CLA Regulatory Report April 2023

INSURANCE REGULATORY REPORT

The following regulatory information may be of interest to attorneys practicing insurance law.  This information is current as of April 19, 2023.  

Annual Principle-Based Reserving (PBR) Assessments

On April 10, 2023, the CDI issued two bulletins setting for the annual assessment for the principle-based reserving (PBR) fund, which is used to defray the costs of PBR valuation. Bulletin 2023-3, titled “Principle-Based Reserving – Life Annual Aggregate Assessment,” sets forth the assessment for life insurance, and Bulletin 2023-4, titled “Principle-Based Reserving – Long-Term Care Annual Aggregate Assessment,”  sets forth the assessment for long-term care insurance.

WCIRB Amendments to Workers’ Compensation Regulations

The Workers’ Compensation Insurance Rating Bureau of California (“WCIRB”) is the designated statistical agent for workers’ compensation in California.  As such, it maintains a uniform statistical rating plan and other documents governing the classification and rating of workers’ compensation risks and reporting of experience with respect to the same that are adopted as regulations.  The WCIRB has proposed amendments to the following effective September 1, 2023:

• California Workers’ Compensation Uniform Statistical Reporting Plan—1995;
• Miscellaneous Regulations for the Recording and Reporting of Data—1995; and
• California Workers’ Compensation Experience Rating Plan—1995.

It has also proposed changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 to be effective September 1, 2024. 

The CDI has scheduled a hearing on the proposed amendments for April 24, 2023 at 10:00 a.m. via Zoom or teleconference.  A public comment period for the proposed amendments is also open for written comment until 5:00 p.m. on April 24, 2023.  The Notice of Action and Notice of Public Hearing with additional detail regarding the proposal is available here. 

This e-Bulletin was prepared by Nicole Zayac, Counsel in the San Francisco office of Willkie Farr & Gallagher LLP (nzayac@willkie.com). Ms. Zayac is a member of the Executive Committee of the California Lawyers Association Business Law Section and is the current Liaison to and past Chair of the Insurance Law Standing Committee.