Alarcon’s Making a List and Checking it Twice By Robert Warne - November 26, 2003
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A Sacramento version of The Crucible is starting to take shape with Senator Richard Alarcon leading the witch-hunt as carriers submit their rate filings post Insurance Commissioner John Garamendi’s 14.9 percent pure premium rate decrease recommendation.
Alarcon, the Senate chair of the Labor and Industrial Relations Committee is currently holding hearings on the impact of this year's legislation and the current legislation proposed to further reduce workers’ compensation costs.
The Department of Insurance has reported that over 200 carriers licensed to sell workers' comp in the state have responded to Garamendi’s recommended rate reduction. Many have filed reductions that range between 2.7 to 17.8 percent. But nine have hiked up their rates anywhere from 2 to 25 percent. And 10 are just flat out not budging.
Frustrated by the response, Alarcon threatened carriers Nov. 24 that, “If you force our hand, if we cannot lower workers' comp prices, then we will regulate those reductions and provide authority for the insurance commissioner to do it," according to the Associated Press.
Alarcon is convinced that carriers are taking advantage of the system and are making a considerable amount of money.
Somehow he must not be aware that California has been plagued with SARS (Sudden Absence of Reserves Syndrome) for the last five years and if comp carriers are making money it has nothing to do with the golden state.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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