Employers Insurance Company of Nevada, A Mutual Company (EICN), announced that its wholly owned California subsidiary, Employers Compensation Insurance Company (ECIC), has
filed with the California Department of Insurance an 11.3 percent rate
decrease to be effective on workers’ compensation policies issued or renewed on or after July 1, 2004. The filing reflects the anticipated initial savings associated with the 2004 California workers’ compensation reform legislation.
The company has reduced overall rates by an average of 13.9 percent since January 2004. This total is the combined effect of the current 11.3 percent reduction and a rate decrease of 2.6 percent in January of this year as a result of reforms initiated in 2003.
“We believe that the reform legislation enacted in California over the
past 10 months is having a positive effect on the California workers’
compensation market,” said EICN CEO Douglas Dirks. “The
implementation of the first parts of the reform legislation allows us to
reduce our rates immediately.”
Dirks added that this filing is expected to result in premium reductions
for ECIC’s California policyholders, and may have a long term positive effect on the workers’ comp market.
“We also have high hopes that implementation of the remaining pieces of the reform package will have a continuing positive effect on the market,” added Dirks. “The sooner the permanent disability schedule and medical control programs, among other aspects of the package, can be implemented in California, the sooner we can pass even greater savings along to our customers.”
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