DE Comm. Lauds Decision To Affirm Reducing WC Rates

Dover, DE (CompNewsNetwork) - Delaware Insurance Commissioner Karen Weldin Stewart said today that she was pleased with the Chancery Court's decision on Friday, July 24th affirming former Commissioner Matt Denn's Orders to further reduce workers' compensation rates as well as his interpretation of the 2007 amendments to the workers' compensation insurance laws. 

Commissioner Stewart said, “The Department was well served by an exceptional legal team that included one of the nation's foremost legal experts on workers' compensation law, a world class Wilmington, Delaware law firm and some of the best attorneys in Delaware's Department of Justice.  The result of their hard work and Vice Chancellor Lamb's decision will be a further reduction in workers' compensation rates to the tune of 6% in 2009, 6% in 2010 and 5% in 2011.”   Commissioner Stewart added, “Former Commissioner and now Lt. Governor Denn's Orders will mean millions of dollars in savings by Delaware's businesses. This comes on top of my approval of a partially amended rate filing imposing workers' compensation rate reductions totaling 20.87% ordered by Former Commissioner Denn in his  December 30, 2008 Order and Decision.”

The Delaware Compensation Rating Bureau (DCRB)  had appealed both Commissioner Denn's November, 2008 and December, 2008 Orders in the Court of Chancery and the Superior Court.  Commissioner Denn's Orders determined that Delaware employers were being overcharged for workers' compensation coverage because the rates then in effect failed to properly account for certain cost containment measures required by Senate Bill 1 of the 144th Delaware General Assembly.  The DCRB disputed 6% of those figures, representing the cost savings in cases arising from Pre-October 1, 2008 occurrences.

Commissioner Stewart said, “I am pleased that Delaware's employers will continue to see additional substantial savings of workers' compensation premiums while their employees will enjoy relief relative to medical fee schedules for workers' compensation injuries during these challenging economic times. I commend Chancellor Lamb for his decision.”

Commissioner Stewart concluded, “Our efforts to meet the financial and economic challenges faced by our state and nation will continue on several fronts.  My administration is committed to insuring that businesses have the resources to grow and prosper, that policyholders are free from onerous premiums and that our insurance industry expands and remains healthy and solvent.”

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