California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 9 - Workers' Compensation Insurance. Dividends (Refunds) to Policyholders. Regulations Governing Classification of Risks and Premium Rates, Policy and Endorsement Forms
Section 2507.1 - Prohibition Against Unfair Discrimination
Allocation of dividends shall not be unfairly discriminatory. The dividend plans, scales, tables, formulas or schedules specified in the declaration may provide for allocation of dividends as a flat percentage of premiums or may provide for variations in the amounts of dividends or the percentages of premium paid as dividends based upon loss or expense factors or any other reasonable considerations, such as size, location, hazard, industry or trade classification, which have a probable effect on losses or expenses. Failure to apply in a consistent manner the plans, scales, tables, formulas or schedules adopted and specified in a declaration of dividends shall be prima facie evidence of unfair discrimination.
1. Change without
regulatory effect adding new NOTE filed 1-8-2015 pursuant to section
100, title 1, California Code of
Regulations (Register 2015, No. 2).
2. Amendment filed 5-31-2016;
operative 7-1-2016 (Register 2016, No. 23).
Note: Authority cited: Sections 790.10 and 11739, Insurance Code. Reference: Sections 790.03 and 11739, Insurance Code.
