W.Va. workers' comp insurer formed one day before mine explosion.

BrickStreet Mutual Insurance Co. was a day old when an explosion in the Sago Mine in Tallmansville, W.Va., trapped 13 miners. The company, which replaced the state Workers' Compensation Commission, hadn't even officially begun business--that would come two days later.

But when word of the explosion reached its offices, BrickStreet "started the claims process almost immediately," said BrickStreet spokesman Andy Wessels.

The miners trapped by the explosion couldn't be reached by rescuers for nearly two days, according to reports. Only one, 26-year-old Randy McCloy Jr., survived--though with severe injuries--and remains hospitalized as of press time. BrickStreet, the sole provider of workers' comp insurance to West Virginia's 42,000 employers, will be handling all workers' comp claims stemming from the accident.

"As a mutual company, we've worked very closely with the mine owners, International Coal Group, and we are going with them to meet with the mine families on an individual basis to walk them through the claims process and help them with the paperwork," Wessels said.

The surviving families are eligible for a family dependent benefit, which is equal to two-thirds of the average weekly wage of the prior 12 months, Wessels said. The state maximum benefit is $568.78 a week. Spouses are eligible for this benefit up until the time the worker would have reached 70 or until the spouse remarries. Dependents are eligible until they turn 18 or until age 25, if they are enrolled in college or post-graduate school. An incapacitated dependent is eligible to receive benefits beyond the age cut-off.

The victim's families also are eligible for a funeral benefit of a maximum $5,000.

Wessels said the miner who survived would receive full medical benefits immediately, and he and his family would receive partial disability benefits as well. The partial disability benefits would be adjusted in the future when more is known about McCloy's condition, Wessels said.

These benefits aren't subject to state or federal income tax, Wessels said.

BrickStreet has no estimate of how much it may have to pay out for the mine accident claims, he said, because "there's so many variables involved in calculating" such an estimate.

BrickStreet Mutual is a private mutual insurer that was created from West Virginia's state-run Workers' Compensation Commission. According to the company, the state agency was nearly bankrupt less than three years ago. BrickStreet said it has estimated first-year premiums of more than $530 million.

"It's completely new," Wessels said. "We were the state agency and became the private company on January 1."

The West Virginia Legislature established the company with passage of Senate Bill 1004 in January 2005. Gov. Joe Manchin signed the legislation in February. Referring to the bill as landmark and monumental, Manchin prompted the reform last January by calling a special session of lawmakers, marking his first official act as governor. The new law aimed to resolve the state's $5.5 billion in pension debts and its reputation for being a poor place to do business.

BrickStreet will remain the sole workers' comp provider until July 1, 2008, when the market will be opened to other private insurers, Wessels said.

BrickStreet Mutual Insurance Co.

Headquarters: 4700 MacCorkle Ave., S.E. Charleston, West Virginia 25304

Chief Executive Officer: Gregory A. Burton

Financials: Estimated first-year premiums of more than $530 million

Characteristics: The second-largest West Virginia-based insurance company and the state's sole workers' compensation provider

Source: BrickStreet Mutual