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B-209252 1 (1982-11-10)

handle is hein.gao/gaobabkgt0001 and id is 1 raw text is: 

                     UNITED STATES GENERAL ACCOUNTING OFFICE
  SWASHINGTON, D.C. 20548


?MaGRAM ANALP.Y5S
   01VISIN                        10 NOV 198Z

      B-209252
      111111 III                                       111111IIII8t ll /I11lll /11l(1ll
                                                       120397


      The Honorable John J. LaB'alce
      Chairman, Subcommittee on General
        Oversight
      Committee on Small Business
      House of Representatives

      Dear Mr. Chairman:

           On May 18, 1982, you asked us to review the merits of studies
      referred to in a hearing held by your Subcommittee on February 8,
      1982. One main issue addressed at the hearing was whether it was
      desirable that States adopt open competition statutes and permit
      insurers to compete on premium rates as opposed to the continua-
      tion of premium regulation. The second major issue was whether
      the present premium-regulated system as practiced by most States
      adequately reflected the value of investment income earned by
      insurers from the premium payments of employers.

           On Friday, October 1, members of my staff, Natwar Gandhi and
      Clifford Tuck, met with your counsel, Mr. Robert Rigney, and
      briefed him on our findings. These findings and a critical dis-
      cussion of the issues contained in the February testimony as well
      as studies that elucidated the views expressed in the testimony
      were summarized.

          / At his request we are transmitting a copy of the study used
       as the basis for the briefing as well as a bibliography of source
       materials that formed the basis of our summary and critique of the
       issues.

                                     Sincerely yours,



                                     Morton A. Myers
                                     Director

       Enclosures

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