SOUTH CAROLINA BILL WOULD TAP SECOND INJURY FUND.

The South Carolina House Ways and Means Committee has approved a budget provision that would appropriate $40 million from the Second Injury Fund for general revenues and eventually eliminate the fund altogether.

The measure would shut down the fund to new claims after July 1, after which the Department of Insurance would oversee the runoff of existing claims until they are all paid. It also would reduce the assessments on insurers to pay for the fund.

The Second Injury Fund pays worker compensation claims for those who have previously been injured, the original idea being to remove a barrier to employment for those with disabilities.

Insurers have tried for years to eliminate the fund, but they don't like the idea of tapping it for general revenues.

Insurers assessments for the fund rose to $133.3 million in fiscal 2002-2003, or 13 percent of all worker compensation premiums in the state, the Property Casualty Insurance Association of America says, and the money should be used to pay remaining claims.

"Otherwise, there is likely to be a double assessment on the industry," says Robert Herlong, southeast regional manager of the PCI.

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