California Insurance Code

§ 10714

INS § 10714 Effective May 24, 1996Div. 2 · Part 2 · Ch. 8 · Art. 2

Statute text

Premiums for benefit plan designs written, issued, or administered by carriers on or after the effective date of this act, shall be subject to the following requirements:

(a)(1) The premium for new business shall be determined for an eligible employee in a particular risk category after applying a risk adjustment factor to the carrier’s standard employee risk rates. The risk adjusted employee risk rate may not be more than 120 percent or less than 80 percent of the carrier’s applicable standard employee risk rate until July 1, 1996. Effective July 1, 1996, the risk adjusted employee risk rate may not be more than 110 percent or less than 90 percent.

(2)The premium charged a small employer for new business shall be equal to the sum of the risk adjusted employee risk rates.

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Legislative history

Amended by Stats. 1996, Ch. 50, Sec. 2. Effective May 24, 1996.