Insurance system changes name

Wednesday, July 1, 1998 | 11:38 a.m.

CARSON CITY -- The State Industrial Insurance System, on the verge of bankruptcy six years ago, is trying to revamp its image with the announcement of a new name today.

Twin press conferences were scheduled in Las Vegas and Carson City this morning to reveal what has been a closely guarded secret. The Sun has learned the new name is "Employers Insurance Company of Nevada."

Shakespeare apparently was right about what's in a name because Sen. Ann O'Connell, R-Las Vegas, who heads a legislative committee that oversees SIIS, isn't impressed by the change.

"It's like putting a new coat of paint on an old building," she said. "The old building is still there."

But Sen. Randolph Townsend, R-Reno, one of those who had been given a sneak preview of the system's new title, says it depicts "a better sense of what their mission is." Townsend is chairman of the Senate Commerce Committee that processes legislation on workers compensation.

Next July private insurance companies will be able to compete with SIIS. There are now 47,000 employers who pay premiums to the quasi-state agency and possibly as many as 50 percent could leave SIIS to take their chances with a private company next summer.

The state Insurance Division says there are 115 insurance companies that amended their charters to be able to write industrial insurance. Another 11 firms from out of state have applied to the division to be licensed to offer policies covering workers injured on the job.

To get ready for competition, SIIS has purchased new computers and a new telephone system. It has reorganized and better trained its staff. And it wants to shed its old image with the new name and an advertising campaign to convince employers not to abandon ship.

SIIS General Manager Douglas Dirks said the old name doesn't "describe what we do in a competitive market place."

In 1992, SIIS was $2.2 billion in debt with money going out faster than it was coming in. Gov. Bob Miller and the Legislature in 1993 and 1995 enacted new laws, restricting benefits, requiring managed care organizations to treat injured workers and making other changes that salvaged the system. At last report it had a surplus of $250 million.

In 1999, all companies writing industrial insurance will be required to charge the same rates. Private companies may offer a package deal, offering lower rates on such policies as health insurance and product liability in order to gain the workers compensation business, Bacon said.