are many types of liability insurance
policies available. These include general liability,
professional liability, directors' and officers' liability,
automobile liability.
- Why do we need Directors' and Officers' liability
insurance?
- Anyone who serves as a member of a Board
of Directors for a nonprofit organization can be sued
for making a decision or failing to make a decision as
a member of the board. Although Federal and State legislation
is in place to protect board members against settlements,
a board member may be sued. The policy will provide a
defense against law suites presented even though no payments
may be made to a third party.
- Does my organization need to purchase Employment
Practices Liability?
- This coverage is included in a nonprofit
directors’ and officers’ liability policy.
It is designed to protect against claims presented by
an employee. However, the policy does not cover criminal
acts by a board member or an employee.
- What is Alliance of Nonprofits for Insurance,
Risk Retention Group?
- ANI-RRG is an insurance company domiciled
in Vermont. It is a member-owned nonprofit public benefit
corporation that serves 501(c)(3) tax-exempt nonprofit
organizations by providing a stable source of reasonably
priced liability insurance.
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Retirement
- What is a TSA?
- A Tax Sheltered Annuity (TSA) is a retirement
account available to 501(c(3) organizations in the nonprofit
environment. This type of account allows participants
to contribute money for retirement on a pre-tax basis,
which also results in a reduced income tax liability.
In addition, the earnings that accumulate within the
account do so on a tax-deferred basis.
- What is the minimum number of employees required
to start a retirement plan?
- Retirement plans can be established when
you have one or more employees.
- What types of plans are available for our organization?
- There are two basic types of retirement
plans that an employer can establish. The first one is
a Non-ERISA account which allows Employee contributions
only. The other type is an ERISA account that holds both
Employee contributions as well as Employer contributions
on behalf of the participant.
- What are the typical costs to start a retirement
plan for our organization?
- The costs associated with establishing
and maintaining a retirement plan vary on a case by case
basis. The expenses for a Non-ERISA (Employee money only)
plan are usually very minor if any at all. The expenses
for an ERISA (Employer and Employee money) may be a little
higher but again it's determined on a case by case analysis.
- How do I determine my investment objective?
- One of the first things to consider when
establishing a retirement account is your investment
objective: how contributions should be invested into
the account. You must determine your primary purpose
for investing your money. Do you want to (a) preserve
capital, (b) seek growth with moderate current income,
(c) strong growth with little current income, or (d)
seek maximum growth.
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Unemployment
Compensation
- Do I have to purchase unemployment insurance
for our employees?
- Nonprofit organizations are not required
to purchase unemployment insurance through the State
of Colorado. However, they are required to register with
the Unemployment Division. If an employee files a claim,
the organization will be asked to reimburse the State
of Colorado for payments made.
- What alternatives are available to cover the
cost of unemployment compensation claims?
- Your organization can elect to reimburse
claims as they are paid. This could present a financial
risk to the organization depending on the number of employees
and your claim history. Your organization could join
a Trust. Regular contributions are made to develop a
reserve account for claim payments. Additional services
are provided. It is similar to purchasing unemployment
insurance through the State; however, the money belongs
to your organization.
- Will my small organization qualify for participation
in a Trust?
- Any organization with 10 or more employees
may qualify. As your money is used to pay claims presented,
it’s too risky for small nonprofit groups.
- May I join a Trust at any time during the year?
- The State of Colorado allows a company
to withdraw as of the first day of any year. Therefore,
you would start your participation in a Trust on that
date. If you are a direct reimburser, you may join a
Trust at any time.
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