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date information regarding risk management, insurance
industry news, products and changes.
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27%
RATE HIKE RECOMMENDATION COMING
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The Workers' Compensation Insurance Rating Bureau's
actuarial committee met yesterday. It appears likely
that the Governing committee will recommend a whopping
27% mid-term pure premium rate increase when it meets on
Wednesday. Bureau's staff is continuing to crunch some
of the numbers, but that's the recommendation from the
actuarial committee to the Governing Committee.
This range of recommendation will send shockwaves
through employers and shudders through politicians,
among them California Insurance Commissioner (and
potential gubernatorial candidate) Steve Poizner who
last fall whittled down a 16% recommended increase to
just 5%. This also ends Governor Arnold Schwarzenegger's
season of workers' comp reform and sets up an ignoble
end to one of the hallmarks of his administration.
Read
on...
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| IRS
GUIDES EMPLOYERS ON COBRA RULE CHANGE |
WASHINGTON-New guidance clarifies for employers
the key question of  when an
employee has been involuntarily terminated and thus is
entitled to new federal subsidies to pay for COBRA
health care premiums.
Last week, the Internal
Revenue Service in Notice 2009-27 provided broad
definitions and specific, real-world examples of
involuntary terminations.
In addition, the IRS'
27-page notice resolves numerous other questions raised
by employers about the new subsidies, which Congress
created-at a $25 billion cost-as part of a massive
economic stimulus bill legislators passed in
February.
Read
on...
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SUPREME COURT TO RULE IN ASBESTOS TRUST CASE
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 WASHINGTON-The U.S. Supreme Court
heard oral arguments last week in a case that attorneys
said could open the door to a fresh round of asbestos
liability litigation against insurers, depending on how
the court rules.
At issue in Travelers Indemnity
Co. et al. vs. Bailey et al. is whether bankruptcy
courts have the authority as part of a reorganization to
bar lawsuits against insurers who underwrote coverage
for manufacturers. The case argued last week centers on
Denver asbestos manufacturer Johns-Manville Corp. and a
trust, funded partly by insurers, to pay victims exposed
to its products.
"This was the only argument that
day in the Supreme Court and it was a packed courthouse
and there were lots of people who didn't get in," said
Tancred Schiavoni, a New York-based attorney at
O'Melveny & Myers L.L.C. who attended the hearing.
Mr. Schiavoni earlier represented CIGNA Corp., another
insurer sued in the case. That suit was dismissed.
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Sincerely,
Santa Maria &
Company
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PLEASE
NOTE
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WE
HAVE MOVED
our
office effective
March
16, 2009
The new address will
be:
1550 Parkside Drive,
Suite 200
Walnut Creek, CA
94596
We have new phone numbers:
Phone:
925-956-7600
Fax:
925-945-7601
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FEATURED
ARTICLE
WC CHANGES
EFFECTIVE JAN.
1ST
CALIFORNIA ASSESSMENTS AND SURCHARGES
EFFECTIVE 1/1/2009
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For
Workers Compensation policies effective January 1, 2009
and after, the California Assessments and Surcharges
have been revised as follows:
California Fraud
Investigation/Prosecution
Surcharge
Changed from
.2394% to.3956%.
California User Funding
Assessment
Changed from
1.0703% to1.3583%.
California Uninsured Employers Benefit
Trust Fund Assessment
Changed from
.1730%
to.2241%.
California Subsequent Injuries Benefits Trust Fund
Assessment
Changed from
.0311% to.0827%.
California Guarantee Assoc.
Surcharge
Remains
unchanged
at 2.0%
If
you have any questions, please don't hesitate to contact
our office.
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