Calif. WC Surcharge Bill Moves
By Caroline McDonald
NU Online News Service, June 20, 2:47 p.m. EST?The California Senate Insurance committee voted yesterday to release a measure providing for a 2 percent surcharge on workers' compensation insurance premiums to keep the California Insurance Guarantee Fund stable.
AB 2007, would eliminate a Sept. 12 sunset on the 2 percent assessment, which was increased from 1 percent last year. Amendments were added to sunset the surcharge in five years.
"You hate to see Guaranty fund assessments at all, but in this case we all know that it's needed," Said Keith Bateman, vice president, workers' compensation and health with the Alliance of American Insurers in Downers Grove, Ill. "We support the bill and are glad to see that it's been reported out by the Senate Insurance Committee."
The bill was sponsored by Assembly Insurance Committee Chairman Tom Calderon, D-Montebello.
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