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District of Columbia, Canada, and the U.S. Virgin Islands.
Liberty Mutual Fire Insurance Co. (Liberty Mutual Fire) is a
member of Liberty Mutual.
Liberty Mutual wrote workers' compensation insurance in all
States except those that were "monopolistic". In the eight
"monopolistic" States, only one State-affiliated company was
permitted to write workers' compensation policies. In 1984,
workers' compensation policies accounted for 39.3 percent of
Liberty Mutual Fire's net premiums. In 1984, Liberty Mutual Fire
wrote workers' compensation policies in California. California
law prohibited insurance policies for California workers'
compensation risks from also insuring workers' compensation risks
for other States. Thus, a California workers' compensation
policy was always a "stand-alone" policy.
The initial premium for a workers' compensation policy in
California was determined by a statutory formula which took
account of the estimated payroll for each job classification.
However, an employer's loss experience could also affect the
premium if the employer received an "experience modification"
from the State of California. Generally, California law permits
the payment of dividends by a mutual insurance company but
prohibits any individual or insurance company from promising the
future payment of dividends under an unexpired workers'
compensation policy or misrepresenting the conditions for
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