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9/17 - A Brief Summary of California Workers' Compensation News

NICB: Referrals for Investigation of Possible Work Comp Fraud Decline By 9 Percent in 2010

The National Insurance Crime Bureau (NICB), the non-profit organization that "partners with insurers and law enforcement agencies to facilitate the identification, detection and prosecution of insurance criminals" recently released a study concerning the incidence of workers' compensation/employee fraud in the first half of 2010.

The results?

The number of dubious claims (i.e., potentially fraudulent workers compensation claims) referred to the NICB for investigation in the first half of 2010 was nine percent less than the previous year.

Specifically, the following categories all demonstrated significant decreases in the number of potential work comp/employee fraud claims submitted for review:

• Prior injury/not related to work
• Claimant fraud
• Working while collecting

These three categories accounted for 72 percent of all referrals submitted to the NICB.
Workers compensation fraud/employee fraud is a very serious crime. If you suspect that such a crime has been perpetrated against your organization, you should strongly consider speaking with an experienced workers' comp defense attorney.

Update: WCIRB to Recommend Significant Increase in Work Comp Base Rates

The Workers' Compensation Insurance Rating Bureau (WCIRB) of California made headlines this summer when it recommended a 30 percent increase in the workers' compensation rates that insurance companies charge employers across the state.

In recent developments, WCIRB announced that it will be amending it submission to Insurance Commissioner Steve Poizner. Specifically, the organization will now be recommending a 27.7 increase in work comp rates, a reduction of two percent.

The original filing to the Insurance Commissioner indicated that WCIRB would review certain data made available June 30 (accident year experience), and, if necessary, amend its recommendations. 

A public hearing on the proposed rate increase is scheduled for September 28.

The proposed 30 percent increase would affect all new and renewed policies starting January 1.

(Please see "WCIRB to Recommend Significant Increase in Work Comp Base Rates"  for more information.)

Stay tuned for further news on developments in the area of California workers' compensation defense ...

This post was provided for informational purposes only and is not to be construed as legal advice.

Related Resources:
• Overall Reports of Workers' Comp Fraud Fell 9 Percent in First Half of '10 (Risk & Insurance)
• Calif. Rating Bureau Wants to Lower Recommended Workers' Comp Rate 2% (Insurance Journal)
• About NICB (National Insurance Crime Bureau)


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