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Will New Administration Change Workers Compensation System?


New Administration Changes = Federalization?

I have received a few questions since the elections concerning any new administration changes that may take place.

USA New Administration Social Security Emblem
Wikipedia – U.S. Government

In my opinion, there will not be very many changes as long as each state regulates its Workers Compensation system. I do not think that Workers Comp will be under a Federal program any time soon. There would be too much of a backlash if it became a federal system.

This is one of the most appealing times for proponents of federalizing the Workers Compensation system to consider a system that would be overseen by a bureaucracy. With the bailout of AIG and other insurance companies, the federal government would end up owning more of a stake in insurance companies than at any other time in the history of Workers Comp. There may be some rhetoric produced about how states could not properly oversee their insurance companies, so a federal program would be more appealing.

One main point is that AIG’s insurance operations WERE NOT failing. It was the investment side of AIG that failed miserably. It is my opinion that insurance carriers that are failing should not be bailed out for their insurance operations. As was in the past, the insurance company would go into receivership in each state, and the Insurance Commission would move in to assist or divest the carrier. That model worked. Can one imagine the mess if there was a federal overseer for the state insurance commissions? The term “nightmare” would be a compliment.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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