Pennsylvania Workers Comp Carriers May Owe Premium Refunds

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Premium Refunds Likely Owed by Pennsylvania Workers Comp Carriers 

Seventy Pennsylvania Workers Comp insurance carriers stepped up and fixed their Lost Cost filings.   Please note you do not have to be a Pennsylvania employer to have been affected by the corrections.   If your policy, premium audit or E-Mod Sheets have Pennsylvania listed, your company needs to read this article further. 

Picture of Pennsylvania Workers Comp Capitol Rotunda
Wikimedia Commons License Bestbudbrian

I usually do not comment on the photos.  The Pennsylvania Capitol Rotunda is stunning.  

 The insurance carriers (except one) are not to blame for the recent press releases and corrective filings.   The Pennsylvania Compensation Rating Board (PCRB) issued incorrect advisory loss costs in their 2018 filings.   We have chosen not to point out the name of the one misreporting carrier.   

Who was at fault in this Pennsylvania Workers Comp conundrum remains water under the bridge.   The error was eventually caught and fixed but only prospectively (going forward). 

Last week, we published an article on the PCRB’s missing the highly inflated loss numbers from one carrier.   One of the questions that begged to be asked was why the  PCRB missed the inflated numbers.   

PCRB FAQ Notables

The following Q&A’s and others can be found at this link. 

Will there be any adjustments to premium already paid on policies effective between April 1, 2018 and December 31, 2018?

Premiums are established by insurance carriers, and they are based on a variety of considerations, only one of which is loss costs. Other considerations include (but are not limited to) carrier loss cost multipliers (LCMs), schedule rating adjustments, retrospective rating plans, and multiple line discounting. The PCRB is not an insurance company. The PCRB does not underwrite coverage, issue policies, make rates, or calculate premiums, either prospectively or retrospectively. Questions regarding policies written using rates that were based on the loss costs approved effective April 1, 2018 should be directed to the insurance carriers that issued the policies.

Will my Experience Modification change?

Experience modification factors for policies to be written or renewed as of January 1, 2019 were previously issued. These experience modification factors will be revised, assuming Insurance Department approval of the January 1, 2019 filings. Additionally, issuance of experience modification factors for February through March is on hold pending this approval.

______________________________________________________

Experience Modifications After A Correction

One of the areas that usually contain errors more than any after a wholesale correction is the Experience Mod calculation.  The figure should be monitored very closely for any miscalculations.     According to NCCI and other rating bureaus, an X-Mod takes 33 steps to promulgate a company’s E-Mod. 

Pennsylvania Workers Comp – Employers Need To Take Action

We should all move on except for one point.   Employers that paid Pennsylvania Workers Comp insurance premiums in 2018 should receive a refund check.   I am not a fan of crediting future policies.   Why – because when I have seen future policies credited, those policies are sometimes fraught with a number of errors.   

The premium refunds are much easier to calculate when they are refunded for that certain year.   Almost any premium auditor will attest to that fact. 

Even though there should be more corrective rate filings in the future, the count stands at 70 Pennsylvania Workers Comp insurance carriers that have filed the proper corrective filings.     As a service to our blog and newsletter readers and to Pennsylvania employers, the 70 are listed below. 

Even if your carrier is not listed, you should contact them along with your agent.   If you have any further questions, please use the Contact Us page here to send me an email.   

There are more than the  70 below  reporting carriers that provide  Pennsylvania workers comp coverage in the Keystone State.  By the way, when will those Pennsylvania workers comp carriers step up and file a correction?   I will update this list as more carriers correct the filings or write another article.  Kudos are sent to Zenith and ZNAT for fixing the problem first.   

The corrected rate filing “fixes” are split between before and after April 1, 2018.  Other carriers filed a combined rating.   Look closely to see if your carrier is on the list.     

 
​Company Name
​Date Submitted
 ​Notes
​Zenith Insurance Company
​December 17, 2018 ​For policies issued between April 1, 2018 and April 30, 2018
​Zenith Insurance Company
​December 17, 2018
 ​For policies issued between May 1, 2018 and December 31, 2018
​ZNAT Insurance Company
​December 17, 2018
 ​For policies issued between April 1, 2018 and April 30, 2018
ZNAT Insurance Company
​December 17, 2018
 ​For policies issued between May 1, 2018 and December 31, 2018
​The Continental Insurance Company
​December 21, 2018
 ​For policies issued between April 1, 2018 and December 31, 2018
​American Casualty Company of Reading, PA
​December 21, 2018
 ​For policies issued between April 1, 2018 and December 31, 2018
​National Fire Insurance Company of Hartford
December 21, 2018
 ​For policies issued between April 1, 2018 and December 31, 2018
​Transportation Insurance Company

​December 21, 2018

 

 ​For policies issued between April 1, 2018 and December 31, 2018
​Valley Forge Insurance Company
​December 21, 2018
 ​For policies issued between April 1, 2018 and December 31, 2018
​Continental Casualty Company​December 21, 2018 ​For policies issued between April 1, 2018 and December 31, 2018
​EMC Property & Casualty CompanyJanuary 11, 2019​ For policies issued between April 1, 2018 and December 31, 2018
​EMASCO Insurance Company​January 11, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Employers Mutual Casualty Company​January 11, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Hamilton Mutual Insurance Company​January 11, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​Union Insurance Company of Providence​January 11, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​American Interstate Insurance Company​January 24, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​State Workers’ Insurance Fund​January 30, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​American Home Assurance Company​January 31, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​AIU Insurance Company​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Commerce and Industry Insurance Company​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Granite State Insurance​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Illinois National Insurance Company​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​National Union Fire Insurance Company of Pittsburgh, PA​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​New Hampshire Insurance Company​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​The Insurance Company of the State of Pennsylvania​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​AIG Assurance Company​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​AIG Property Casualty Company​January 31, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Motorists Mutual Insurance Company​January 30, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Allied Property and Casualty Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​AMCO Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Depositors Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Nationwide Mutual Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Nationwide Property and Casualty Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Nationwide Mutual Fire Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Harleysville Insurance Company of New Jersey​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Harleysville Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Harleysville Preferred Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Harleysville Worcester Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Pharmacists Mutual Insurance Company​February 7, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Motorists Commercial Mutual Insurance Company​February 7, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Nationwide Agribusiness Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Farmland Mutual Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​National Casualty Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​BrickStreet Mutual Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018 with annual premiums less than $100,000
​NorthStone Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018 with annual premiums less than $100,000
​SummitPoint Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018 with annual premiums less than $100,000
​PinnaclePoint Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018 with annual premiums less than $100,000
​AlleghenyPoint Insurance Company​February 6, 2019 ​For policies issued between April 1, 2018 and December 31, 2018 with annual premiums less than $100,000
​ACE American Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​ACE Fire Underwriters Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​ACE Property and Casualty Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Bankers Standard Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Indemnity Insurance Company of North America​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Insurance Company of North America​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Pacific Employers Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Westchester Fire Insurance Company​February 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​NOVA Casualty Company​February 28, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Chubb Indemnity Insurance Company​February 13, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Chubb National Insurance Company​February 13, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Great Northern Insurance Company​February 13, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Pacific Indemnity Company​February 13, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​Vigilant Insurance Company​February 13, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Federal Insurance Company​February 13, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​The Hanover American Insurance Company​February 27, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Massachusetts Bay Insurance Company​February 27, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​The Hanover Insurance Company​February 27, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Citizens Insurance Company of America​February 27, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​Allmerica Financial Benefit Insurance Company​February 27, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Allmerica Financial Alliance Insurance Company​February 27, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​Arch Insurance Company​March 4, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Arch Indemnity Insurance Company​March 4, 2019 ​​For policies issued between April 1, 2018 and December 31, 2018
​American Automobile Insurance Company​March 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​Fireman’s Fund Insurance Company​March 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018
​National Security Corporation​March 8, 2019 ​For policies issued between April 1, 2018 and December 31, 2018

 

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

2 Responses

  1. Based on research, your workers’ compensation premium is calculated by multiplying a rate times your payroll and dividing the result by 100. For example, suppose that your payroll is $500,000 and the rate is $.10. Your premium is 500,000 X .1 / 100 or $500.

    The premium you pay at the beginning of your policy period is a provisional amount. It is an estimate based on your projected payrolls for the coming year. After your policy has expired, your insurer conducts an audit to determine your actual payrolls for that year. Your insurer then adjusts your premium. If your actual payroll exceeds your estimated payroll, you may be billed an additional premium. If your actual payroll is less than your projected payroll, you may receive a return premium.

  2. You are correct. However, if the rates at the time of audit have a built-in overcharge, then the premium audit and the final premium will not be accurate. The gist of the article was for the employers to check their policies, endorsements, and premium audits to make sure they were charged properly. In Pennsylvania, a large number of the employers are owed refunds.

Comments are closed.

Table of Contents

Related...

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

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.