<div class='html-Content' xmlns="https://www.w3.org/1999/xhtml"> <div class='head-Content'> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"> <title> Evaluation of Tiered Rating </title> <meta name="keywords" content="Tiered Rating Discounts"> <meta name="description" content="Tiered Rating"> <meta name="robots" content="noindex"> <link rel="stylesheet" type="text/css" href="/stylesheets/mobile_styles.css"> <style type="text/css"> <!-- @import url("/stylesheets/statefund_styles.css"); --> </style> <style type="text/css" media="handheld, only screen and (max-device-width: 480px)"> <!-- @import url("/stylesheets/mobile_styles.css"); --> </style> <link href="/stylesheets/statefund_styles.css" rel="stylesheet" type="text/css" media="screen and (min-width: 481px)"> </div> <div class='body-Content' id=""> <div class="topheader"><a href="/index.asp" name="home"><img src="/images/state_fund_logo.gif" alt="state fund logo" border="0" align="left"></a> <div class="offscreen"><img src="/images/offscreen_transparency.gif" alt="" width="250" height="20" align="center"></div> <ul id="accessibility" class="offscreen"> <li><a href="#skipnavigation" accesskey="0">Skip past navigation</a></li> <li><a href="#footer" accesskey="4">Skip to table of contents</a></li> </ul> <div class="offscreen"><img src="/images/offscreen_transparency.gif" alt="" width="250" height="20" align="center"></div> <div class="topheaderRight"> <div class="topnav"> <div class="topnavRight"><a href="/index.asp" accesskey="5">Home</a> | <a href="/contact/ContactUs.asp" tabindex="1">Contact us</a></div> <div class="topnavLeft"><a href="/employers/Index.asp" name="Employer">EMPLOYERS</a> | <a href="/broker/Index.asp" name="Broker">BROKERS</a> | <a href="/provider/Index.asp" name="Medical Provider">MEDICAL PROVIDERS</a> | <a href="/employees/Index.asp" name="Employee">EMPLOYEES</a> | <a href="/statecontracts/Index.asp" name="State Contracts">STATE AGENCIES</a></div> </div> <div class="topPhonenumber2"><a href="/CustomerSupport/Index.asp"><strong><font size="4px">Customer Support</font></strong></a><br>(888) 782-8338</div> <div class="topMission">Established in 1914 by the state legislature, State Fund is California's most reliable provider of workers' compensation insurance and a vital asset to California businesses. State Fund supports California's entrepreneurial spirit and plays a stabilizing role in the economy by providing fairly priced workers' compensation insurance, helping California employers keep their workplaces safe, and restoring injured workers. </div> </div> <br><br><br> </div> <div id="mainNav2"> <div id="mainNav3"> <div class="offscreen"><img src="/images/offscreen_search.gif" alt="" width="250" height="20" align="left"><br> <br> </div><div class="search"> <form name="search" action="https://search.scif.com/StateFundCAsearch.cgi" method="get"><input value="Search" name="query"></form> </div><div class="offscreen"><img src="/images/offscreen_transparency.gif" alt="" width="250" height="20" align="center"><br> </div><ul> <li class='on'><a href='/about/About.asp' name='About'>About</a></li><li><a href='/policy/ObtainAPolicy.asp' name='Obtain a Policy'>Obtain a Policy</a></li><li><a href='/claims/ClaimsSvcs.asp' name='Claims Services'>Claims Services</a></li><li><a href='/safety/SafetyAndSeminars.asp' name='Safety &amp; Seminars'>Safety &amp; Seminars</a></li><li><a href='/forms/Forms.asp' name='Forms'>Forms</a></li><li><a href='/careers/Index.asp' name='Careers'>Careers</a></li> </ul> </div> </div> <a name="skipnavigation"></a> <div class="mainArea"> <div class="subright"> <div class="sidesubsubnav"> <div class="subheadr">News Archive</div> <ul> <li><a href="/news/News2013.asp">2013 &raquo;</a></li><li><a href="/news/News2012.asp">2012 &raquo;</a></li><li><a href="/news/News2011.asp">2011 &raquo;</a></li><li><a href="/news/News2010.asp">2010 &raquo;</a></li><li><a href="/news/News2009.asp">2009 &raquo;</a></li><li><a href="/news/News2008.asp">2008 &raquo;</a></li> </ul> </div> </div> <div class="subleft"> <div id="subNav"> <ul> <li><a href='/about/history/index.html'>History</a></li><li id='subNavHightlight'><a href='/news/NewsAndMedia.asp'>News & Media Center</a></li><li><a href='/about/Leadership.asp'>Leadership</a></li><li><a href='/about/CodeOfConduct.asp'>Code of Conduct</a></li><li><a href='/about/IntegrityInAction.asp'>Ethics and Privacy Hotline</a></li><li><a href='/about/FAQs.asp'>FAQs</a></li><li><a href='/careers/Index.asp'>Careers</a></li><li><a href='/about/Community.asp'>Living Our Values</a></li><li><a href='/about/VendorGuide.asp'>Suppliers</a></li><li><a href='/about/Privacy.asp'>Privacy</a></li><li><a href='/about/cpra/PRO.asp'>Public Records Request</a></li> </ul> </div> </div> <div class="submiddle"> <div class="subright"><a href="/print/print.asp?ref=/news/News2014/092614-Guastamachio.asp" target="_blank">PRINT VERSION</a></div> <p>&nbsp;</p> <sp> <h1>State Fund Discontinues Group Insurance Plan</h1> <h3 align="left">December 3, 2014</h3> <p>Since the implementation of tiered rating in March 2013, State Fund has broadened its pricing structure and allowed more accurate rating to an individual policyholder&rsquo;s risk.</p> <p> Under tiered rating, State Fund is able to offer fair prices to a much broader range of employers, allowing it to remain a strong and stable provider of workers' compensation insurance for all California employers. </p> <p> Throughout 2014, State Fund performed an in-depth evaluation to understand how the group insurance discount was working with tiered rating. Originally, State Fund introduced the group insurance discount to recognize and reward employers whose loss history demonstrated a culture of safety. Trade associations who had agreements with State Fund received an administrative fee, which averaged approximately four percent to six percent of premium. </p> <p> The study concluded that the tiered rating plan has the same effect on policyholders as the group discount, reflecting individual performance and recognizing employers with demonstrated safety records with appropriate pricing. </p> <p> In light of this analysis, State Fund has decided to discontinue group insurance and will not be renewing group agreements in 2015. Additionally, the group insurance discount will be eliminated April 1, 2015 for all groups, including the California Farm Bureau Federation.</p> <p> State Fund underwrites many Alternative Dispute Resolution (ADR) groups. Beginning in 2015, we will continue to offer specialized claims handling for these groups, but we will no longer discount the policies nor pay administrative fees.</p> <p> &ldquo;The workers&rsquo; compensation market has changed dramatically and the decision to discontinue the group insurance program is not a reflection on the quality of the employer associations&rsquo; value to their industry and members, but rather supports our efforts to manage costs and support fair pricing for all California employers,&rdquo; said Jennifer Vargen, Executive Vice President, Public Affairs. &ldquo;State Fund recognizes the value employer associations bring to California and will seek opportunities to collaborate with them on safety and other issues important to California employers.&rdquo;</p> <p> For more information, contact 1-888-STATEFUND.</p> </sp> </div> <div style="clear:both"></div> </div> <a name="footer"></a> <div class="footerArea"> <div class="footerbg"> <ul> <li> <div class="footerSpacer"></div> <a href="/broker/Index.asp">Brokers</a> <br> <a href="/employers/Index.asp">Employers</a> <br> <a href="/employees/Index.asp">Employees</a> <br> <a href="/fraud/Fraud.asp">Fraud</a> <br> <br> </li> <li> <div class="footerSpacer"></div> <a href="/provider/Index.asp">Medical Providers</a> <br> <a href="/statecontracts/Index.asp">State Agencies</a> <br> <a href="/policy/ObtainAPolicy.asp">Obtain a Policy</a> <br> <a href="/about/VendorGuide.asp">Vendor Guide</a> <br> <br> </li> <li> <div class="footerSpacer"></div> <a href="/claims/ClaimsSvcs.asp">Claims Services</a> <br> <a href="/safety/SafetyAndSeminars.asp">Safety & Seminars</a> <br> <a href="/forms/Forms.asp">Forms</a> <br> <a href="/about/Community.asp">Community</a> <br> <br> </li> <li> <div class="footerSpacer"></div> <a href="/about/About.asp">About Us</a> <br> <a href="/about/history/index.html">History</a> <br> <a href="/contact/ContactUs.asp">Contact Us</a> <br> <a href="/CustomerSupport/Index.asp">Customer Support</a> <br> <br> </li> </ul> <div style="clear:left"></div> </div> </div> <div class="footerArea" align="center">Copyright &copy; 2000-2022 State Compensation Insurance Fund<br> <a href="/about/TermsOfUse.asp">Website Terms of Use</a>, <a href="/about/PrivacyPolicy.asp">Website Privacy Policy</a> and <a href="/about/SharingDisclosure.asp" target="_blank">Information Sharing Disclosure</a></div> </div> </div>