News Briefs

N.Y. shuts comp trusts

Two of New York’s 70 workers compensation self-insurance trusts are being shut down by state officials. The two trusts are the Provider Agency Trust for Human Services and the Manufacturing Industry Workers Compensation Self-Insurance Trust, according to Jon Sullivan, spokesman for the New York State Workers Compensation Board. The two will be terminated in March.

Sullivan said there was “mutual agreement” between the WCB and the administrators of the trusts to take the action. Both trusts are managed by Consolidated Risk Services, a Wayne, Pa. subsidiary of AVI International, Inc. The firm did not return a call from Insurance Journal seeking comment.

According to Sullivan, the WCB adopted stricter financial and claims requirements in 2001. “It is not unanticipated that light would be shown on some trusts as a result of these new financial standards,” Sullivan said. “We look at these as making the system stronger in the long run.”

Virginia comp rates up

Virginia officials have approved changes that will increase overall workers’ compensation premium levels in the voluntary market for the industrial and federal (F) classes while decreasing premiums levels for coal mine classes.

For industrial risks, a voluntary market loss cost increase of 9.9 percent was approved; for federal risks, a 9 percent increase. Rates for industrial policies in the assigned risk plan will go down 2.9 percent; for federal policies in the assigned risk plan, they will drop 0.4 percent. For coal mines insured in the voluntary market, the state approved a 7 percent loss costs cut; for coal mines assigned risks, a 20 percent cut in rates. The changes become effective April 1.