State Compensation Insurance Fund announced a seven percent rate decrease on new and renewal policies with an effective date on or after July 1, 2004.
The decrease is a result of the cost saving reforms adopted by the Governor and Legislature earlier this year. This follows an average 2.9 percent rate decrease that was effective Jan. 1, 2004.
In a response to the news by SCIF, California Insurance Commissioner John Garamendi offered the following comments.
“This is disappointing, but I understand the historical financial issues that the State Compensation Insurance Fund faces,” Garamendi said. “Nevertheless, as required by law, my Department will analyze this filing to determine whether all of the available savings are indeed being passed on to employers. I once again call on the Governor to turn his attention to the management and operational problems of State Fund. Through his appointment of the Board of Directors he has the power to remove obstacles that would prevent savings from being passed on.”
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