Garamendi Announces Downward Trend in California Workers’ Comp Rates

July 13, 2004

  • July 14, 2004 at 4:31 am
    Gregory Osorio, ARM says:
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    Careful reading of Commissioner Garamendi’s report will reveal that the 5.9% further reduction in State Fund premium will be accomplished by additional reductions in broker’s commissions
    (page 3, last paragraph) as well as the footnote on last page of report that reflects that recommended reduction in commission would be 2%. So instead of the 5.5% commission (almost 1/2 the industry standard), brokers would now only receive 3.5%. Somehow the logic is flawed as well as a recognition of:
    1. Services good brokers bring to the table, and
    2. SCIF’s complete inability to adequately service business owners (insureds) if brokers were taken out of the equation.

    Either way brokers ahd better pay attention and take action or else this might slip through.

  • July 15, 2004 at 11:17 am
    GW says:
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    Reducing commissions is the easiest way to reduce costs with offending only a small number of people who he controls. The State Fund really grew when brokers were allowed to place business with them and there were no alternatives. The legislature allowed this to happen but are unable to get the horse back in the barn. Give brokers a viable alternative and see how fast their 50+ percent of market dwindles for the SCIF.

  • July 26, 2004 at 6:28 am
    Mike Brennan says:
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    Garmendi fails to announce the rate increase of 3.5% effective Jan 1st 05. Of course this is not good for his political carrer so he’ll just overlook that. The only coverage he wants is the great job he’s doing. Garamendi is destroying agent compensation with all carriers as they trend toward the lead of SCIF. If rate reductions are going to be made on the backs of the players in the industry the first one that comes to mind, plaintiff attorneys, have not had their fee schedule amended since this mess (that they helped to create) erupted.



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