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What Are Workers Compensation Claim Reserves – Confusing Term

 Workers Compensation Claim Reserves Difference Among Carriers and TPAs Most Workers Compensation Claim Reserves begin when the data input division of a carrier sets the claim up and puts on an automatic reserve. The automatic reserve sets at usually a nominal amount for a medical only or lost time claim.

When Are Final Claim Reserves Set – Is There Exact Date?

Final Claim Reserves Set Earlier Than Expected The final claim reserves are set much earlier than one might expect in the reserving process. Most adjusters set the final reserves at 60 days into a claim.   The exact timetable is: 14 days – initial reserve – usually made to the medical

$250,000 Claim Reserve Level – Why Is that Number So Important?

$250,000 Claim Reserve Level Creates Many Critical Responsibilities The $250,000 claim reserve level causes many necessary actions.  Some of them are obvious.   The other not-so-obvious actions are just as important. Please note that the Reinsurer and Excess Insurer are the same for this article. Usually,  a claim that reaches this

Work Comp Reserves And Twilight Zone Phone Call

How To Negatively Affect The Initial Work Comp Reserves The Work Comp reserves on a file are based on a more complicated formula than just an educated guess.   One of the quickest ways to have the claims staff set very high initial reserves is by starting the file with the

Best Way To Waste Time On Workers Comp in December

The Easiest Way To Waste Time On Workers Comp Before The New Year I have discovered the best way to waste time on Workers Comp in December.   Workers Compensation reserves do not directly apply to a policy that renews within 30 days.   We receive many emails and phone

Workers Compensation Predictive Modeling Will Never Work

Workers Compensation Predictive Modeling One of the more popular buzz phrases now is Workers Compensation predictive modeling.  If  one looks at any of the WC groups on LinkedIn,  there are many discussions on this very matter. There are many predictive models on WC.  Those models usually leave the observer with

Self Insureds – Do You Know If Your Excess Insurer Has Been Notified?

Self Insureds Need To Monitor Excess or Reinsurer Notification Do you know if your self insureds has been notified? Workers Compensation excess insurance (reinsurance) can often go unnoticed in all the inner workings as a file progresses towards its conclusion.   A reinsurer denying coverage because they were never put

Outstanding Reserves Are Key to Comp Cost Reduction

The Outstanding Reserves Are The Key Outstanding reserves can make or break any company’s Workers Comp budget. I received two questions this week on the three parts of what is considered Total Incurred. Total Incurred is reported by your insurance carrier to the respective rating bureaus. The basic formula is Total

Workers Compensation Claim Reserves – The Skinny

WC Claim Reserves Indemnity From an article and a manual, I wrote many years ago. The main WC insurance variable this manual addresses is Claims Reserves (Reserves). THE MOST IMPORTANT THING TO REMEMBER IS THE CLAIMS RESERVES ARE THE UNREGULATED PART OF THE PREMIUM CALCULATION PROCESS. Insurers can set the level

Quick Workers Comp Reserving Analysis – Total Incurred Is Key

Workers Comp Reserving Is A Guesstimate The Workers Comp reserving on your files usually is based on no formulas.  This article is from another manual that I wrote many years ago. It is timeless information that is true for all states. Claim reserves are sometimes the ignored part of a

Lower Workers Comp Insurer Reserves Can Be Harmful

Lower Workers Comp Reserves Not Always Best The workers comp insurer reserves sometimes hide a reserve deficit.  AM Best released a report on May 2nd that was startling to me. Of the 11 insurance companies that failed, nine were due to inadequate reserves and pricing. The carriers were not necessarily

Workers Comp File Reserves – You May Be Running Late

Workers Comp File Reserves Timing Important I try to post information on Workers Comp file reserves this time of year. Why? The majority of Worker Compensation policies renew on January 1st.  The Unit Stat date for those policies is 7/01/11. Your companies Unit Stat date will occur 6 months AFTER

Bulk Reserves Cover Large Number Of File Concerns

Term Of the Day – Bulk Reserves The term bulk reserves are one of the antiquated terms in insurance.   An accumulated amount determined to provide for future loss of payments for known claims. These include case reserve inadequacies, additional case reserves, and claims that may reopen or other reserves

Loss Reserves – Where Do I Find Them For My Workers Comp Claims?

Loss Reserves Are An Adjuster’s Forecast  Loss reserves are the the dollar amount set aside or reserved to completely cover the expected cost of a claim or claims under the workers comp policy issued by the insurance company. This determined amount is set aside as of the annual statement date.Loss

Workers Compensation Loss Run Most Important Information

Workers Compensation Loss Run Information Critical The Workers Compensation Loss Run contains very important information. I have posted almost ten times concerning online claims access. If your company is unable to have online access to your claims, at least the loss run will contain some very pertinent information. If any

Workers Compensation Expense Reserves Are Often Ignored

Expense Reserves vs. Medical Reserves The third and final reserve figures are the Expense Reserves. These reserves have caused quite a large amount of confusion ever since I started my career in Workers Compensation. The confusion always centered on what should be included in the Expense Reserves vs. Medical Reserves.

Medical Reserves and CPT Codes In Workers Comp Claims

Medical Reserves – CPT Codes Workers Comp medical reserves are the most complicated of the three reserves to estimate. Can you imagine trying to predict all of the medical treatment that will occur over the lifetime of a file? There are as many medical treatments as there are CPT codes.

Workers Comp Indemnity Reserves Basic Definition

Workers Comp  Indemnity Reserves Are One Of Three Reserve Categories The Workers Comp indemnity reserves on a claim represent the future payouts of benefits to the employee over the life of the claim. The definitions for most of these terms can be found by clicking on the Definitions tab/button in

Workers Comp Claim Reserve Contains Three Parts

Workers Comp Claim Reserve = Three Parts This post could be a very long one as there are hundreds of variables that comprise a Workers Comp claim reserve. Each state is unto itself on the benefits that are provided under Workers Compensation. There is no one list that points out

More on Recession proofing Your Workers Comp Policies

Workers Comp Recession Proofing – Another Angle The Recession proofing program centers this times on reserves. I have received quite a few emailed comments and questions about the current recession. Quite a few forward-thinking employers have asked about the quickest method or methods to reduce Workers Comp premiums in 2009.

One Thing Not To Do With File Reserves on Loss Runs

One Thing Not To Do On Your File Reserves Working in a Claims Dept for many years, I had seen one thing that would totally backfire on an employer that had questions on their Workers Comp file reserves. If you have established a working relationship with your Workers Comp claims

Workers Compensation Reserves- Silent Budget Killer

Workers Compensation Reserves – The Ever-Silent Budget Killer Workers Compensation reserves can be critical when trying to lower your company’s premiums.  The silent budget killer for most company’s Workers comp program revolves around the claim reserves. I have posted very often about the process for calculating Workers Comp premiums. The

Reduce Premiums – Fastest Way With Workers Comp Reserve Review

Fastest Way To Reduce Premiums Reserve Review Performing a Workers Comp reserve review is the key to reduce premiums of your reserves very quickly. Your Workers Comp premiums can be reduced very QUICKLY  in most situations.. It is the reserve review. The reserves are the engine of the premium charging

Premium and Reserve Reviews Are Very Different Tasks

Work Comp Premium and Reserve Review Differences The difference between Workers Compensation premium and reserve reviews comes up often during one of our presentations or in speaking with current or potential clients. To keep from boring you to tears, we will cover Premium Reviews today and Reserve Reviews next time.



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