Texas workers’ compensation insurance companies are trying to locate nearly 29,000 employers in order to refund a surcharge started in 1992 that will result in an average refund of more than $500 per employer. Newspapers in every Texas county with at least 100,000 people published lists of those employers last weekend. The list is also available on the Texas Department of Insurance web site, www.tdi.state.tx.us.
The refunds stem from a surcharge added to the maintenance tax on workers’ comp policies that was intended to pay off state issued bonds totaling $300 million. The bonds were originally used to capitalize The Fund. Most insurers passed the surcharge along to insureds, but the legislature repealed it in 1999 because The Fund was able to pay off the bonds early through its enormous surplus. The legislature also directed the Fund to give back the surcharges paid by insurers in the past. The insurance companies, in turn, were directed to pass the refunds through to employers who had workers’ comp policies written between June 1, 1992 and May 31, 1998.
Topics Texas Workers' Compensation
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