Workers compensation: Rates reduced in Ohio

Rough Notes,  Aug 1997  

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Both public and private employers receive reductions

The Independent Insurance Agents of Ohio reported that the Ohio Bureau of Workers Compensation (BWC) reduced workers comp rates effective July 1. Rates for private employers were reduced by 15% and rates for public employers were reduced 9.7%.

During the previous two years the bureau reduced workers comp rates for private employers by 6% and 7.3% respectively.

In addition, the BWC recently began offering premium discounts for employers that qualify for and participate in a drug-free workplace program. Discounts under the program range from 6%-20% for up to five years. Employers that wish to participate in the program for 1998 must apply by December 1, 1997.

Wisconsin

PIAW plans annual convention

The Professional Insurance Agents of Wisconsin will hold its annual convention at the Holiday Inn SunSpree Resort in Oconomowac on August 7-9. Educational presentations will include:

ISO Update '97-David Pauley, CIC, CPCU, ARM, senior vice president, Heritage Insurance (2 hours, Wisconsin CE credit);

"Smash your CompetitionPersonal Lines Coverage Questions"-Bruno Falvo, CIC, CPCU, ARP, Falvo Training & Consulting, Loudenville, New York (3 hours, Wisconsin CE credit)

For more information contact the PIA of Wisconsin: 800-261-7429 (in Wisconsin); or (608) 274-8188.

Indiana

AIA disappointed by governor's veto of environmental bill

The absolute pollution exclusion bill passed by the Indiana House of Representatives (discussed in the June issue Regional News column) was vetoed by Governor Frank O'Bannon.

The American Insurance Association expressed its disappointment in O'Bannon's veto of the bill which would have codified the absolute pollution exclusion in a general liability insurance policy.

"This important piece of legislation was needed to bring stability and predictability for both insurers and policyholders," said Frederick P. McGarvey, AIA midwest region vice president. "It would have clarified for insurers who are writing this coverage exactly what they are covering."

The sponsors of House Bill 1583 had sought to correct several adverse state Supreme Court decisions. The first decision came in March 1996, when the court found both the 1970 Insurance Services Organization (ISO) pollution exclusion and the 1985 ISO absolute pollution exclusion contained in several garage insurance policies to be ambiguous as applied to a gasoline leak from an underground storage tank at the policyholder's gas station. The court held that the insurer was required to indemnify the policyholder for the damage from the spill.

Indianapolis agency names president

Larry A. Nicolet has been named president of Waterfield Insurance Agency. The agency is a member of the Waterfield Group of companies which includes Union Federal Savings Bank, Waterfield Mortgage Company and Waterfield Financial Corp. Nicolet, who had been serving as executive vice president and managing director, joined the agency in 1975 as sales manager. He is a member of the advisory council of The Hartford.

Waterfield Insurance Agency has offices in Fort Wayne, South Bend, Indianapolis and Highland, Indiana. It also has offices in Phoenix and Denver.

Ohio

New UM/UIM law clarifies coverage

The American Insurance Association applauded revisions in Ohio's uninsured/underinsured motorists (UM/UIM) coverage law. The legislation, which takes effect September 3, upholds long-upheld UM/UIM insurance policy provisions, thereby providing predictability.

"Due to rulings by the Ohio Supreme Court, virtually any uninsured/underinsured motorists insurance policy provision not specifically authorized by statute is challenged," said Patricia Holden, AIA assistant vice president. "Amended House Bill 261 restores stability to this much abused area of the law."

The insurance industry advocated the legislation as a result of Ohio Supreme Court decisions that have made insurance policy language ambiguous. Since the decisions, numerous court cases have requested coverage for those who normally would not be insured or receive limited benefits. This legislation clarifies the language and restores the original intent of UM/UIM insurance policy provisions.

Amended House Bill 261 does not deny or delay legitimate UM/UIM claims from being paid, nor does it take away anyone's right under his/her auto insurance policy, the AIA said.

Copyright Rough Notes Co., Inc. Aug 1997
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