VACAVILLE, Calif. /PRNewswire/ — State Compensation Insurance Fund today announced it has filed a new rating plan with the California Department of Insurance. The plan adopts the Workers’ Compensation Insurance Rating Bureau’s rate relativity adjustments for new and renewed policies effective December 1, 2011, but holds the line on its overall rate level.
California’s largest provider of workers’ compensation insurance also announced it will increase the group discount for policies insured through the California Farm Bureau Federation, the state’s largest farm organization, from the current level of 6 to 20 percent effective January 1, 2012.
The Farm Bureau discount benefits eligible farmers and ranchers who have successfully maintained a safe work environment.
“This rate filing shows that we are making progress on our efficiency initiatives and have maintained strong underwriting discipline. The Farm Bureau and State Fund have an important partnership and this increased discount reflects their outstanding results over the years,” said Tom Rowe, State Fund President and CEO.
Although manual rates will increase for some classifications, other changes to State Fund’s rate filing, including the increase in group discount available to qualifying Farm Bureau accounts, will result in an overall decrease in collectible premium of approximately 1%.
“We understand that California’s businesses continue to experience difficulties in this economy,” Rowe stated. “State Fund’s role is to help employers manage the cost of their workers’ compensation insurance by offering a stable and fairly priced option for those employers who have many choices and those who have few.”