JEFFERSON CITY, Mo. (AP) — Some insurance agents urged caution Monday as Missouri lawmakers considered changes to a state-created workers' compensation firm that has been criticized by the state auditor for taking advantage of a federal tax exemption while spending heavily on perks.
Legislation already endorsed by a Senate committee would set up a special panel to study whether the 1993 law creating Missouri Employers Mutual Insurance Co. should be changed. The study represents a go-it-slow approach embraced by the company's CEO as a better alternative to bills requiring the firm to be spun off as a new, purely private insurer.
On Monday, a House committee also heard testimony on whether changes are necessary to the company. While an association for private insurers suggested Missouri Employers Mutual was unfairly benefiting from its federal tax-exempt status, some Missouri insurance agents said the Columbia-based firm helped stabilize the workers' compensation market for small businesses in the 1990s and still provides good rates and customer service.
"Missouri Employers Mutual was good for the marketplace at a time when the marketplace really needed it," said Louis Landwehr, president of Winter-Dent & Co., which sells insurance from offices in Jefferson City and Columbia. He added: "Missouri Employers Mutual is still financially strong and still providing great service."
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