Declarations

Undue Stress

“The pending sale could create undue stress on our workers’ compensation system. We will fight every step of the way to ensure Ohio’s self-insured employers and their workforce are protected.”

—Ohio Attorney General Richard Cordray. Ohio has joined Michigan in objecting to pending sale of Chrysler LLC because of workers’ compensation issues. Cordray said his office has filed a limited objection in United States Bankruptcy Court, Southern District of New York on behalf of the Ohio Bureau of Workers’ Compensation (BWC) in an attempt to protect the state’s workers’ compensation system. In the event of a sale as currently proposed, the Ohio BWC could ultimately have to assume payment and administration of Chrysler’s self-insured workers’ compensation claims, the AG’s office said. As a result, the state’s self-insured guaranty fund could be negatively impacted.

Better But Not Great

“While we’re disappointed with the final language of HF 417, overall the legislation is a far better product than its original version. … HF 417 still contains the somewhat high prejudgment interest rate of 10 percent.”

—Steve Schneider, American Insurance Association (AIA) vice president, Midwest Region. AIA and other insurance trade groups lobbied Minnesota lawmakers against a pair of bills that would have either: allowed for attorneys’ fees and 7 percent annual interest on amounts due for an insurer’s breach of contract, or eliminated the attorneys’ fee provision but enacted a 12 percent annual interest rate on such awards against insurers. The final version of HF 417 —dubbed the “one way loser pay” bill —does not allow for attorneys’ fees but sets an interest rate of 10 percent. It becomes effective Aug. 1.