RPNA was instrumental in creating the standards that currently govern how workers’ compensation carriers are required to treat employers. As the policyholder, you know the financial impact that poorly managed workers’ compensation claims can have on your insurance premium. And that directly impacts your company’s bottom line, particularly where collateral is involved.
When RPNA first began litigating in this area, in the late 1980’s, we found that insurance carriers handled workers’ compensation claims in whatever manner best suited the carriers, rather than the employers who were stuck paying the bills. A significant problem was the habit of over-reserving and mishandling claims, which shifted a substantial financial burden onto employers, and their experience modification factor.
We knew that something was wrong with a system where so many good businesses were facing financial trouble just trying to keep up with rising workers’ compensation costs. These employers decided to fight back.
With our intimate knowledge of workers’ compensation, RPNA challenged the carriers’ methods of accumulating incurred reserves and holding too much collateral. Through reported decisions and trials like Courtesy Ambulance, Maxon Industries, Inc., Security Officers Services, Inc., Tricor California, Inc., MacGregor Yacht Corp., Joe Notrica dba Notrica ‘s 32nd St. Markets, DMS and Schaefer Ambulance Service, Inc., RPNA altered the way the insurance industry operates in California.
Thanks to RPNA, the legal landscape has dramatically shifted in favor of employers. Workers’ compensation insurance carriers are now required to act in good faith and deal fairly with their policyholders. They must provide competent performance at a reasonable cost. That means that a carrier has to take the employer’s financial interests into account when making certain decisions that affect workers’ compensation claims and premium.
If you believe your carrier or Third Party Administrator has caused your claims to cost more than they should, we will evaluate your company’s situation, and will help you reach the solution that you are looking for.