DOI’s Got the Power? By Robert Warne - February 22, 2002
The California Department of Insurance (DOI) is pushing for new legislation that would clarify its authority regarding workers’ compensation rates and filings.
Since the repeal of the state’s minimum rate law in 1995 there have been many insolvencies in California and the availability of coverage has dissipated.
The department says the Insurance Code only allows it to step in when an insurer’s solvency is threatened.
This position has been called into question after the DOI rejected State Fund’s 2001 rate filing, in which the Fund agreed to lower its group discount by one percent.
This act alone is proof to many that the DOI has the power to step in and assert its authority when it comes to maintaining adequate rates.
Industry insiders accuse the DOI of blaming open rating for many of California’s workers’ compensation problems. They say it’s really the DOI’s fault for not keeping closer tabs on carriers’ reserves and being more assertive.
As the election year plays out this could prove to be an exciting piece of legislation.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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