Following a proposal from California’s Workers’ Compensation Insurance Rating Bureau (WCIRB) on Wednesday to ask for a 3.5 percent increase in the pure premium rate, California Insurance Commissioner John Garamendi released the following remarks.
“Today the Workers’ Compensation Insurance Rating Bureau (WCIRB) has proposed a 3.5 percent increase in the pure premium rate, to become effective January 1, 2005. This is only half the story.
“I have also received valuable information from experts and industry concerning the status of the workers’ compensation system. SB 899 requires that regulations be written before it can be fully implemented. The Division of Workers’ Compensation Administrative Director stated that the regulations should yield cost savings. When the regulations are in place we may find sufficient savings to more than offset the WCIRB’S recommended 3.5 percent increase, and continue the rate reductions that commenced with the 2003 reforms.”
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