California’s State Compensation Insurance Fund filed its sixth consecutive rate reduction, reflecting an average collectible premium decrease of 10 percent on new and renewal workers’ compensation policies with an effective date on or after July 1, 2006. The filing also continues an additional 10 percent workplace safety credit for small employers (premium between $1,000 and $75,000 annually) with superior safety records.
Rates for State Fund policyholders have fallen since July 2003, and now reflect a cumulative savings of 44 percent below pre-2004 rate levels, according to SCIF. Contributing to the 10 percent reduction in collectible premium is a 6 percent reduction in manual rates. Policyholders renewing in July through December 2006 will see an average decrease of 24.4 percent below their expiring policies resulting from the combined effect of a 16 percent decrease taken in January 2006 as well as this 10 percent decrease effective on July 1st.
“This rate filing validates our commitment to pass on the savings from the 2004 reform legislation bringing further rate relief to California employers,” said State Fund Acting President James C. Tudor. “This filing ensures State Fund’s continued financial strength to fulfill our mission to California employers and their injured employees.” He added, “We remain committed to ensuring a stable California marketplace.”
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