WCIRB Makes Rate Filing, Proposes Changes to Pure Premium Rates

The California Workers’ Compensation Insurance Rating Bureau (WCIRB) has submitted a filing with the California Department of Insurance (CDI) recommending that pure premium rates be increased by 10.6 percent effective July 1, 2003 for new and renewal policies with anniversary rating dates on or after July 1, 2003. In his letter accompanying the filing, WCIRB president Robert Mike noted that in the six months since pure premium rates were approved, medical loss experience has continued to deteriorate to the extent that the approved pure premium rates are now significantly inadequate.

In addition to changes in pure premium rates, the WCIRB filing contains proposed changes to the Uniform Statistical Reporting Plan and the Experience Rating Plan. These changes address the treatment of premium charges and certified losses related to the Terrorism Risk Insurance Act of 2002. A change in the experience rating eligibility threshold to reflect the recommended increase in pure premium rates is also proposed.

Though not subject to approval by the insurance commissioner, the WCIRB also included amendments to the California Basic Underwriting Manual, the California Retrospective Rating Plan, the California Large Risk Deductible Plan, and the California Small Deductible Plan in order to address premium and loss issues related to the Terrorism Risk Insurance Act of 2002 and to update specified rating values to reflect more current loss information.

The CDI will hold a public hearing regarding this filing at 10:00AM, on May 8, 2003 in the 22nd Floor Hearing Room, 45 Fremont Street, San Francisco, California 94105.

Copies of the filing and related documents may be viewed or printed from the WCIRB Wire section of the WCIRB’s website (www.wcribonline.org).

Topics California