California Insurance Code 11742 – (a) The Legislature finds and declares that the insolvencies of …
(a) The Legislature finds and declares that the insolvencies of more than a dozen workers’ compensation insurance carriers have seriously constricted the market and led to a dangerous increase in business at the State Compensation Insurance Fund. Yet more than 200 insurance companies are still licensed to offer workers’ compensation insurance in California. Unfortunately, many employers do not know which carriers are offering coverage, and it is both difficult and time consuming to try to get information on rates and coverages from competing insurance companies. A central information source would help employers find the required coverage at the best competitive rate.
(b) On or before July 1, 2004, the commissioner shall establish and maintain, on the Internet Web site maintained by the department, an online rate comparison guide showing workers’ compensation insurance rates for the 50 insurance companies writing the highest volume of business in this line during the two preceding years.
Terms Used In California Insurance Code 11742
- classification: means a plan, system, or arrangement for recognizing differences in exposure to hazards among industries, occupations, or operations of insurance policyholders. See California Insurance Code 11730
- Commissioner: means the Insurance Commissioner of this State. See California Insurance Code 20
- 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
- Rate: means the cost of insurance per exposure base unit, prior to any application of individual risk variations based on loss or expenses considerations and does not include minimum premiums. See California Insurance Code 11730
- Rating organization: means an entity licensed by the commissioner pursuant to Section 11751. 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
(c) The online comparison shall display rates for each class set forth in the classification system adopted by the commissioner pursuant to Section 11734, shall include the effective date of each rate, and shall list the rates for each class from the lowest to the highest rate.
(d) The rating organization designated by the commissioner as his or her statistical agent pursuant to Section 11751.5 shall determine the cost savings achieved in the 2003 workers’ compensation reform legislation. Each insurer shall certify, in the form and manner determined by the commissioner, that its rates reflect those cost savings. The certifications shall be made available to the public on the Internet Web site maintained by the department.
(Added by Stats. 2003, Ch. 635, Sec. 11. Effective January 1, 2004.)