Mass. Rejects Eastern Bid To Raise Workers Comp Rates

September 4, 2001

Eastern Casualty Insurance Co.’s bid for an individual 11.6 percent increase in Mass. workers compensation rates has been rejected by the State’s Insurance Commissioner Linda Ruthard on the grounds that the evidence presented by the company was ” insufficient in critical areas.”

Eastern, the State’s 3rd largest workers comp writer, was told that it had failed to apply certain methodologies in calculating its request, which the Commissioner felt would show more favorable figures. She left the door open for the company to amend its petition using the suggested figures. It also has the option of appealing the decision to Conn.’s Supreme Judicial Court.

The rate increases by an individual company were a departure from established procedures. Normally the State’s Workers’ Compensation Rating and Inspection Bureau sets rates on behalf of the entire industry. Eastern has withdrawn from the organization, but will have to continue using rates set in 1999, when it was still a member, until it can obtain approvals for new rates.

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