Insurance Department Eyes Updated SIU Regulations

The California Department of Insurance is looking to update the state’s regulations governing carriers’ special investigative units (SIUs) and their interactions with the Department’s fraud unit. CDI is holding a “pre-notice” meeting this month to get feedback on its draft regulations before starting the formal rulemaking process. The bulk of the proposed additions to the … Read More »

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CDI Drops Precedential Designation In A-Brite Decision

A precedential decision by former Insurance Commissioner Dave Jones has been reversed by Insurance Commissioner Ricardo Lara.  New Insurance Commissioner Ricardo Lara agreed to a settlement with State Fund that removes the precedential designation from the decision in A-Brite Blind & Drapery Cleaning but allows the decision to stand only or that insured. The decision … Read More »

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CDI Belatedly Rejects State Fund Tiering Modifier

The California Department of Insurance says in a precedential decision that the State Compensation Insurance Fund has been using an illegal rating plan modifier that unfairly increased an insured’s premium after it incurred its first claim in 20 years. CDI says the modifier is illegal because it was not filed with the Department before use. … Read More »

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Large Deductible Policies Under New Rules

Large deductible polices account for well over one-third of all written workers’ comp premium in California.  But it takes just 3.1% of policies to account for all that premium. Carriers selling large deductible workers’ comp policies in California, those with deductibles of $100,000 or more, must abide by new rules that in many cases call … Read More »

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CDI Limits ACORD Form

The California Department of Insurance is asking the workers’ comp community not to collect responses to two questions that are on the standard workers’ comp application – the Association for Cooperative Operations Research and Development (ACORD) form 130. The offending questions are numbers 10 and 13 asking if employees under the age of 16 or … Read More »

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What Will the 2019 Rate Cut Be?

Presiding over his last workers’ comp rate hearing, Insurance Commissioner Dave Jones heard from employers and organized labor through their actuary. It was like a concert that the insurance industry’s proposal for a modest 4.5% 2019 rate cut doesn’t go far enough in light of the industry’s continued improvement in its financial results (see loss … Read More »

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