California Gov. Arnold Schwarzenegger has written a letter to Insurance Commissioner Steve Poizner asking him to reject a 30 percent rate increase being considered by the Workers’ Compensation Insurance Rating Bureau of California.
“I am confident you will not allow such a tremendous financial burden on California businesses at this time,” Schwarzenegger said in the Tuesday, August 10, letter.
The governor’s letter also said insurers must use the tools provided in reform legislation that he signed into law in 2004 before they consider raising workers’ comp rates.
The bureau’s panel of insurer actuaries suggested August 4 that a 30 percent rate increase is necessary beginning January 1, 2011. The rating bureau’s governing board is to decide whether to pass that recommendation on to the insurance commissioner.
Filed by Roberto Ceniceros of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.
Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.
