AUTO Retro Program

The Automotive United Trades Organization (AUTO) has brought together an industry group of gasoline retailers, automotive service retailers and petroleum distributors.  AUTO provides an effective voice for these small businesses who are the backbone of free enterprise.  Formed in 1984, AUTO has aided thousands of business owners and their employees via positive action in areas ranging from legislative and environmental concerns to statewide communications and cost-saving programs.

AUTO provides the most comprehensive resources available to assist our members in operating in Washington State profitably.  One of the may services available to AUTO membership is the workers' compensation retrospective rating program (Retro).

The AUTO Retro Program is a performance based program rewarding members with higher refunds that make a concentrated effort at safety and accident prevention.  There is no guessing with AUTO refund distribution.  The refund distribution is explicitly written in the member agreement.  Refunds are distributed at each adjustment.

40% of the overall refund is distributed to members based off their company's premium size and the remaining 60% is distributed based off individual performance.

How Does the AUTO Retro Program Work?

• L&I tracks the group members' premium and claims costs during a twelve month period of time known as a Plan Year.
• L&I makes the 1st Adjustment Refund Calculation 10 months after the end of the Plan Year by subtracting the group members' actuarial adjusted claims from their retro premiums.
• L&I makes the 2nd Adjustment Refund Calculation 22 months after the end of the Plan Year by subtracting the group members' actuarial adjusted claims from their retro premiums.
• L&I makes the 3rd and Final Refund Calculation 24 months after the end of the Plan Year by subtracting the group members' actuarial adjusted claims from their retro premiums.

What Are The Risks?

Retro is not without risk. If the group's actuarial adjusted claims exceed the group's retro premiums then the group members may be assessed additional premium, up to a predetermined amount.   AUTO's assessment is limited to 15% of the members' plan year premium.

For more information on AUTO Retro, contact Craig Smith at casmith@ernwest.com or (800) 433-7601 ext. 15.