Workers' Compensation (C) Task Force
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The Workers’ Compensation (C) Task Force met Dec. 6, 2009. During the meeting, the Task Force:

• Received a Sept. 22, 2009, exposure draft titled, “Implementation Commentary,” a white paper to be of assistance to the states in implementing the Guidelines for Regulations and Legislation on Workers’ Compensation Coverage for Professional Employer Organization Arrangements (PEO Guidelines). The development of the paper is considered important due to the complexity of the PEO Guidelines, adopted in 2007, and due to the number of challenges regulators face today pertaining to PEO matters. It was agreed that further exposure for comment of the draft would be beneficial before the Workers’ Compensation (C) Task Force considers it for adoption, anticipated during the 2010 Spring National Meeting. It was announced that any comments on “Implementation Commentary” should be e-mailed to Bob Wake (Robert.a.wake@maine.gov), with a copy to Bob Card (bcard@naic.org), no later than Feb. 26, 2010.

• Received an annual presentation from the National Council on Compensation Insurance (NCCI) titled “State of the Line.” Workers’ compensation 2008 results were provided, in addition to data indicating recent premium drivers, loss drivers and the condition of the workers’ compensation residual market. It was explained that workers’ compensation medical losses are now more than half of total losses: medical 58%; indemnity 42% (2008 preliminary).

• The chair and members of the newly reformed Model law Review (C) Working Group were identified. The purpose of the Working Group is to consider in 2010 whether the following adopted model should be deleted, amended or left the same: Twenty-Four Hour Coverage Pilot Project (#960), adopted in 1994.

• Recognized that the NCOIL Independent Contractor Model Law (C) Subgroup of the NAIC/IAIABC Joint (C) Working Group had held conference calls this past quarter to provide the National Conference of Insurance Legislators (NCOIL) with comments from the NAIC and the International Association of Industrial Accident Boards and Commissions (IAIABC) regarding the then draft NCOIL “Construction Industry Workers’ Compensation Coverage Act” (independent contractor model law). A copy of the Nov. 22, 2009, NCOIL adopted independent contractor model law was distributed during the Task Force meeting.

• Received an update on HR 635, which proposes federal legislation that would authorize the creation of a National Commission on State Workers’ Compensation Laws. It was reported that a number of stakeholders have come forward in opposition to HR 635, including the American Insurance Association, National Association of Professional Insurance Agents, NCOIL, Property Casualty Insurers Association of America and U.S. Chamber of Commerce. However, there are now 13 co-sponsors of the bill. The bill remains in the U.S. House Committee on Education and Labor.

• Received an update from the Large Deductible Study Implementation (C)Working Group, which reported progress made in drafting its Third-Party Administrator (TPA) Guidelines. The draft had recently been revised to include health insurance changes recommended by the Regulatory Framework (B) Task Force. The draft TPA Guidelines were developed to replace the current Third-Party Administrator Statute (#90) in order to add workers’ compensation and to update the original model law, which entailed making some health insurance changes. The Working Group will consider the revised draft during a conference call in January 2010 before it forwards the redraft to the Producer Licensing (EX) Task Force for review. It is believed that the revision might be ready for consideration of adoption by the Workers’ Compensation (C) Task Force during the 2010 Spring National Meeting.