JEFFERSON CITY, Mo. (AP) — Some insurance agents urged caution Monday as Missouri lawmakers considered changes to a state-created workers' compensation firm that has been criticized by the state auditor for taking advantage of a federal tax exemption while spending heavily on perks.

Legislation already endorsed by a Senate committee would set up a special panel to study whether the 1993 law creating Missouri Employers Mutual Insurance Co. should be changed. The study represents a go-it-slow approach embraced by the company's CEO as a better alternative to bills requiring the firm to be spun off as a new, purely private insurer.

On Monday, a House committee also heard testimony on whether changes are necessary to the company. While an association for private insurers suggested Missouri Employers Mutual was unfairly benefiting from its federal tax-exempt status, some Missouri insurance agents said the Columbia-based firm helped stabilize the workers' compensation market for small businesses in the 1990s and still provides good rates and customer service.