Due to the down turn in investment income the Minnesota Workers Compensation Reinsurance Corporation will assess its member companies and policyholders a reported $268 million over the next five years! That's a pretty big hit. To learn about Minnesota workers compensation rules contact Workers Compensation Consultants.
It was just announced that the Minnesota State sponsored workers comp organization lost about 25% of their investments during this economic slow down creating a deficit of somewhere around $420 million that just has to be made up. The current plan would make collection of the assessments spread out over the next five years.
The assessment to members and policyholders will still have to go through the approval process with the Minnesota Commissioner of Labor and Industry along with approval from the Minnesota Commerce Commissioner. Hearings will start soon.
Wednesday, May 20, 2009
Friday, May 15, 2009
Contractors, Certificates of Insurance and Workers Compensation
Wow! What a combination, contractors, certificates of insurance and workers compensation! Check out Workers Compensation Consultants site for detailed information about workers compensation certificates of insurance. Read on for my opinion...
A Certificate of Insurance is merely a piece of almost worthless paper that for some reason seems to make the world of contracting go round. A certificate or "cert" as it's known in the insurance world, is a snapshot in time, a notice to the certificate holder that insurance coverage is in place as shown on the document at that moment in time. It provides information as to who the named insured is, the policy dates, the policy coverage and limits. That's about all it was designed to do.
But wait! There's more! Over the last several years the use of certificates of insurance has changed. Large construction firms, general contractors and project owners who employ or contract "risk management professionals" or a team of attorneys have decided to change this informational piece of paper into a contract. More and more companies are being requested to show on their certificates "special wording" and other items that stretch the limits of the certificate. Most of the time a small contractor is asked to provide almost unattainable wording and conditions on their certificate in order to just do the job.
I've recently reviewed, for a sub-contractor, a certificate request by a large mid-west construction firm who is the general on a federal project. The first thing that happened is the small sub contractor was provided with a "sample certificate" and asked to have their insurance agent provide a certificate exactly as shown. Well here's the problem...certificates of insurance are a standardized COPYRIGHTED form developed and provided for use by an organization called ACORD. Nothing burns me quicker than someone asking someone else to violate federal copyright laws by marking out or changing a copyrighted document. And I'm here to tell you that when an insurance agent, in the guise of trying to help his client meet the onerous requirements set out by the project owner or general contractor, makes ANY changes to that copyrighted document, it IS a copyright violation. That's breaking the law! Shame on you folks who make these requests. The only folks who can make changes to that document are the ones who hold the copyright, ACORD.
Most of the time the biggest change they request is that of modifying the "cancellation notification clause" as shown on the document. And the rub is that the general or project owner wants to make the insurance company responsible for notifying them when the subs policy cancels.
So how about this mister general and mister project owner...don't be such a ______! If you feel you need special wording, make it very clear as to what you need, then ask for an endorsement to the subs policy. Don't try to make a certificate into a contract. Because frankly those agents and subs out there providing modified certificates probably don't really know what they are doing. If you need a policy modification, like a cancellation clause change, ask for a policy endorsement. Oh yea, don't be surprised if the insurance companies thumb their noses at you! Some of the requests I've seen are ridiculous to the point I'd like to see YOU mister general or owner take on the kind of responsibility that you're asking the insurance company to do!
Sorry about the ranting...but this is a topic that many unsuspecting subs and their insurance agents are dealing with on a daily basis.
Thanks!
A Certificate of Insurance is merely a piece of almost worthless paper that for some reason seems to make the world of contracting go round. A certificate or "cert" as it's known in the insurance world, is a snapshot in time, a notice to the certificate holder that insurance coverage is in place as shown on the document at that moment in time. It provides information as to who the named insured is, the policy dates, the policy coverage and limits. That's about all it was designed to do.
But wait! There's more! Over the last several years the use of certificates of insurance has changed. Large construction firms, general contractors and project owners who employ or contract "risk management professionals" or a team of attorneys have decided to change this informational piece of paper into a contract. More and more companies are being requested to show on their certificates "special wording" and other items that stretch the limits of the certificate. Most of the time a small contractor is asked to provide almost unattainable wording and conditions on their certificate in order to just do the job.
I've recently reviewed, for a sub-contractor, a certificate request by a large mid-west construction firm who is the general on a federal project. The first thing that happened is the small sub contractor was provided with a "sample certificate" and asked to have their insurance agent provide a certificate exactly as shown. Well here's the problem...certificates of insurance are a standardized COPYRIGHTED form developed and provided for use by an organization called ACORD. Nothing burns me quicker than someone asking someone else to violate federal copyright laws by marking out or changing a copyrighted document. And I'm here to tell you that when an insurance agent, in the guise of trying to help his client meet the onerous requirements set out by the project owner or general contractor, makes ANY changes to that copyrighted document, it IS a copyright violation. That's breaking the law! Shame on you folks who make these requests. The only folks who can make changes to that document are the ones who hold the copyright, ACORD.
Most of the time the biggest change they request is that of modifying the "cancellation notification clause" as shown on the document. And the rub is that the general or project owner wants to make the insurance company responsible for notifying them when the subs policy cancels.
So how about this mister general and mister project owner...don't be such a ______! If you feel you need special wording, make it very clear as to what you need, then ask for an endorsement to the subs policy. Don't try to make a certificate into a contract. Because frankly those agents and subs out there providing modified certificates probably don't really know what they are doing. If you need a policy modification, like a cancellation clause change, ask for a policy endorsement. Oh yea, don't be surprised if the insurance companies thumb their noses at you! Some of the requests I've seen are ridiculous to the point I'd like to see YOU mister general or owner take on the kind of responsibility that you're asking the insurance company to do!
Sorry about the ranting...but this is a topic that many unsuspecting subs and their insurance agents are dealing with on a daily basis.
Thanks!
Wednesday, May 13, 2009
North Carolina Workers Compensation Limits Benefits
North Carolina workers compensation benefits are under the gun by state legislators. State law makers are trying to put a cap on workers compensation payments made to injured workers after they reach 65 and are eligible for social security retirement benefits.
House Bill 1022 would cap injured North Carolina workers benefits to 300 weeks after a worker turns 65 or becomes eligible for social security benefits.
Sound familiar? You bet. In a recent blog I talked about the Utah Supreme Court shooting down a similar law that had passed in Utah.
Supporters of the North Carolina bill believe this would help cut workers compensation costs in the state. Seems more like the state is trying to pull back from its commitment to protect its workers. I'm sure there's more to come on this subject.
Thanks!
House Bill 1022 would cap injured North Carolina workers benefits to 300 weeks after a worker turns 65 or becomes eligible for social security benefits.
Sound familiar? You bet. In a recent blog I talked about the Utah Supreme Court shooting down a similar law that had passed in Utah.
Supporters of the North Carolina bill believe this would help cut workers compensation costs in the state. Seems more like the state is trying to pull back from its commitment to protect its workers. I'm sure there's more to come on this subject.
Thanks!
Friday, May 1, 2009
Workers Compensation Fraud - California Father and Daughter Charged
California workers compensation laws are there for a reason! I'm starting to sound like a broken record but it seems fraud in the workers compensation system is on the loose!
Here's another short story of fraud recently addressed in the California workers compensation system.
It seems a father and daughter operating a business located in California were recently arrested for workers compensation premium fraud. Charged with a total of 11 felony counts these folks are accused of under reporting their workers comp payroll in an effort to minimize their workers compensation premiums to the tune of over $1,000,000. Wow! This activity occurred between 2003 and 2008, over a five year period. They are accused of misrepresenting the activities and even the existence of staff, superintendents, job foremen, subcontractors and others and failure to report accurate employee payroll information. They evidently were tripped up when various insurance carriers were presented with a total of 4 injured worker claims over the five year period of time while all along the father and daughter team denied they even had employees.
Think about it. That's a MILLION DOLLARS taken out of the workers compensation system. Money that would have gone to statistically help support other employers in the state. When this type of activity occurs it really does effect all others who step up to the plate and shoulder the responsibility of providing workers compensation coverage for their employees.
Thanks!
Here's another short story of fraud recently addressed in the California workers compensation system.
It seems a father and daughter operating a business located in California were recently arrested for workers compensation premium fraud. Charged with a total of 11 felony counts these folks are accused of under reporting their workers comp payroll in an effort to minimize their workers compensation premiums to the tune of over $1,000,000. Wow! This activity occurred between 2003 and 2008, over a five year period. They are accused of misrepresenting the activities and even the existence of staff, superintendents, job foremen, subcontractors and others and failure to report accurate employee payroll information. They evidently were tripped up when various insurance carriers were presented with a total of 4 injured worker claims over the five year period of time while all along the father and daughter team denied they even had employees.
Think about it. That's a MILLION DOLLARS taken out of the workers compensation system. Money that would have gone to statistically help support other employers in the state. When this type of activity occurs it really does effect all others who step up to the plate and shoulder the responsibility of providing workers compensation coverage for their employees.
Thanks!
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