A court will hear the State Compensation Insurance Fund’s contention that its tiered rating system algorithm was appropriately filed with the California Department of Insurance. State Fund convinced the court to reject requests by the CDI and an employer to deny State Fund’s petition– but just barely.
The case affects the tier modifiers; it applied to tens of thousands of workers’ comp policies and some $150 million in premium from the 2015 and 2016 policy years.
Drew Pomerance, who is representing A-Brite in the case, says the firm plans to perform “a vigorous investigation into State Fund’s claim that CDI officials hoodwinked them into signing the settlement agreement … We’re going to do discovery into this allegation because we believe that it’s not true. We don’t believe that anybody from the Department of Insurance ever made any of those representations to State Fund,” he says.
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