Dear Janelle,
Thank you for viewing this material. We are pleased
to provide this service to you, and to provide up to
date information regarding risk management, insurance
industry news, products and changes.
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Soft Market Winding Down:
MarketScout
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 The soft property/casualty
insurance market is showing signs of hitting bottom,
MarketScout reported Thursday.
The Dallas-based
electronic insurance exchange said property/casualty
rates dropped an average of 9% in October, compared with
the same month a year earlier. The amount of decrease by
line ranged from 12% for business owners package
coverage to 5% for surety.
Read
on...
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California Comp Rate Increase
Approved
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 SACRAMENTO,
Calif.-California Insurance Commissioner Steve Poizner
said Friday he approved a 5% workers compensation rate
increase effective Jan. 1 to reflect rising medical and
claims adjustment costs.
The commissioner's
action rejects a pure premium increase of 16% sought by
the Workers' Compensation Insurance Rating Bureau of
California. Including the 5% increase for January, rates
have fallen 63.4% since 2003, the commissioner said in a
statement.
Read
on...
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IRS
Raises Retirement Plan Limits for 2009
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WASHINGTON-The maximum contribution that can be made
to 401(k) and other defined contribution plans will
increase next year, and the maximum benefit that can be
funded through defined benefit plans also will rise in
2009, the Internal Revenue Service announced
Thursday.
The maximum annual contribution an employee can make
through salary reduction to a 401(k) plan will rise to
$16,500 from $15,500, while the maximum annual co-called
catch-up contribution that employees age 50 and older
can make to 401(k) and certain other defined
contribution plans will rise to $5,500 from $5,000.
Read
on... |
Unemployment Insurance Tax Increase to Be
Proposed
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 A spike in unemployment over the
past year has stressed the California Unemployment
Insurance (UI) Fund, which already has taken a
significant loan from the federal government. The likely
prospect of a recession has convinced Democrat
legislative leaders and the Schwarzenegger
Administration that a UI tax increase will be required
during 2009 to keep the fund solvent.
As
indicated above, Governor Schwarzenegger has announced
his intention to call the California Legislature back
into special session in November. This past Wednesday,
the Governor's Legislative Secretary, Chris Kahn, met
with the staff of the four legislative leaders to
organize various policy working groups to develop
legislation for the special session. A staff working
group on unemployment insurance was set up, and it met
for the first time this past Thursday. The Assembly
Insurance Committee and the Senate Labor and Industrial
Relations Committee have jurisdiction over unemployment
insurance, meaning the staffs to these committees will
lead the working group process.
The business
community does not believe there is such a need for a UI
tax increase at this time. One can be certain that
employers, in negotiations with legislative leaders,
will ask for a lot in return if such a tax increase is
passed.
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Corporate Lawyers Expect Rise in
Litigation
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With the economy ailing, more than one-third of in-house
counsel expect new litigation to surge during 2008,
according to a recently released survey.
The
banking crisis, credit squeeze and subprime market
problems are all expected to help fuel various forms of
litigations, according to the 2008 Litigation Trends
Survey sponsored by the international law firm Fulbright
& Jaworski L.L.P.
The fifth annual survey
also found that insurance companies are now the top
target for new litigation, followed by retailers. The
findings showed that 85% of insurance companies faced at
least one new lawsuit last year, with 67% facing six or
more new suits.
Read on...
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Sincerely,
Santa Maria &
Company
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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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