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Prohibition on Self-Insurance for Labor Contractors and the Acceptance of Self-Insured Data for Experience Rating

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Prohibition on Self-Insurance for Labor Contractors and the Acceptance of Self-Insured Data for Experience Rating

February 5, 2014

 

Labor Code Section 3701.9, which took effect January 1, 2013, prohibits professional employer organizations, leasing employers, temporary staffing agencies and any employer regardless of name or form  that is determined to be in the business of providing employees to other employers (collectively, Labor Contractors), from obtaining a certificate of self-insurance. All previously issued self-insurance certificates for Labor Contractors are revoked as of January 1, 2015.

The California Workers' Compensation Experience Rating Plan1995 (ERP), at Section III, Eligibility and Experience Period, Rule 5, Self-Insurers' Data, allows the WCIRB to use the experience of previously self-insured entities for experience rating purposes under certain limited conditions. The WCIRB may accept the experience of self-insurers if the self-insured data is complete, and the payroll and loss information is secured, verified and submitted by an interested insurer and supported by an affidavit of the employer.

In order for the self-insured experience to be used, the operations that produced the experience must be currently insured under a workers' compensation policy that has been received by the WCIRB. If a self-insured's data  includes open claims, all such claims must be revalued and subsequent reports submitted annually to the WCIRB in accordance with the rules in the California Workers' Compensation Uniform Statistical Reporting–1995 (USRP). For more information, see Reporting Self-Insured Data For Experience Rating.

New Classification Search Launched

The WCIRB' new Classification Search  tool allows users to do a full text search across all standard classifications or by industry group. Users may enter keywords to see a list of all classification phraseologies that contain the keyword or that are commonly associated with the keyword. Advanced search features allow users to combine or exclude keywords or use wildcard search characters. Classification Search  is located in the Learning Center section of the WCIRB website.

See http://www.wcirb.com/class-search.