Want to know why financial strength matters in an insurance fund? Look no farther than a May 8 Jefferson County Circuit Court ruling.
A Jefferson County judge ruled two provisions (the $220 weekly compensation cap for Permanent Partial Disability and the 15% cap on attorney fees) of Alabama’s Workers’ Compensation Act unconstitutional. Because these provisions of the Act cannot be severed from the rest of the workers’ comp legislation, the judge determined that the entire Act is unconstitutional.
The judge initially issued a stay of 120 days for his order. However, the judge amended the stay until further order of the court. So, there is no immediate impact on the existing workers’ compensation system.
If the order remains in place unchanged, the Alabama Legislature must address the nullified statute. Due to the limited number of days remaining in the current legislative session, such a task is improbable, and an appeal will likely be filed.
This ruling, if not addressed, could have a tremendous impact and present many challenges for employers, workers’ compensation insurance companies and self-insured funds.
Insurance markets can be – and often are – volatile, as this latest circuit court ruling has shown. But you can always rely on CompTrustAGC to be there for you and your business.
CompTrustAGC was formed more than 30 years ago to smooth the peaks and valleys in workers’ compensation and to provide a reliable partner for contractors. AGC and CompTrust were there when major carriers would not write workers’ compensation in Alabama. CompTrust and AGC also have been steadfast partners in helping contractors handle regulatory changes and withstand unexpected financial markets.
Through it all, CompTrustAGC has grown in financial strength to become the most trusted fund in the market. It is the only fund in Alabama that maintains an AM Best rating (A-, the best rating available in our category). With $90 million in assets and $42 million in Members’ Equity, CompTrustAGC is the most trusted partner in the industry for a reason.
Our members don’t have to rely on each other’s financial strength. They can, and do, rely on ours.