Two Monopolistic State Funds Strike Again

I do not wish to pick on any of the monopolistic state funds. I have passed over commenting on quite a few articles referring to Ohio and North Dakota. However, these two news items were too major to ignore.

North Dakota

The State Fund's (WSI) reserve levels topped out at $174 million. The Attorney General of North Dakota had commented that WSI is figuring the surplus figures incorrectly. The WSI has refunded quite a large amount of the surplus to the policyholders by way of dividends.

I am of the opinion that a large surplus indicates that the WSI or any carrier is charging too much premium to their policyholders. Instead of receiving a multi-year free interest loan from the policyholders and then refunding it back, it is best to set premium levels at a fair rate. As I see it, there should be a very small amount of surplus in a government-backed agency.

I will cover Ohio tomorrow, as I have to research the situation a little more. A judge has made a ruling against the BWC.