The California Department of Insurance has announced that it will be joining the Department of Industrial Relations to fight against the state’s emerging underground economy. The two agencies have formed the Labor Enforcement Task Force in order to crack down on the violations against the state’s insurance and labor regulations that are rampant in this offshoot economy. Insurance Commissioner Dave Jones notes that this economy is mostly comprised of businesses who hire employees that are not fit for certain types of work. These businesses often fabricate documents concerning their employees…
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Rates for Florida workers’ compensation to increase by 8.9 percent by 2012
According to Kevin McCarty, the Florida Insurance Commissioner, the insurance rates for workers’ compensation are slated to increase by 8.9 percent, and will do so beginning on January 1, 2012. By giving his approval for the rise in rates, McCarty has simultaneously refused the National Council on Compensation Insurance (NCCI) rate request, stating that there was a flaw in the council’s methodology. Equally, McCarty has denied another increase proposal by the NCCI regarding minimum premiums. Should the NCCI wish to continue to pursue its request, it will need to re-file. …
Read MoreAIR Worldwide Updates Terrorism Model for the U.S.
NEW ORLEANS – Catastrophe risk modeling firm AIR Worldwide (AIR) released an update to its terrorism model for the United States. The model, which is used by insurers and reinsurers to assess potential losses to property and workers compensation risks, reflects less frequent and lower-severity attacks based on a reassessment of the threat by a team of leading terrorism experts. “AIR’s team of operational threat analysis experts includes the FBI’s former head of counterterrorism and members of the CIA responsible for developing terrorist group profiling,” said Jack Seaquist, assistant vice…
Read MoreA.M. Best report highlights the problems facing the nation’s workers’ compensation insurance market
The U.S. workers’ compensation insurance market is in dire straits according to a new report from A.M. Best, an international rating agency. Agency analysts have been examining the effects of competition, rate decreases, economic turmoil and other factors throughout 2010 and have concluded that the market faces challenges times in the coming years. The report highlights the continuation of these trends for some time, but analysts note that the market may see modest growth for the first time since 2005 this year. The problems facing the workers’ compensation sector mirror…
Read MoreNew report shows cost of workers’ compensation dropped during global economic crisis
In 2009, at the start of the global economic crisis, there was a decrease of 4.4 percent in the number of employees who had workers’ compensation coverage. According to a National Academy of Social Insurance report, this drop was the largest in twenty years. The result was that the cost to employers for providing the benefits decreased by 7.6 percent, reaching $73.9 billion that year; which is the most recent year with complete data. This drop closely mirrors the overall decline in employment in the country. According to the chair…
Read MoreFlorida court rules that illegal immigrants are eligible for worker’s compensation benefits
The Florida First District Court of Appeals has released its ruling on the case of HDV Construction Systems v. Luis Aragon. The case stems from a worker’s compensation dispute levied against HDV construction by Luis Aragon. According to the suit, Aragon fell from a roof while working, suffering from serious injuries that prevented him from working during the extent of his recovery. Normally, such a dispute would have been settled without bringing the issue to court, but one issue makes this case court-worthy: Aragon is an undocumented immigrant. Aragon was…
Read MoreWorkers’ compensation exposure on the rise with more mobile workers
A clear growth of workers’ compensation exposure is now causing alarm among employers and risk managers with the remarkable rise in the number of mobile workers. This was discussed in this year’s meeting of Risk and Insurance Management Society (RIMS) held recently in Vancouver. In the said forum experts advised both employers and risk managers to formulate stable and concrete rules pertinent with workers’ use of any types of mobile devices at work. According to Maureen McCarthy, Liberty Mutual, manager of Workers’ Compensation and Managed Care it is a must…
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