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April 22, 2024
California Division of Workers’ Compensation Posts Updated Time of Hire Notice

April 22, 2024
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April 19, 2024
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April 15, 2024
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The Workers’ Compensation Rating Bureau governing committee has voted not to ask the state insurance commissioner to implement a mid-term pure premium rate increase, according to Workers’ Comp Executive.

The journal of record for the California WC community noted that, after reviewing cost development based on year-end data, the bureau was considering asking for the mid-term hike, something that hasn’t happened since before open rating started in 1995. Dave Belluci, the bureau’s chief actuary, told WC Executive that average costs per claim during the last quarter of 2000 had increased another 2%. "Two percent is not the level of increase that would justify a mid-term (request for a rate hike)," he said.

"Insurers were waiting for better news," the Executive noted. "With the industry’s back bowed by the strain of the 1998 and 1999 accident years, most insurers are interested in pushing rates and prices up even further."

Meanwhile, The Department of Insurance stated March 21 that its analysis of the State Compensation Fund has shown that it "is adequately reserved," at least as far as 1999 is concerned. Norris Clark, deputy commissioner of Financial Surveillance, informed the California Assembly Insurance Committee that "assets are not a problem at all and the Comp Fund is highly liquid."

Clark declined comment on the state fund’s financial condition through 2000, saying it’s too early to tell, although the fund lost money after paying dividends.

"We will use all the resources available to us to assure that state fund remains financially sound and able to meet all its obligations," Clark said, mindful that many in the California insurance industry have been critical of the funds pricing in the marketplace during 1999 at the start of 2000.