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Assuring insurers.

Assuring Insurers

As if rising health insurance rates are not enough, get ready, businessmen, for an increase in your Worker's Compensation insurance rates. (The two are related, an industry insider points out.)

A rate spike of 24.4 percent has been suggested for Arkansas businesses by the National Council on Compensation Insurance, an advisory organization that makes rate change recommendations to states on behalf of insurers. This translates to an annual state increase of $55 million dollars, all to come from the businessman's checkbook.

And one insider says he wouldn't be surprised to see an amended filing asking for even more.

The state Insurance Commission got the NCCI recommendation on Oct. 3 and hired an actuary to review the filing. It expects to make a ruling by late December, and an approved increase would go into effect Jan. 1, 1991. This is the same procedure that was followed last year when NCCI asked for about a 18 percent increase and the state granted 3.5 percent.

The largest annual increase the state has authorized recently was 18% in 1986.

It could be worse, points out Lee Douglass of the state Insurance Commission. NCCI has suggested increases of 30-50 percent for some states. Be thankful we don't live in a big logging state - that industry's rates are always the worst.
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Title Annotation:Whispers; increase in Arkansas Worker's Compensation insurance rates
Publication:Arkansas Business
Date:Nov 26, 1990
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