Update: On May 22, 2012: Chesapeake Emploers’ Insurance Company will formally begin in October of 2013. IWIF is now Chesapeake Employers’ Insurance Co.
Most employers, many employees, and all workers’ comp lawyers in Maryland know IWIF. The leading workers’ compensation insurance company, IWIF insures almost a quarter of all insured MD workers. It is an organization that has the backing of the State of Maryland. As of 1988, IWIF is an independent state agency. That said, according to IWIF, they have never used any taxpayer dollars.
(If you are inadvertently on this page seeking info about IWIF comp claims, please visit the IWIF claims page.)
Presently, legislation has been proposed to move IWIF towards privatization and rename the organization Chesapeake Employers’ Insurance Company. Maryland Senate bill 745 moves the organization to more of a private company. Some suggested IWIF had advantages over the private insurance market, and those advantages may have been unfair and should be eliminated. Chesapeake Employers’ Insurance would still be not for profit. IWIF never denies any employer coverage based on claims history or the size of their company. IWIF employs 375 people. There is no immediate indication as to whether either of those facts will change.
The insurance industry is opposing the legislation, however. The American Insurance Association says Chesapeake Employers would not truly be private, and would clearly maintain advantages. They state they would support bonafide privatization, but this current Chesapeake proposal is not that. It strikes me that ultimately, someone is going to need to be the insurer of last resort. Whether it’s IWIF or Chesapeake Employers’ Insurance Co., there has to be workers’ comp insurance accessibility. You can read more about the American Insurance Association’s position here. Popham and Andryszak are the lobbyists for the AIA. No doubt they are hard at work behind the scenes trying to prevent this legislation.
According to the Baltimore Business Journal, current IWIF CEO Thomas J. Phelan believes the measure will pass the legislature this year.
Part of the issue, without question, is money. Shocked? Of course you are not. If IWIF becomes the Chesapeake Employers’ Insurance Company, IWIF and Phelan will keep the State of Maryland at bay (no pun intended) as they seek to use IWIF/Chesapeake funds to balance MD’s budget.
Chesapeake Employers’ Insurance Co. is Soon to Be the Largest In 2012 and for the better part of 2013, IWIF is the largest workers’ compensation insurance provider in the state of Maryland. However, in October of 2013, claims that were formerly filed against the Injured Workers’ Insurance Fund now to be filed against the Chesapeake […]