Just received interesting news. The National Council on Compensation Insurance (NCCI) has contacted us to obtain the details about a recent classification decision by the Illinois Department of Insurance for our client. This client did manufacturing work but maintained an in-house tool and die department. For many years, Illinois had an NCCI State Special rule that allowed such tool and die departments to be separately rated into a less expensive class.
But last year, a client came to us because their insurer started using a new interpretation of the (admittedly awkwardly written) state special rule, and using this novel interpretation, the insurer said this client was not eligible for the lower tool and die class.We first went to the Illinois Workers Compensation Appeal Board over this, but that board ruled in favor of the insurer. We then appealed that decision, on behalf of our client, to the Illinois Department of Insurance.
This case illustrates, I think, the unique capabilities of my company in such disputes. I was originally involved in helping the client, but once a legal hearing was required, my son and partner, Scott Priz, took over, as he is an attorney admitted to the bar in Illinois. Of course, he's worked with me for over twenty years here at A.I.M. so he has extensive experience with the details of Workers Comp insurance classifications and rates.
The Illinois Department of Insurance ruled in favor of our client, as I've reported here earlier. But now NCCI has reached out, asking us to provide details of the ruling by Illinois DOI, so NCCI can revise their manuals.
This will help make sure other Illinois manufacturers don't have to deal with this "novel" rule interpretation. We had heard that some other insurers were doing so, but this should head them off at the pass.
Congratulations to Scott Priz for obtaining this important decision at the Illinois Department of Insurance. And kudos to the National Council on Compensation Insurance for acting promptly to reflect this DOI decision in their manual rules.
1 comment:
This is a fascinating and important case that highlights the complexities of workers' compensation classification rules and the impact they can have on businesses. It’s great to see how your team, particularly Scott Priz, navigated the legal challenges and successfully advocated for your client.
The fact that the NCCI is now taking steps to revise their manuals based on the Illinois DOI ruling speaks volumes about the significance of this decision. Not only does this benefit your client, but it also helps prevent other Illinois manufacturers from facing similar misinterpretations in the future.
Kudos to you and your team for this victory! It’s a great example of why expertise in workers' compensation classifications and legal advocacy is so crucial. Have you seen similar classification disputes arise in other states, or do you think this issue was unique to Illinois?
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