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.
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 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
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
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 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 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
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
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
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 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 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
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 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 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
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 – 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 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 = 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
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 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 – 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
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
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.
