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Agreement reached in workers’ compensation insurance case |
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Thursday, 15 May 2008 |
SCBIZ Daily Staff
COLUMBIA – The South Carolina Department of Consumer Affairs has reached a settlement agreement with the National Council on Compensation Insurance (NCCI). The settlement concerns NCCI’s filing for a 23.7% increase in workers’ compensation insurance loss costs.
The hearing was scheduled to begin this week. Other parties to the settlement include the South Carolina Small Business Chamber of Commerce and the South Carolina Department of Insurance.
In its filing in April of 2007, NCCI requested an increase of 23.7%. In August of 2007, the Department of Insurance denied the requested increase but indicated it would approve an increase of roughly 16%. NCCI requested a contested hearing before the Administrative Law Court, and the Consumer Advocate intervened in the case. Under the settlement, which still must be approved by the Court, loss costs will be allowed to increase by 9.8%. The effective date for the new rates will be July 1, 2008.
“We are pleased with today’s agreement and believe that it found a reasonable balance between the parties’ positions in the case,” Elam stated. “We fully expect that when NCCI makes its filing next year that the data will indicate the need for rate reductions. The improving experience of the employers in our state, increased regulatory scrutiny and the reforms passed by the General Assembly have all made a positive difference.”
The Department of Consumer Affairs Administrator concurs. “It’s a very good resolution to this case and a great win for South Carolina businesses and consumers,” said Brandolyn Thomas Pinkston.
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