When an ownership change takes place for a particular business, the WCIRB must determine what to do with the historical data that has been generated by that business. This determination impacts the experience rating for that business. Generally, a change in ownership is defined as a transfer of an entity's operations or assets to another entity. Section II, Rule 3 of the California Workers' Compensation Experience Rating Plan—1995 specifically defines a change in ownership for experience rating purposes, as follows:
Once it is determined that a change in ownership has occurred, the next step is to determine whether the change was material. The first step in analyzing any change in ownership is determining the names and ownership interest of all owners before and after the effective date of the change.
To notify the WCIRB of a change in ownership, an insurance professional or insurer should use the ownership information submission tool on WCIRB Connect to submit the ownership information to the WCIRB. The WCIRB no longer accepts ownership information submitted using WCIRB Form 601, Notification of Change in Ownership and/or Combinability of Entities Form. Learn more about using the ownership information submission tool on WCIRB Connect.
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