To the editor:

This is an open letter to Mr. Rob McKenna.

I am a small business owner in West Seattle. Recently, our elected Attorney General, Rob McKenna, has subjected Washington State to the lawsuit involving universal health care. I am at a loss as to why he would waste taxpayers dollars on such a law suit. I understand that he believes the Federal Government doesn't have the right to require companies and individuals to purchase this coverage.

Now, I ask in this open letter as to why I have to purchase Workers' Compensation Insurance Coverage from Labor & Industry and am not allowed to purchase this coverage in the private market where there is competition. I have worked in other states and have found that competition protects the consumer. Here in Washington State, all employers, except the very largest who can manage a self insured retention, have no choice but to buy from the state monopoly.

The system as presently exists in Washington State makes the taxpayer as the reinsurer of last resort. Although, it appears that L&I carries limited coverage 375mm xs 25mm, that still makes me, the taxpayer, the reinsurer of last resort. Looking at the latest available information, the state retains a goodly portion of the risk, which, in the event of a major catastrophe, such as an earthquake or terrorist act, the state could be bankrupt (I sat on the Texas Insurance Advisory Association Board for Personal Lines and we found the same to be true in Texas with their wind cat fund). Having seen the W/C losses incurred first hand by 9/11 where one company’s workers’ compensation losses incurred (without any loss development, just established calendar year reserves and loss payments) were just shy of $1 billion – and that was just one insurer.

So, Mr. McKenna why don't you look at the monopoly in your state and allow Workers' Compensation Insurance to be sold by the private markets?

Robert Callard