A California employer is challenging a carrier’s demand for an additional $1.1 million in collateral for a large deductible workers’ comp program claiming that the demand is in retaliation for moving the account to a different carrier. The complaint by Pacific States Industries (PSI) alleges that after it notified American Zurich Insurance Company of its …
Industry feedback on draft regulations for deductible workers’ comp insurance policies shows wide variation in industry practices. The California Department of Insurance also heard concerns from employer representatives who noted past and current abuses by carriers, but a key user of these policies remained silent on the department’s plans. Overall, the draft proposal generated surprisingly …
High attorney involvement, elaborate regulatory schemes, medical care conducted on a lien basis, and scores of cumulative trauma claims filed on a post-termination basis are just a few of the unique factors that make California’s workers’ comp system the most expensive in the nation. California’s loss adjustment expense (LAE) ratio is nearly double the national …
The California Department of Insurance is holding a pre-rulemaking hearing this week to get industry feedback on new planned regulations for workers’ compensation deductible policies. The March 16 meeting kicks off at 10:00 a.m. and will be held simultaneously in Sacramento and San Francisco with a videoconference link between the two locations. Up for discussion …
A Missouri judge ordered Lumberman’s Underwriting Alliance (LUA) into liquidation after the court found that there was no legitimate chance to rehabilitate the troubled workers’ comp carrier. The company was brought down in large part by writing large deductible policies for professional employer organizations (PEOs). The carrier first entered voluntary insurance department supervision when the …
Major players in the insurance industry are pushing back against findings in a draft report that large deductible policies, especially those issued to professional employer organizations (PEOs), played a key role in recent insurance carrier insolvencies. The effort comes as state regulators across the nation are considering changes to tighten regulations for these types of …
Insurance industry representatives are pushing to limit the scope of proposed regulations governing the filing of policy forms and collateral agreements used with workers’ compensation policies in California. The proposed regulations follow high profile conflicts between the California Department of Insurance and some large insurance carriers, as well as between California employers and their insurers …
The California Department of Insurance is updating the rules governing the filing and approval of workers’ comp policy and endorsement forms. In particular, the updated regulations address collateral or side agreements to large deductible policies that have been at the center of lawsuits and disputes between employers and workers’ comp carriers in recent years. The …