December 2010

Payroll Audit Referred To As Premium Audit More Often

Payroll Audit – More Used Term Premium Audit A payroll audit for Workers comp is actually not a fully accurate term. The term also known as a premium audit.  Actually, either term is correct.  A payroll audit may also be called a policy audit.   This blog has provided many

General Inclusions

General Inclusions – Term Of The Day In Workers Compensation, there are employers that may operate what seems to be two separate businesses. There are certain activities that are specifically included in all classifications and may not be separately classified. These activities must be assigned to the classification that describes

Workers Comp Mediations – Are They Worth Time and Cost?

Workers Comp Mediations – Worth The Time and Expense? I recently attended what I totaled to be my 60th+ Workers Comp mediations. The mediation lasted over 10 hours. I thought to myself on the way back to the office – Are Workers Comp mediations really worth the time and effort

General Exclusions

Term Of The Day – General Exclusions General Exclusions cover unique exposures.   In Workers Compensation, most employees are assigned one classification code. Certain operations present a unique exposure to hazard that is not common or prevalent in most industries. Employees who are engaged in these activities must be assigned

Certificate Holder

Certificate Holder-Workers Comp Term  The Certificate Holder is the entity that actually purchased the policy from the insurer. They are shown on the certificate of insurance as the named insured. The Holder is responsible to produce the proof of insurance. ©J&L Risk Management Inc Copyright Notice

California’s WCIRB Offers Employers Free Experience Rating Sheets

WCIRB Free Rating Sheets Free Experience Rating Sheets  are now offered by WCIRB to employers.  As NCCI has done for years, California’s WCIRB (Workers Compensation Insurance Rating Bureau) has allowed employers access to their rating bureau file once per year for free. I was going to re-write their press release,

Transfer Of Right Of Recovery Usually Means Waiver of Subrogation

Transfer Of Right Of Recovery = Waiver A transfer of right of recovery for Workers Comp usually involves a very specific type of waiver. The act of giving up the right by an insurer of collecting from another entity for payment on behalf of the insured. In current standard policies,

Funded Self-Insurance

 Term Of The Day – Funded Self-Insurance Funded self-insurance is also referred to as accountant’s self insurance. An account or accounts are set up in a company’s budget to pay the Workers Compensation claims. These accounts are “funded” at the beginning of the budget year. Risk management techniques such as

Carpal Tunnel Claims Reduced By Almost 50% – Amazing

Carpal Tunnel NCCI When I was looking over the recent report by NCCI, I noticed an incredible figure on the reduction of a certain type of injury. Their September 2010 report, “Workers Compensation Claim Frequency Continues to Decline in 2009” is a treasure trove of great statistics. The one that

Independent Contractors In South Carolina

South Carolina Independent Contractors The following is a great assessment of how a specific Workers Compensation Commission views independent contractors. Even if your company has no Workers Comp concerns in SC, the control issue is spelled out here very well. The issue of employee vs. subcontractor is very important at the

Quantitative Claim Auditing

Term Of The Day – Quantitative Claim Auditing A quantitative claim auditing term of the day. The quantitative claim differs from Qualitative auditing. This is one of the parts of a premium audit that can reveal surprising inaccuracies. Comparing the loss runs to what the NCCI or State Rating Bureau has

Partial Retention Is Great Risk Management Technique

Partial Retention Can Reduce Premiums and Budgets The Partial Retention of a risk can be thought of as either using a deductible or an umbrella to cover catastrophic events that would ruin certain insurance programs. Your car insurance deductible can be thought of as a partial retention.   If you

Deposit Premium

Term Of The Day – Deposit Premium The Deposit premium is unique from regular insurance premiums, because they are refundable should either the insured or the insurer chose to terminate the perpetual insurance. Premium required by an insurance company for plans subject to premium adjustment. The initial provisional premium is

Is Physical Therapy Really Worth It?

Physical Therapy From A Very Personal Viewpoint Is Physical Therapy really worth the cost and time?  I recently was asked this question by a Workers Compensation adjuster trainee. My response came from more personal than professional experience.  In 1996, I was walking across a carpeted floor without shoes carrying two

What Are “A” Rates ?

Term Of the Day – “A” Rates When analyzing the premiums that very large deductible insureds pay their carriers, we often come across what is called an “A” rate. The underwriter will set the rates on an “ala carte” basis only analyzing the company on its own merits and not

Actuary Manages Financial Risk Using Structured Formulas

An Actuary Manages Financial Risk An actuary manages financial risk using different methods.  An actuary is a business professional who analyzes the financial consequences of risk. Actuaries use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs.   Actuaries may

Waiver Of Subrogation – Very Popular Term in Workers Compensation

Term Of the Day – Waiver Of Subrogation The WC term of the day waiver of subrogation clause is very popular in insurance policies and rental agreements. This type of waiver is when one party gives up the right to pursue another third party for paid damages if the third

Reinsurance Trade Group Or Cartel – Global Reinsurance Forum

Reinsurance Trade Group Seen By Some As Cartel Is this reinsurance trade group a cartel?  The Global Reinsurance Forum reached it’s first anniversary in September of this year. Launched by 10 major reinsurers, the forum’s aim is to be a lobby group that’s goal is to shape international regulatory and

Are The WCIRB And NCCI Becoming More Alike?

WCIRB And NCCI Becoming More Alike WCIRB and NCCI  are becoming more alike. Yesterday, I posted how the WCIRB had adopted rules similar to NCCI’s new changes. It was late at night and I did make a mistake. What I meant to say was that the WCIRB was adopting rules

Standard Exceptions

Term Of The Day – Standard Exceptions The Standard Exceptions in a Workers Comp policy reduce premium payouts for the safer workers at a give employer. Employees that are not classified under the governing classification code. Almost all business have standard exception employees. Clerical (Class Code 8810) and Drivers (Class

Is the WCIRB Becoming California’s NCCI?

WCIRB Becoming California’s NCCI The WCIRB Is slowly becoming California’s NCCI. While attending a recent California Workers’ Compensation Insurance Rating Bureau (WCIRB – the rating bureau for California) conference, I started to notice that the WCIRB was adopting rules that were similar to Boca Raton’s NCCI. I thought I was

Scooping Ice Cream Results in Compensable Injury

Term Of The Day – Scooping Ice Cream Scooping ice cream can be hazardous? Recently, an employee of an ice cream store had her claim denial reversed and received Workers Comp Benefits for her shoulder injury caused by scooping ice cream in a very busy store. Apparently, it is not

Accident Year Experience Used Very Often By Captives

 Accident Year Experience The accident year experience differs from other types of experience measurement comparisons. The statistical matching of all losses occurring (regardless of when the losses are reported) during a given 12-month period of time, with all premium earned (regardless of when the premium was written) during the same

Endorsements Are Under Radar Part of Work Comp Policy

Endorsements Can Change Policy Many Times  Policy endorsements change the policy as many times as the carrier wishes.  Workers compensation policies may need some type of change or addition during the course of the policy year. These endorsed changes for Workers Comp policies may possibly occur due to changes in

Due Diligence Overused Term But Necessary in Work Comp Insurance

Term Of The Day – Due Diligence The Due Diligence is one of those overused terms in insurance, especially Risk Management.  The term was started with the post stock market crash and resulting depression. Congress passed the Securities Act of 1933.  The term was born out of that Act.  Due

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