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CWCAs
find reserve error and help bank control Mod
Insured
The insured is a large community bank with 30 branches, 400 employees, and assets
in excess of $850 million.
Situation
A 12-year client, the bank had a comprehensive Workers’ Comp program and
an excellent claims history, with an Experience Mod that averages between .80
and .85. Based on a verification process that included reviewing Experience Mod
worksheets, the 2007 Experience Mod was expected to be .838 with a manual premium
of $35,000. Yet, it was much higher than what had been projected, showing instead
a .239 increase to the Mod, the equivalent of a premium increase of $8,365.
Assessment
Through the efforts of Certified WorkComp Advisors (CWCAs), it was determined
that a large claim that had previously been settled was still showing as active.
The carrier neglected to remove the reserve of $25,000 from the claim, resulting
in Mod and premium increases.
Solution
Recognizing that there was no reason for the increase, CWCA’s investigated
and discovered the error, called the insurance carrier and had them file a corrected
report.
Result
Through the CWCAs’ efforts, the Mod reduced to the projected .836, saving
the client $8,365 or 23% of premium. |
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