Big News in North Carolina Workers’ Compensation Insurance: Commissioner Seeks Rate Increase
Last year, this North Carolina workers’ compensation blog reported, North Carolina Insurance Commissioner Wayne Goodwin ordered a 9.6% decrease in voluntary loss costs for the state’s workers’ comp – a move that Goodwin claimed saved companies in the state nearly $120 million. But 2010 has seen a reversal of strategy. The North Carolina Rate Bureau – an organization that represents the interests of NC workers’ comp insurance companies – seeks increases in loss costs of 1.2% as well as an average increase of 5.5% in assigned risk markets (in 2009, there was zero change to the assigned risk markets).
The North Carolina Department of Insurance will have 60 days to look-over these rate adjustments to determine whether they are warranted or not. If you are interested in examining the nitty-gritty details, head to this website: http://pserff.ncdoi.net/pc.html.
The manipulation of North Carolina workers’ compensation insurance rates numbers may seem irrelevant to you, if you are in the process of filing a claim. But these kinds of “big picture” changes to state insurance policies can have serious trickledown effects. It’s very difficult to calculate exactly how rate increases (or decreases) will translate into costs/benefits for businesses and claimants. It’s not a “one-to-one” thing. Indeed, literature abounds with examples of market interventions actually yielding completely contradictory – even paradoxical – results.
So, if you are a business owner or a claimant, what should you make of these potential rate adjustments? In short, don’t make too much of them! If you are a business owner, focus on building your business, managing costs, and dealing with rate changes as they emerge. If you are a claimant, focus on processing your paperwork effectively and on time – and on dealing with any roadblocks, such as uncooperative or bad faith insurers or employers. Also, focus on your rehab/recovery so you can return to the workforce in good spirits and in a productive capacity.
Do you need help dealing with a claims-related issue? If so, get in touch with a North Carolina workers’ compensation law firm to explore your rights and obligations under state law. Even if you have a relatively simple and seemingly straightforward case, it never hurts to speak with representatives of a solid and well-established law firm about the do’s and don’ts of filing.
More Web Resources:
North Carolina Rate Bureau
More info about the proposed rate increase
