South Carolina Workers Comp PPD Rating News Item

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Rating Viewings South Carolina Workers Comp News Item 

South Carolina Workers Comp took a turn for the worse for adjusters trying to set permanency reserves on files. 

Picture South Carolina Workers Comp News Item on table
By StockUnlimited

On Friday, the South Carolina Industrial Commission decided to not go along with Governor Mark Sanford’s previous Order that the Industrial Commissioners decide permanency ratings based on the AMA guidelines. I did not think the Commissioners had that power as they were appointed by South Carolina’s governor.

One of the most expensive parts and the reason for the horrendous increases of Work Comp rates premiums is that there is no standard in that state when a viewing takes place to assess the permanent partial disability. You could put the same person in front of two different commissioners and get two totally different South Carolina impairment ratings. North Carolina, for instance, is much more objective with their permanency ratings.

It is now and has been almost impossible for a Workers Comp adjuster to set the reserves on the file, as the final permanency rating is a roll of the dice, at best. The permanency ratings are a large part of what E-Mods consist of in charging the South Carolina employers their premiums. To be safe, the adjuster must put up a very high reserve to forecast the permanency rating which is akin to forecasting the weather.

Star Rating South Carolina Workers Comp Vector
By StockUnlimited

This is one of the most unfriendly-to-business decisions I have seen come from any state body in many years. When employers pull up stakes and move to neighboring states, then the legislature and other governing bodies will wonder why the tax base is shrinking. This has happened before in Maine, Massachusetts, California, and other states. When employers pick up their businesses and move them, an alarm will go off. Who is hearing the alarm now except Governor Sanford?

There is a saving grace. The case may move into the courts to be settled. This will likely be one that the South Carolina Supreme Court will need to examine. Between now and then, South Carolina businesses have had a total of a 50% increase in their premiums over the last two years. West Virginia’s motto is “Open for Business”. Is South Carolina’s “Going Out of Business?”

Next Up – A Review of the Workers Compensation environment in West Virginia

©J&L Risk Management Inc Copyright Notice

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Table of Contents

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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