State urged to increase worker compensation insurance rates

Thursday, Dec. 16, 1999 | 10:11 a.m.

The increase was sought by the National Council on Compensation Insurance, which says it's needed because of benefit increases approved by the 1999 Legislature.

Insurance Division chief Alice Molasky-Arman plans to make a final decision on the rate hike by Friday. The increase would take effect Jan. 1, and would be the basis for all insurers to follow.

Under a new state law, predatory pricing of worker compensation insurance is restricted at first. Competitive rating will start in mid-2001.

Opponents of the increase included Randy Reznicek of Bisa Insurance, which operates in Arizona, Utah and Nevada. He said the rates were based on outdated information.

Similar comments were made at Wednesday's hearing by Glen Greener, representing the Nevada Subcontractors Association and the American Subcontractors Association of Nevada.

Molasky-Arman said the rate hike request is the first since 1992, when the old State Industrial Insurance System raised rates by 9.2 percent. That was followed by three rate cuts.

The rate hike request followed a decision by lawmakers to open up job-injury insurance to three-way bidding for employers' premiums.

Under the new law, SIIS has been turned into a private mutual fund, Employers Insurance Co. of Nevada, providing workers compensation as well as other forms of insurance services.