West Virginia Workers’ Comp Insurer BrickStreet Free of Debt to State

BrickStreet Mutual Insurance has remitted its final payment to West Virginia for funds it owes the state for aiding its transition from a state-run organization to a private carrier in 2006.

Since the end of June when the workers’ compensation carrier remitted the final payment of $85 million for the surplus note it received from the state, the company has been working with Insurance Commissioner Jane Cline to account for any outstanding balances owed. The final amount repaid was $43.5 million and was a result of adjusting claims from July 1, 2005 to December 31, 2005.

“We were hoping to have this final accounting complete by the end of the year,” said Gregory A. Burton, president and CEO.

“We are now able to operate free of debt to the state,” he added.

BrickStreet is the leading provider of workers’ compensation insurance coverage in West Virginia. The company began its role as the state’s first private workers’ compensation carrier Jan. 1, 2006. At this time, the state loaned BrickStreet $200 million in the form of a surplus note to begin operations.

The company spent the first two-and-a-half years moving the system toward privatization, including setting up a network of independent insurance agents as a distribution system, adopting National Council on Compensation Insurance (NCCI) class codes, consolidating operations at a new corporate headquarters and creating a preferred provider organization.

It has since announced plans to write in additional states.

The workers’ compensation insurance market was opened to competition July 1, 2008.

As a mutual company, BrickStreet is owned by its policyholders.

Topics Carriers Workers' Compensation Virginia West Virginia