News Digest 7/23/2007

By: Rick Waldinger

Quote of the day

"It happens, not because of sneaky intent of the company. We discover this because they report it to us."

Tom Zutell, spokesman for the Florida Office of Insurance Regulation, regarding workers' comp insurers who exceed the state's 5-percent profit cap

Go to the full story in the Tallahassee Democrat

Yolo Gets $167K to Fight Fraud
Yolo County District Attorney Jeff Reisig announces that the county is one of the few that applied to receive a $167,000 Workers’ Compensation Insurance Fraud grant from the State Fraud Assessment Commission. Yolo County ranks seventh in the state for the percentage of restitution collected. By Luke Gianni, Woodland Daily Democrat
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Florida Orders Chubb to Repay $13 Million in Excess Profits
Chubb Group agrees to refund customers part of the premium they paid from 2002 through 2004, the Florida Office of Insurance Regulation announces. That figure works out to more than $13 million in excess profits. By Paige St. John, Tallahassee Democrat
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Minnesota Comp Groups Sue AIG for Fraud
Two Minnesota workers’ compensation groups sue American International Group for $100 million in damages for allegedly fraudulent business practices. Minnesota’s Workers’ Compensation Reinsurance Association and Workers’ Compensation Insurers Association claim New York’s AIG underreported workers’ comp premiums to the two nonprofit groups for the past 22 years.
Go to the full story in the St. Paul Pioneer Press
Go to the full story by AP via Forbes

A.M. Best Issues First Rating to HEMIC
A.M. Best Co. issues its first rating of the Hawaii Employers’ Mutual Insurance Company—a financial strength rating of “A,” or excellent, and an issuer credit rating of “a”—a move HEMIC, the state’s private workers’ compensation insurer of last resort, expects will bolster consumer confidence in its policies. Pacific Business News
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B.C. Employers See Lowest Rates in 30 Years
Employers in British Columbia are about to enjoy the lowest workers’ compensation rates in more than three decades, as WorkSafeBC proposes a 7.6-percent cut in employers’ average premium base rate for next year. By Paul Luke, Vancouver Province [With Photo] Go to the Full Story…

Reforms Save Empire State Employers $1B
New York State has cut workers compensation insurance rates for businesses by 20.5 percent, an even greater reduction than the 10 percent to 15 savings state officials predicted when they reformed of the system in March. The rate cuts are estimated to save businesses about $1 billion. By Ross Daly, Long Island Business News
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Opinion: Lawsuits Counterproductive to Mine Safety
Lawsuits filed by seven West Virginia miners who are seeking punitive damages for potential future injuries from smoke inhalation in a 2006 fire will enrich only lawyers, and at the expense of mine safety. West Virginia Record
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