Judge finds insurance group correctly calculated workers’ compensation insurance premiums.

Topic: Insurance, Decided by: Judge Miller 
Docket Number: 1309754 , Decision Date: December 19, 2012 
Attachment: Click here to download the decision. 

FCCI Insurance Group issues workers’ compensation policies based on payment of an estimated premium and the final premium is calculated at the end of the policy term based on actual exposure during the term. Petitioner made payments to its union glaziers based on the difference between the estimated and actual number of hours required to complete a job and the actual amount of hours it took to complete the job. Petitioner labeled these payments as “severance” because the payments were made when Petitioner terminated the glaziers at the close of each year. However, Petitioner terminated the glaziers every year and rehired the glaziers the next year. Respondent did not characterize these payments as severance, but as part of payroll, which increased the amount of premiums Petitioner owed.
The Judge determined that the payments were properly characterized as bonuses because the payments rewarded the glaziers for their efficiency and were therefore included in payroll. The Judge found that Respondent correctly calculated the workers’ compensation insurance premiums owed by Petitioner. As such, the Judge GRANTED Respondent’s Motion for Summary Determination.

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