If you are a California business owner and want to know what the insurance surcharges are on your worker’s compensation bill, look no further! Below is an explanation of the surcharges you’ll see on your statement. Note: by law all of California’s insurance carriers must participate in the fees stated. This involves collecting statutory surcharges from policyholders through premium charges to make sure they have adequate funding for each program.
WCFA Surcharge- California Labor Code Section 62.6
Workers’ Compensation Fraud Assessment surcharge funds investigating and prosecuting worker’s compensation fraud, which is a felony. It is punishable up to 5 years in prison, and/or a fine up to $150,000 or double the amount of the fraud, whichever is greater.
WCA Surcharge- California Labor Code Section 62.5
Workers’ Compensation Administration Revolving Fund surcharge helps fund administration of the system of workers compensation, the return to work program, and employers’ workers’ compensation coverage compliance enforcement. More funding comes from additional fines, fees, and penalties.
UEBT Surcharge- California Labor Code Section 62.5
Uninsured Employers Benefits Trust Fund surcharge pays benefits to employees injured to illegally uninsured employers.
SIBT Surcharge – California Labor Code Section 62.5
Subsequent Injuries Benefits Trust Fund pays for workers who have suffered serious injury and who are suffering from permanent disabilities or physical impairments that were present before the injury.
OSHF Surcharge- California Labor Code Section 62.5
Occupational Safety and Health Fund surcharge funds state safety and health agencies, to implement and enforcement of current occupational health and safety laws, promoting safe and healthful working conditions.
LEC Surcharge- California Labor Code Section 62.5
ABX4-12 (2009) founded the Labor Enforcement and Compliance fund. It Enforces Employer Compliance with labor standards and secures worker compensation insurance by funding the Division of Labor Standards Enforcement (DLSE) .
CA Surcharge (CIGA)- California Insurance Code Section 1063.5
The surcharge funds from CIGA (California Insurance Guarantee Association) settles unpaid claims of insolvent insurers. With CIGA, the whole insurance assumes responsibility for a defunct carrier’s obligations to its claimants.
If you have an assessment of a surcharge, the final bill will state one of these on it: WCFA Surcharge, WCA Surcharge, UEBT Surcharge, SIBT Surcharge, OSHF Surcharge, LEC Surcharge, and CA Surcharge.
We know invoices can often be confusing with all of the line item charges. If you have questions regarding your policy, feel free to contact us today at 310-534-5577 or [email protected]. We look forward to speaking with you!
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a $17. surcharge floated in on this month’s bill from AARP Delta Dental…WITH NO FOREWARNING OR INFO AS TO WHO/WHEN/HOW/IT WAS INITIATED and no indication as to whether it is a monthly charge…a yearly charge or what! Please provide this info to me.
Hi Liz,
This article is based on worker’s compensation rates and surcharges for employees of companies, not medical/dental insurance for an individual. You’d have to contact your insurance company to determine what that particular surcharge is for. As medical/dental plans have varying fees for different types of insurance including if it’s a group plan or individual, there is no easy answer to explain why you have this fee. Sorry I can’t offer any additional information to help you.