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The Workers’ Compensation Insurance Rating Bureau of California has published the September 1, 2021 update to the loss elimination ratios that were used in computation of classification relativities in the recently approved September 1, 2021 Regulatory Filing.

This annual update reflects the most current claim severity and benefit on-leveling factors. Additionally, the WCIRB has updated other tables included in the advisory California Retrospective Rating Plan, California Large Risk Deductible Plan and California Small Deductible Plan.

View the updated tables for the most current version of the advisory plans at the following links:

– – California Retrospective Rating Plan.
– – California Large Risk Deductible Plan.
– – California Small Deductible Plan.

In a Retrospective Rating Plan the insurance company typically issues a policy with both a minimum and maximum premium for the policy along with a rating formula. The actual, or final, premium is determined at the end of the policy period by the using the formula based on the rating factors and the actual losses. In essence, the plan is loss sensitive and the employer is participating in the cost of actual losses as well as the potential savings for lower than expected losses.

A Deductible Plan sets the amount of each loss that the employer must pay for each claim. Typically, the insurer pays the full amount of the loss and then bills the employer for the deductible amount.

Advisory plans are developed by the WCIRB for the convenience of its members. These plans were submitted to the Insurance Commissioner for informational purposes, but do not bear the official approval of the California Department of Insurance and are not a regulation. An insurer must make an independent assessment regarding its use of these plans based upon its particular facts and circumstances.