NU Online News Service, March 2, 3:38 p.m.EST

Massachusetts Attorney General Martha Coakley's Office announcedshe will oppose an insurance industry request to raise workers'compensation premium rates by over 4 percent.

According to a statement from the Attorney General's Office, ifInsurance Commissioner Joseph G. Murphy approves the rate increaseit will cost small businesses and other employers more than $40million in extra premiums.

The insurance companies, through their trade group, the Workers'Compensation Rating and Inspection Bureau (WCRIB), must seekapproval from the commissioner to raise rates.

Ms. Coakley's office said the attorney general has the statutoryright to oppose such increases and intervene in an administrativerate hearing process to ensure a rigorous review of the rates.

"Businesses, particularly small businesses, are alreadystruggling in these difficult economic times and cannot afford tooverpay for insurance coverage," said Ms. Coakley.

"As businesses are mandated to buy workers' comp insurance, theydeserve fair rates," Ms. Coakley added.

"Our office will intervene in the rate proceeding to protectpublic interest and work to block these unnecessary increases," shepromised.

Attorney General Coakley's office opposed workers' comp ratehike requests in 2007 and 2008. In February 2008, WCRIB submitted afiling to the Division of Insurance seeking a 2.3 percent rateincrease.

The Attorney General's Office intervened in the action then,noting that average rates were too high and commenced litigation onbehalf of Massachusetts insurance customers. The insurers at thatpoint agreed to settle the matter by reducing rates by 1 percent.This resolution saved Massachusetts businesses $30 million,according to Ms. Coakley's office.

Her announcement noted that in 2007, her office litigatedanother workers' compensation industry rate request, andsuccessfully obtained a 16.9 percent rate rollback forMassachusetts businesses. As a result, Massachusetts's businessessaved $169 million in workers' comp insurance premiums, said Ms.Coakley.