Garamendi: For the Record By Robert Warne - April 23, 2003
Senate Republican Leader Jim Brulte of Rancho Cucamonga drew fire from Insurance Commissioner John Garamendi, April 22.
In a news conference sponsored by Brulte, Dr. Richard B. Farmer made some statements about pure premium rates.
His remarks incited Garamendi to issue a release to set the record straight. Garamendi said that Farmer’s statement about him approving pure premium rate increases for workers’ compensation was inaccurate and incorrect.
“I have never approved any pure premium rate increase recommendation from the Workers' Compensation Insurance Rating Bureau (WCIRB), nor have I received any during my tenure. In addition, WCIRB rate recommendations are only advisory rates - carriers may deviate from the recommended rate based upon their own operating results.”
Garamendi noted that the pure premium rate is based only on claims losses and doesn’t reflect the workers’ compensation cost drivers that are currently unchecked and out of control. And until the cost drivers can be legislatively tamed, the WCIRB would most likely continue to recommend rate increases.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA