Workers' Compensation Insurance Pricing. Current Programs and Proposed Reforms

Transcription

1 Workers' Compensation Insurance Pricing Current Programs and Proposed Reforms

2 Huebner International Series on Risk, Insurance, and Economic Security J. David Cummins, Editor The Wharton School University of Pennsylvania Philadelphia, Pennsylvania, U.S.A. Series Advisors: Dr. Phelim P. Boyle, University of Waterloo, Canada Dr. Jean Lemaire, Universite Libre de Bruxelles, Belguim Dr. Akohiko Tsuboi, Kagawa University, Japan Dr. Richard Zeckhauser, Harvard University, U.S.A. Previously published books in the series: Cummins, J. David; Smith, Barry D.; Vance, R. Neil; VanDerhei, Jack L.: Risk Classification in Life Insurance Mintel, Judith: Insurance Rate Litigation Cummins, J. David: Strategic Planning and Modeling in Property-Liability Insurance Lemaire, Jean: Automobile Insurance: Actuarial Models Rushing, William A.: Social Functions and Economic Aspects of Health Insurance Cummins, J. David and Harrington, Scott E.: Fair Rate of Return in Property-Liability Insurance The objective of the series is to publish original research and advanced textbooks dealing with all major aspects of risk bearing and economic security. The emphasis is on books that will be of interest to an international audience. Interdisciplinary topics as well as those from traditional disciplines such as economics, risk and insurance, and actuarial science are within the scope of the series. The goal is to provide an outlet for imaginative approaches to problems in both the theory and practice of risk and economic security.

3 Workers' Compensation Insurance Pricing Current Programs and Proposed Reforms Editors: Philip S. Borba and David Appel National Council on Compensation Insurance One Penn Plaza New York, New York Springer Science+ Business Media, LLC 1988

4 Library of Congress Cataloging-in-Publication Data Workers compensation insurance pricing. (Huebner international series on risk, insurance, and economic security) Bibliography: p. lncluded index. 1. Workers' compensation- Rites and tab les. 1. Appel, David, Barba, Philip S. III. Series. HD W ISBN DOI / ' ISBN (ebook) Copyright 1988 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 1988 Ali rights reserved. No pari of this publication may be reproduced, stored in a retrieval system or transmitted in any tarm or by any means, mechanical, photocopying, record ing, or otherwise, without the prior written permission of the publisher. Springer Science+Business Media, LLC.

5 Contents 1 Costs and Prices of Workers' Compensation Insurance, by David Appel and Philip S. Borba 2 Labor Market Theory and the Distribution of Workers' Compensation Losses, 19 by Richard J. Butler and John D. Worrall 3 Disability-Related Categories: An Alternative to Wage Loss Benefits for Injured Workers, 35 by James Lambrinos and William G. Johnson 4 Compensating Victims of Occupational Diseases: Can We Structure an Effective Policy? 59 by Harris Schlesinger and Emilio C. Venezian 5 Experience Rating Matters, 81 by John D. Worrall and Richard J. Butler 6 The Relationship Between Standard Premium Loss Ratios and Firm Size in Workers' Compensation Insurance, 95 by Scott E. Harrington 7 The Impact of Open Competition in Michigan on the Employers' Cost of Workers' Compensation, 109 by H. Allan Hunt, Alan B. Krueger, and John F. Burton, Jr. v

6 vi 8 Incorporating Risk in Insurance Guaranty Fund Premiums, by J. David Cummins 9 The Pricing of Reinsurance Contracts, by Neil A. Doherty CONTENTS

7 CONTRIBUTING AUTHORS David Appel Economic and Social Research Department National Council on Compensation Insurance New York, NY Philip S. Borba Economic and Social Research Department National Council on Compensation Insurance New York, NY Richard J. Butler Department of Economics Brigham Young University Provo, Utah John F. Burton, Jr. School of Industrial and Labor Relations Cornell University Ithaca, New York J. David Cummins Department of Insurance The Wharton School University of Pennsylvania Philadelphia, Pennsylvania Neil A. Doherty Department of Insurance The Wharton School University of Pennsylvania Philadelphia, Pennsylvania Scott E. Harrington College of Business Administration University of South Carolina Columbia, SC H. Allan Hunt Employment Research Upjohn Institute 300 S. Westnedge Avenue Kalamazoo, Michigan VII

8 viii William G. Johnson Deparment of Economics Health Studies Program The Maxwell School Syracuse University Syracuse, New York Alan B. Krueger Princeton University Princeton, NJ James Lambrinos Program in Health Systems Administration Union College Schenectady, New York CONTRIBUTING AUTHORS Harris Schlesinger College of Business Administration University of Alabama Tuscaloosa, Alabama Emilio C. Venezian Department of Business Administration Rutgers University Newark, New Jersey John D. Worrall Department of Economics Rutgers University New Brunswick, New Jersey 08903

9 Workers' Compensation Insurance Pricing Current Programs and Proposed Reforms