NonProfits’ United Vehicle Insurance Pool began paying premium commission July 1, 2006.  We are delighted to have added this benefit for our broker colleagues.

Broker Commissions

Vehicle Insurance Pool commission is set based on total business written by the brokerage: 

Commission on any account is calculated based on the premium received through the brokerage statewide at the time of binding. 
VIP commission is paid within 30 days of receipt of premium.

Workers’ Compensation Group commission is currently set at 5% for all business.  Commission is paid quarterly within 30 days of close, on premium collected.

Working with NonProfits United

NPU operates two self-insurance entities: the Vehicle Insurance Pool and the Workers’ Compensation Group.  Each of these is a monoline self-insurance group owned by the members and governed by a member-elected Board.  Organizations wishing to join either the Vehicle Pool or the Workers’ Compensation Group must be a nonprofit, incorporated in California. 

Both groups are structured similarly; they self-insure the first $500,000 of loss and purchase re-insurance and excess insurance for additional layers of coverage from Best-Rates carriers.  The VIP and WCG are independent financial and risk entities. 

If you are an insurance broker and are interested in placing a nonprofit client with NPU, we welcome the opportunity to work with you.  If you have never placed coverage with NPU before, please follow these steps prior to submitting any application: 

(1) Print out a copy of the attached Broker Application, and either or both the VIP Broker Agreement and WCG Broker Agreement
(2) Complete the Application and Agreement(s).
(3) Submit your Application and Agreement(s) and all requested attachments, with your first submission.

You may click the links below to download Marketing and Information packages for use with your clients:

Qualification for Coverage

Both groups require that all prospects be 501 c 3 nonprofits incorporated and operating in California.  Additionally:

The Vehicle Pool requires that the prospective member own or lease at least one vehicle.

The Workers’ Compensation Group is governed by the California Department of Insurance Regulations, Office of Self-Insurance (DIR-OSIP) and is more exacting with regard to qualifications of prospective members.  Prospects must meet the following criteria:

• California organization with federal 501 (c) 3 tax-exempt status
• Social Service designation under NAICS:  primary function to provide social services (code 624***) or paratransit (code 458***) What is NAICS?
  • Social service organizations can operate ancillary services such as school, respite care, or health care – but primary identity of organization must be social services
  • Paratransit are eligible by virtue of the federal transportation funds dedicated to providing paratransit as a social service
• Minimum age of organization 3 years
• Minimum WC premium $5,000
• Average positive net worth for most recent 3 years
• Maximum 1.75 experience modification factor (ex mod)
• Meet minimum underwriting criteria, or undergo a pre-quote safety inspection
• Ability to produce audited or reviewed financials statements

• All new members are required to make a commitment of at least three years to the Group to ensure stability.
• Because Workers’ Compensation Insurance is a legally required coverage, choosing to self-insure this coverage requires a more exacting application process involving approval by both the NPU Board and the State of California. 
• Please plan on submitting applications at least 6 weeks prior to desired inception date.  
• The State application process is somewhat detailed, and NPU staff will coordinate the necessary steps completely with you and your client. 

VIP Accepts Direct Business

The Vehicle Pool does accept direct business; the Workers’ Compensation Group does not.  Brokers will occasionally refer Vehicle Pool members to us as directs because they know the program is accessible and the member can deal with us effectively on their own behalf.

Because of our focus on member responsibility for controlling losses, we stress education and ongoing active communication with all members.  Whether or not a member comes to us through a broker, we expect to communicate with them directly on loss control, claims, and Pool business.. 

However, we respect our brokers’ relationships with their clients implicitly and we never interfere with broker-client relations or solicit direct membership from brokered members.  We always include brokers in all our mailings and communications with their clients.   

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