Terrorism surcharge on WC premium - PA

System · August 2003

Has anyone else encountered this? We just got our WC bill and noticed a new line item called "Terrorism" and it's 5% of our covered amount. It's a pretty significant amount. We called the carrier and our account rep was only able to tell us that it is a Federal law, but it doesn't make it required in any of hte states. Instead, each state can make their own determination but he didn't know if PA was a state that was requiring it. So we're doing our own research to learn more but I don't remember reading anything about this before now.

yakley · August 2003

TN. Our policy renewed April 1, 2003 and we were assessed the additional terrorism fee, but it was about 2%.

HRQ · August 2003

Apparently we are also being charged an additional 5%.

System · August 2003

I did some more research and we finally found information on a website about this new charge (I can't remember the site, my proj mgr has it in her files). We did find that it's required by Federal law for the next 3 years, and after that period of time it's up to each State to determine whether to continue it.

I guess the thing I find odd is that our WC representative wasn't too well-versed in this topic. And, that in all the legal alerts and HR sites I visit, as well as all the Benefit e-zines I receive, I don't remember seeing anything about this new WC "terrorism" surcharge.

Parabeagle · August 2003

We have also had this surchare passed on to us, but beware - it's not just workers' comp. It's being assessed on our medical, EPL and general liability insurance as well. Here it's about 4%

Nrdgrrl · September 2003

President Bush signed the Terrorism Risk Insurance Act of 2002 (TRIA) into law on Tuesday, November 26, 2002. The act requires that specific actions be taken by insurance carriers in order to comply with the terms of the new Act. On February 19, 2003, the Bureau filed proposed catastrophe provisions for Massachusetts to address certified acts of terrorism as defined in the TRIA.

Here is a link to the actual act:

[url]http://frwebgate.access.gpo.gov/cgi-bin/useftp.cgi?IPaddress=162.140.64.21&filename=h3210enr.pdf&directory=/disk2/wais/data/107_cong_bills[/url]

You can cut and paste it into your address bar on your browser.

NrdGrrl

Terrorism surcharge on WC premium - PA

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