Officials at the New York Workers' Compensation Board said its 2001 tightened guidelines for reserving have put some 30 self-insurance trusts in the under-funded category.
Only "a handful' of that group, however, are of real concern, according to Mary Beth Woods, the board's director of licensing.
She said the board is having biweekly meetings with funds it has concerns about.
Ms. Woods said that for most the discrepancy is minimal, explaining that funds have to meet a 90 percent of liability ratio, and are classified as under-funded even if they are at 89.4 percent of liability.
John Sullivan, a spokesman for the board, said that some trusts have issued assessments to their members in order to solidify their reserves.
When a trust is under-funded, a notice to members is recommended and the board mandates such a notification when the situation is serious. Ms. Woods said there were "just a couple where we required them to send out a specific letter."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.