WCIRB Proposes 10.4 Percent Decrease in Pure Premium Rates

March 28, 2005

On March 25, 2005, the WCIRB submitted a filing to the California Insurance Commissioner recommending a 10.4 percent decrease in advisory pure premium rates effective July 1, 2005 on new and renewal policies. The proposed pure premium rate change is based on insurer losses incurred during 2004 and prior accident years valued as of Dec. 31, 2004, and insurer loss adjustment expenses for 2003 and prior years.

The proposed rates do not reflect a provision for the new permanent disability rating schedule that was recently adopted by the Administrative Director of the Division of Workers’ Compensation pursuant to Senate Bill No. 899. The WCIRB is in the process of evaluating the impact of this new schedule on the cost of benefits. If appropriate, based on that review, the WCIRB will submit further proposed amendments to pure premium rates prior to the close of record.

In addition, the WCIRB proposed changes to the California Workers’ Compensation Uniform Statistical Reporting Plan – 1995, the Miscellaneous Regulations for the Recording and Reporting of Data and the California Workers’ Compensation Experience Rating Plan – 1995. These changes include (a) proposed revisions related to the application of experience modifications to policies covering employee leasing arrangements and (b) a proposed modification to the experience rating eligibility threshold to reflect the proposed decrease in pure premium rates. These changes are proposed to be effective July 1, 2005.

A public hearing on the matters contained in the WCIRB’s filing will be held April 25, 2005, at 9:30 a.m., in the 22nd Floor Hearing Room at 45 Fremont Street, San Francisco.

The complete July 1, 2005 Regulatory Filing, as well as the insurance commissioner’s Notice of Proposed Action and Notice of Public Hearing and the Initial Statement of Reasons summarizing the WCIRB’s proposed revisions, may be viewed or downloaded from the WCIRB Web site. Please visit www.wcirbonline.org/filings.

Paper copies of the filing may be purchased for $50 plus shipping and handling. To place an order for a paper copy, complete a Products and Services Order Form (104K PDF) using “AD0001X07012005” as the catalog number, “Regulatory Filing” as the description, and “July 1, 2005” as the selection criteria.

Was this article valuable?

Here are more articles you may enjoy.