Commissioner Issues Decision on July 1, 2020 Special Regulatory Filing

On June 17th, 2020, the California Insurance Commissioner issued a Decision regarding the Workers’ Compensation Insurance Rating Bureau of California’s (WCIRB’s) July 1, 2020 Special Regulatory Filing, which contained proposals to address the coronavirus disease 2019 (COVID-19) pandemic and was submitted by the WCIRB to the California Department of Insurance (CDI) on April 20, 2020. In the Decision, the Commissioner approved all of the WCIRB’s proposed changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) and California Workers’ Compensation Experience Rating Plan—1995 (ERP). These changes are effective July 1, 2020 and include the following:

Exclude Payments to Employees Who Continue to Be Paid While Not Working

Part 4, Section IV, Exposure Information, Rule 1, Classification Code, and Rule 4, Exposure Amount, were amended to report payments excluded from remuneration pursuant to new Rule 7, Coronavirus Disease 2019 (COVID-19). Payments made to an employee while the employee is performing no duties of any kind in service of the employer are to be excluded from payroll when the payments are equal to or less than the employee’s regular rate of pay.

Allow Assignment of Classification 8810 for Temporary Change in Duties

Part 3, Section III, General Classification Procedures, was amended to add Rule 7, Coronavirus Disease 2019 (COVID-19), to permit during a statewide California COVID-19 stay-at-home order the following: The division of an employee’s payroll between Classification 8810, Clerical Office Employees, and a non-standard exception classification when the employee’s work is exclusively clerical in nature and the non-standard exception classification does not include Clerical Office Employees

Exclude COVID-19 Claims from Experience Rating

Section VI, Rating Procedure, Rule 2, Actual Losses and Actual Primary (Ap) Losses, was amended to specify that all claims directly arising from a diagnosis of Coronavirus Disease 2019 (COVID-19) shall not be reflected in the computation of an experience modification.

The WCIRB is currently updating the USRP and ERP. Once complete, these documents will be posted to the Filings and Plans section of the WCIRB website. In the interim, the WCIRB has prepared the July 1, 2020 USRP and ERP Changes Quick Reference Guide, summarizing the approved changes to the Commissioner’s regulations.

The Decision pertains only to the WCIRB’s Special Regulatory Filing. The WCIRB will submit its annual Regulatory Filing in June 2020 and its annual Pure Premium Rate Filing in August 2020, each of which will take effect January 1, 2021.