New System to Reduce Effects of a Single Claim on Small Employers’ Premium

| posted in Blog

New rules approved by the state insurance commissioner, Dave Jones, will reduce the effects of a single claim on small and mid-sized employers’ workers’ comp premiums, addressing an issue that has long haunted many California companies. The changes approved for the Experience Rating Plan will introduce a new formula for gauging an employer’s expected and excess losses for claims. It will replace the current “split-point” system that has been blamed for being too volatile and punishing small employers for incurring a single workers’ comp claim. The current split The current system calculates all losses up to a $7,000 split point…
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