California Insurance Commissioner Ricardo Lara lowered a sheer premium fee proposed by the state rating agency and declined to add a further adjustment for COVID-19, the commissioner said in a statement on Wednesday. cost index of $ 1.45 per $ 100 in employer pay and adjusted the pure premium rates for individual classifications – excluding additional adjustments for COVID-19 – based on the benchmark. The rates take effect on January 1, 2021.
The interest rate of $ 1.45 is approximately 19.4% lower than the industry-defined average net premium rate of $ 1.80 as of July 1, 2020.
California Workers Compensation Insurance Rating Board had in August proposed to the commissioner a premium rate of $ 1
"WCIRB's thorough efforts to estimate COVID-19 costs are noted and estimated, but I am not convinced that there is sufficient and reliable information on which to base an adjustment for COVID-19 costs," said Commissioner Lara. in a statement.
In his order, he directed insurance companies to employee compensation to clearly identify any COVID-19 adjustments in tax rates that were then submitted to the State Department. and urged WCIRB to collect data on the total premium charged for the COVID-19 adjustment on an ongoing basis.
More insurance and workers pension news about the coronavirus crisis here .