BrickStreet Mutual All Paid Up

BrickStreet Mutual Insurance has remitted its final payment to West Virginia for funds it owes the state for aiding its transition from a state-run organization to a private carrier in 2006.

Since the end of June when the workers’ compensation carrier remitted the final payment of $85 million for the surplus note it received from the state, the company has been working with Insurance Commissioner Jane Cline to account for any outstanding balances owed. The final amount repaid was $43.5 million and was a result of adjusting claims from July 1, 2005 to December 31, 2005.

“We were hoping to have this final accounting complete by the end of the year,” said Gregory A. Burton, president and CEO. “We are now able to operate free of debt to the state,” he added.

BrickStreet is the largest workers’ compensation carrier in West Virginia. The company began its role as the state’s first private workers’ compensation carrier Jan. 1, 2006. At this time, the state loaned BrickStreet $200 million in a surplus note to begin operations.

The company spent the first two-and-a-half years moving the system toward privatization, including setting up a network of independentagents for distribution, adopting National Council on Compensation Insurance (NCCI) class codes, consolidating operations at a new corporate headquarters and creating a preferred provider organization.