Bulletin No. 04-05

DWC releases "Request for Proposal" on SB 899 insurance study - proposals due March 10, 2005

The Division of Workers' Compensation has released a "Request for Proposals" (RFP) seeking a qualified organization to study the effects of the 2003 and 2004 legislative reforms on California's workers' compensation insurance rates.

As part of Senate Bill (SB) 899, a study was authorized to look at the cost impacts of recent California workers' compensation reforms, and the extent to which savings generated by the reforms were being reflected in employers' premium rates (Labor Code Section 138.65). The intent of the study is to look at the effects of the reforms on the insurance marketplace and competition. A final report to the Legislature, governor and insurance commissioner is due Jan. 1, 2006. The governor and insurance commissioner will review the results of the study and make recommendations as to the appropriateness of regulating insurance rates. Each of the following essential elements of the study is discussed in the RFP:

Identify and quantify the savings generated by the reforms

Review workers' compensation insurance rates to determine the extent to which the reform savings were reflected in premium rates of policyholders

Assess the effect of the reform savings on replenishing surpluses for workers' compensation insurance coverage

Review the effects of the reforms on workers' compensation insurance rates, the marketplace, and competition

Review the adequacy and accuracy of the pure premium rate as recommended by the Workers' Compensation Insurance Rating Bureau, and the pure premium rate adopted by the insurance commissioner.

Key action dates listed in the RFP are as follows:

Event	Date
RFP available to prospective proposers	Jan. 26, 2005
Written question submittal deadline	Feb. 11, 2005
Issue response to questions	Feb. 16, 2005
Pre-proposal conference (attendance optional)	Feb. 22, 2005
Final date for proposal submission	Mar. 10, 2005 @ 4:30 p.m.
Bid opening	Mar. 16, 2005
Notice of intent to award	Mar. 17, 2005
Last day to protest award	Mar. 24, 2005
Proposed start of the contract	Apr. 15, 2005

The full "Request for Proposals" (RFP DIR/DWC 04-001) can be reviewed at http://www.dir.ca.gov/dwc/SB899_InsuranceStudy.pdf.
Contract questions should be directed to the Department of Industrial Relations contract office at 415-703-1605 (Alan Lo) or 703-4912 (Aurora Tison, atison@dir.ca.gov).

If you want to be on the state contracts mailing list or get other background documents, please go to http://www.cscr.dgs.ca.gov/cscr/contract_ads/display/contract_ad_search_list.asp and click on Agency - Department of Industrial Relations.

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