SECTIONS 11820-11822 - California Statutes

INSURANCE CODE

SECTION 11820-11822

11820. Subject to the provisions of Article 2 (commencing with
Section 11730) of Chapter 3, the board of directors shall establish
the rates to be charged by the State Compensation Insurance Fund for
insurance issued by it. These rates shall be fixed with due regard to
the physical hazards of each industry, occupation, or employment.

11821. Within each class of business insured such rates shall be
fixed, so far as practicable, in accordance with the following
elements:
(a) Bodily risk or safety, or other hazard of the plant, premises
or work of each insured employer.
(b) The manner in which the work is conducted.
(c) A reasonable regard for the accident experience and history of
each such insured.
(d) A reasonable regard for the insured's means and methods of
caring for injured persons.
Such rates shall take no account of the extent to which the
employees in any particular establishment have or have not persons
dependent upon them for support.

11822. The rates fixed by the board of directors shall be that
percentage of the payroll of any employer which, in the long run and
on the average, will produce a sufficient sum, when invested in a way
as to realize the maximum return consistent with safe and prudent
management practices:
(a) To carry all claims to maturity. The rates shall be based upon
the "reserve" and not upon the "assessment" plan.
(b) To meet the reasonable expenses of conducting the business of
the fund.
(c) To produce a reasonable surplus to cover the catastrophe
hazard.