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Compass assessment imposed on the manufacturing group was invalidated



The Mississippi Court of Appeals annulled an assessment imposed on a manufacturing association's work compensation group by a state's insurance guarantee association on Tuesday.

The Mississippi Manufacturers Association Workers Compensation Compensation Group challenged an assessment made by the Workers Compensation Group Insurance Guarantee Association, created by the State Legislature to pay employee compensation claims on behalf of any group insurer who becomes insolvent. The group claimed that it had ceased to issue self-insured workers' compensation and instead received an insurance to insure and pay its debts from its previous insurance periods in the Mississippi Workers Compensation Self

Mississippi Workers Compensation Self

The Workers Compensation Commission upheld the assessment, and the producer group appealed, according to court documents.

According to the Mississippi Workers Compensation Self-Insurer Guaranty Association Law, Insurers must be members of an insurance association. Prior to 2004, individual self-insurance companies and group insurance companies were required to be members of a single guarantee company, but the legislator created a company insurance company for group insurance companies.

The manufacturer group was one of 1

1 founders of the association, but in May 2010 the group stopped renewing the coverage or issuing new coverage. In 2014, the Group purchased an insurance from AmFed National Insurance Co. to cover all claims and liabilities arising from previous insurance periods. In November 2014, the Commission approved a termination of a loan agreement between the Mississippi Manufacturers Association and the Mississippi Manufacturers Association Workers Compensation Group.

The self-insurance association reported to the manufacturer group that its business plan means that recalling members continue to be responsible for assessment for three years or until there are no outstanding debts according to their previous insurance record status … "and the group sent an invoice in March 2015 of almost 13,000 However, in 2015, the Commission confirmed the estimate and reinstated the loan agreement between the Mississippi Manufacturers Association and the manufacturer worker competence.

The manufacturer group challenged the assessment and argued that since the balance of the Guarantee Fund was over $ 750,000, it was above the threshold stated in the The state's statute for imposing assessments The group also questioned whether the association had the authority to impose assessments based on a full calendar year instead of a six-month period and further claimed that the guarantee fund was lacking the authority the company group members were judged because the group had already withdrawn from the self-insurance guarantee fund and no longer functioned as a group insurer.

The Mississippi Court of Appeals claimed that the guarantee association had the power to continue to assess the manufacturer's group for at least three years after it withdrew from the group but found that the assessment was invalid because the fund never refused to the level specified in the charter to invoke judgment.

Although the manufacturer group withdrew from the association and received third party insurance to pay its debts, the court found no dispute that the assessment in question was taken out within three years after the group's revocation and was in accordance with the accident plan's work plan. However, the Court argued that the Charter prohibits the assessment of whether the insurance association's fund balance is actually falling to $ 750,000 and noted that the association did not provide evidence that its balance sheet fell to that level.

The Court also argued that the Commission wrongly resumed loan agreements between the manufacturer group and the non-partial Mississippi Manufacturers Association since the issue was never addressed to the Commission and there was no basis in the record for the Commission to restore it.

As a result, the court drew the Commission's decision and issued a separate order to reverse the reinstatement of the loan agreement.

                    


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