California’s State Compensation Insurance Fund has announced the filing of its Jan. 1, 2008, rating plan, making no change in the average collectible rate level. SCIF held the line on rates despite the Workers’ Compensation Insurance Rating Bureau’s filed recommendation for a 5.2 percent average rate increase effective January 1.
State Fund’s rating plan adopted the Workers Compensation Insurance Bureau’s recommended changes in individual class loss costs. Individual employers will therefore see differences in their pricing due to changes in their classification loss costs, experience modifications, and other changes in rating plan features. Overall, however State Fund’s average collectible rate level will be unchanged.
Small employers (premiums between $1,000 and $59,999) with superior safety records will continue to receive a 10 percent workplace safety credit. “Small businesses are crucial to the California economy. State Fund is pleased to be able to reward these employers for maintaining safe workplaces,” said State Fund President Janet Frank.
“Employers are enjoying the benefit of a healthy, competitive workers’ compensation market that is directly attributable to passage of the Governor’s reform legislation in 2004, SB 899, and earlier 2003 reform legislation, AB 227 and SB 228,” she continued. “State Fund’s rate filing reflects our role as a carrier of choice for many employers, as well as the safety net for any employer needing workers’ compensation insurance in California.”
State Fund’s rate level remains 55 percent below pre-reform 2003 rate levels. The new rates will apply to new and renewal workers’ compensation policies with an effective date on or after Jan. 1, 2008.
For more information, visit www.scif.com.
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