Where the Premium Dollars Go

Claims Fund

63% of the Standard Premium is placed in a Claims Fund. When claims are due and payable, they are paid from this Fund.

The unused portion of the Claims Fund is invested through the fiduciary agent, and earns interest. This investment income is then returned back to the participants of CAMComp upon approval of the Michigan Worker’s Compensation Agency.

Surplus claims dollars are returned to the membership if overall experience of the group is good. Only those participants with a positive Claims Loss fund (claims do not exceed contribution) will share in a return. The amount of the return is proportionate to the contribution and the loss experience of each participant. The Michigan Worker’s Compensation Agency must approve all requests for distribution of the surplus Claims Fund 12 months after the completion of the Plan year. A percentage of the Claims Fund is maintained for claims not yet reported.

Each Plan year has its own separate Claims Fund, therefore, a participant with good loss experience is eligible to receive investment income and claims surplus return more than one time on any Plan year.

Overhead Expense

37% of Standard Premium is an overhead charge which covers the expenses for CAMComp to operate, including:

Plan Administrative Expenses

  • Attorney Fees not Pertaining to Claims
  • Accounting Fees
  • Monthly Premium Billings
  • Merchandising and Marketing
  • Certificates of Insurance
  • Payroll Audits
  • Built on Safety
  • Video Library

Excess Insurance Premium

  • Aggregate Excess Insurance
  • Specific Excess Insurance
  • Employers Liability Coverage

Fees to Third Party Administrator

  • Claims Adjusting
  • Loss Prevention
  • Data Processing Services



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