ADA Does not Replace Need for Second Injury Funds

Question: It’s my understanding that second injury funds were introduced to encourage the hiring of workers with pre-existing conditions. When The Americans With Disabilities Act (ADA) was introduced, didn’t that eliminate the need for second injury funds?

Answer: No. First, the ADA covers some, but not all employees. Second, the ADA offers penalties for discrimination, but it does not cover all impairments that an employee has and it does not afford employers financial protection once they do hire a disabled worker. Therefore, second injury funds are both an extra measure of protection that reach more employees and a reinsurance program for employers to reduce the financial impact of their decision not to discriminate. Hence, the two statues work well together.

A good analogy might be that of a carrot and stick: in terms of workers with disabilities, second injury funds are the carrots, offering some protection for the hiring employer by spreading the economic risk for workers with prior impairments, while the ADA is the stick in the hiring process.

For more information,see “The Growing Storm: The Role of Second Injury Funds in the Wake of the ADA” by Dorothy Linsner.

California Workers’ Comp Permanency Reform: Tools for Cost Containment

An article on California’s workers’ compensation permanency reform by Mark J. Nevils, National Director of Claims for Insurance Recovery Group, is featured in the March 2005 issue of Claims Quarterly. Nevils discusses new legal standards for permanent disability entitlement included in the April 2004 amendment to the California Workers’ Compensation Law (SB 899). These standards offer potential tools for cost savings for those insurers and employees that understand the implications of the amendment and take steps to capture this potential. For more information, read the full article, available in PDF: California’s Workers’ Compensation Permanency Reform: Providing the Tools for Cost Containment.

Insurance Recovery Group Launches New Website

Dave A. Jollin, President and CEO of Insurance Recovery Group, Inc. (IRG) announces the launch of a new website with expanded content. The site includes a deeper menu of content and information resources for clients, prospects, and industry professionals. Jollin points out that, as the national leader in second injury fund recovery, the company wanted to tell its own story in greater depth – for example, by including case histories of successful recoveries and a Frequently Asked Questions (FAQ) page to address common questions about the company or about the recovery process. Expert articles on the topic of second injury fund recovery have also been added to help site visitors understand the issues and opportunities surrounding recovery.

Article Published in The Journal of Workers Compensation

An article by Fred Uehlein and David Jollin is appearing in the Winter 2005 edition of The Journal of Workers Compensation published by Standard Publishing. The article is entitled Closing the Recovery Gap and it deals with maximizing opportunities to reduce total workers’ compensation costs through third-party recoveries. It points out that although most in the industry would define recovery as recouping cash, recovery actually comes in many forms. A broader definition would be the right to apply a statute to recover money or to reduce committed reserves. This expanded definition of recovery includes the reduction of reserves by the assertion of rights against another party, rather than merely through the recovery of actual cash. The article discusses how the expanded definition should spur the use of new and more effective recovery processes that will allow employers and insurers to increase recovery dollars without over-committing valuable management time or cash flow.

David A. Jollin Named President and CEO of IRG

David A. Jollin has been named President and CEO of Insurance Recovery Group, Inc. Mr. Jollin has over twenty-five years of property and casualty brokerage experience in the insurance industry. He has held a variety of positions with major insurance brokers, including Johnson & Higgins, Corroon & Black and Willis, ranging from sales and service of large risk management accounts to senior management positions. This in-depth experience has provided broad exposure to all types of insurance coverages, claims and claims handling for insurance companies and large employers, and allowed Mr. Jollin to work closely with many insurance companies to establish, on behalf of clients, effective risk transfer, risk avoidance and claims handling services. Prior to join IRG, he was Chairman and CEO of Willis of New England. Mr. Jollin is a graduate of Brown University.