Date:   March 16, 2005

To:      Insurance Companies, Self-Insured Employers, & Group Funds

From:  Craig R. Petersen, Interim Director

Click here 2004 Paylag Report to view a chart showing the pay lag results by industry group as well as individual company. Although improvements have been made, the current average is still 4 days longer than the time period required by statute. We cannot overemphasize the need to investigate all claims as soon as possible and provide payment of benefits to all entitled individuals within the 14 day time frame required by law.

This report only covers claims where an initial Form 701 was submitted from 1/1/04 through 12/31/04. Only voluntary payment claims were selected. We have excluded any claims in which a Form 107, 104A or 104C has been filed or in which partial benefits were initially paid.

We urge you to review your company's performance over the last year. You should also review the manner in which your Form 701 filings are being made. If this form is filled out incorrectly, it can increase the number of pay lag days. If you have any questions regarding the detail in your report or corrections to be made to the filing information, please contact Kathleen Rademacher at (517) 322-1438 or e-mail her at kradem@michigan.gov.