Pacific Compensation Insurance Company has filed with the California Department of Insurance to split classification 8391 - Auto/Truck Dealers into the following two separate sub-classes:

• 8391A will apply to all employees OTHER THAN automobile or automobile truck salespersons, estimators, service writers and accessory or spare parts sales.
• 8391B will apply to estimators, services writers and accessory or spare parts sales.

This change will affect workers’ compensation insurance policies with effective dates of October 1, 2013 and beyond.

Keep this in mind when you go to market. Pacific Compensation Insurance Company could be a competitive option for your auto dealer clients. Here is why: The rate used for 8391A will be the same as the original, 8391. However, the exposure associated with 8391B will qualify for a much lower rate. The rate used for 8391B will be the same as 8748 - Auto/Truck Dealers—Salespersons.

Consider this example where the insured could save $39,000 in advisory premium because of the split class:

Estimated premium for Pacific Compensation Insurance Company BEFORE splitting the exposure between the two sub-classes

Normal Anniversary Date: 10/01/2013
Total Payroll: $3,425,000
Experience Modification Factor: 1

Estimated premium for Pacific Compensation Insurance Company AFTER splitting the exposure between the two sub-classes

Normal Anniversary Date: 10/01/2013
Total Payroll: $3,425,000
Experience Modification Factor: 1

Pacific Compensation Insurance Company defines the sub-classes as follows:

8391A: Automobile or Automobile Truck Dealers (8391A replaces 8391). All employees currently classified in 8391 will be classified in 8391A, except those that are identified in 8391B.  All employees - including vehicle maintenance and repair, automobile body shops and the transporting of vehicles that are owned by the employer. NOT included are vehicle salespersons and those contemplated under classification 8391B.

8391B: Automobile or Automobile Truck Dealers – Service Writers, Estimators, and Accessory or Spare Parts sales counter persons. This sub-class code includes individuals at an Automobile Dealership responsible for writing repair orders, communicating them to the service mechanic and estimating the final cost to the customer. They may also collect payment from the customer, and arrange to have their car brought to the customer once service is completed.  This class code also includes Parts Counterpersons. This class code does not include any persons who perform or directly supervise any auto repair duties, warehousing duties, transportation of vehicles or test-driving for diagnostic purposes and/or after repairs are completed.  8391A will apply to all employees OTHER THAN automobile or automobile truck salespersons, estimators, service writers and accessory or spare parts sales.

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