Hawaii insurers must pay levy for second injury fund.
The cash balance in Hawaii's Special Compensation Fund has fallen below the amount deemed necessary to meet its current and projected obligations. Under state law, that means workers' comp insurers must pay a special assessment.
The Insurance Division issued a directive telling carriers they will be assessed 4.9 percent of their 2010 gross premiums, by March 15. The division has issued the notice, along with a required form to fill out, on its website.
Commerce commissioner announces average rate decrease for Assigned Risk Plan.
Employers in the Minnesota Workers' Compensation Assigned Risk Plan will generally see their average premium levels, including surcharges, decrease by 1.2 percent. That was part of an order issued by Commerce Commissioner Glenn Wilson.
The order followed one issued in December 2009 that adjusted the rating structure of the plan with a premium effect of 2.3 percent effective April 1, 2010, for new and renewal policies. In the latest order, the commissioner listed several findings of fact, including:
- The current loss cost multiplier of the plan of 2.50 will be continued and applied to the 2011 pure premium base rates.
- The cost of losses underlying the plan rates are projected to decrease by 2.7 percent for 2011, including a decrease in the pure premium base rates, a decrease in the loss development for older years, and a decrease in the trend adjustment for the increasing costs of medical and indemnity benefits.
- The plan will assess policyholders 3.4 percent of premium for the Special Compensation Fund -- an increase from the current 3.2 percent.
The combined effect of adopting the 2011 pure premium base rates maintaining the current loss cost multiplier expense constant and WCRA surcharge, increasing the SCF surcharge, and continuing the TRIA surcharge results in a 1.2 percent decrease.
Read more at the WorkersComp Forum homepage.
January 13, 2011
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