The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has published an update to the loss elimination ratios used in computation of classification relativities in the recently approved September 1, 2022 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 advisory plans at the following links:
– – California Retrospective Rating Plan
– – California Large Risk Deductible Plan
– – California Small Deductible Plan
Retrospective rating provides for the adjustment of a risk’s standard premium for workers’ compensation insurance after expiration of its policy or policies (if combined for retrospective rating) based on the loss experience developed under the policy or policies.
The Large Risk Deductible Plan permits an employer who is insured for its workers’ compensation liability to reimburse the insurer for losses incurred up to the deductible amount elected in connection with the workers’ compensation insurance coverage. In exchange for agreeing to reimburse the insurer, the employer receives a premium reduction. The minimum deductible is $100,000 per accident or per employee. Higher amounts are available in increments that correspond to those listed for the loss elimination ratios in Tables 2 and 3 of Appendix B.
The California Small Deductible Plan also permits an employer who is insured for its workers’ compensation liability to reimburse the insurer for losses incurred up to the deductible amount elected in connection with the workers’ compensation insurance coverage. In exchange for agreeing to reimburse the insurer, the employer receives a premium reduction. The minimum deductible amount available under this Plan is $500. The maximum deductible amount available under this Plan is $75,000. A minimum of $5,000 of estimated annual workers’ compensation standard premium is required to be eligible for this Plan.
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 regulations.
An insurer must make an independent assessment regarding its use of these plans based upon its particular facts and circumstances.