Chapter 8. Office of the Director
Subchapter 2.06. Workers' Compensation-Administration Revolving Fund Assessment, Uninsured Employers Benefits Trust Fund Assessment, Subsequent Injuries Benefits Trust Fund Assessments, Fraud Surcharge and Cal-OSHA Targeted Inspection Assessment
Article 3. Collection of Assessments and/or Surcharges

§15606.1. Waiver of Assessments and Surcharges for Insured Employers.

(a) An insurer may submit an assessment waiver application to request that the Director ascertain the insurer's expected total premium for the coming policy year to be $0.00, rather than as determined by the Department of Insurance's designated licensed rating organization.

(b) The application shall be submitted no later than October 1 of each year and must include all of the following:

(1) Name of insurance carrier seeking the assessment waiver;

(2) Group name of insurance group, if applicable;

(3) Insurance carrier ID number;

(4) Mailing address of insurance carrier or an authorized contact;

(5) Business address of insurance carrier, if different than mailing address;

(6) E-mail address of insurance carrier or an authorized contact;

(7) Phone number of insurance carrier or an authorized contact;

(8) Printed name of signatory;

(9) Title of signatory;

(10) Policy year for which waiver is requested;

(11) A declaration that is dated, signed under penalty of perjury, and notarized by a duly-authorized notary public, that:

(A) the signatory is authorized by the insurance carrier to submit this declaration on its behalf;

(B) the company is authorized to transact workers' compensation insurance in California, but has not and will not issue workers' compensation policies for the identified policy year for which the waiver is requested.

(c) The decision to grant the assessment waiver is at the sole discretion of the Director. In making the decision, the Director may, but is not required to, consider whether there are sufficient funds available to grant the application without impairing the fiscal integrity of the programs funded by the respective assessment(s) and surcharge(s). The Director may, but is not required to, consider other factors.

(d) Not later than December 1 of each year, the Director shall notify each workers' compensation insurer that has been granted an assessment waiver that:

(1) Its application for a waiver has been granted.

(2) Pursuant to such waiver, the insurer's expected current year premium is $0.00.

(3) The amounts due from the insurer on behalf of its policy holders are $0.00 for, respectively, the Revolving Fund Assessment, Subsequent Injuries Fund Assessment, Uninsured Employers Fund Assessment, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, and Fraud Surcharge.

(4) The amounts due were calculated by multiplying expected current year premium of $0.00 by the respective factors determined pursuant to subsection (a) of section 15603 of these regulations.

(5) Eligibility for an assessment waiver is determined on a year-by-year and case-by-case basis at the sole discretion of the Director.

(6) The insurer is required to comply with the notice requirements and payment deadlines specified in subsections (e) and (f) and failure to do so can affect its future eligibility for assessment waivers.

(e)(1) If an insurer issues a workers' compensation insurance policy in the state of California during the year for which it was granted an assessment waiver, the insurer must within 10 calendar days of issuing the policy provide written notice to the Director with a description and detail of its plans and expected total premium for the policy year.

(2) Within 60 calendar days of receiving such notice, the Director shall invoice the insurer for any advances against the Revolving Fund Assessment, Subsequent Injuries Fund Assessment, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, Uninsured Employers Fund Assessment, and Fraud Surcharge amounts that have become due. The insurer shall pay the full amounts due within 30 days of receiving the invoice. The Director may extend the deadline to pay at his or her sole discretion.

(f) When an insurer fails to provide the notice required in subsection (e), the Director may invoice the insurer for any advances against the Revolving Fund Assessment, Subsequent Injuries Fund Assessment, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, Uninsured Employers Fund Assessment, and Fraud Surcharge amounts that have become due. The insurer shall pay the full amounts due within 10 days of receiving the invoice. The Director may extend the deadline to pay at his or her sole discretion.

(g) If, for any reason described in section 15606.1(e) or (f) of these regulations, an insurer who was granted an assessment waiver advances any funds to the Director, the Director shall hold such funds in a trust account and either credit the respective amounts to any deficiency in the current assessments and/or surcharges, or, if there is no deficiency, to the subsequent year's respective assessments and/or surcharges on insured employers.

Credits

Note: Authority cited: Sections 54, 55 and 62.5, Labor Code; and Section 1872.83, Insurance Code. Reference: Section 62.5, Labor Code; and Section 1872.83, Insurance Code.

History

1. New section filed 7-24-2024; operative 7-24-2024. Submitted to OAL for filing and printing only pursuant to Labor Code section 62.5(f)(5) (Register 2024, No. 30).

2. Amendment of section heading, subsections (d)(3), (e)(2), (f) and (g) and amendment of Note filed 10-23-2025; operative 10-23-2025. Submitted to OAL for filing and printing only pursuant to Labor Code section 62.5(f)(5) (Register 2025, No. 43).