Utah: Legislature closes door on effort to create insurance subsidiary
The issue is that the fund is a market of last resort for workers' comp and therefore is entitled to a federal tax exemption on its profits. The subsidiary, therefore, would have initially had capitol flowing into it from the tax-exempt fund.
Insurers said that would put the new subsidiary on an unlevel playing field with competing private insurers. Among the opponents was the Property Casualty Insurers Association of America.
"The difficult part is that [WCF] is a PCI member," said Kenton Brine, PCI's assistant vice president for the northwest region. "It was a challenge to oppose it but we have a policy position. We support legislation and regulation that fosters a healthy, competitive insurance market."
Utah's legislative session ended in mid-March.
Read more at the WorkersComp Forum homepage.
March 21, 2011
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