California's state workers' compensation insurer, StateCompensation Insurance Fund, said it filed a revision to its ratingplan that will result in a 3.5 percent reduction in premiumeffective July 1.

The insurer said that while its base rates will remainunchanged, it has expanded its merit rating and claims-freediscount plans to lower rates for policies with superior safetyrecords. The new rate filing will affect new and renewal workers'comp policies with an effective date on or after July 1.

State Fund said that as it expands its “claims-free” credit,some small employers with superior safety records would see theirclaims-free discount increase from 10 percent to 13- or 15 percent.Additionally, for the first time new business accounts to StateFund may also qualify for a claims-free credit based on experiencewith their prior carrier.

“Promoting safe workplaces is a vital part of State Fund'smission, and small business is the backbone of California'seconomy,” said State Fund President and Chief Executive OfficerJanet Frank. “We feel it is critical to pass on savings thatrecognize employers for maintaining safe workplaces.”

In addition, State Fund is enlarging the range of accounts thatqualify for its expanded merit rating plan, allowing itsunderwriters greater discretion in pricing accounts generating morethan $100,000 in premium. State Fund's underwriters will be able tobase more of the pricing decision on each individual account'sexperience, providing the opportunity for deeper discounts onaccounts with excellent safety records.

Ms. Frank noted that the latest filing brings the cumulativedecrease to 57 percent below pre-2004 reform levels.

State Fund said it has approximately 200,000 policyholdersranging from small businesses to large group associations. It wascreated by the California Legislature in 1914 as a nonprofit,self-supporting, fairly competitive public enterprise thatguarantees a permanent workers' comp insurance marketplace in thestate.