ARTICLE 2. Rates [11820. - 11822.]

Cal. Insurance Code - INS 2.

in effect

Cal. Insurance Code - INS § 11820. Section 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.

Cal. Insurance Code - INS § 11821. Section 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.

Cal. Insurance Code - INS § 11822. Section 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.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026