The California Workers’ Compensation Insurance Rating Bureau’s Governing Committee approved the filing of an average 5.2 percent decrease in advisory pure premium rates to be effective on policies incepting on or after Jan. 1, 2006. The recommended decrease was based on an analysis of loss and loss adjustment experience valued as of March 31, 2005.
In addition to approving the filing of a proposed pure premium rate decrease, the Governing Committee approved the filing of changes to the standard classification system and changes to several components of the Experience Rating Plan formula. These changes will also be proposed to be effective Jan. 1, 2006.
The WCIRB anticipates submitting a regulatory filing with the California Department of Insurance by the end of the month. It is expected that the Insurance Commissioner will hold a public hearing to consider the proposal in mid-September. Prior to the public hearing, the WCIRB anticipates reviewing loss experience valued as of June 30, 2005, as well as reevaluating the impact of the Jan. 1, 2005 permanent disability rating schedule on the cost of benefits based on a study of actual ratings computed under the new schedule.
Following the review and revaluation, the WCIRB, as appropriate, will modify its pure premium rate proposal by the time of the CDI public hearing.
The WCIRB will make the rate filing and all related materials available on its website once it has been filed. WCIRB filing information can be found by visiting www.wcirbonline.org/filings.
Was this article valuable?
Here are more articles you may enjoy.