Why Do Overcharges Occur If You have USA Work Comp Expenses?
• Lack of One Entity Overseeing the Process
Who sees that a company pays only what they are obligated to pay? The insurance
company? The insurance agency or insurance broker? The rating bureau? The
state's department of insurance? There is not ONE entity that oversees the entire
process from start to finish. The insurance company only does as much as they
have to according to the state insurance laws. They do not calculate the experience
modification factor or develop classification codes. This is done by the rating
bureaus. The insurance agency or broker is paid by the insurance companies and
are subject to contracts with them.