District Court Rules in Favor of Carriers

The Fifth Circuit Court of Appeals today, in USF&G vs. V.W. Fox McKeithen et al., ruled that the retroactive application of a 1995 law changing the assessment basis for Louisiana's second injury fund from a premium surcharge to a paid-loss approach violates the 'takings' clause of the U.S. Constitution. The second injury fund reimburses insurers for part of the benefits paid to injured workers who had a prior disability. Insurers, led by American Insurance Association, argued that the retroactive application of the formula imposed a substantial cost burden for workers' compensation contrac...