Judge Rejects Overcharge Claim Against SCIF
NU Online News Service, April 10, 12:28 p.m. EDT?A judge has ruled against a $1 billion class action suit that alleged California's State Compensation Insurance Fund overcharged thousands of policyholders.
The complaint claimed that the State Fund overcharged 163,900 California businesses from 1989 to 1995 through the use of a "maximum probable potential" claims reserving method. This reserving method unjustifiably increased experience-rated premiums and lowered potential dividends, the suit alleged.
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