General Questions

Several Reasons:

  1. We issue you an insurance contract which cannot be changed except by our mutual agreement. Some “job insurers“ are funds or associations that have the ability to reduce your discipline days by action of their Boards of Directors. 
  2. The State of Michigan audits our operation to make sure that we are paying claims properly and putting the interest of the members (our owners) first.
  3. As an insurance company, our financial performance is public record. Funds or associations do not have to make public filings about their operations and finances.

Our corporate structure is the best in the business for protecting member rights. You get a written, enforceable contract that can only be changed by mutual agreement of both parties. You have the security knowing that the Michigan Insurance Department audits our performance every year to make sure that LECMPA is being managed for the benefit of the members.

As a member, you are an OWNER of the Association. And since we are tax-exempt, we can concentrate on using our members’ money to pay covered claims, not trying to satisfy shareholders who aren’t union transportation workers. 

Our members are our owners. We have no inside investors who want to make money from our operation. This lets us concentrate on paying covered claims and doing what is best for our members.

No. LECMPA is not affiliated with any union. We support all transportation labor. Our responsibility is only to our own members.

Eligibility Questions

LECMPA members are employed in a variety of transportation industry crafts and trades. Requirements for membership include:

  • A union transportation worker in good standing and subject to discipline.
  • Program eligibility determined by your previous incidents and discipline history.
  • You must not be on any type of probation.

Once your completed application reaches our office, you should be covered within a few days.

Yes, you will receive a policy with the details of your coverage. You will also receive a copy of the application. Remember, your application is part of the policy. Be sure to check both over carefully for accuracy. Put the policy in a place where you can easily find it.

Application Questions

Complete an Application for Membership. You can qualify for LECMPA coverage here.

Yes, just contact your agent or the State Manager. Find your local agent/state manager.

Once we receive your completed policy application, if you are eligible, your policy will be issued effective in two business days in most instances.

No. Once the application is approved, you will receive the balance of the application month and the entire following month free.

If you select payroll deduction to pay your premiums, the deduction for the third month will occur sometime during your second month, depending upon the carrier. This is because it usually takes payroll payments two months to reach us.

If you choose to pay by automatic check or electronic funds transfer from your checking account, you have to provide a voided check at the time of application. Premiums are due in advance, and are deducted on the second to last business day of each month. This means your first payment will be taken at the end of month two.

If you choose to pay by credit card you must provide your credit card number at the time of application. Credit card payments are deducted on the 20th of each month. This means your first premium payment will be deducted on the 20th of month two.

Calculating Your Coverage Questions

LECMPA coverage is calculated based on a 7-day week, so you need to start with your average gross monthly wage. Take that amount and divide by 30 for the acceptable daily rate. Remember that coverage is issued in increments of $3. So for example, if your average monthly gross is $3,600: $3,600/30 = $120/day maximum.

LECMPA insures your “average daily wage,” which means your taxable income for services provided to your employer. Expense allowances, “per diem,” and similar types of reimbursement are not wages, and LECMPA cannot insure them. You can generally tell the difference because wages are taxed and other types of payments are not. If you are in doubt, contact the Home Office to discuss your concerns.

Claims Questions

You can call us toll-free during business hours at 1-800-514-0010, or request forms on our website. Click here to request claim forms.

In order to be fair, we review claims in the order in which they are received. Most claims are reviewed within a week of when all documents are received. We make claims payments weekly.

We pay claims on Wednesdays, by electronic transfer to the bank account of your choice. You will be paid until your policy limit is reached or you are offered return to service, whichever comes first.

When you request claim forms, we will send you a packet with an explanation of what we need. You will need to complete a Notice of Claim, which includes an explanation of the incident resulting in discipline. You must also file a witness statement, a copy of your charge letter, discipline notice, and a copy of a recent pay stub and voided check. In some cases, you may be asked for additional information, such as a transcript of Investigation or work history.

Until your suspension is completed, you are offered reinstatement, or your policy limit is reached, whichever happens first.

Most claims made by LECMPA members are paid promptly and without incident. However, you have two opportunities to appeal a denied claim. You may ask the Appeal Board to review your claim. The Board is composed of railroad and transportation labor professionals with decades of experience adjusting disciplinary cases. Our internal review usually takes about 60 days. You also have the right to request a review by the Michigan Office of Finance and Insurance Regulation.

No. When a member succeeds in recovering lost wages from an employer, after appealing discipline, LECMPA does not require repayment of dispersed claim money. 

Inactivating a Policy Questions

If a member is off work for an entire calendar month due to military leave, medical leave, furlough or taking an exempt position, they can suspend their policy and do not need to pay dues for that time. However, if the policy is suspended, no benefits are payable for incidents which occur in that month, including accidental death incidents. To keep the accidental death feature active, they must continue to pay dues.

A member cannot inactivate their policy if they are off of work due to discipline. This applies to those who have not or do not intend to file a claim for benefits and those who have already exhausted their job insurance benefits. Premium payments must be kept current the entire time a member is off of work due to discipline.

If a policy has been inactivated, it is the member’s responsibility to notify the Home Office to reactivate the policy once they return to work.

Premium Payment Questions

If you select payroll deduction to pay your premiums, the deduction for the third month will occur sometime during your second month of coverage, depending upon the carrier. This is because it usually takes payroll deduction payments a month to reach us.

We require payment in advance, so your payment must be received in the Home Office by the last business day of this month for next month’s premium. For example, we must have your May payment in hand no later than April 30 or the last business day of April.

You have a ten-day grace period to bring your account up to date. We will notify you by mail if your account with us is delinquent. After ten days, your policy will not be in force and you would not be eligible for benefits if you are held out of service. After 30 days your Accidental Death coverage will also lapse. Late payments can be made by calling the office, online or by check. Contact the Billing Department to update credit / debit cards or bank accounts in order to make sure your premium payments stay up to date.

We offer a 20% discount for annual payments made by direct debit/electronic funds transfer or check, and a 15% discount for annual payments made by credit card. We offer a 10% discount for semi-annual payments made by direct debit/electronic funds transfer or check, and a 5% discount for semi-annual payments made by credit card. 

You can pay in advance for a year.

VISA, MasterCard, Discover or American Express.

LECMPA issues reminders/notices to anyone who pays annually or semi-annually. You will receive a payment reminder in the mail about a month before your next payment is due. However, we do not send payment reminders or statements for any monthly payment method, whether payroll deduction, check, credit card or automatic payment. You are required to make regular monthly payments. If your payment is not received by the 11th of the month that is owed, you will receive a notice stating that your policy has lapsed and you will not have coverage until your policy is brought up to date. Once your premium is paid, your coverage will resume the next day.

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