The Workers’ Compensation Insurance Rating Bureau of California on Wednesday, August 13, recommended a 16 percent pure premium rate increase that would be effective January 1 if approved.
The WCIRB said it would recommend an additional 3.7 percent rate increase for January should California adopt a current proposal by the Division of Workers’ Compensation to change the state’s disability rating schedule.
If California adopts the disability rating schedule changes, the WCIRB said it would also call for a 3.7 percent rate increase for the unexpired portion of 2008.
The WCIRB said rising medical costs are responsible for the majority of the 16 percent rate increase it is recommending. California’s Department of Insurance can approve or reject the rate increase recommendation after holding a hearing. The insurance department’s ruling, however, is not binding on insurers.
If California’s insurance department approves the WCIRB’s rate increase recommendation, it will erase a 14.2 percent decrease approved for July 2007.
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