State Division of Workers' Compensation Releases Study on the Effects of Legislative Reforms on California Workers' Compensation Insurance Rates.OAKLAND, Calif. -- The state Division of Workers' Compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. (DWC DWC Division of Workers Compensation (California) DWC Daniel Webster College DWC Dubai Women's College (Dubai, United Arab Emirates) DWC Department of Workers Compensation DWC Divine Word College ) today released a study on the effects of legislative reforms on insurance rates in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . The study was conducted by Bickmore Risk Services under contract with the DWC. "The study contains positive news for the California workers' compensation system," said DWC Acting Administrative Director Carrie Nevans. "Rates have been reduced and competition has returned to California's market." The study report indicates approved insurance rates for 2006 have decreased by 46 percent, bringing them to rates below those charged in 1996. The report also indicates insurance companies are passing the bulk of their savings through to employers. California Labor Code section 138.65 (SB 899) required the DWC's administrative director, after consultation with the state insurance commissioner, to contract with a qualified organization to study the effects of the 2003 and 2004 legislative reforms on workers' compensation insurance rates. The scope of the study included: --Identifying and quantifying the savings generated by the reforms --Reviewing rates to determine the extent to which reform savings were passed on to employers --Assessing the effect of the reform savings on replenishing insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. surpluses --Reviewing the effects of the reforms on rates, the marketplace and competition --Reviewing the adequacy and accuracy of the pure premium rate recommended by the Workers' Compensation Insurance Bureau (WCIRB WCIRB Workers' Compensation Insurance Rating Bureau ) and adopted by the insurance commissioner The primary research for the report was conducted by collecting information from a wide range of organizations, including the California Department of Insurance The California Department of Insurance (CDI), established in 1868, is the angency charged with overseeing the regulation of insurance regulations, enforcing statutes mandating consumer protections, educating consumers, and fostering the stability of insurance markets in the state , the WCIRB, the University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). Data/Survey Research Center and the California Workers' Compensation Institute, along with reviewing claim files and conducting surveys. The study can be downloaded from the DWC Web site at www.dir.ca.gov/dwc. |
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