Worker's Compensation Self-Insurers Council Minutes

Meeting Minutes
Madison, Wisconsin
May 21, 1998

Members present:  Ms. Hudson, Ms. Joswiak, Mr. Kenney, Mr. Wittry, Mr. Zitzer


Staff present: Mr. Krohm, Mr. Martz, Mr. Moreth, Mr. Vinge

Call to order. The meeting was called to order by Mr. Zitzer at 9:30 a.m. in conformance with Wisconsin’s open meeting law.

Review and Approval of the Minutes of the Previous Meeting. Minutes of the February 11, 1998 Council meeting were unanimously approved as written.

Closed Session Review of Financial Reports of Self-insured Employers.  In accordance with s. 19.85(1)(f) the Council convened in closed session to review financial, loss experience, safety and other information for employers presently exempt from the duty to insure. Some of the companies’ specific financial or other business information may be confidential and not subject to public disclosure.

Other Business.  Atchison Casting has submitted an appeal of the rejection of its two subsidiaries, PrimeCast and Kramer International. AR Accessories, self-insured through February 1997, has filed bankruptcy. With the recent spate of foreign companies purchasing self-insured employers (e.g. Novartis/Gerber, Sandvik/Precision Twist Drill, Thyssen/Giddings & Lewis) it was suggested that the department require the guarantees of both the top American corporation as well as the foreign parent. Harvest States is merging with Cenex. The department has agreed to extend self-insurance to the minimal Wisconsin Cenex operations. Staff will be meeting with Navistar representatives on June 1, 1998 to discuss the rejection of Navistar’s recent application for exemption from the duty to insure.

DWD 80.60 Workgroup Discussion..  Workgroup members Mr. Bagin, Mr. Metcalfe, and Mr. Tieman joined the meeting. Mr. Martz noted that the earliest implementation of the revised rule is pushed back from October 1 to November 1, 1998. There was a lengthy discussion of the formula approach to setting security requirements. All agreed that requiring all self-insurers to provide security will strengthen the program, but several members expressed discomfort with exceptions for certain credit ratings, and for a requirement formula based on historical claim costs. The consensus was that all self-insurers must provide a minimum security of $500,000. There would be no exceptions from the minimum, and higher amounts could be required if deemed appropriate.

It was questioned why the proposed rule would require a political subdivision to submit, every three years, a resolution stating its intent to remain self-insured. Mr. Tieman replied that it was his experience that, with the ordinary turnover of elected officials, many governing bodies are unaware that prior administrations had undertaken self-insurance.

To avoid confusion or misunderstanding, it was suggested that the reference to a "premium" for providing security other than a surety bond be changed to "surcharge".

Next Meeting. The next Council meeting is scheduled for Tuesday, September 15, 1998 in Room 328 NW, State Capitol.

 Updated February 06, 2012
 Division of Worker's Compensation
 Content Contact: WCLEGAL