Comp insurer files retroactive correction to charges
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The largest workers compensation insurer in Pennsylvania is the latest to file a retroactive correction to their policyholders’ workers comp charges.
The State Workers Insurance Fund of Scranton, Pennsylvania, which writes approximately $175 million in coverage, has filed a plan to correct charges to employers for their workers comp policies written between April 1, 2018, and Dec. 31, 2018.
At the end of October, the Pennsylvania Compensation Ratings Bureau, which makes filings to the state’s insurance department on behalf of the nearly 325 companies that write workers comp insurance in the state, filed a proposed 5.24% reduction in overall loss costs. The loss cost revision was a result of the passage of Act 111, which was signed into law in October and reinstated the impairment rating evaluation system after it was thrown out in the 2017 Pennsylvania Supreme Court decision in Protz v. WCAB.
The Pennsylvania Insurance Department approved in December the ratings bureaus’ revised mid-year loss cost filings, and the insurance commissioner has been urging insurers to act to reimburse business that were overcharged because of the earlier ratings bureau filing, said a spokesperson with the department.
In addition to SWIF, four insurance groups, including 16 individual insurers, have filed plans so far with the insurance department to retroactively correct charges to their policyholders. These insurers combined write about $88 million in workers comp coverage in the state.
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