Governor Mark Sanford – Disability Ratings
Our hats are off to Governor Mark Sanford. For quite some time, South Carolina has made setting reserves on files with a permanent disability rating almost impossible. The Workers Comp Insurance Commissioners could just assign a very subjective permanency rating to a Workers Comp file.
The Workers Comp adjusters in South Carolina have had a tough time setting reserves on files, as a permanency rating could vary as much as 300-400%. The informal conference that set the final rating was called a viewing.
Reigning in these arbitrary assignments of permanency will enable the Workers Compensation file reserves to be more easily estimated. In our file reviews, the adjusters have always commented that they cannot assign a low rating % to the reserves, as the Commissioners can just throw out a number and make the insurance carrier of self-insured just pay up or appeal the rating.
The South Carolina workers comp adjusters endure a Catch 22 situation on almost every disability rating reserve. Many years ago, the arbitrary ratings astounded me when I adjuster South Carolina Workers Compensation claims. The disability rating consisted of one of many peculiarities to the South Carolina Work Comp system. The other was having to file a pile of status forms. South Carolina required a status form filing every 60 days or a fine letter was automatically sent to the adjusting staff – usually the Claims VP – ouch!
There is no consistency on the permanency ratings. In South Carolina they are arbitrary and at times, seem almost random. This can be frustrating if an employer wants justification for a file reserve when Permanent Partial disability is an issue.
We shall see how the ratings will be changed now that Governor Sanford has stepped in to save companies in South Carolina millions Workers Compensation premiums.