Workers' Compensation (Commercial Insurance Guide series)
Published by California Department of Insurance. Jurisdiction CA.
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These are the only claims this record is used to carry anywhere in the library.
CDI states that all California employers must provide workers compensation benefits to their employees under California Labor Code Section 3700.
claim cdi-wc-commercial-guide#c1CDI states that there are five basic types of workers compensation benefits: medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits, and death benefits.
claim cdi-wc-commercial-guide#c2CDI states that employers' liability insurance is offered under Part Two of a workers' compensation and employers' liability insurance policy, and that Part Two protects the employer against instances in which an employee's injury or disease is not subject to the workers' compensation laws.
claim cdi-wc-commercial-guide#c3CDI states that classifications that group distinct and identifiable occupations, industries, or businesses are developed and assigned codes by the Workers' Compensation Insurance Rating Bureau of California (WCIRB) and are approved by the Insurance Commissioner.
claim cdi-wc-commercial-guide#c4CDI states that the payroll for each classification is estimated and then multiplied, per each $100 of payroll, by the applicable rate.
claim cdi-wc-commercial-guide#c5CDI states that generally an experience modification of less than 100 percent reflects better-than-average experience and an experience modification of more than 100 percent reflects worse-than-average experience, and describes the modification as comparing an employer's loss history against similar-sized employers in the same industry classification.
claim cdi-wc-commercial-guide#c6CDI states that California workers compensation insurers operate under an open rating system, meaning individual companies set rates based on their ability to adequately cover losses and expenses in each industry classification.
claim cdi-wc-commercial-guide#c7CDI states that workers' compensation insurers assign a specific rate to each industry classification code and that these rates must be filed with the CDI.
claim cdi-wc-commercial-guide#c8CDI states that the final premium of a workers' compensation policy cannot be calculated until the policy term is over and the employer's payroll records have been audited.
claim cdi-wc-commercial-guide#c9CDI states that a dividend plan is a type of rating plan that allows an employer to share in the profits of its workers' compensation insurer in the form of a dividend.
claim cdi-wc-commercial-guide#c10CDI states that to become self-insured a business must obtain a certificate from the DIR's Office of Self-Insurance Plans (OSIP).
claim cdi-wc-commercial-guide#c11CDI states that State Fund is a state-operated entity that exists in order to transact workers' compensation on a non-profit basis, competes with private workers' compensation insurance companies for business, and also operates as the insurer of last resort if private companies are not willing to offer workers' compensation insurance.
claim cdi-wc-commercial-guide#c12Classifications that group distinct and identifiable occupations, industries, or business are developed and assigned codes by the Workers' Compensation Insurance Rating Bureau of California (WCIRB) and are approved by the Insurance Commissioner.
claim cdi-wc-commercial-guide#c13Workers' compensation insurers generally use these classifications when writing workers' compensation policies.
claim cdi-wc-commercial-guide#c14Insurance companies are allowed to develop and submit their own classification system to the CDI for approval, but this is uncommon due to the strict standards required to file a separate workers' compensation classification system.
claim cdi-wc-commercial-guide#c15The payroll for each classification is estimated and then multiplied, per each $100 of payroll, by the applicable rate, and the sum of the equation is referred to as the base premium.
claim cdi-wc-commercial-guide#c16The base premium continues to be modified, increased or decreased, using rating plans (usually schedule or judgment rating) and by experience modification.
claim cdi-wc-commercial-guide#c17An employer's experience modification is calculated from payroll and loss information that insurance companies are required to submit to the WCIRB on an annual basis, using a mathematical formula approved by the CDI.
claim cdi-wc-commercial-guide#c18An experience modification of less than 100 percent reflects better-than-average experience, and an experience modification of more than 100 percent reflects worse-than-average experience.
claim cdi-wc-commercial-guide#c19The WCIRB provides a policyholder ombudsman, who is available to answer questions from employers on classification, experience modification, and rating issues.
claim cdi-wc-commercial-guide#c20The final premium of a workers' compensation policy cannot be calculated until the policy term is over and the employer's payroll records have been audited.
claim cdi-wc-commercial-guide#c21Title 10, California Code of Regulations Sections 2509.40 through 2509.78 list detailed procedures for disputing experience modifications and classification assignments, including appeals to the CDI.
claim cdi-wc-commercial-guide#c22
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Published: 2025-06-23