California Workers’ Compensation Administration Revolving Fund

All Insurers Authorized to Transact Workers’ Compensation in California

Labor Code Sections 62.5 and 62.6 authorize the Department of Industrial Relations to assess employers for the costs of the administration of the workers’ compensation program. Previously, this assessment limited the employer share to 20 percent of the total program cost. The major workers’ compensation reform in Senate Bill 899 (2004) contained provisions to increase the employer share to 100 percent. This increased the total amount of the assessment, but will provide a stable funding source to allow the courts to resolve claims more quickly and improve the overall operation of the system.

Assessment Methodology for Single Carriers:If you were a single carrier and not part of an insurer group who reported data to the WCIRB on an individual company basis for 2004, your Total California Direct Written Premium for assessment purposes is the amount reported for calendar year 2004 to the WCIRB, which reflects the premiums charged to policyholders with the exception that it excludes the impact of deductible credits, retrospective rating adjustments, and policyholder dividends.

Assessment Methodology for Insurer Groups:If you were part of an insurer reporting group who reported data to the WCIRB for 2004, your Total California Direct Written Premium for assessment purposes has been determined as the product of (a) the total 2004 written premium reported to the WCIRB on the aforementioned basis and (b) the ratio of your company’s 2004 California written premium as reported in the 2004 Statutory Annual Statement (these amounts include the effect of deductible credits and retrospective rating adjustments) to the total 2004 Statutory Annual Statement of California written premium reported for your insurer group as a whole.For More Information:State Of California,Department of Industrial Relations