California Code of Regulations › Title 8 - Industrial Relations › Division 1 - Department of Industrial Relations › Chapter 8 - Office of the Director › Subchapter 2.06 - Workers' Compensation-Administration Revolving Fund Assessment, Uninsured Employers Benefits Trust Fund Assessment, Subsequent Injuries Benefits Trust Fund Assessments, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, and Fraud Surcharge › Article 3 - Collection of Assessments and/or Surcharges › Section 15609 - Credit for Undercollection

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When an insurer demonstrates to the
					 Director, within one year of the final audit conducted for premium adjustments
					 for the policies with inception dates in the year subject to assessment, that
					 the total assessments and/or surcharges, respectively, collected from its
					 insured employers is less than the respective assessment and surcharge amounts
					 advanced by the insurer under Section
					 15606 for that assessment year, the
					 Director shall credit the amount of the difference against the subsequent
					 year's respective advances due from the insurer on behalf of its insured
					 employers.
(1) When an insurer demonstrates,
					 to the satisfaction of the Director, within one year of the final audit
					 conducted for premium adjustments for the policies with inception dates in the
					 year subject to assessment, that it has accrued credit(s) for one or more
					 assessments and/or surcharges in an amount that cannot be effectively utilized
					 in a five year period to offset the specific assessment(s) and/or surcharge(s)
					 on which the credit(s) accrued, the Director may, in his or her sole
					 discretion, and to the extent that the Director finds that sufficient funds are
					 available for this purpose without impairing the fiscal integrity of the
					 programs funded by the respective assessment(s) and/or surcharge(s), refund the
					 excess credit(s) in whole or in part. The Director may, in his or her sole
					 discretion, structure the refund(s) over a period of from one to five
					 years.
(2) When an insurance group,
					 as defined in section
					 15600, subdivision (j),
					 demonstrates good cause to the satisfaction of the Director, within one year of
					 the final audit conducted for premium adjustments for the policies with
					 inception dates in the year subject to assessment, that one or more members of
					 the group has accrued excess credits in an amount cannot be effectively
					 utilized in a five year period to offset the specific assessment(s) and/or
					 surcharge(s) on which the credit(s) accrued, the Director may, in his or her
					 sole discretion, allow the transfer of those excess credits from company to
					 company within the group, for the specific assessment(s) and/or surcharge(s) on
					 which the excess credit(s) accrued. The Director may, in his or her sole
					 discretion, structure the transfer(s) over a period of from one to five years.
					 Any credit transferred under this subdivision may only be used to offset the
					 next year's assessment(s) and/or surcharge(s) after the credit is
					 transferred.
(3) For purposes of
					 subdivision (a)(2) above, "good cause" includes, but is not limited to, one or
					 more individual insurers with excess credit, as defined in subdivision (a)(2),
					 within the group withdrawing from the California market.