reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2501 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Compliance with and enforcement of Insurance Code Sections
					 380,
					 381,
					 383,
					 780,
					 781,
					 782,
					 783,
					 783.5,
					 784,
					 790,
					 790.01,
					 790.02,
					 790.03,
					 790.035,
					 790.036,
					 790.04,
					 790.05,
					 790.06,
					 790.07,
					 790.08,
					 790.09,
					 790.10,
					 1420,
					 11630,
					 11631,
					 11650,
					 11651,
					 11652,
					 11653,
					 11654,
					 11655,
					 11656,
					 11656.1,
					 11656.5,
					 11656.6,
					 11656.7,
					 11656.8,
					 11656.9,
					 11657,
					 11658,
					 11658.5,
					 11659,
					 11660,
					 11661,
					 11661.5,
					 11661.6,
					 11662,
					 11730,
					 11731,
					 11739,
					 11751.1 and
					 12921, and
					 the regulations contained in this article are hereby declared to be necessary
					 in the public interest to protect the rights of injured employees and their
					 dependents, to protect prospective participating workers' compensation
					 policyholders from misrepresentations and unfair practices concerning potential
					 dividends, to prevent certain unfair and coercive practices in the payment of
					 dividends, and to effectuate the purpose of the statutes governing the
					 classification of risks and premium rates and policy and endorsement forms and
					 the filing of such forms for workers' compensation insurance.
1. Change
					 without regulatory effect amending section and adding new NOTE filed 1-8-2015
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
2. Amendment filed 5-31-2016;
					 operative 7-1-2016 (Register 2016, No. 23).
Note: Authority cited: Sections
						790.10 and
						12921,
						Insurance Code. Reference: Sections
						380,
						381,
						383,
						780,
						781,
						782,
						783,
						783.5,
						784,
						790,
						790.01,
						790.02,
						790.03,
						790.035,
						790.036,
						790.04,
						790.05,
						790.06,
						790.07,
						790.08,
						790.09,
						790.10,
						1420,
						11630,
						11631,
						11650,
						11651,
						11652,
						11653,
						11654,
						11655,
						11656,
						11656.1,
						11656.5,
						11656.6,
						11656.7,
						11656.8,
						11656.9,
						11657,
						11658,
						11658.5,
						11659,
						11660,
						11661,
						11661.5,
						11661.6,
						11662,
						11730,
						11731,
						11739,
						11751.1 and
						12921,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2502 - Relevant Statutes, Rules and Regulations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
					 without regulatory effect amending section and adding new NOTE filed 1-8-2015
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
2. Repealer filed 5-31-2016;
					 operative 7-1-2016 (Register 2016, No. 23).
Note: Authority cited: Sections
						790.10,
						10191 and
						12921,
						Insurance Code. Reference: Sections
						780,
						782,
						783,
						783.5,
						790.03,
						790.10,
						1420,
						11656.6,
						11656.7,
						11658,
						11751.1,
						11775,
						11776,
						11777 and
						11778,
						Insurance Code; and Section
						17500,
						Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2504 - Representations Regarding Future Payment of Dividends

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No workers' compensation insurer or officer or agent
					 thereof or insurance broker or solicitor shall represent, either orally or in
					 writing, as an inducement either to insure or to continue or to renew
					 insurance, that the insurer has agreed or will agree (a) to pay a specified
					 policyholder's dividend or (b) upon a formula, criteria or factors which set
					 forth or can be used to determine the amount of dividend, or percentage of
					 premium to be paid as dividend, or amount or percentage of premium to be
					 retained by the insurer after payment of dividend or (c) to pay a dividend by
					 any plan which is unfairly discriminatory.
1. Change
					 without regulatory effect adding new NOTE filed 1-8-2015 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
2. Amendment of section and NOTE
					 filed 5-31-2016; operative 7-1-2016 (Register 2016, No.
					 23).
Note: Authority cited: Section
						790.10,
						Insurance Code. Reference: Sections
						780,
						781,
						790,
						790.01,
						790.02,
						790.03 and
						11739,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2505 - Policyholder Dividend Statements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Whenever a dividend is paid on a workers'
				  compensation policy, a written form captioned "Policyholder Dividend Statement"
				  shall accompany the dividend paid or, where no dividend is paid, shall be
				  provided in place of a dividend.
(1) The
				  Policyholder Dividend Statement shall identify the policyholder and the
				  insurer, the policy to which the statement applies, and the term of said
				  policy.
(2) The Policyholder
				  Dividend Statement shall present the calculation of the dividend result, and
				  shall provide the policyholder with all essential data provided to compute the
				  dividend result.
(3) When no
				  dividend is paid, the Policyholder Dividend Statement shall state the reason or
				  reasons for non-issuance of a dividend for that participating
				  policy.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2506 - Sanctions for Unfair Practices or Misrepresentations Regarding Workers' Compensation Dividends

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Any representation as to future dividends, or statements as
					 to prior dividends declared or paid, issued by any insurer, agent, broker, or
					 solicitor to induce a prospective policyholder to accept a policy, or to induce
					 a policyholder to retain or renew a policy, failing to conform to this article
					 shall be deemed an unfair practice or misrepresentation, subject to sanctions
					 set forth in Insurance Code Sections
					 782,
					 783,
					 783.5 and
					 790.04 et
					 seq.
1. Change
					 without regulatory effect adding new NOTE filed 1-8-2015 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
Note: Authority cited: Section
						790.10,
						Insurance Code. Reference: Sections
						780,
						781,
						782,
						783,
						783.5,
						784,
						790,
						790.01,
						790.02,
						790.03,
						790.035,
						790.036,
						790.04,
						790.05,
						790.06,
						790.07,
						790.08 and
						790.09,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2507 - Declaration by Board of Directors or Other Governing Board

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No right to a policyholder's dividend under a workers'
					 compensation insurance policy, or to the application or use of any plan, scale,
					 table, formula or schedule to determine whether any dividends shall be paid or
					 allowed or the amount thereof, shall accrue unless and until the Board of
					 Directors or other governing body of the insurer shall have determined that the
					 insurer has a surplus from which dividends may lawfully be paid and shall have
					 declared such dividends by resolution adopted after the expiration of the term
					 covered by the policy.
Each declaration of policyholder's dividends for workers'
					 compensation insurance policies by the Board of Directors or other governing
					 board of the insurer shall identify by policy inception or expiration dates the
					 body of policies to which such declaration is applicable and shall specify the
					 dividend plans, scales, tables, formulas or schedules applied or to be applied
					 to determine whether any dividends shall be paid or allowed or the amounts
					 thereof to be allocated to separate policies pursuant to such
					 declaration.
1. Change
					 without regulatory effect adding new NOTE filed 1-8-2015 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
Note: Authority cited: Section
						790.10,
						Insurance Code. Reference: Sections
						1420,
						11775,
						11776,
						11777 and
						11778,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2507.1 - Prohibition Against Unfair Discrimination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Allocation of dividends shall not be unfairly
					 discriminatory. The dividend plans, scales, tables, formulas or schedules
					 specified in the declaration may provide for allocation of dividends as a flat
					 percentage of premiums or may provide for variations in the amounts of
					 dividends or the percentages of premium paid as dividends based upon loss or
					 expense factors or any other reasonable considerations, such as size, location,
					 hazard, industry or trade classification, which have a probable effect on
					 losses or expenses. Failure to apply in a consistent manner the plans, scales,
					 tables, formulas or schedules adopted and specified in a declaration of
					 dividends shall be prima facie evidence of unfair
					 discrimination.
1. Change
					 without regulatory effect adding new NOTE filed 1-8-2015 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
2. Amendment filed 5-31-2016;
					 operative 7-1-2016 (Register 2016, No. 23).
Note: Authority cited: Sections
						790.10 and
						11739,
						Insurance Code. Reference: Sections
						790.03 and
						11739,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2507.2 - Prohibition Against Unfair Forfeiture of Dividend for Failure to Renew

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Forfeiture of a
				  right to, reduction in the amount of, or delay in the payment of, a
				  policyholder's dividend due to the policyholder's failure to accept renewal of
				  the policy or subsequent policies offered by the same insurer is coercive and
				  illegal and shall constitute an unfair practice.
(b) This section shall not be deemed to
				  prohibit a reasonable reduction in the amount of a policyholder dividend if:
(1) the policyholder has elected to be
				  considered for policyholder dividends under a plan which utilizes the premium
				  and loss experience of the policyholder for two or more policy years,
				  and
(2) the nature of the
				  adjustment is set forth in the policy or by an endorsement attached to the
				  policy within thirty days after the inception of the first policy year for
				  which such election has been made, and
(3) the policyholder does not remain insured
				  by the same insurer during the complete term of the multi-year dividend plan.
				  In the context of this paragraph, a "reasonable reduction" in the amount of
				  policyholder dividends is defined as and specifically limited to the
				  application of that most favorable dividend plan for which the policyholder
				  then qualifies under the dividend procedures of the insurer unless some
				  alternative dividend plan has been set forth in the policy or an
				  endorsement.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2508 - Group Policies-Reduction or Forfeiture of Member's Right to Distribution of Dividend Funds

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
To avoid any coercion or possible misrepresentation of
					 dividends that may be paid to members of organizations or associations of
					 employers insured under group workers' compensation policies, no group policy
					 shall be issued, unless the articles of incorporation, by-laws, agreements of
					 association, or rules and regulations filed pursuant to Insurance Code Section
					 11656.6
					 shall provide that (1) any distribution of funds to any member, derived from a
					 dividend, shall not be reduced or forfeited except for reasons set forth in the
					 articles of incorporation, by-laws, agreements of association, or rules and
					 regulations, and (2) no such reduction or forfeiture shall be made effective
					 unless the reasons for such reductions or forfeiture have been made known by
					 written communication to the member prior to inception of his insurance
					 coverage during the policy period for which such dividend adjustment is
					 made.
1. Change
					 without regulatory effect amending section and adding new NOTE filed 1-8-2015
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
2. Amendment filed 5-31-2016;
					 operative 7-1-2016 (Register 2016, No. 23).
Note: Authority cited: Section
						790.10,
						Insurance Code. Reference: Sections
						780,
						781,
						790.03 and
						11656.6,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms › Section 2509 - False or Deceptive Documents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No workers' compensation insurer or officer or agent
					 thereof, or other insurance broker or solicitor shall adopt or cause or permit
					 to be issued, circulated or used any representation, plan, schedule, letter or
					 advertising material of any kind stating or implying that any insurer has acted
					 or will in the future act in any manner at variance with this
					 article.
1. Change
					 without regulatory effect adding new NOTE filed 1-8-2015 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2015, No. 2).
Note: Authority cited: Section
						790.10,
						Insurance Code. Reference: Sections
						780,
						781,
						790,
						790.01,
						790.02 and
						790.03,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.1 - Application of Article

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
This article applies to all insurers authorized to write
					 workers' compensation insurance in this State.
1. New
					 Article 9.5 (Sections
					 2509.1-2509.20, not consecutive)
					 filed 4-15-83; effective upon filing pursuant to Government Code Section
					 11346.2(d)
					 (Register 83, No. 16).
2. Change without regulatory effect amending
					 NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.3 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Insurance Code Section
					 11691
					 permits any workers' compensation insurer to file a clean and irrevocable
					 letter of credit with the Commissioner, or his approved depository, or to make
					 an acceptable deposit of securities with a bank, savings and loan association
					 or trust company, or to make a deposit with the State Treasurer. Deposits made
					 with the State Treasurer, pursuant to Insurance Code Section
					 11691, are
					 not governed by these regulations.
1. Change
					 without regulatory effect amending section and NOTE filed 4-28-2014 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.4 - Reporting of Transactions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If the insurer elects to place the required deposit with a
					 bank, savings and loan association or trust company, information shall be
					 submitted to the Commissioner by the insurer and the depository, where
					 applicable, on forms approved by the Commissioner.
1. Change
					 without regulatory effect amending NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.5 - Classes of Securities Eligible for Deposit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Debt securities, preferred stock and common stock, subject
					 to the requirements set forth herein, are the only classes of investment
					 securities eligible for deposit. Debt securities secured by interest in real
					 estate are not eligible for deposit including but not limited to investments
					 authorized under California Insurance Code Sections
					 1176.5,
					 1177,
					 1191.1,
					 1192.2,
					 1194.8,
					 1194.95.
1. Change
					 without regulatory effect amending section and NOTE filed 4-28-2014 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.7 - Debt Securities Defined

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Debt securities, as defined herein, include notes, bonds,
					 debentures, or other instruments commonly used as instruments of indebtedness,
					 and accounts, deposits, certificates and other investment securities issued by
					 banks and savings and loans and specifically authorized for investment by
					 insurers under the California Insurance Code; no debt securities will be
					 acceptable for deposits if:
(a) the
				  security is currently in default as to any principal or interest
				  payments;
(b) the security or any
				  security, lawfully issued by the same issuer, has been in default as to either
				  principal or interest payments for more than ninety (90) days within the
				  immediately past period of:
(1) two (2) years
				  if the issuer is a county, municipality or school district in this State or in
				  any other state, any province of Canada, or the Commonwealth of Puerto Rico;
				  or
(2) ten (10) years if the issuer
				  is this State or any other state.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.8 - Debt Security Rating and Listing Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Any government debt security or non-government debt
					 security listed on a national securities exchange which meets all other
					 requirements in this Article and which has at least an "A3" rating by Moody's
					 Investors Service, Inc., "A-" by Standard & Poor's, "A-" by Fitch Ratings,
					 or a comparable rating if the rating symbols are changed, is acceptable for
					 deposit. Non-governmental debt securities which are traded over the counter and
					 which meet all other requirements of this Article, must have at least an "Aa3"
					 rating by Moody's Investors Service, Inc., "AA-" by Standard & Poor's or
					 "AA-" by Fitch Ratings acceptable for deposit. Promissory notes as defined in
					 Section 2509.6(i) or debt
					 securities of banks and savings and loan associations need not meet the
					 requirements contained in this section.
1. Change
					 without regulatory effect amending section and NOTE filed 4-28-2014 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.9 - Preferred Stock

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following preferred stock is acceptable for workers'
					 compensation deposits subject to the requirements set forth in this Article and
					 the following conditions:
(a) the
				  stock must be registered and traded on a national securities exchange as
				  provided in the Securities Exchange Act of 1934, as amended; and
(b) within the last ten (10) years there must
				  not have been arrears of dividend payments on such preferred stock;
				  and
(c) the issuing corporation
				  shall have paid dividends on its common stock in each of the last five (5)
				  years of operation; and
(d) the
				  issuing corporation shall have a net worth of at least one hundred million
				  dollars ($100,000,000); and
(e) the
				  issuing corporation shall not have incurred a net loss in any more than one (1)
				  of the last five (5) years of operation; and
(f) the issuing corporation shall not have
				  been in default on any of its indebtedness or any of its sinking fund
				  requirements; and
(g) except in the
				  case of sinking fund preferred stock, the preferred stock must have a rating of
				  at least "a3" by Moody's Investors Service, Inc. or "A-" by either Standard
				  & Poor's or Fitch Ratings; and
(h) sinking fund preferred stock must have a
				  rating of at least "baa3" by Moody's Investors Service, Inc., "BBB-" by
				  Standard & Poor's or Fitch Ratings.
1. Change
					 without regulatory effect amending subsections (g)-(h) and NOTE filed 4-28-2014
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.10 - Common Stock

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Common stock is acceptable for workers' compensation
					 deposit subject to the requirements set forth in this Article, and all of the
					 following requirements:
(a) the stock
				  must be registered and traded on a national securities exchange as provided in
				  the Securities Exchange Act of 1934, as amended; and
(b) the stock must not be stock of an
				  affiliate of Applicant; and
(c) no
				  more than ten percent (10%) of the deposited value shall be in the stock of any
				  one corporation calculated on the basis of the minimum required deposit value
				  which must be maintained by the depositing insurer; and
(d) the issuing corporation must have a net
				  worth of at least one hundred million dollars ($100,000,000); and
(e) the issuing corporation shall have paid
				  dividends on its common stock in each of the last five (5) years of operation;
				  and
(f) the issuing corporation
				  shall not have incurred a net loss in any more than one (1) of the last five
				  (5) years of operation.
1. Change
					 without regulatory effect amending NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.11 - Valuation of Securities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Preferred and common stock are to be valued at market. All
					 other securities, other than promissory notes taken for premium, for all
					 purposes, shall be valued at the lower of par or market value. Promissory notes
					 taken for premium shall be valued at the lowest of the following:
(a) the amount of written premium recorded by
				  the insurer as of the valuation date less cash collected;
(b) the principal owed on the note;
				  or
(c) the face amount of the
				  supporting letter of credit.
1. Change
					 without regulatory effect amending NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.12 - Time Limit on Valuation of Securities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Securities which are being placed on deposit shall be
					 valued as of a date no more than thirty (30) days prior to the date of delivery
					 to the approved depository. Securities which are on deposit on December 31,
					 shall be valued as of December 31.
1. Change
					 without regulatory effect amending NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.13 - Required Value of Deposit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Generally.
The value of securities to be deposited with a bank,
					 savings and loan association or trust company shall be not less than one
					 hundred percent (100%) of the amount required to be maintained on deposit
					 pursuant to Sections
					 11691 and
					 11693 of
					 the California Insurance Code. No withdrawal of securities, including preferred
					 and common stock, shall be made by the insurer which results in the total value
					 of the deposit being less than one hundred percent (100%) of the required
					 deposit amount. The insurer shall, at all times, have on deposit sufficient
					 securities to maintain the deposit value at not less than one hundred percent
					 (100%) of the required amount.
(b) Promissory Notes Taken for Premiums
				  --Additional Restrictions.
(1) The total
				  deposit value of all promissory notes taken for premium and which are placed on
				  deposit with a bank, savings and loan association or trust company may not
				  exceed fifty percent (50%) of the amount required to be maintained on deposit
				  by Sections
				  11691 and
				  11693 of
				  the California Insurance Code.
(2)
				  The insurer shall report quarterly to the Insurance Commissioner in a form
				  prescribed by the Commissioner with regard to promissory notes taken for
				  premium and which are placed on deposit with a bank, savings and loan
				  association or trust company.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.14 - Election of Depository

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Any workers' compensation insurer electing to deposit securities in the
				  California office of a duly licensed bank, savings and loan association or
				  trust company shall do so subject to the approval of the Commissioner. The
				  selected Depository shall have deposits of no less than seven hundred fifty
				  million dollars ($750,000,000). If such election is made, no more than one (1)
				  office of any bank, savings and loan association or trust company shall be
				  selected as the holder of the required deposit. The holder is defined herein as
				  the center of control and reporting. All records pertaining to the deposit
				  shall be maintained in the selected holder-office. The deposited assets shall
				  be maintained in this State.
(b)
				  Where a depository is used, the outside depository trust company shall be
				  approved in advance for such purpose by the Commissioner. In such a case,
				  book-entry accounting is acceptable for the deposit. The Federal Reserve
				  book-entry program for deposit of federal securities may be issued through the
				  Depository itself because it is (1) a member bank in the Federal Reserve System
				  located in California or (2) a depository institution which has its own direct
				  account at the Federal Reserve System located in California, whether or not the
				  definitive certificates are available upon express request. The Depository
				  shall monitor the transactions and maintain the book-entry securities. It shall
				  expressly undertake the same responsibilities, obligations, duties and
				  reporting requirements for these securities as for all other deposited
				  securities.
(c) Subject to the
				  bank, savings and loan association or trust company's right to terminate the
				  agreement pursuant to which a deposit is held, no insurer may change its
				  election more frequently than once in any twelve (12) month period. Any change
				  in Depository shall be subject to the prior approval of the Commissioner.
				  Notwithstanding the foregoing, an insurer may elect to file a letter of credit
				  with the Commissioner, or make a securities deposit with the State
				  Treasurer.
1. Amendment
					 of subsection (b) filed 8-28-98; operative 9-27-98 (Register 98, No.
					 35).
2. Change without regulatory effect amending subsection (c) and
					 NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.15 - Title and Location of Deposit Held by a Depository

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If an insurer elects to place the required deposit with a
					 bank, savings and loan association or trust company, all securities shall be in
					 coupon or bearer form, negotiable form, registered to the Insurance
					 Commissioner, or in the name of the depository bank, savings and loan
					 association or trust company, or in the name of a nominee of such bank, savings
					 and loan association or trust company, and shall be in accordance with the laws
					 of this State permitting use of nominees. If registered in the depositor's
					 name, the workers' compensation insurer shall execute and deliver, in
					 duplicate, to the Commissioner a power of attorney in favor of the Commissioner
					 for the purposes specified in Section
					 11691 of
					 the California Insurance Code supported by a resolution of the depositor's
					 board of directors. In the case of the deposit of a promissory note taken for a
					 premium, the power of attorney and resolution of the board of directors shall
					 extend to the promissory note and the supporting letter of credit or surety
					 bond. Such power of attorney and directors' resolution shall be on a form
					 approved by the Commissioner, and shall provide that the power of attorney
					 cannot be revoked or withdrawn without the consent of the Commissioner, and
					 shall contain an acknowledgment, as required by law.
1. Change
					 without regulatory effect amending section and NOTE filed 4-28-2014 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.16 - Approval by Commissioner of Depository Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If an insurer elects to maintain the required deposit with
					 a bank, savings and loan association or trust company, the written agreement
					 with the insurer and the bank, savings and loan association or trust company,
					 and the Commissioner shall be substantially in the form set forth in Section
					 2509.17 of these regulations and
					 shall be filed with and approved by the Commissioner.
1. Change
					 without regulatory effect amending NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.18 - Letter of Credit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Commissioner will accept, in lieu of deposited
					 securities, a letter of credit acceptable to and filed with the Commissioner or
					 his approved depository, which is in full compliance with the following:
(a) Two (2) originally signed copies must be
				  submitted, one (1) of which will be returned to the issuing bank for
				  verification of signature authorization;
(b) The issuer must be a member bank of the
				  Federal Reserve System with an office in this State;
(c) The beneficiary must be the Insurance
				  Commissioner of the State of California;
(d) It must be clean and irrevocable and
				  comply with the following:
(1) It must be an
				  unconditional letter requiring no documentation; the beneficiary must be able
				  to realize funds simply by drawing a draft under the credit, limited only by
				  the amount available, as set forth in the letter of credit; and
(2) It must be expressly stated that it is
				  clean and irrevocable and that it cannot be modified or revoked without the
				  consent of the beneficiary, once the beneficiary is established; and
(3) It must contain an "evergreen" clause
				  which prevents expiration of the letter of credit without some affirmative
				  action by the issuer; the letter must be for not less than one (1) year and
				  must provide that it will be automatically extended for the period of time
				  stated in the original letter if the notice of expiration is not complied with
				  by the issuer; the Commissioner-beneficiary and the insurer-account holder must
				  be given no less than forty-five (45) days prior notice of the expiration of
				  such letter of credit.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.19 - Permitted Combination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Commissioner will accept a combination consisting of a
					 letter of credit filed with him and a deposit of securities to meet the
					 statutory deposit requirements set forth and referenced in California Insurance
					 Code Section
					 11691. If
					 such combination is used, a separate fee for review must be paid for the
					 deposit and the letter of credit.
1. Change
					 without regulatory effect amending section and NOTE filed 4-28-2014 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.20 - Withdrawal of the Commissioner's Authorization in the Event of Non-Compliance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In the event that the Commissioner determines that an
					 insurer or depository has not fully complied with this Article, to the extent
					 applicable to such insurer or depository, the Commissioner may withdraw any
					 authorization granted and order such insurer to transfer all of its deposit to
					 the Commissioner or other depository designated by the
					 Commissioner.
1. Change
					 without regulatory effect amending NOTE filed 4-28-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 18).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Section
						11691,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.5 - Workers' Compensation Insurance Deposits › Section 2509.21 - Deposits of Reinsurers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  When an admitted insurer is subject to proceedings specified in Insurance Code
				  Sections
				  11698(a)
				  or
				  11698.3,
				  any workers' compensation deposit made pursuant to Insurance Code Section
				  11691(f)(1)
				  by any reinsurer of the insurer, which the reinsurer was required to identify
				  to the commissioner pursuant to Insurance Code Section
				  11691(f)(1)
				  and for which the ceding insurer was allowed any deposit credit, shall be
				  deemed for the purposes of Article 1 (commencing with Section
				  11690), Chapter 3, Part 3,
				  Division 2 of the Insurance Code, to be included as part of the ceding
				  insurer's own workers' compensation deposit pursuant to Insurance Code Section
				  11691(a).
				  The commissioner shall use the proceeds of any such deposit by the reinsurer,
				  and any interest thereon, only for the payment of that portion of a workers'
				  compensation claim which the reinsurer is required to pay as determined
				  pursuant to Insurance Code Section
				  11691(f)(2).
				  To the extent that any portion of a reinsurer's deposit is used to pay a
				  compensable workers' compensation claim against an insurer as provided in the
				  preceding sentence, the liability of the reinsurer with respect to the portion
				  of the claim so paid shall be deemed fully satisfied and released. Upon
				  request, the commissioner shall provide to any reinsurer a special certificate
				  pursuant to Insurance Code Section
				  12973 that
				  memorializes the satisfaction and release.
(b) By reason of the reinsurance agreement
				  requirements set forth in Insurance Code Section
				  11691(f)(2),
				  payment of a claim from a reinsurer's deposit shall be considered an authorized
				  payment to an alternative payee for the purposes of Insurance Code Section
				  922.2(a)(2).
1. New
					 section filed 7-10-2006; operative 8-9-2006 (Register 2006, No.
					 28).
Note: Authority cited: Section
						11691,
						Insurance Code. Reference: Sections
						922.2,
						11691,
						11698 and
						11698.3,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.6 - Workers' Compensation Rate Filings › Section 2509.30 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
This subchapter is adopted to implement the provisions of
					 Insurance Code Sections
					 11730
					 through
					 11759.1,
					 which, among other matters, govern insurance company filing of workers'
					 compensation insurance rates and rating plans, and to specify the handling of
					 those filings by the Commissioner.
1. New
					 article 9.6 and section filed 10-13-94; operative 10-13-94. Submitted to OAL
					 for printing only pursuant to Statutes of 1993, Ch. 1242 (S.B. 223), section
					 43, subdivision
					 3 (Register 94, No.
					 41).
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.6 - Workers' Compensation Rate Filings › Section 2509.31 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Actuary" means
				  a member in good standing of the Casualty Actuarial Society or a member in good
				  standing of the American Academy of Actuaries who meets the general
				  qualification standard to present public statements of actuarial
				  opinion.
(b) "Approved pure premium
				  rates" means the pure premium rates prepared and submitted by the designated
				  rating organization and approved by the Commissioner.
(c) "Commissioner" means the Insurance
				  Commissioner of the State of California.
(d) "Deviation" means the insurer's
				  adjustment, upward or downward, of the approved pure premium rates based only
				  on charges in the loss cost per unit of exposure, including loss adjustment
				  expense.
(e) "Pure premium rate
				  modifier" means all the factors, other than deviations, if any, by which an
				  insurer adjusts the approved pure premium rates or its independently developed
				  pure premium rates to arrive at that insurer's filed rates.
(f) "Rating plan" means the rules and numeric
				  values an insurer uses to calculate the premium for an insured.
1. New
					 section filed 10-13-94; operative 10-13-94. Submitted to OAL for printing only
					 pursuant to Statutes of 1993, Ch. 1242 (S.B. 223), section
					 43, subdivision
					 3 (Register 94, No.
					 41).
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.6 - Workers' Compensation Rate Filings › Section 2509.32 - Insurer's Rate Filing

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Insurance Code Sections
				  11734 and
				  11735
				  require an insurer to file its rates and supplementary rate information at
				  least 30 days before their effective date, unless the Commissioner approves the
				  insurer's request for an earlier date. Insurance Code Section
				  11658
				  provides that no insurer shall issue a workers' compensation insurance policy
				  unless the policy is first approved by the Commissioner. Insurers shall file
				  workers' compensation insurance rate filings with the Department of Insurance,
				  Rate Filing Bureau for Workers' Compensation Insurance.
(b) The filing date of a rate filing is the
				  date the Rate Filing Bureau for Workers' Compensation Insurance receives a
				  complete rate filing. The 30-day waiting period described in Insurance Code
				  Section
				  11734,
				  subdivision (b), and Section
				  11735, subdivision (a), begins on
				  the filing date.
(c) The
				  Commissioner shall determine whether a rate filing is complete and complies
				  with filing requirements, and the Commissioner may reject a rate filing if the
				  insurer fails to comply with filing requirements or if the filing is
				  incomplete.
(1) If the Commissioner rejects
				  an insurer's rate filing because it is incomplete or otherwise fails to comply
				  with filing requirements, any subsequent rate filing by that insurer shall be
				  given a new filing date on its receipt by the Rate Filing Bureau for Workers'
				  Compensation Insurance.
(2) If a
				  rate filing needs correction of an error or filing of additional information to
				  be complete, the Commissioner shall give the insurer an opportunity to correct
				  the filing. If the insurer corrects the rate filing within 30 days of its
				  original filing date, the insurer may calculate the 30-day waiting period from
				  the original date of the rate filing. If the insurer corrects the rate filing
				  more than 30 days from its original filing date, the Department shall assign a
				  new filing date, which shall be the date the correction or additional
				  information is received by the Rate Filing Bureau for Workers' Compensation
				  Insurance. In that case, the insurer may request of the Commissioner that its
				  rates become effective earlier than the normal 30-day waiting
				  period.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 9.6 - Workers' Compensation Rate Filings › Section 2509.34 - Disapproval of an Insurer's Rates; Notices to Insured

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Every workers' compensation policy incepting on or after
					 January 1, 1995, shall contain a provision that the premium may be subject to
					 midterm adjustment, for the unexpired term of the policy, pursuant to the
					 Commissioner's power to disapprove rates.
1. New
					 section filed 10-13-94; operative 10-13-94. Submitted to OAL for printing only
					 pursuant to Statutes of 1993, Ch. 1242 (S.B. 223), section
					 43, subdivision
					 3 (Register 94, No.
					 41).