Calif. State Fund Files 11% Average Premium Decrease

California’s State Compensation Insurance Fund announced it filed for an 11 percent average decrease in collectible premium for its July 1, 2007, workers’ compensation insurance rates. The new rates will affect new and renewal workers’ compensation policies with an effective date on or after July 1, 2007.

The filing is State Fund’s eighth consecutive rate reduction. Contributing to the 11 percent reduction in collectible premium is an average 8 percent percent reduction in manual rates.

Small employers (premiums between $1,000 and $75,000) with superior safety records will continue to receive a 10 percent workplace safety credit. “Small businesses account for a major portion of the California economy and State Fund is pleased to be able to pass on savings to reward these employers for maintaining safe workplaces,” said Interim State Fund President Lawrence Mulryan.

He added, “We are continuing to see significant decreases in cost that are directly attributable to the 2004 passage of SB 899, the Governor’s reform legislation, as well as AB 227 and SB 228 in 2003. State Fund will pass these savings back to employers in the form of lower rates to help California’s economy continue to grow.”

State Fund has approximately 222,000 policyholders ranging from small businesses to large group associations. State Fund’s rates have fallen steadily since 2003, and the decreases over the past four years reflect a cumulative savings of 55 percent percent below pre-2004 rate levels, SCIF said.

For more information, visit www.scif.com/.

Source: SCIF