The Workers’ Compensation Insurance Rating Bureau (WCIRB) recently completed its analysis of HIH data and received approval from the Insurance Commissioner to issue experience ratings using the data. Accordingly, the WCIRB has begun issuing experience modifications using the data and estimates that it will take approximately four to six weeks to process all of the data and issue the affected ratings.
In the summer of 2001, with the liquidation of HIH America Group (HIH America Compensation & Liability Insurance Company and Great States Insurance Company) and the resultant transfer of claims handling responsibilities to the California Insurance Guarantee Association (CIGA), the Conservation and Liquidation Office (CLO) suspended the submission of unit statistical reports on behalf of HIH in order to resolve certain technical data reporting issues.
Although the CLO resumed submission of HIH data in Feb. 2002, the WCIRB elected not to use the data for experience rating until such time as the data could be evaluated as to its fitness for use in experience rating.
To facilitate the issuance of experience ratings utilizing HIH data as
expeditiously and fairly as possible, ratings will be issued based on the order in which the data was received and validated. Inquiries with respect to delinquent ratings utilizing HIH data will not be addressed until such time as the backlog has been eliminated.
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