New York Policyholders Workers Comp Premiums
Should the excess surcharges be returned to New York policyholders? I was reading this article in a few of the online insurance publications. Some of the posted replies asked if New York should have returned the premiums to the policyholders and not the state. If the employers overpaid, should the employers not be reimbursed?
Insurers To Pay New York $120M for Premium Overcharges
New York officials say four insurance groups have agreed to pay a total of about $120 million in excess workers’ compensation surcharges to the state.
The attorney general’s office says the companies collected too much in surcharges on premiums from policyholders after the state Workers’ Compensation Board in 2000 changed the way it calculates the annual fees it charges worker’s comp insurers, charges the insurers pass along to policyholders.
The four insurance groups are ACE, Zurich, Pennsylvania Manufacturers, and CNA, each a parent to a number of insurers operating in the state. The ACE companies will pay $70 million, Zurich $37.5 million, Pennsylvania Manufacturer $5.9 million and CNA $5.75 million.
Article posted in Insurance Journal on 1/4/11