California’s State Compensation Insurance Fund announced it will not be filing a mid-year rate increase. Instead, the workers’ compensation insurance provider said it will revise its rating plan to provide underwriters greater flexibility to reward better-performing accounts.
The revisions — which should reduce average prices for better-performing small and midsized accounts — will apply to new and renewal workers’ compensation policies with an effective date on or after July 1, 2010.
“We understand how challenging the current economic climate is, and we are trying to support California’s businesses as they manage through this difficult time,” said Doug Stewart, interim president and CEO of the carrier, which currently insures approximately one-in-five California businesses.
State Fund premium levels have fallen significantly since 2003, when Governor Arnold Schwarzenegger and the Legislature began implementing policy reforms that lowered premiums, the organization said.
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