The order will reduce the chances of errors in the filling of loss costs.
On Aug. 8, Pennsylvania Insurance Commissioner Jessica Altman and Labor & Industry Secretary Jerry Oleksiak announced agreements with two insurers and the Pennsylvania Compensation Rating Bureau (PCRB) to protect Pennsylvania businesses and lessen the chances of errors in the filing of loss costs, which help determine the rates businesses pay for workers compensation insurance.
According to a press release issued by Gov. Tom Wolf’s office, the consent order between the Insurance Department and the PCRB requires that:
- The PCRB must retain an outside auditor approved by the Insurance Department to conduct a full audit of the PCRB’s business practices, including its internal controls;
- The third-party auditor will issue a report on the PCRB’s business practices, including recommendations for changes and improvements;
- The PCRB must adopt the recommendations of the third-party auditor unless any of these is waived by the Insurance Department;
- The Pennsylvania Insurance Department may, within 24 months, conduct an examination, at PCRB expense, to verify the audit report’s recommendations have been adopted by the PCRB.
“While no one wants to see data errors occur, we are very pleased with the resolution of the issue and we applaud all the parties involved for putting in place a system of accountability that should prevent similar errors in the future,” said NFIB’s Pennsylvania State Director Gordon Denlinger. “The PCRB has made a good faith effort to remedy the issue at hand and they are to be applauded for working constructively with the Department of Insurance in reaching this resolution.”
Insurers who have submitted workers comp informational filings to address any potential overcharges for policies written between April 1, 2018 and Dec. 31, 2018 can be found on the Business Insurance page at www.insurance.pa.gov.
