Business Briefs

Thursday, February 28, 2008 | 0

Oregon deadline for WC rules comment 3/24

Salem, Or – Final comments on Oregon’s new Workers’ Compensation Insurance unit statistical plan and policy cancellation rules are due March 24.

Last year the Oregon legislature decreased the cancellation notification required to employers for the non-payment of workers compensation premiums from 30 days to 10 days. 

The Workers Compensation Insurance Plan covers employers who cannot obtain workers compensation insurance from a private firm. The state’s Department of Consumer and Business Services’ Insurance Division worries if it does not adopt the proposed amendment employers insured by the Workers Compensation Insurance Plan would be allowed more notice for the non-payment of premiums than the employers who are privately insured.

The Insurance Division is also proposing to adopt the amendments instituted by the National Council on Compensation Insurance (NCCI), the rating organization for workers’ compensation insurance in Oregon, governing the gathering of workers’ compensation statistics. 

The amendments clarify fraudulent claims reporting procedures and improve the accuracy of the statistics. It also hopes to provide NCCI with more developed statistical data and improved rates, classification loss costs and retrospective rating. The department says it must adopt this amendment or inaccuracies will result.

Another proposed amendment reacts to the 2007 Oregon legislation increasing the amount of compensation employers pay for medical services for non-disabling claims. The Director of the Department of Consumer and Business Services annually establishes the rate employers must pay. The department says it must adopt the NCCI changes for the Oregon Employer Paid Medical Program Limits or it cannot implement the new legislation.

The Insurance Department notes the cost to insurers to make changes in their operating systems is unknown but it is “not expected to be significant.”

Because of the shortened cancellation notice period carriers will be able to cancel coverage sooner when they show cause. This is expected to result in savings for the insurers. There is not enough data to say how much the savings will be, however.

Clark appointed State Fund VP

SAN FRANCISCO (February 27, 2008)  - San Francisco-based State Compensation Insurance Fund – California’s largest workers’ compensation insurance carrier – has appointed Thomas D. Clark to Vice President and Member of the Executive Committee.

Clark, 54, of Elk Grove, brings over a quarter-century of workers’ compensation experience to his new vice presidential post at State Fund.

 "Tom's extensive experience in marketing as well as claims will be invaluable as State Fund re-aligns our operations to more effectively deliver our products and services to all of our customers," said State Fund President Janet Frank. "He will be a great asset to my senior management team."