How does State Compensation Insurance Fund calculate premium rates?

State Compensation Insurance Fund uses a predetermined formula to calculate premium rates. The formula takes into account various factors, such as the company's payroll, classification of work performed, claims history, and industry experience. By analyzing this data, State Fund determines the appropriate premium rates for each policyholder. The payroll, which reflects the size of the business, is a crucial factor in the calculation. Additionally, the classification of work performed helps evaluate the level of risk associated with different job types. Claims history and industry experience offer insights into the likelihood of future claims. State Fund aims to provide fair and competitive premium rates based on these considerations, ensuring policyholders receive appropriate coverage at a reasonable cost.