A little while ago, we lost a case at the Illinois Workers Compensation Appeal Board. But we just got word we have prevailed in an appeal of that decision by the board. Here's the skinny on all this:
The Workers Comp insurer for a client of ours had insisted on a new interpretation of a long-standing understanding regarding application of an Illinois state special classification rule for companies that have an in-house tool and die operation as part of their manufacturing company. The understanding had always been that the language of that state special classification rule was that such tool and die operations should be separately classified into the less expensive Code 3113. This had been routinely and regularly done by premium auditors for many years.
But this insurer insisted on a different interpretation—that the tool and die operations had to be conducted as a separate business and not as a support function of the overall business.
We took this dispute to the Illinois Workers Comp Appeal Board on behalf of this client. And lost.
But we then appealed that decision by the board, to a legal hearing at the Illinois Dept. of Insurance. And we have now been informed that we have prevailed there.
This was possible because my son and business partner, Scott Priz, is also an attorney (in addition to being a brilliant and experienced consultant on Workers Compensation insurance premium issues). And Scott handled this appeal for our client, since a legal hearing, unlike the Appeal Board, really requires an attorney to properly represent the interests of the client.
We are also informed, from our agent contacts, that this new interpretation of the state special rules is being applied by other insurance companies in Illinois. And while this decision by the Illinois Department of Insurance solves this problem for our particular client, it will not address the wider issue of other insurers doing this to other small businesses.
If you know of a company being impacted by this, perhaps we should talk. We’ll be doing our best to identify other policyholders harmed by this, but that will take some time and likely can’t find everyone. Still, we’ll be doing our best.
1 comment:
**Comment:**
This is a huge win, not just for your client, but for other Illinois businesses facing similar classification disputes. It’s concerning that some insurers are trying to reinterpret long-standing rules in ways that could unfairly increase costs for businesses. Your persistence in appealing the decision—and ultimately prevailing—shows the importance of having both deep industry knowledge and strong legal expertise on your side.
Scott Priz’s dual role as an attorney and workers' comp consultant clearly played a critical role in achieving this outcome. It will be interesting to see if the Illinois Department of Insurance’s ruling prompts insurers to revise their approach more broadly.
Do you anticipate further action to ensure this ruling sets a precedent for other businesses facing the same issue?
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