TO: All Insurers Writing Workers Compensation Insurance in Massachusetts
FROM: Julianne M. Bowler, Commissioner of Insurance
DATE: December 27, 2004
RE: Required Deposits to be Maintained by Foreign Insurers

Effective January 1, 2005 all foreign Workers Compensation insurers rated "A-" or higher by AM Best will no longer be required to maintain a Workers Compensation deposit in accordance with the calculation required in the Massachusetts C-1 Form. The new required Workers Compensation deposit amount for said companies is $50,000. There is no change to the rules for general and special deposits.

All companies with an AM Best rating of B++ or lower should continue to file the Massachusetts C-1 Form on April 1, 2005 and are not included in the new requirements.

Companies entitled to a return of deposits will be contacted by Ursula McCarthy (617-521-7391) during the first quarter of 2005 to arrange for the return of the securities.