News Briefs

WASH. WORK COMP BENEFITS SEE INCREASE OF 0.6%: Workers currently receiving Washington workers’ compensation time-loss or pension benefits will receive a 0.6 percent cost-of-living increase effective immediately. State law requires that maximum time-loss benefits and pensions be recalculated each July 1 to reflect the change in the state’s average wage from the previous calendar year. Under Washington’s system, injured workers receive from 60 to 75 percent of their income, tax free, while they are off the job and recovering. The percentage of income is based on the number of dependents. In 2004, the average monthly time-loss paid to injured workers was just under $1,700. The annual recalculation of time-loss and pension benefits is based on the average annual wage of all workers in Washington. That wage-set by the Employment Security Department-rose to $39,038 in 2004, an increase of 0.6 percent from $38,794 in 2003. As a result, the new maximum benefit will be $3,904, or 120 percent of the state’s average monthly wage, for workers injured after June 30, 1996. Without the restriction, there would be no limit on the amount high-income workers injured on the job could collect in benefits. Maximum benefits differ depending on when an injury occurred because over the past decade, the state Legislature has increased the percentage of the state’s average wage used to set the maximum benefit level. The July 1 increase applies to both State Fund and self-insured employers.

COLO. COURT TURNS DOWN NHL PLAYER’S BID TO COLLECT DISABILITY INSURANCE: Warren Rychel, a former NHL player, will not be able to accept disability insurance for an injury to his hand that he suffered on the ice, according to the Associated Press. Rychel, who previously played with the Colorado Avalanche, filed a lawsuit against Lloyd’s of London for his injury in a game against the Vancouver Canucks in December 1998. The appeals court and trial court ruled that only unexpected injuries could be covered under his professional athlete disability insurance. The injury to his hand was expected, the court said, because fighting was part of Rychel’s job. The hockey player’s attorney said that Rychel was not trying to hit anyone when he injured his hand, but the court disagreed.

ALASKA GOV. SIGNS REFORM REGULATIONS BILL: Alaska Gov. Frank Murkowski recently signed 18 bills into law, including legislation to reform insurance regulations. “I was pleased to sign these important pieces of legislation into law,” Murkowski said. “This Legislature addressed a number of important issues for Alaskans-and Alaskans will benefit from these new laws.” HB 147 provides increased protection for Alaska’s insurance consumers while making the regulation of insurance more efficient for the state. The bill authorizes the Division of Insurance to regulate health discount plans that would not otherwise be regulated as insurance. Such plans are reportedly attractive to consumers because they appear to provide health care benefits at reduced costs.

CALIF. PANEL APPROVES MEASURE REQUIRING INSURERS TO EXPLAIN WHY POLICIES ARE DECLINED: The California Assembly Insurance Committee approved an amended measure that will now require insurers to provide an explanation to consumers when policies are declined, canceled or non-renewed, AIA reported. The bill, SB 150, authored by Senator Martha Escutia (D-Whittier), was originally opposed by AIA. The senator removed the language regulating underwriting criteria, however, thus removing AIA’s objections. “We appreciate Senator Escutia’s willingness to address our reservations with this measure,” said Janine Gibford, AIA assistant vice president, Western Region. “SB 150 will now help homeowners to understand and recognize their potential risks or hazards so they can rectify the condition. This bill provides important new consumer education.” SB 150 was approved by the Assembly Insurance Committee by a vote of 7 to 3. The bill will now move to the floor for a full vote by the California State Assembly.

WYO. HEARS PROPOSAL TO REDUCE UNINSURED DRIVERS: Two new ideas aimed at reducing the number of uninsured drivers in the state were proposed in the Wyoming Legislature, according to the Associated Press. Dan Lex, a lobbyist for AIG, proposed that a random sample be taken to verify that vehicles are covered by insurance. If any cars are not covered, license plates would be removed and owners may face prosecution. The Wyoming Transportation, Highways and Military Affairs Interim Committee also heard an idea where police officers would use the Internet to verify whether a vehicle in a crash is covered by insurance. Police dispatchers would look up the information by checking insurance company databases against vehicle identification numbers. The legislative panel hopes that the proposals will greatly reduce the number of uninsured motorists without creating a lot of work for the state and for the insurance industry. There have been previous attempts at reducing the number of uninsured drivers by requiring insurance companies to notify the Wyoming Department of Transportation when individuals lose their insurance. Those have been unsuccessful thus far. Wyoming drivers reportedly stop their insurance after they have registered their vehicles with the Department.

WASH. L&I’S ANTI-FRAUD EFFORT RECOVERS $27M: The Washington Department of Labor and Industries’ fraud program recovered more than $27 million in the first three months of this year, according to a report sent to the state Legislature and the Office of Financial Management. The money recovered represents delinquent workers’ comp premiums and improper payments to health-care providers and workers. In 2004, the Legislature gave L&I additional money and legal authority to pursue fraud and abuse in the workers’ comp system. The Legislature also required L&I to file quarterly reports in fiscal year 2005, explaining how the agency was spending the money and how much money it recovered. The newest report, covering January, February and March of this year, highlights those efforts. Working with the Office of Inspector General, an L&I investigation led to a guilty plea and three years in federal prison for a man who created a company for the sole purpose of filing false claims for workers’ comp and employment security benefits. In addition to the prison sentence, the man has been ordered to repay L&I $127,444 in benefits, interest and penalties. Based on evidence collected in an L&I investigation, a massage therapist pleaded guilty to first-degree theft for falsifying doctors’ signatures authorizing treatment. He was sentenced to 30 days in jail and ordered to repay L&I $100,000. An L&I investigation was turned over to the Pierce County prosecutor for criminal charges against an interpreter who billed L&I for services he didn’t provide. He owes nearly $564,000 in payments, penalties and interest. L&I investigators worked with various police agencies to build a case against a woman who filed 16 false workers’ comp claims under various names in five Washington counties. L&I identified and collected more than $109,000 from a siding contractor that had previously gone unreported. In addition, the Department of Revenue charged him with theft for filing false records to avoid paying $65,000 in sales taxes.