Thanks to an exceptional appraisal of our audit function, State Fund was recently awarded the equivalent of an “A” grade by the Workers’ Compensation Insurance Rating Bureau (WCIRB).
All workers compensation insurance carriers undergo test audits by the WCIRB to verify the accuracy of year-end policy audits. The frequency of these test audits can be increased when a carrier’s results are poor. The WCIRB may also assess penalties when it finds a higher-than-expected error ratio resulting from discrepancies between its test audits and the insurer’s audits. In State Fund’s case, our audits averaged an error ratio so low the WCIRB awarded us a two-year exemption from its test audit program.
Quality policy audits ensure that experience modifications are calculated accurately and on time. State Fund has committed significant resources to ensure that our audit function is highly accurate and in compliance with industry regulations. The recent exceptional test score underscores the professionalism of our audit staff.
Outstanding audit performance is just one of the many ways that State Fund continues to provide quality workers’ compensation coverage for California businesses.
