Q.What is a minimum premium?
A.Basically, minimum premium is the least
amount for which the insurer is willing to insure an employer.
Each insurer files its minimum premiums with the rating
plan to CDI.
For
Example: An insurance
company has set a minimum premium of $500 for your type of
business. Assuming your actual payroll is only $20,000 with
a manual rate of .78 per $100 of payroll, your calculated
premium would be $156 ($200 X .78). But you would still pay
$500 minimum premium instead of $156, since your insurance
company has set its minimum premium at that level. Thus you
are encouraged to shop around for the company with the
lowest minimum premium if you have a small payroll.
Q.Is there a penalty if I cancel my workers’ compensation
insurance during the policy year?
A.If you cancel the policy before the end
of the policy term, you will pay a penalty. The premium
will be based on the time the policy was in force, and increased
by a standard short-rate percentage to cover company expenses.
If the company cancels the policy, the premium will be based
on the actual number of days it was in force (pro-rata).
Also, your insurance company may charge you the minimum
premium when the calculated short rate premium is less than
its established minimum premium. Therefore, read your policy
very carefully regarding the final determination of premium
upon its cancellation.
Q.What is participating policy?
A.If a policy is written on participating
basis, an employer may participate in the profits of the
insurance company derived from its California workers’ compensation
business in the form of a dividend. There are various types
of dividend plans with different provisions and requirements.
Check with your agent or company for specific details.
Workers Compensation
1
Workers Compensation
2
Workers Compensation
3
Workers Compensation
4
Workers Compensation
5
Workers Compensation
6
Workers Compensation
7
Workers Compensation
8
Workers Compensation
9
Workers Compensation
10
Workers Compensation
11
Workers Compensation
12
Workers Compensation
13
Workers Compensation
14
Workers Compensation 15
Workers Compensation
16
Workers Compensation
17
Workers Compensation
18
Workers Compensation
19
