We’ve provided answers below to the questions we’re asked most frequently. We hope it helps you to better understand how MADSIF provides better coverage and lower insurance costs for Michigan auto dealers. If you don’t see your question answered below, we’re available to answer any question you may have by contacting us here.

How does a group self-insured fund differ from other insurers?

MADSIF operates on a group self-insurance model, which uses captive on-balance sheet financial provisions to pay member claims, and focuses on risk management and strict underwriting to lower insurance costs for our members. Unlike commercial insurers, we don’t base our rates on the cost of capital, but on real-world information about the group’s loss and claim histories. And because we’re working for our own, we focus on providing programs that lower dealers’ risk, so that we can return as much money as possible in the form of annual dividends.

When and where are workers covered?

To be compensable, the injury must happen at work. Workers’ compensation is designed to cover only injuries which arise out of and in the course of employment. In the majority of cases, it is obvious whether an injury happened at work. There are, however, situations when this becomes more difficult to determine. MADSIF’s expert claims processing team are on hand 24-hours-a-day to help you assess the situation, file a claim and walk you through the process every step of the way.

How does the MADSIF dividend program work?

Under MADSIF’s dividend program, members receive an average of more than 34 percent of their premium over the life of the program. We calculate premiums by dividing investment income and group premium dollars left over after claims and administrative costs among our members. Numbers specific to each member’s account are included in that final calculation to arrive at the amount that will be returned as a dividend. Since our inception, MADSIF has paid annual dividends to our member dealers totaling more than $150 million.