Insurance Fund Board Adopts 25.9% Rate for Workers Comp
Tipton, David, THE JOURNAL RECORD
However, the board also approved the reclassification of the different entities covered by workers' compensation, which board member Lt. Gov. Robert S. Kerr III claimed would reduce workers' compensation costs for 15 of the top 20 classifications.
Under the reclassification schedule proposed by the council, there would be 637 different classes of workers' compensation coverage.
The action was taken during the board's regular meeting, in which the member's actuary presented his recommendation on the 33.8 percent average rate increase proposed by the council last October.
The council, a national insurance rating organization, filed its rate request with the State Property and Casualty Board, which will hold hearings on the filing beginning April 13.
The fund's actuary, E. James Stergiou of Carlstadt, N.J., explained that, based on the statistics the council filed in its report, he could recommend only a 26.5 percent rate increase for the fund.
Stergiou said, though, there would be little difference in the cost of insurance from the 26.5 percent rate and the 25.9 percent rate which the fund and the majority of private insurers are now charging.
However, he recommended in order to bring the council's classification rates into line, the 25.9 percent increase should be approved for workers' compensation offered by the fund.
The fund was established by the Oklahoma Legislature in 1933 to provide workers' compensation insurance for state agencies, and also for companies which are unable to obtain coverage from private insurers.
Kerr made a motion to adopt the 33.8 percent average increase and the new classification code, then reduce the rate by 7. …