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 in good standing of either the Plumbing, Heating & Air Conditioning Contractors Association of Texas or the Air Conditioning Contractors Association of Texas, a risk must have a predominant exposure corresponding to one of the following Classification Code of Employee:

Classification Codes

  • 3066 Sheet Metal Work – Shop
  • 3179 Air Conditioning Compressor Repair – Shop
  • 3724 Air Conditioning Systems – Installation & Drivers
  • 5183 Air Conditioning Systems – including Plumbing & Drivers
  • 5190 Air Conditioning Systems – Installation and Service Window Units & Drivers
  • 5191 Heating & Air Conditioning Sensor & Control – Installation & Repair
  • 5192 Ice machines –sales, rental, installation and service and drivers
  • 536 Air Conditioning Systems – Duct Fabrication or Installation & Drivers
  • 6219 Septic tank installation: excavation and drivers
  • 6229 Drainage or irrigation system construction and drivers
  • 7600 Fire alarm installation or repair and drivers
  • 7602 Fire alarm, telephone or telegraph line construction and drivers
  • 9014 Air Conditioning Duct Cleaning Service
  • 9402 Septic tank cleaning and drivers

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 Risks

    Any risk that falls within these guidelines must by referred to the excess carrier.

    • Any risk with an experience modification greater than 1.30
    • Any risk with an incurred claim in the three prior years of $100,000 or more.
    • Any risk with a class codes on the prospective certificate not currently included in the trust.
    • Any risk with more than 200 employees at any one location.
    • External Construction Operations in excess of two stories.
    • Any work that is completed more than five feet below grade.
    • Any work completed within a roadway, street or highway
    • Any risk that has been cancelled or non-renewed by any carrier in the last three years for underwriting reasons.
  2. Underwriting Concerns

    Any risk that falls within these guidelines must be reviewed closely and may be a referral 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.
    • Risks that sub contract more than 25% of their work.
  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

    Any exception must be approved by the excess carrier.

    • Any aircraft flight crews and/or ground operations;
    • Agricultural Operations – All Operations;
    • Asbestos Contractor/exposure
    • Boiler fabrication, installation, service or repair;
    • Cable installation in conduits;
    • Caisson or cofferdam work; dam, dike, lock or revetment construction
    • Chemical and/or pharmaceutical manufacturing;
    • Construction in connection with bridges, tunnels, elevated street or highways;
    • Construction of any major interstate, bridge or highway work;
    • Construction, Jetty or Breakwater;
    • Cleaning or Renovation outside surfaces of buildings;
    • Commercial Airlines;
    • Contract Haulers or Truckers that haul for others;
    • Contractors who sub-contract over 50% of their work
    • Crane service;
    • Crop or Tree Dusting/Spraying;
    • Debris Removal Contractors;
    • Detective or patrol agencies;
    • Dredging Contractor;
    • Drilling Operations i.e. in connection with oil or gas pipelines, power lines construction, field construction, reconstruction or repair;
    • Electroplating;
    • Elevator or Escalator inspecting, installation, servicing or repair;
    • Exterminators;
    • Farm Operations;
    • Fire Proofing Structures;
    • Gas companies, dealers, or distributors; oil or gas lease operators or contractors, oil or gas well works, oil or gas pipeline construction or operations, oil rig and derrick work;
    • 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 Systems Construction;
    • Iron or Steel Erection over Two Stories in Height;
    • Lead Abatement;
    • Logging, lumbering, and/or sawmills;
    • Long haul trucking;
    • Manufacture, mining, fabrication, processing, installation or removal of asbestos or products containing asbestos or urea-formaldehyde;
    • Manufacturing, packing, handling, shipping or storage of natural or artificial fuel gases, butane, propane, or gasoline;
    • Manufacturing, packing, handling, shipping, or storage of explosives, explosive substances intended for use in any explosive, ammunitions, fuses, arms, magnesium, propellant charges, detonating devices, fireworks, nitroglycerine, celluloid, or pyroxlyin;
    • Metal Erection – Steel lock gates, gas holders, water towers, smokestacks, tanks, silos or windmills;
    • Maritime or federal employments, or steamship lines, agencies, or stevedoring, except on an “if any” basis;
    • Mining Operations- above and below ground;
    • Nuclear Regulatory Commission projects or operations conducted under license from the Nuclear Regulatory Commission;
    • Oil Still Erection or Repair;
    • Operations which fall under the Jones Act and/or Admiralty Act;
    • Owner-operator trucking operations;
    • Painting Exterior of Building, Exceeding Two Stories in Height, Oil or Gasoline Tanks or Ship Hulls;
    • Pesticide/herbicide application; exterminators;
    • Pile Driving;
    • Railroad Construction;
    • Roofing contractors;
    • Rigging;
    • Risks written under the Chemical or Dye Stuff Rating Plan;
    • 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 Building or Structures;
    • Sludge Disposal Contractors;
    • Sub aqueous work
    • Subway Construction or Tunneling;
    • Tank Construction, Installation, Erection or Repair;
    • Tree Surgeons – Removal or Pruning;
    • Trucking Exposures or Truckers who haul for Others
    • Utilities (contractors doing work for utility companies) or Utility Company;M.
    • Well Water, Gas or Oil Well Drilling or Installation;
    • Window Cleaning;
    • Wrecking or demolition of buildings, structures or vessels;
    • Sub Contracting exposure greater than 50%
    • Any other risks found unacceptable by underwriting.
  6. Reinsurance

    Underwritten by New York and Marine General Insurance

    Specific Excess SIR: $ 500,000 per Occurrence


    Aggregate Excess Attachment 138% of Trust Written Premium


    $ 5,000,000
    Employers Liability  

    Self-Insured Retention

    $ 500,000 per occurrence
    $ 500,000 Ea. Employee for disease


    $ 5,000,000
  7. 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.
  8. 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