Insurance Surcharges In California
In California, all insurance carriers are required to participate in various surcharge programs. Insurance carriers are required to collect surcharges from policy holders, to ensure there is funding for each program. The required programs are listed below.
WCFA Surcharge: California Labor Code Section 62.6
The Workers' Compensation Fraud Assessment surcharge funds investigating and prosecuting workers' compensation fraud, a felony punishable up to 5 years in prison and/or the greater of a fine up to $150,000 or double the value of the fraud.
WCA Surcharge: California Labor Code Section 62.5
The Workers' Compensation Administration Revolving Fund surcharge help to fund administration of the workers' compensation system, the return to work program, and employers' workers' compensation coverage compliance enforcement. Additional funding comes from administrative fines, penalties, and fees.
UEBT Surcharge: California Labor Code Section 62.5
The Uninsured Employers Benefits Trust Fund surcharge pays for benefits to injured employees of illegally uninsured employers.
SIBT Surcharge: California Labor Code Section 62.5
The Subsequent Injuries Benefits Trust Fund pays benefits to workers who have suffered serious injury and who are suffering from previous and serious permanent disabilities or physical impairments.
OSHF Surcharge: California Labor Code Section 62.5
The Occupational Safety and Health Fund surcharge promotes safe and helpful working conditions for California's workers by funding state safety and health agencies to implement and enforce occupational health and safety laws.
LEC Surcharge: California Labor Code Section 62.5
ABX4-12 (2009) established the Labor Enforcement and Compliance (LEC) Fund surcharge to enforce employer compliance with labor standards and securing workers' compensation insurance by funding the Division of Labor Standards Enforcement (DLSE).