News Digest 3/1/2007

By: Rick Waldinger

Quote of the day

"These cases are very big deals because they dramatically changed the direction in which we thought this was going."

Saul Allweiss, an attorney who defends self-insured employers

Go to the full story in the Workers' Comp Executive

The Legislature’s Good, Bad and Ugly
Rest assured, it is going to be an entertaining legislative year as spot bills are introduced, and premium readers can find out what’s inside the sausage as new bills and old ideas make the rounds: which will pass, which will die and which are they laughing at? Find out, if you’re a premium subscriber, by clicking here.
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WCAB Decisions Affect Reserves and X-Mods
A series of decisions by the California Workers’ Comp Appeals Board have caused carriers to increase reserves on certain claims. Could the direction shift with the winds of change and if so, what needs to happen first? Premium subscribers can read the whole story and find out which decisions, which cases and how employers’ X-Mods might be affected. Of course, they have to click here.
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California Claims Adjustment Expenses Increasing
In this fact-filled story, which helps explain why rates have leveled off and may increase, premium subscribers will learn what new costs are driving the system. Premium subscribers can click here for the full story.
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CIGA Loses Small Claims Case
Call it the case of the small-minded small claims judge. It seems a small claims court in Los Angeles (how could we even think it’d not be there?) ruled in favor of an employer who sued CIGA for the unearned portion of paid premium when a carrier was seized by the Department of Insurance. To appeal or not to appeal isn’t even the question. Find out what the question is and laugh yourself all the way to Sacramento. If you’re a premium subscriber, you can get it now by clicking here.
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Self-Insured Groups Want Tax Change
Self-insured groups collect assessments from their members to pay claims. Find out how some of those claims reserves are taxable as an unintended consequence and what proposals there are to change its status. Premium subscribers can also find who’s pro and who’s con and why by clicking here.
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Sweep Targets Six Yuba City – Marysville Establishments
A Yuba City grill, one of six Yuba City and Marysville restaurants cited for a total of $44,500 in labor law violations, reopens four days after having to shut down for failing to provide workers’ compensation insurance to its employees. The owner of the Downtown Grill says she was unaware coverage had been canceled. By John Dickey, Appeal-Democrat (Marysville)
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Key Elements of New York’s ‘Win-Win’ Deal
Under New York’s workers’ compensation reform agreement, the maximum weekly benefit will increase from $400 to $500 initially and the minimum weekly benefit will rise from $40 to $100. Moreover, employers will see initial premium cost reductions of 10 to 15 percent, and inspectors will have power to shut down jobs on which employers are not paying for workers’ comp insurance.
Go to the full story by Jay Gallagher, Rochester Democrat and Chronicle
Go to the full story in Gothamist [With Photo]

In West Virginia, Exemptions Come with a Price
While some West Virginia small business legally can avoid the $750 minimum in annual workers’ compensation insurance premiums by getting an exemption, they won’t be covered. By George Hohmann, Charleston Daily Mail
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Colorado Contractors Exploit ‘Worst Kept Secret’ in Construction
In some trades including drywalling, roofing and concrete work, at least a third of Colorado workers may be illegal immigrants, according to local construction trade organizations and unions. Contractors exploit this situation paying cash and illegally failing to provide workers compensation coverage. By Myung Oak Kim, Fernando Quintero and Laura Frank, Rocky Mountain News [With Photo] Go to the Full Story…