SECTIONS 11820-11822

11820.  Subject to the provisions of Article 2 (commencing withSection 11730) of Chapter 3, the board of directors shall establishthe rates to be charged by the State Compensation Insurance Fund forinsurance issued by it. These rates shall be fixed with due regard tothe physical hazards of each industry, occupation, or employment.11821.  Within each class of business insured such rates shall befixed, so far as practicable, in accordance with the followingelements: (a) Bodily risk or safety, or other hazard of the plant, premisesor work of each insured employer. (b) The manner in which the work is conducted. (c) A reasonable regard for the accident experience and history ofeach such insured. (d) A reasonable regard for the insured's means and methods ofcaring for injured persons. Such rates shall take no account of the extent to which theemployees in any particular establishment have or have not personsdependent upon them for support.11822.  The rates fixed by the board of directors shall be thatpercentage of the payroll of any employer which, in the long run andon the average, will produce a sufficient sum, when invested in a wayas to realize the maximum return consistent with safe and prudentmanagement practices: (a) To carry all claims to maturity. The rates shall be based uponthe "reserve" and not upon the "assessment" plan. (b) To meet the reasonable expenses of conducting the business ofthe fund. (c) To produce a reasonable surplus to cover the catastrophehazard.