WorkersCompensation.com's CompNewsNetwork: ME BoI Approves Requested 7% Decrease In WC Loss Costs  

ME BoI Approves Requested 7% Decrease In WC Loss Costs
================================================================================
compnewsnetwork on 03 November, 2009 01:28:00
 
Augusta, ME (CompNewsNetwork) - Maine Bureau of Insurance Superintendent Mila
Kofman announced that the Bureau has approved the National Council on
Compensation Insurance’s (NCCI) request for a decrease in workers’
compensation loss costs for policy year 2010 by an average of 7.0 percent. 
NCCI is the advisory rating organization for insurance companies that offer
workers’ compensation coverage in Maine.  Loss costs are the portion of
premium that cover the cost of benefits.
“This requested decrease is indicative of Maine employers’ continued
efforts to promote safety in the workplace,” said Superintendent Kofman. 
“In this kind of environment, claims are less frequent, and NCCI’s loss
costs filing indicates that the frequency of claims is decreasing faster than
any increase in medical and indemnity costs for each claim.  This, combined
with the recent announcement by Maine Employers Mutual Insurance Company of a
$10 million dividend to policy holders, is great news for Maine employers.”
According to Kofman, the 7.0 percent reduction is an average.  While many
employers will realize a reduction, some businesses will experience an
increase.
NCCI approved loss costs are available to insurers to reference when filing
their workers’ compensation rates with the Bureau of Insurance.  Maine
currently has a competitive market for workers’ compensation insurance and
each insurer will set its own rate level.  Insurers may modify the NCCI loss
costs and must select their own expense and profit factor in setting rates.
As approved, the loss costs would reduce premiums in the insured market by
about $14.4 million. The effective date for the proposed rates is January 1,
2010.  The Bureau of Insurance is part of the Department of Professional and
Financial Regulation, which encourages sound ethical business practices through
regulation of insurers, financial institutions, creditors, investment providers,
and numerous professions and occupations for the purpose of protecting the
citizens of Maine.