The California Department of Insurance has announced that it will be joining the Department of Industrial Relations to fight against the state’s emerging underground economy. The two agencies have formed the Labor Enforcement Task Force in order to crack down on the violations against the state’s insurance and labor regulations that are rampant in this offshoot economy. Insurance Commissioner Dave Jones notes that this economy is mostly comprised of businesses who hire employees that are not fit for certain types of work. These businesses often fabricate documents concerning their employees…
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A.M. Best report highlights the problems facing the nation’s workers’ compensation insurance market
The U.S. workers’ compensation insurance market is in dire straits according to a new report from A.M. Best, an international rating agency. Agency analysts have been examining the effects of competition, rate decreases, economic turmoil and other factors throughout 2010 and have concluded that the market faces challenges times in the coming years. The report highlights the continuation of these trends for some time, but analysts note that the market may see modest growth for the first time since 2005 this year. The problems facing the workers’ compensation sector mirror…
Read MoreInternet privacy may be costing people their jobs, according to National Labor Relations Board
Facebook’s shifting privacy policies are making it increasingly difficult to keep track of Internet privacy. With social media beginning to play a much larger role in the business world, companies have been struggling to maintain a balance on how much freedom their employees are given when it comes to sharing information via Facebook and Twitter. Most companies have social media policies in place, but the majority of these policies are ambiguous at best. Confusion regarding these policies has led some companies into trouble with the law and could have dramatic…
Read MoreNew report shows cost of workers’ compensation dropped during global economic crisis
In 2009, at the start of the global economic crisis, there was a decrease of 4.4 percent in the number of employees who had workers’ compensation coverage. According to a National Academy of Social Insurance report, this drop was the largest in twenty years. The result was that the cost to employers for providing the benefits decreased by 7.6 percent, reaching $73.9 billion that year; which is the most recent year with complete data. This drop closely mirrors the overall decline in employment in the country. According to the chair…
Read MoreFlorida court rules that illegal immigrants are eligible for worker’s compensation benefits
The Florida First District Court of Appeals has released its ruling on the case of HDV Construction Systems v. Luis Aragon. The case stems from a worker’s compensation dispute levied against HDV construction by Luis Aragon. According to the suit, Aragon fell from a roof while working, suffering from serious injuries that prevented him from working during the extent of his recovery. Normally, such a dispute would have been settled without bringing the issue to court, but one issue makes this case court-worthy: Aragon is an undocumented immigrant. Aragon was…
Read MoreWorkers’ compensation exposure on the rise with more mobile workers
A clear growth of workers’ compensation exposure is now causing alarm among employers and risk managers with the remarkable rise in the number of mobile workers. This was discussed in this year’s meeting of Risk and Insurance Management Society (RIMS) held recently in Vancouver. In the said forum experts advised both employers and risk managers to formulate stable and concrete rules pertinent with workers’ use of any types of mobile devices at work. According to Maureen McCarthy, Liberty Mutual, manager of Workers’ Compensation and Managed Care it is a must…
Read MoreHow will new health reform laws affect workers comp sector
Members of the Casualty Actuarial Society recently attended a conference concerning the effect the new health reform bill could have on the casualty and property industry. Several concerns over possible effects on the worker compensation system were put to rest, and possible results on lowering medical malpractice suits were discussed. Because worker compensation medical claims are a part of the overall rise in healthcare, many have been concerned about possible changes under the new reform bill. After the statistics were broken down though, there didn’t seem to be much to…
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