Q. What does "replacement cost" mean?
A. Replacement cost is the cost in current dollars to replace, with like kind and quality and in new condition, at the same location, in the same manner, and as currently scheduled. The AMLJIA requires members to annually schedule real property at full replacement cost. Members may have noticed that property values continually increase. These increases are due to inflation of the economy and increased cost of construction materials. Marshall & Swift, the leading provider of building cost data in the United States and Canada, has provided the following facts:
- Plywood prices have increased by 21.6% this year.
- Lumber prices have risen 23.3% since last year.
- Drywall increased by 4.9% from last quarter.
- Asphalt shingles and felt roofing paper increased an average of 1.3% from last quarter.
- Ready mix concrete prices have shown little change of 1.7% this quarter
- Copper pipe is up 6.3% from last quarter, an increase due to a decline in output from some copper mines.
- PVC pipe pricing has increased 2.2% from last quarter.
- Structural steel, steel studs, and reinforcing bars are all on the rise as well with increases as high as 22.6%
Q. We recently had an incident that could result in a lawsuit, but no claim has been presented. Should we report it or wait until a claim is filed?
A. Report it immediately. This gives your claims adjusters time to investigate the claim before memories fade and details are lost. Timely reporting is very important in controlling the outcome of lawsuits.
Q. When completing the report of occupational injury and/or illness form (6101) should I (the employer) state whether or not I doubt the validity of a claim (question #46) on the 6101?
A. Yes. Members need to notify the adjuster immediately on those claims where they doubt the validity of a claim for benefits. Consistent communication between the parties is necessary to pay benefits owed under the Alaska workers' compensation laws, only.
If you have questions not answered here, please call 1-800-337-3682, or email sharont@amljia.org.
|
