[lbo-talk] Insurer denies workers comp in racial killing

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Fri Dec 5 10:37:01 PST 2008



> What's the incentive for the employer to do this? Would they get some
> sort of rate reduction?

You bet: rates are set based on claims. Pools are set up by job-title, and the difference in rates can be huge; fraud figures into that, because everyone in a pool pays for it. I've never been involved in a claim myself, but have heard some nasty stories.

In this particular case, I doubt there's anything the company could do to support this kind of action, though: it's just a bastard delay tactic. In cases of fraud however, I can see a company spending some time on it, and probably rightly so. But both sides have abused that system to the point where it's pretty well fucked all around.

/jordan



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