Major Employer Fights X-Mod

A California employer is facing the double whammy of an X-Mod that’s bloated by years of unreported payroll, skewing its experience rating calculation. Now, it’s facing the impact of an 850 X-Mod on the additional premium that’s due as it seeks to bring its payroll reports into compliance. Law enforcement is involved, but no charges … Read More »

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Prepaid Debit Card Authorization Bill

The Assembly Insurance Committee is carrying AB 1683 to end the sunset date on a program that allows workers’ comp carriers, third-party administrators, and self-insured employers to distribute workers’ comp indemnity benefits via prepaid debit cards. The prepaid cards have been authorized under a pilot program since 2018. A report released last fall showed that … Read More »

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State Fund Third Quarter Results Positive

State Compensation Insurance Fund executives say that 2025 net premiums earned are trailing 2024 results by 8.9% due to a drop in renewals. But profitability, and policyholder surplus have increased. State Fund’s earned net workers’ comp premiums are $735 million through the first nine months of 2025, compared to $807 million in the same period … Read More »

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Success with Prepaid Debit Cards

As is frequently the case in the workers’ compensation system, innovation can be hindered because it requires time, effort, and a seemingly endless series of tests, committees, studies, and sometimes legislation. And early innovators must have the courage to try and measure. Such has been the case with the relatively benign idea of using debit … Read More »

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Executive Officer Exemption In Dispute

In an interesting case, a nonprofit theater company is balking at paying a minimum workers’ comp premium charge for two executives who helped run the operations on an unpaid, volunteer basis. The workers’ comp carrier counters that the charge is required under Workers’ Compensation Insurance Rating Bureau rules and maintains that the company got the … Read More »

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$3 Million In Restitution In Two Premium Fraud Cases

District Attorneys in Los Angeles and San Diego notched victories against two employers for underreporting payroll to avoid workers’ comp premiums. The San Diego DA won a $1 million restitution order against a plumbing company, while the Los Angeles DA’s office secured a nearly $2.3 million order against a couple operating three delivery services. John … Read More »

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Latest UR Reg Changes Create Problems

The Division of Workers’ Compensation proposed a set of updates to California’s utilization review regulations last year and, in response to public feedback at the time, made some tweaks to the package. But industry commentators say the changes went too far, put the onus on the innocent party, and are urging the Division to undo … Read More »

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