Workers comp rates expected to fall about 7% starting July
Workers Compensation Insurance Rating Bureau of California
wants approval for 23.7% rate increase effective July 1.
That’s a .7% reduction in a previously announced rate
request based on revisions in financial data previously
submitted. Commissioner Poizner has stated his skepticism over
the data and says a review of the whole process is in
Commissioner Sullivan warns insurance industry that it’s
illegal to get consumers to switch companies by misleading them
about the financial health of competitors. He says the
Insurance Department will be investigating violations and
holding companies responsible for actions of agents.
State Rep. William Proctor, R-St. Augustine, sponsors House
Bill 1171, which he says will permit financially strong
property insurers to offer policies to consumers at
market-based, actuarially sound rates. He says the Insurance
Department’s regulation is overly burdensome and drives
out competition. >> State House approves HB 1495 allowing
gradual rate hikes for state-backed Citizens Property Insurance
up to actuarially sound rates. The same bill phases out about
$12 billion in reinsurance to private insurers provided by the
Florida Hurricane Catastrophe Fund. >> State House passes
bill allowing insurance companies (and other businesses) to get
the same kind of credit they get against premium taxes
collected from customers for donating to a private-school
voucher program for children from low-income families. >>
Credit loosens, allowing state to sell at least $5 billion in
bonds, if needed, to back Hurricane Cat Fund.
University of Hawaii will conduct feasibility study to see
about starting an owner-controlled insurance program to provide
insurance coverage for contractors and subcontractors in the
university system. The system will undergo nearly a half
billion dollars in construction work in the next two years. The
university is looking to save $5 million to $10 million by
providing its own workers comp, employers liability, general
liability, excess liability and builders risk.
Reminding producers that obtaining client signatures on
“producer of record letters” must be handled
properly. Notes instances where clients are being required to
sign to obtain a rate quote, even for comparison purposes, or
where key information is added by the producer after the client
signs. Administrative actions are threatened for violators.
>> Passes new laws overriding Bulletin 09-01, which
discusses coverage for motorbikes and all-terrain and utility
vehicles. That bulletin is rescinded, and the new laws can be
In asbestos litigation case Nolan vs.
Weil-McLain, the state Supreme Court ordered a new trial
and allows evidence of prior asbestos exposure, overturning
bans on the evidence set by lower courts. This is a
clarification of the “Lipke rule” and may arise as
a precedent in later asbestos cases.
Gov. Culver signs law mandating insurers cover prosthetic
devices if they are medically necessary. Law applies to
state-regulated health insurance policies.
Commissioner Donelon says residents are cutting back on home
and auto insurance to save money. Majority of state’s
drivers are either under- or completely uninsured, with 12%
carrying no auto insurance.
Proposed state-healthcare funding model would impose 2.14%
surcharge on claims paid by insurers and third party
administrators. It would replace the current assessments that
don’t provide enough revenue to the state fund,