The surcharges are statutory programs. The surcharge percentages are determined by the Director of the California Department of Insurance and may vary from year to year.
CIGA - California Insurance Guarantee Assn., created by the California Legislature, makes certain that injured individuals receive benefits if their insurance Carrier becomes insolvent. CIGA sets up the unpaid claims of insolvent insurers operating in the state of California and offering any line of insurance. Section 1063 requires all authorized California insurers to participate in CIGA. Under the California Insurance Code, CIGA must fund itself by surcharging each of its members.
WCA - Workers' Compensation Administration helps to defray the administrative cost of implementing some of the provisions in the Workers' Compensation Reform Act of 1989 to speed resolution of claims. WCA funds itself by surcharging its members.
WCFA - Workers' Compensation Fraud Assessment. Senate Bill 1218 created the WCFA to fund investigation and prosecution of workers' compensation fraud. The WCFA funds itself by surcharging its members and from fines collected from convictions.
UEBT - Uninsured Employers Benefits Trust Fund was created by Legislature Assembly Bill 227. The UEBT pays for benefits to injured employees of illegally uninsured employers.
SIBT - Subsequent Injuries Benefit Trust Fund was also created by Legislature Assembly Bill 227. The SIBT pays for benefits to workers who are suffering from previous and serious permanent disabilities or physical impairments.
(08/2008)