Declarations

Workers’ comp caps

“Workers’ comp is just too important to take any changes that something would go on the ballot that would make the system fall apart. There are unintended consequences when we go to the ballot so everyone is gun-shy.”

— Arizona Senator Barbara Leff, R-Paradise Valley, commenting on the compromise business and labor groups made to increase the monthly workers’ compensation benefits awarded to injured employees. Leff indicated to the Associated Press that if the Legislature had failed to work out a compromise on workers’ comp, it feared the issue would become a ballot measure, and the benefits of the system could be destroyed.

More Marsh trouble

“The violations by these Marsh executives hurt not only Marsh’s clients, but also the Oregonians who rely on those public entities to provide services effectively with limited taxpayer dollars.”

— Cory Streisinger, director of the Oregon Department of Consumer and Business Services, commenting on the fining of a former Marsh executive for her role in overcharging public entities for insurance coverage. The overbilling occurred between 1999 and 2004 with 22 public entities. In those cases, Marsh also collected commissions in violation of its contracts with the public entities. The commissions were not readily apparent because they were included in premium charges on Marsh’s billing statements. Marsh has returned or credited the excess payments to the public entities, DCBS said.

Contingent commissions

“A clear line must be drawn between legitimate contingency bonuses, versus bonuses paid to firms as an incentive for steering business from one insurer to another,” Jensen added. “The Alliance agrees that those involved in the underhanded deals must be punished. However, regulators, politicians and industry officials must understand this distinction and avoid knee-jerk reactions that punish honest, reliable agents and brokers.”

— California Alliance of Insurance Agents and Brokers Gary Jensen, criticizing the Risk and Insurance Management Society’s support of eliminating contingent commissions. The Agents Alliance believes there is no reason why a carrier should be prevented from rewarding an agent or broker with a contingency bonus.

Court on credit scoring

“We are pleased with the ruling and hope it helps put to rest any questions about what constitutes an adverse action notice and when such notices need to be sent. Thanks to this ruling insurers now have greater certainty regarding how insurers must comply with the FCRA.”

— Kathleen Jensen, senior legal counsel for the Property Casualty Insurers Association of America, on the Supreme Court’s ruling on two insurers’ alleged violations of the Fair Credit Reporting Act. The justices decided that in failing to send out adverse action notices to consumers, Geico General Insurance Co. did not violate the law and that Seattle-based Safeco might have, but did not do so recklessly. An opposite decision could have cost the insurance industry billions of dollars, PCI said.

Topics Agencies Workers' Compensation