Rates shall be adequate to cover an insurer’s losses and expenses. Rates shall not tend to create a monopoly in the market. For the purpose of this section, the rates of any individual insurer, other than the State Compensation Insurance Fund, are presumed to create a monopoly in the market if the insurer has a market share, based on a percentage of statewide workers’ compensation premium, equivalent to 20 percent or more of the premium written by all insurers other than the State Compensation Insurance Fund.

(Amended by Stats. 2002, Ch. 873, Sec. 2. Effective January 1, 2003.)

Terms Used In California Insurance Code 11732

  • Expenses: means that portion of any rate attributable to acquisition, field supervision, collection expenses, general expenses, taxes, licenses, and fees. See California Insurance Code 11730
  • Market: means the interaction between buyers and sellers of workers' compensation insurance within this state pursuant to the provisions of this article. See California Insurance Code 11730
  • State: means the State of California, unless applied to the different parts of the United States. See California Insurance Code 28
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