Reprieve From CIGA Surcharge Could Extend to 2020

The California Insurance Guarantee Association is holding a large enough surplus to cover the costs of its open workers’ compensation claims without tacking a surcharge this year onto the premiums employers pay. And the reprieve from the annual CIGA surcharge might not be a one-time deal. The new head of the association that steps in to pay claims when carriers go bust said that while he can’t predict the future, he doesn’t think a surcharge will be needed in 2020 so long as there are no major insolvencies or legislative changes that drive up the cost of benefits. CIGA has ...