Workers' Compensation (C) Task Force
September 29, 2007
The Workers Compensation (C) Task Force met on Saturday, Sept. 29, 2007.
During this meeting, the Task Force:
- Received the annual “State of the Line” report from the National Council on Compensation Insurance (NCCI). Among statistics reported by the advisory organization were the following: Workers’ compensation private carriers calendar year combined ratio for 2006 (preliminary) of 96.5% is the best in at least 30 years. Workers’ compensation medical losses are more than half of total losses (all claims—NCCI states: 59% Medical, 41% Indemnity).
- Received an update from the Large Deductible Study Implementation (C) Working Group which reported that efforts continue on drafting its Third Party Administrator (TPA) Guidelines and Guidelines for the Filing of Workers’ Compensation Large Deductible Policies & Programs (Large Deductible Guidelines). It was mentioned that one key area remaining to resolve under the draft TPA Guidelines involves how much oversight should be required regarding bank accounts held by TPAs for their carriers. The draft Large Deductible Guidelines were reported as becoming very mature, but with possible revision remaining in regards to recommendations pertaining to TPAs.
- Received an update from the NAIC/IAIABC Joint Working Group which reported that it met Sept. 19, 2007 in Phoenix, AZ during the International Association of Industrial Accident Boards & Commissions (IAIABC) 93 rd Annual Convention. Work on an Independent Contractor White Paper was reported to be progressing, with remaining issues pertaining primarily to “if any” workers’ compensation policies and state pre-certifications (e.g., certificate of non-coverage). It was also mentioned that during the Sept. 19 Working Group meeting an IAIABC presentation was made regarding clean bill criteria for medial bills to workers’ compensation payers.
- Received an update from the Professional Employer Organization Model Law (C) Working Group which reported that the Guidelines for Regulations and Legislation on Workers’ Compensation Coverage for Professional Employer Organization Arrangements (NAIC PEO Guidelines), adopted by the NAIC on June 4, 2007, recently received two technical only amendments to correct the Table of Contents and to correct a subsection reference. A motion was made to also add a drafting note under Section 12 and to amend language to broaden its Subparagraph 12A. The Task Force adopted these two suggested Section 12 changes with the caveat that they should receive wider circulation to regulators and interested parties before next going before the Property and Casualty Insurance (C) Committee for consideration of adoption.
The Working Group is to soon focus its attention on development of a paper to be of assistance to states in implementation of the NAIC PEO Guidelines.
It was announced that the NAIC NCOIL PEO Model Focus Group of the Professional Employer Organization Model Law (C) Working Group met by conference call on July 10, 2007 to consider providing comments to the National Conference of Insurance Legislators (NCOIL) on that organizations June 20, 2007 draft PEO Model Act. A letter addressing NAIC concerns was submitted to NCOIL on July 13, 2007. NCOIL now plans to consider a later revised draft and review comments received during its interim meeting to be held Oct. 27, 2007.
- Received an update from the Settlement Review (C) Working Group which reported that a second amendment to the New York/American International Group Settlement was recently filed which extended the documents release deadline from Sept. 1, 2007 to Nov. 30, 2007.
Action Items:
- Task Force adoption of its 2008 charges.