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Federal Control of Workers Comp Takes Another Step With New FIO

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Another Step In Federal Control Of Workers Comp

Workers Comp Federal Control takes another step. Recently, a bill was passed by the House that establishes a Federal Insurance Office (FIO) for international insurance transactions. As I had predicted numerous times in the last few months, the insurance – and in turn – Workers Compensation insurance landscape is slowly but radically changing.

Picture of Foot Print On Beach Federal Control Another Step
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In a large % of phone consultations that I perform for our investor clients, I am often asked what major development would change the “playing field” for Workers Comp over the next seven to ten years. I always answer that the slow but steady progression of the government’s attempt to regulate insurance almost makes any forecasting by me nearly impossible after five years into the future.

The Professional Insurance Agents Association (PIA) has commented that they are very concerned the bill would allow proponents of federalizing insurance to advance their agendas. I could not agree more. As we all know, federalizing any type of insurance would lead to more paperwork, control, and inefficiencies.

The first business conducted by FIO would be a study of federal insurance regulation. This seems to be a conflict of interest as the FIO itself is in the position of recommending to Congress whether the power to regulate insurance should be removed from the states and made into another federal bureaucracy. My concern is that if any government agency produces a report that justifies it existence and allows expansion, the report may be biased towards expanding its duties.

Can you already see the results of the report? I can.

Update – As of today, nothing has really been heard from the FIO on workers compensation insurance matters.  The FIO has stayed under the radar with any of its efforts to expand any type of federal control. 

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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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