The California Department of Industrial Relations (DIR) has calculated the 2012 assessments and surcharges that state labor code requires all workers' compensation insurance companies to collect from policyholders to fund the Division of Workers' Compensation (DWC) budget and five related programs established by state lawmakers.
These assessments provide a stable funding source to support the costs of administering the workers' compensation, health and safety and labor standards enforcement programs.
Insurers must apply the following rates against employers' estimated annual assessable premium for policies incepting January 1 through December 31, 2012:
2012 ASSESSMENTS/SURCHARGES |
|
| WC Administration Revolving Fund Assessment/User Funding (WCA): | 0.009669 |
| Uninsured Employers Benefits Trust Fund Assessment (UEBT): | 0.001362 |
| Subsequent Injuries Benefits Trust Fund Assessment (SIBT): | 0.001255 |
| Occupational Safety & Health Fund (OSHF): | 0.002350 |
| Labor Enforcement & Compliance Fund (LEC): | 0.002380 |
| WC Fraud Account Assessment (WCFA): | 0.002648 |
| California Insurance Guarantee Association | 0.02285 |
Assessable premium is the amount charged after all rating adjustments (experience rating, schedule rating, premium discounts, etc.) except adjustments resulting from the application of deductible plans or the return of policyholder dividends. State Fund and other insurers must advance the money to the state on behalf of policyholders, and then recoup the funds via policy surcharges and assessments.
State Fund explains each of the assessments and their role in our online brochure Understanding your policy surcharges.
The DIR also has a fact sheet and questions & answers about workers’ comp assessments.
