The State Compensation Insurance Fund (known as State Fund), California’s largest workers’ comp insurer, has announced an average 16 percent rate cut for policies effective on or after Jan. 1, 2006. This is the fifth consecutive decrease since 2004, marking an average cumulative drop of 38 percent for State Fund policyholders. This latest State Fund rate filing follows closely on Insurance Commissioner John Garamendi’s recommended 15.3 percent cut for pure premium rates.
State Fund’s rate filing also includes a workplace safety credit to reward small employers that have excellent safety records. The credit is for an additional 10 percent on top of the other rate cuts.
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Additional Resource:
“Workers’ Compensation: Sweeping New Law Promises Major Changes; Rate Cuts May Be Just Around The Corner,” in the June 2004 issue of the California Employer Advisor
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