Posted on 07/13/2004 6:24:36 PM PDT by NormsRevenge
SACRAMENTO (AP) - California's workers' compensation insurance rates have dropped an average 10.38 percent since lawmakers adopted a series of cost-cutting measures, but greater decreases are possible, Insurance Commissioner John Garamendi said Tuesday. "Workers' compensation rates are definitely on the down escalator, but the escalator needs to speed up," Garamendi said. "Greater savings are possible."
The workers' comp insurance rates paid by California employers shot up dramatically in recent years, increasing 200 percent to 300 percent for some businesses.
Lawmakers responded last fall and this spring with legislation that, among other things, imposed new limits on benefits for injured workers and capped charges by doctors, pharmacies and outpatient clinics in workers' comp cases.
In the wake of the changes, Garamendi urged insurers in May to slash rates nearly 21 percent for policies that were renewed or purchased starting July 1.
He said last week that California's largest workers' comp insurer, the nonprofit State Compensation Insurance Fund, could cut its rates another 5.9 percent by changing its underwriting practices, expanding its investments and reducing its commissions.
The fund has cut its rates 9.7 percent since the legislation took effect.
Nicole Mahrt, a spokeswoman for the American Insurance Association, said insurers are "cutting rates as much as they are able to," given that not all of the changes in this year's legislation have taken effect yet.
"I think carriers are reducing rates based on faith," she said.
I wish we had him in Texas.
Just send 9.95 and a self-addressed box to
Merkle. B. DePre$$ed
PO Box XYZ
Podunk, Idaho
Allow 4 to 6 weeks (or maybe a term or 2) for delivery
(Are things that bad in TeXas?) :-o
Property taxes and insurance are out of sight.
It's creeping socialism and a penchant for the Nanny state/cradle to grave folks... and a lot of money greasing folks palms for favorable legislation w/o regard for the impact it will have on society as a whole.
We are all in this fight together.
That is very true in Texas.
Anyone ever think of trying FREE MARKET COMPETITION!?!?!?
The Texas Department of Insurance is so bad it darn near drove one of its biggest insurers, Farmers, out of the state!
And yet still people think greater regulation is the answer .... {sigh}
Strayhorn calls for federal probe of CHIP contract
It seems that as long as its a Republican doing it, its OK.
I hope Farmers don't let the door hit them in the back as they leave.
Wow. Could you guys send him over to Louisiana?
Our last three insurance commissioners are currently serving time in federal prison. I'm not kidding.
So you would like to drive away one of the state's largest insurers? Because even less competition would lower rates .... how? I guess you're one of those who wants insurers to pay out millions in claims but doesn't think people should actually have to pay for the coverage they receive. Where do you think the money to pay claims comes from?
Since most of my bookkeeping clients have had a 400% boost in their workmen's comp insurance, this 10=% is a drop in the bucket. Rates that used to be about 50 cents/$100 of gross payroll are now in the area of $2.03/$100 gross payroll. That would be a drop of about 21 cents, and we are still paying way more than we should. There is a serious problem in Calif with workmen's comp, and someone has to strip off the covers and expose it once and for all.
Yeah...they are evil. Replace 'em with a government run group like the nonprofit State Compensation Insurance Fund and they we can run our insurance firms like the post office or the school system.
I'm pulling for CA. I hope it gets done.
You must sell Farmers Ins. LOL
In Texas its against the law for a Title Ins Co. to cut the rate to anyone. They must charge full price for ever policy.
The Title Ins Cos are not even allowed to buy me a diet RC or dinner. Not that I want them to. But they should be able to give people a discount if they want to IMO.
With all the Rs running Texas, I wonder how that law got passed. LOL
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