Factoring AB 749 Into a Rate Increase By Robert Warne - July 25, 2002
With the dawning of AB 749 at hand, the Workers’ Compensation Insurance Rating Bureau’s (WCIRB) governing committee recommended an 11.9 percent pure premium rate change for 2003. The July 4 recommendation is intended to offset the costs of the “benefits increase” legislation set to take effect January 1, 2003.
The increase is aside from the mid-year 10.1 percent increase that took effect July 1. If approved by the California Department of Insurance (CDI) in September, the rates will be in force for all new and renewal policies on or after January 1, 2003.
The WCIRB said that 9.7 percent of the 11.9 percent increase in pure premium rates, reflects an adjustment for benefit and structural changes.
Also to accommodate un-expired portions of 2002 policies, the WCIRB proposed a 5.9 percent increase as well to soften the impact of the new legislation.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA