AIA 'Takes Issue' With S.C. Workers' Compensation Story

January 30, 2006

The American Insurance Association (AIA) takes issue with the AP article that appeared on Insurance Journal's Web site Jan. 30, for it shows once again the extent to which opponents of workers' compensation reform will go to defeat a measure that is critical to the health of the South Carolina economy.

"The AP reporter unfortunately relied exclusively on the words of a "hired gun" insurance actuary who is attempting to try a pending workers' compensation rate filing in the press instead of before an administrative law judge, as the state of South Carolina requires," explained Raymond G. Farmer, AIA assistant vice president. "All with the ultimate goal of discrediting the parties involved in the current effort to pass workers' compensation reform in the General Assembly."

"The reporter failed to point out that the actuary making these questionable charges is a long-time industry critic who conveniently finds himself on the same side of the issue as the South Carolina Small Business Chamber of Commerce, a group partially funded by the trial bar-who are also vigorously opposing the workers' compensation reform legislation," Farmer said. "The National Council of Compensation Insurers has been a frequent target of Mr. Simons, as have the insurers that rely on NCCI's data to make important business decisions.

"Just as the sun comes up in the morning, Mr. Simons will find a way to nit-pick industry data to build a case for his side, if not workers' compensation, then some other insurance issue. The bottom line is that insurers will continue to rely on NCCI data. We also believe that the workers' compensation debate is an important one to South Carolina's future and deserves to be reported on fairly and completely."