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October 2010

Is Cleaners Asthma a Legitimate Disease?

Cleaners Asthma – Term Of The Day Cleaners Asthma raised many questions about the use of cleaning fluids in the workplace.   A newly recognized work-related injury or disease that has recently been studied. Workers who have been exposed to chlorine agents or bleach, have been found to have respiratory

Is Accident Year Data A Good Basic Statistic?

Accident Year Data – Workers Comp Term Accident year data is often used for statistical comparison analysis. Most of the time when I have Accident Year Data, the information involves: The inclusion of all carrier loss and exposure data (or that of a group of carriers or within a book

Does Workers Compensation Subrogation Exist- Is it Worth Pursuing?

 Workers Compensation Subrogation Can Be Money Left On The Table Does Workers Comp subrogation exist in Workers Comp claim department?  Subrogation is one of those under- the-radar terms in Workers Compensation.   It is the  act of recovering the amount paid for a loss by an insurer from the entity

Workers Compensation – Is It Becoming The Forgotten Insurance?

Workers Compensation – A Forgotten Insurance Is Workers compensation becoming the forgotten insurance?  The talk of the town has, is now, and will be health insurance. I expect the health insurance discussion to continue for many months into the future. My concern is that employers of all types will even

Are Policy Provisions Important?

Policy Provisions – When Reality Hits The Policy Provisions trip up employers when filing claims.  Even adjusters sometime have trouble with the policy terms.  The section of an insurance policy that defines the requirements of both the carrier and the insured. This section includes information about loss reporting and settlement,

Your Workers Comp Policy – Read It From Back To Front

Your Workers Comp Policy – A Different Approach Read  your Workers Comp Policy the opposite way.  One of the areas of Workers Comp policies where most of our clients seem to run into problems is the rules and conditions that are in the policy, but not in the Declarations Page.

Voluntary Market Best For Employers Workers Compensation Policies

Voluntary Market Very Critical To Workers Compensation A voluntary market compares to free market version of workers compensation insurance.   Most states set the Advisory Loss Costs.  Carriers deviate from the Loss Cost rates by filing loss cost multipliers (LCM) A group of insurers  in a competitive environment who underwrite coverage

Montana Has Highest Workers Comp Rates In The US

Montana Has Highest Workers Comp Rates Now Montana has the highest workers comp rates.  According to an Oregon-based report as covered by the Watchdog,  Montana is the nation’s highest for Workers Comp Costs. The Treasure State recently produced an RFP for a review of their Workers Comp system. According to

Prohibited Risk Employers And Assigned Risk Programs

Term Of The Day – Prohibited Risk A Prohibited risk is any class of business that has been excluded by the underwriters of an insurance carrier. These classes of businesses will not be insured under any circumstance. This is also known as uninsurable risk. Workers Compensation insurers avoid certain markets resulting

Preferred Risk Will Usually Have Lower Premiums

Term Of The Day – Preferred Risk Preferred risk is any risk that is considered to be a better risk. These risks have a lower expectation of incurring loss and if losses are incurred, they will be less significant. For example, a business who has a effective safety program in place

What is A Net Loss In Workers Compensation?

Net Loss Is The Final Countdown The term Net Loss is seldom used in Workers Compensation. The figure  represents the final paid loss regardless of the reserves that were set on the claim.   The final paid loss may differ from the Total Incurred if the file was closed after the

NCCI Says Workers Comp Costs Up, Number of Claims Down

NCCI Says Workers Comp Costs Up – Number of Claims Decreasing The NCCI  says claims costs are  increasing  but the number of workers comp claims is decreasing .   According to a very recent report by NCCI(R), the downward trend in the number of Workers Compensation claims has continued for 2009. The

Did A Loss Constant Cause Me To Pay Higher Premiums?

Term Of The Day – Loss Constant In workers comp, loss constant is a flat amount added to the premiums of smaller businesses.The purpose of adding it in is to offset any unusual or more than average losses or claims. The smaller business can have a higher loss ratio. The Loss

Does A Hazard Increase Work Comp Premiums?

Hazards Increase Work Comp Premiums  Most hazards cause workers comp premiums to increase eventually.  Any condition that increases the chance that there will be a loss. Hazard exist in every workplace. Examples could be improper storage of office supplies which contain chemicals, or a slippery floor in a kitchen. Recognizing

10 Workers Comp Year End Strategies to Cut Comp Costs

Workers Comp Year End Strategies to Cut Comp Costs These are the Workers Comp year end  strategies if your company’s Workers Comp policies renew on January 1, there are at least 10 strategies to implement to cut your costs. The first five are Your E-Mod is already set in stone

Is First Dollar Coverage Provided in WC Policies?

Term Of The Day – First Dollar Coverage The first dollar coverage in A WC policy is the norm. The type of insurance in which payment of all losses up to the policy limits is provided without the use of deductibles. Because the insurer assumes more risk, the premiums will

Can There Be Coinsurer on WC policy?

Coinsurer-Term Of The Day This is sometimes referred to as pie chart insurance (coinsurance). One of the parties that provides additional insurance to the same person or policy. A Coinsurer provides partial coverage along with other coinsurers. Coinsurers are generally used when the amount being covered is too large for

Are Workers Compensation Premiums Similar To Business Tax?

Workers Compensation Premiums  = Tax? We often hear that Workers Compensation premiums are just part of doing business. Would premiums then be the same as a tax? The final answer is no. I thought I would list a few of the similarities and differences. The following are similarities between Workers

Do I have Unearned Premium On My Policy?

 Unearned Premium-Workers Comp Term The unearned premium represents the portion of a Workers Comp Policy Premium that has been paid beyond the current period. The Unearned part of the term means the insured has not yet used that part of the premium in their policy. If the insurer or insured

What Is A Wrap Up Policy?

Term Of The Day – Wrap Up Policy Also known as a Contractor and/or Owner Controlled Insurance Policy, a Wrap Up Policy is a single policy naming all participants in a project as insureds. The use of a Wrap Up Policy for workers compensation provides coverage without each individual worker or

Risk I.D. # – Who Assigns it?

Term Of The Day – Risk I.D. # An employers Risk I.D.# is assigned by it’s rating organization. Each employer’s Risk I.D. # is uniquely it’s own. Through the use of this system, each employer’s past Workers Compensation experience can be isolated and tracked.   ©J&L Risk Management Inc Copyright Notice

True Core AIG Was Never Going To Fail – Insurance Part Solid

 AIG TARP Not Needed For Insurance Part The true core AIG is still growing steadily in the Workers Comp arena. In the last post, I included a passage from a very recent publication by the US Treasury Department on the TARP program. As I have posted very often, the core

AIG – Government Missed Point

AIG Failure TARP Bailout The Government Missed The Point of AIG.The following is a passage from a document published by the UNITED STATES DEPARTMENT OF THE TREASURY – OFFICE OF FINANCIAL STABILITY Troubled Asset Relief Program: Two Year Retrospective. This is better known as the TARP program. Yes, I did

Ballast Value Rights Workers Compensation Rating Ship

Term Of The Day – Ballast Value The Ballast Value comes from an old sailing term.  Sailors were known to put large rocks in the bottom of their ships to enhance stabilization.   In general, the definition of Ballast is something, such as a weight, added to give stability , usually

ERM – Enterprise Risk Management

Term Of The Day – ERM ERM is the acronym for Enterprise Risk Management.  A Practice that attempts to ensure the risk position of a company or organization as it tries to satisfy it’s goals. There are just a few steps to this practice but they are definitive. One is

Workers Comp Claim Reserving – Follow It Closely

Workers Comp Claim Reserving Workers Comp Claim Reserving should be followed closely as part of your workers compensation premium reduction program. One of the most mystifying areas of Workers Comp is in the area of reserving. I have written often on reserves, as believe it or not, they are just

Are There Explanation of Benefits (EOB) in Workers Compensation?

Explanation of Benefits (EOB)-Term Of The Day The Explanation of Benefits (EOB) is a new term in the Workers Compensation industry. Until recently, EOBs were common to the Health Insurance industry and are sent out to claimants so they are aware of the benefits that their insurance carrier is paying

When Does A Hard Market Occur – Are We In One Now?

Term Of The Day – Hard Market A Hard Market is the term used to designate the period after a Soft Market. It usually occurs after a wide-scale catastrophe that ends a soft market. During this time, standards for underwriting become more rigid, premiums rise as well as profits, and

Soft Market – Are We In One Now?

Term Of The Day – Soft Market Part of a cycle, the term soft market describes the time when premiums are low, profits dwindle, and competition increases. As the number of claims increase, insurance carriers can no longer afford to lower premiums to increase volume. When this happens, the soft

California’s Governor Signs Bill Under Radar

California’s Governor Signs Bill The California Governor signs workers comp bill quietly.  California has a great system for finding out if the contractor you are about to hire has Workers Compensation insurance.   You can also find out whether or not your potential contractor has been suspended from the Contractors State

What Is Retaliatory Employment Discrimination Act (REDA)

Retaliatory Employment Discrimination Act Is Important The Retaliatory Employment Discrimination Act involves Workers Comp in certain cases. The Department of Labor’s Employment Discrimination Bureau (EDB) is responsible for the enforcement of the Retaliatory Employment Discrimination Act, or REDA. Through this act, employees who are involved in a Workers Compensation Claim



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