Underwriting Guidelines


Binding/Underwriting Authority

Risks are submitted directly to the Trust Underwriting Department. All risks must be reviewed and approved, in writing, by Underwriting before binding.


Texas Operations Only

Anniversary Date

All policies will have a common anniversary date of January 1. Any participants, who enter during the course of the year, will be issued a short-term policy, then renewed annually on the anniversary date of the Trust.

Eligible Risks

In addition to a risk being a member is good standing with the Texas Food & Fuel Association, a risk must have a predominant exposure corresponding to one of the following Classification Code of Employee:

Classification Codes

  • 8006 Store Grocery – Retail
  • 8008 Store: Clothing or Wearing Apparel – Retail
  • 8013 Store: Jewelry
  • 8017 Store: Retail – NOC
  • 8033 Store: Supermarket
  • 8039 Store: Department – Retail
  • 8044 Store: Furniture: All Other Employees & Drivers
  • 8045 Store: Drug – Retail – & Drivers
  • 8058 Store: Home Improvement: Store Employees
  • 8234 Building Material Dealer: All Other Employees & yard, warehouse, drivers
  • 8387 Gasoline Station – Retail & Drivers
  • 8391 Store: Automobile Accessory Retail – NOC & Drivers
  • 8752 Store: House Furnishings or Wearing Apparel – Retail – & Drivers
  • 8754 Store: Furniture: Inside Sales Employees
  • 9079 Restaurant NOC

It is also agreed that in instances that there is common ownership of multiple entities within a trust participant, these entities would be eligible as long as the entirety of all entities predominant Classification Code of Employee falls within one or more of the above listed schedule of codes.

  1. Restricted Operations

    These are risks that need to be underwritten carefully. They may not be acceptable to the group unless above average in class. Many of these risks will be referrals to the Underwriting Manager

    • Any risk with a loss ratio in excess of 65%.
    • Any risk that has been in business less than three years.
    • Financially any risk with a net worth less than two times premium and a current ratio less than 1.1 to 1.
  2. Underwriting Exception

    • Any exception to the eligible risk criteria must be referred to the excess carrier.
  3. Submission Requirements

    • Completed & Signed application
    • Five years of currently valued losses and premium information
    • Copy of current workers’ compensation policy
    • Classification codes of employees and corresponding payroll
    • Number of employees per classification code
    • Current financial statement, preferably prepared by a CPA
    • Current experience modification rating sheet
    • Brief description of operations, along with any brochures or advertising information if available
    • Completed Membership application and Dues
  4. Pricing

    • The trust has qualified for a 0.75 Relativity Factor based on the most recent actuarial study. Schedule rating of +/- 40% is also available depending on the physical nature, safety programs and management of the risk.
  5. Ineligible Risks

    If any of the following exposures exist the account does not qualify for the trust. Any exception must be approved by the excess carrier.

    • Agricultural operations – all classification codes
    • Any ‘Asbestos exposure
    • Blasting Operations
    • Boiler Installation, inspection, cleaning or repair when there is a confined work space exposure.
    • Cable Installation in conduits
    • Caisson, Cofferdam Work, Dam, Levee, Dike, Reservoir Water Revetment
    • Construction in connection with bridges, tunnels elevated streets or highways
    • Construction of any major interstate, bridge or highway work, excluding the hauling of aggregate.
    • Construction, Jetty or Breakwater Construction
    • Cleaning or Renovation outside surfaces of buildings
    • Commercial Airlines
    • Contractors that sub out more than 50% of their operations
    • Crane Service
    • Crop or Tree Dusting/Spraying
    • Debris Removal Contractors
    • Dredging Contractors
    • Drilling Operations I.e. in connection with oil or gas pipelines, power lines construction, field construction, reconstruction or repair.
    • Electric line construction and maintenance
    • Electroplating
    • Elevator or escalator inspecting, installations, servicing or repair
    • Exterior work involving construction and cleaning operations (excluding electric line construction and maintenance) in excess of two stories and more than 10% of operations. A story is defined as 10 feet.
    • Exterminators
    • Farm Operations
    • Fireproofing structures
    • Grading of highways, landfills or detention ponds
    • Hazardous waste cleanup or hazardous materials contractors
    • Heat Treating Contractors
    • Heavy construction – large plants, refineries
    • High-rise Building Construction
    • Insulation Contractors
    • Irrigation or Drainage System Construction
    • Iron or Steel Erection over two stories in height
  6. Ineligible Risks – Continued

    • Lead Abatement
    • Logging or lumbering operations
    • Longshoremen’s and Harbor Workers’ Act, Maritime or Jones Act exposures
    • Metal Erection – steel lock gates, gas holders, water towers, smokestacks, tanks.
    • Mining Operations – above and below ground (mining does not include sand and gravel digging exposures found in NYT).
    • Oil or Gas Wells – cleaning, drilling, installation, recovery of casing or servicing
    • Oil Still Erection or repair
    • Operations involving large chemical exposures
    • Painting – exterior of building exceeding two stories in height, oil or gasoline tanks or ship hulls.
    • Pile Driving
    • Railroad Construction
    • Restaurant Delivery (operating night time hours, residential or w/time elements)
    • Rigging
    • Roofing
    • Sandblasting
    • Scaffolding Contractors
    • Septic Tank Cleaning, installation, service or repair
    • Sewerage Disposal Contractors
    • Shaft Sinking
    • Ship Repair or Conversion
    • Sign or Billboard, erection, installation or repair
    • Sign Painting or Lettering on Buildings or Structures
    • Sludge Disposal Contractors
    • Stevedoring
    • Subway Construction or Tunneling
    • Tank Construction, installation, erection or repairs
    • Tree Surgeons – Removal or Pruning
    • Utilities (contractors doing work for utility companies) or Utility Company
    • Well Water, gas or oil wells, drilling or installation
    • Exterior Window Cleaning
  7. Reinsurance

    Underwritten by New York and Marine General Insurance

    Specific Excess SIR: $ 350,000 per Occurrence


    Aggregate Excess Attachment Point 130% of Trust Written Premium


    $ 5,000,000
    Employers Liability  

    Self-Insured Retention

    $ 350,000 per occurrence
    $ 350,000 Ea. Employee for disease


    $ 5,000,000
  8. Dividend Plan

    • Dividends must be approved by the trusts Board of Trustees. They are based on available trust surplus. Each individual dividend is based on their percentage of the trusts overall premium.
  9. Payment Plans

    • 25% down and 9 monthly installments.
    • Easy Pay – ACH drafts monthly or twice monthly. No down payment required.

Send all submissions to:
quote@firstcardinaltx.com or fax to (469) 713-5389