Posted on 17 Aug 2010
In protest of the request for a 29.6% premium increase filed by the Workers Compensation Insurance Rating Bureau of California (WCIRB), California Governor Arnold Schwarzenegger has written a letter to Steve Poizner, the state's insurance commissioner, opposing the WCIRB's recommendation.
This marks the third increase in excess of 20% filed with the California Department of Insurance by the WCIRB since the last rate hike in January 2009. If approved, the increase would take effect January 1, 2011.
In the letter, Schwarzenneger wrote "We must protect the 2004 workers' compensation reforms, which reduced rates by 65% and have saved employers more than $50 billion." He added, "These reforms provided insurance companies with powerful tools to control costs, and they must use these tools effectively before we consider raising employer rates."
Schwarzenneggar terminated the letter to with an appeal to Poizner help the state's employers: "I am confident you will not allow such a tremendous financial burden on California businesses at this time."