Bill > SF372

This bill amends existing law concerning the Workers Compensation Reinsurance Association (WCRA), a state-run entity that provides reinsurance for workers' compensation claims. The key change is the elimination of a "prefunded limit," which previously capped the amount of actual claim payments a member (an insurance company or self-insured employer) would have to make before the WCRA would cover the excess liability. By removing this prefunded limit, the bill ensures that members are charged premiums sufficient to cover the WCRA's incurred liabilities and expenses in excess of their chosen retention limit, which is the amount of liability they agree to cover themselves before reinsurance kicks in. This change is effective January 1, 2015.