California Workers’ Comp to Exclude COVID-19 From Rating, Payroll

The governing committee of the Workers’ Compensation Insurance Rating Bureau of California on Friday voted unanimously for a special regulatory filing that includes excluding COVID-19 claims from the experience rating and excluding payments to employees who continue to be paid while not working.

The committee’s vote authorized the WCIRB to file with California’s insurance commissioner rule changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) and the California Workers’ Compensation Experience Rating Plan—1995 (ERP) in response to the impact of the COVID-19 pandemic.

The changes, if approved by the commissioner, would:

The WCIRB earlier this month voted not to submit a July 1, 2020 rate after meeting to review the WCIRB actuarial committee’s analysis of Dec. 31, 2019 California workers’ comp experience. It found that the indicated advisory pure premium rate was 1 cent above the average reported rate.

Given the minor indicated change and the high level of uncertainty of the potential effects of the COVID-19 pandemic and the impending economic downturn on payrolls and claims costs, the potential slowdown in claims activity due to the statewide stay-at-home order, and emerging claims arising from COVID-19 diagnoses, the committee unanimously decided not to submit a July 1, 2020 filing.