Members of the self-insured workers compensation group AIK Comp will be assessed almost $100 million retroactively to cover losses on workers comp insurance written in prior years at premiums discounted to below the level needed to cover reserves. See: Unintended Consequences: AIK Comp Paid Discounts (December 14, 2004)
Members had been assessed not long after AIK Comp was placed into rehabilitation, but only about half paid, leaving the self-insured group unable to meet current obligations to injured workers. Legal challenges to the assessment were sent to mediation, which has now ended, leaving the rehabilitator with authority to proceed against the objecting members. Source: AIK COMP Members Assessed $97M, Insurance Journal (June 16, 2005).
The April 7, 2005 court order ending mediation set June 15 as a deadline for the Rehabilitator to file an estimated deficit figure and assessment plan as well as procedures by which interested parties may contest those filings.
More information is at AIK Comp's website.
Posted by dougsimpson at June 16, 2005 02:46 PM