CONN. BOOSTS ITS WORKERS' COMP RATES

Connecticut Insurance Commissioner Susan Cogswell has approved a slight boost in workers' comp insurance rates effective Jan. 1.

She accepted the recommendations from the industry's National Council on Compensation Insurance for an average increase of +0.8 percent for pure premium loss costs and an average increase of +1.7 percent in assigned risk rates.

The department's order also confirmed a minimum premium multiplier of 300, and a change in the maximum minimum premium from a maximum of $1000 to $850.

In addition, the industrial classification assessment fund rate will be 1.8 percent and the "F" industrial classification assessment fund rate will be 7.2 percent for voluntary market and assigned risk market insurers.

Cogswell waived the usual 30-day advance filing requirement so insurers may put the new rates into effect Jan. 1.

MAINE ALLOWS SMALL WORKERS' COMP HIKE

The Maine Bureau of Insurance has modified the request of the industry's National Council on Compensation Insurance for an average 1.8 percent increase in workers' compensation rates for policy year 2006 to 1.2 percent. The new rates are effective Jan. 1, 2006.

Superintendent of Insurance Alessandro Iuppa said that the reduction is expected to save employers approximately $1.6 million on policies issued or renewed in 2006.

Though the frequency of lost time claims has continued to decrease since 2000, the average cost per case for both wage loss and medical benefits has increased which has offset claims savings, Iuppa noted.

PENNSYLVANIA LIMITS HORSE STABLES' LIABILITY

Pennsylvania Gov. Ed Rendell has signed a bill limiting lawsuits against the owners of horse stables.

Supporters say the legislation, which goes into effect in 60 days, was crucial to protect the state's nearly $10 billion equine industry. Pennsylvania had been one of six states that did not limit liability for horse operations.

"There should be a reasonable recognition of risk involved with equine activities," said Rendell's press secretary, Kate Philips.

"But we must also recognize that people in the industry should be able to succeed without the burden of prohibitive insurance costs."

Although no figures are available, industry experts say a significant number of riding stables has closed or abandoned horseback-riding lessons in the last decade. The stables that remained open faced escalating premiums from a shrinking pool of insurance companies that offered equine coverage.

The law does not provide immunity if a child is injured by a horse, nor will it limit a lawsuit if negligence is involved. It also requires stables to post warning signs about the risk involved with large animals.

N.Y. LOWERS ASSIGNED RISK PLAN RATES

The New York State Insurance Department has approved an average 5.6 percent decrease in auto insurance premiums for drivers in New York's Automobile Insurance Plan (AIP), also known as the assigned risk plan.
The new AIP rate schedule goes into effect on Jan. 15 for new business and March 1 for renewal business. It represents approximately $28 million in savings.

VIRGINIA AUTHORIZES PAYMENTS ON RECIPROCAL OF AMERICA CLAIMS

Policyholders with a covered claim against insolvent Reciprocal of America can expect a partial payment soon. The Virginia State Corporation Commission has authorized the deputy receiver of the liquidated reciprocal insurer to make a 17 percent distribution to policyholder-level claimants.

ROA primarily wrote hospital professional liability insurance, workers' compensation insurance, and some ancillary insurance for its insureds.
ROA and its attorney-in-fact, The Reciprocal Group, were placed into receivership on January 29, 2003. On April 30, 2003, payment of all hospital liability claims was suspended by the deputy receiver. The SCC allowed the deputy receiver to continue paying certain workers' compensation insurance claims upon which recipients typically rely for their livelihood and medical care.

The 17 percent payment is capped at $77.5 million, which Virginia Insurance Commissioner Alfred W. Gross said he believes is a conservative estimate of the assets that can be distributed now without unreasonable risk that later approved claims of equal priority will not receive the same percentage payment.

The bar date for the filing of claims was September 30, 2004. While the number of claims that might be filed has been fixed, the dollar value that ROA may have to pay on those claims is unknown.