Hike in workers' comp premiums rejected

SACRAMENTO, Nov. 10 (UPI) -- Steve Poizner, California insurance commissioner and a 2010 Republican candidate for governor, says he won't back an increase in workers' compensation premiums.

An insurance industry advisory group, the Workers Compensation Insurance Bureau, has proposed a 22.8 percent increase in premiums, Legal Newsline reported. The proposal would have affected policies written or renewed after Jan. 1.

Poizner's support is not needed for the increase, the report said, as insurance companies are free to set their own rates. But generally, the insurance industry follows the insurance commissioner's recommendations.

Poizner said the industry had not presented evidence the increase was necessary, while California's unemployment has risen to 12 percent.

"Any increase in costs for employers will only make our already dire economic situation worse," Poizner said, Legal Newsline reported.

Benchmark premiums have declined 63.4 percent since a historic high in 2003, the report said.

Besides Poizner, GOP candidates to succeed Republican Gov. Arnold Schwarzenegger, who can't run again, are former eBay Chief Executive Meg Whitman and former U.S. Rep. Tom Campbell.