The WCIRB has submitted a Regulatory Filing to the California Department of Insurance recommending an average 5.2% decrease in advisory pure premium rates to be effective on policies incepting on or after Jan. 1, 2006.
In addition to pure premium rate changes, the WCIRB proposed a number of changes to the standard classification system and changes to several components of the experience rating formula contained in the California Workers’ Compensation Experience Rating Plan. These changes are also proposed to be effective Jan. 1, 2006.
The recommended 5.2% decrease in pure premium rates is based on an analysis of loss and loss adjustment experience valued as of March 31, 2005. However, the WCIRB will be reviewing loss experience valued as of June 30, 2005 as soon as it becomes available and reevaluating the impact of the Jan. 1, 2005 permanent disability rating schedule on the cost of benefits based on a new study of actual ratings. Following these reviews the WCIRB will amend its pure premium rates recommendation as appropriate.
The California Insurance Commissioner will hold a public hearing on Sept. 16, 2005 to consider the WCIRB’s filing. The hearing will be held at 9:30 a.m. at the Department of Insurance Public Hearing Room, 45 Fremont Street, 23rd Floor, San Francisco.
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