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Changes to California Workers' Compensation Insurance
California has enacted legislation effective 1/1/03 that will significantly increase workers' compensation benefits over the next four years. To cover the costs of the increased benefits, the Insurance Commissioner has approved rate increases affecting both new and renewal policies issued in 2002 and 2003.
2002 Policies - The Commissioner approved a .2% rate increase to new/renewal rates effective at the 2002 policy's inception date and a 4.9% rate increase to be applied to the outstanding portion of 2002 policies as of 1/1/03.
It is likely that the insurance companies will reconcile the rate changes at policy expiration either by endorsement or at final audit.
2003 Policies - The Commissioner approved a 10.5% pure premium rate increase over the July 2002 pure premium rate level. The 2003 rate will increase for 450 classifications - 51 will see some level of decrease.
Benefit Level Changes
The maximum temporary disability (TD) rate will increase from $490 to $602 per week on 1/1/03, $728 on 1/1/04 and $840 on 1/1/05.
In 2007 the maximum (TD) limit will be $840 plus the percentage increase in the California State average weekly wage.
The permanent disability rate nearly doubles by 2006.
Other Changes
Employer Responsibilities:
Employers must advise new employees within their first pay period of their
rights to workers' compensation, including their right to pre-designate
a personal physician and employers must provide the pre-designation form.
The insurance companies are required to provide employers with the new
forms.
If you do not receive them, please contact us and we will get the insurance company to respond.
WCIRB Inspection Reports:
As of 1/1/03, the Workers' Compensation Insurance Rating Bureau will send
copies of the Bureau Inspection Reports to employers within 30 days of
publication.
Minimum/Maximum Salary:
Minimum ($28,600) and maximum ($79,300) remuneration for officers/ partners
and LLC members.
last updated: January 7, 2003
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Diversified Risk Insurance Brokers
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