PEO Crumbles, Taking WC Carrier with it and Raising Questions about high Deductibles

A specialty workers’ compensation insurer has been placed under supervision by Missouri regulators after a professional employer organization it covered filed for bankruptcy, becoming the fourth such case in four years and leading some industry observers to wonder whether that business model needs stricter regulation. A.M. Best downgraded the financial strength rating of Lumbermen’s Underwriting Alliance, an insurance carrier domiciled in Missouri but headquartered in Florida, from B to E after the company reported a $22.5 million deficit. (Lumbermen’s Underwriting Alliance ...