State Compensation Insurance Fund agreed to put up $65 million to settle class action lawsuits over its tiered rating system filed by Michael Reynolds Enterprise, American Jetter & Plumbing, and Reliance Treatment Center. The settlement also limits the carrier’s ability to file future tier ratings and modifiers under a cloak of confidentiality with the California …
State Compensation Insurance Fund reported a 6.6% drop in net earned premium for the first quarter of 2023 compared to the prior year. Company officials told its board of directors that the drop is linked to an overall decline in both new and renewal business. The quasi-governmental workers’ comp carrier reported net premium earned of …
State Compensation Insurance Fund and the nurse staffing firm ReadyLink are due in court next week to start the first of possibly two trials. The decade-long dispute concerns workers’ comp premium on alleged per diem payments. ReadyLink is countersuing for breach of contract but will have to wait to put these claims to a jury. …
The State Compensation Insurance Fund remains California’s largest workers’ comp carrier, but the carrier saw less new business in 2022 as premiums dipped slightly to $1.175 billion. A 5% decline in net premiums was partially offset by an average 8% rate increase at the start of 2022 that targeted select high-risk classes. The strategic underwriting …
The Fourth District Court of Appeal says Insurance Code section 11664 only requires carriers to notify insureds if the premium rate in their governing classification is going up by 25% or more. Carriers are not obligated to tell insureds that they will pay more due to a change in governing or other classifications. The decision …
State Compensation Insurance Fund managers say California’s competitive workers’ comp market contributes to lower premium for the carrier. And broader economic forces are affecting its new business. But underwriting strategy changes, added to improvements to its expense and loss ratios, provided positive results for the quarter, including a 6.8% improvement in its combined loss ratio. …
A filed rate increase and higher audit premium combined to push workers’ comp net premiums earned at the State Compensation Insurance Fund to $591 million for the year’s first half. The rate increase effective January 1, 2022, was for 8% overall, far outpacing the 1.7% uptick in premium that State Fund’s management team reported to …