The California Department of Insurance announced that it will hold a public hearing on September 30, 2013 to consider the WCIRB’s January 1, 2014 Regulatory Filing, which was submitted on August 9, 2013. In the Regulatory Filing, the WCIRB proposes a number of changes to the California Insurance Commissioner’s regulations contained in the California Workers’ Compensation Uniform Statistical Reporting Plan – 1995, the California Workers’ Compensation Experience Rating Plan – 1995, and the Miscellaneous Regulations for the Recording and Reporting of Data – 1995. The Regulatory Filing hearing will be held: September 30, 2013 at 10:00 AM California Department of Insurance San Diego Room 300 Capitol Mall, Second Floor in Sacramento.
The Workers’ Compensation Insurance Rating Bureau of California, the nonprofit group that advises the state on rates and regulations, on Aug. 9 proposed that the state change a classification system, use collective bargaining agreements to validate an employee’s hourly wage rate and amend other arcane items.
But, the Sacramento Business Journal reports that the hearing of more general interest will be a second public hearing related to the Rating Bureau’s recommendations, but the Department of Insurance has not yet scheduled one.
In early September, the Rating Bureau will submit its recommendation to state regulators on pure premium rates for policies beginning or renewing on Jan. 1 of next year. Then the Department of Insurance will schedule a separate public hearing on the issue of rates.
The Rating Bureau said earlier this month that it would recommend that insurers boost their base rates by 3.4 percent above the industry average that insurers were charging as of July 1. The organization recommends that workers’ comp insurers file base rates of an average of $2.62 for every $100 of payroll. That is 3.4 percent higher than the industry average of $2.53 as of July 1. The insurance commissioner can accept, reject or modify the base rate that the Rating Bureau recommended. California’s workers’ comp insurers use the recommendations from the commissioner and the Rating Bureau as a benchmark, but they’re free to set their own rates.