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April 25, 2024
California Department of Industrial Relations and Cal/OSHA Will Honor Workers’ Memorial Day at Four Events in California on April 28th-29th 2024. Cal/OSHA Joining Partners in Arcadia, Richmond, San Diego and San Francisco.

April 23, 2024
California Division of Workers' Compensation Launches Online Portal for Submission of QME Medical-Legal Reports

April 22, 2024
California Division of Workers’ Compensation Posts Updated Time of Hire Notice

April 22, 2024
Sullivan on Comp Launches ChatSOC. It's an Innovative Chatbot for California Workers' Compensation Professionals Integrated with an Authoritative Legal Treatise

The California State Compensation Insurance Fund, despite losing money after paying a projected $82 million dividend, remained highly liquid and adequately reserved through 1999. This observation by Norris Clark, deputy commissioner of Financial Surveillance, was made in a meeting with the California Assembly Insurance Committee on Wednesday, March 21.

This recent analysis of State Fund comes at the heels of its rate filing rejection on Dec. 27, 2000 by the California Department of Insurance. The increased attention paid to State Fund, according to Clark in a Workers’ Comp Executive flash report, is that "We will use all of the resources available to us to assure that State Fund remains financially sound and able to meet its obligations."

State Fund’s current financial rating is B++ by AM Best and A by Standard and Poor’s. State Fund’s ability to payout dividends for 86 consecutive years stands unrivaled by any California workers’ compensation carrier. Dividends in California from workers’ compensation carriers have been endangered since the inception of open rating in ’95.

As a non-profit enterprise, State Fund, after all financial obligations are met, must expend all of its surplus. Its non-profit status historically positions State Fund as a target of criticism. Pricing has been the trigger of the criticism. The pricing issue with State Fund to date has been a moot point. The DOI rejection of State Fund’s 2001 rate filing on Dec. 27, as critics awaited the verdict, is a recent example. Then on Dec. 28 the anti-climatic verdict turned out to be just a minor tweaking in group discount rates and a limit on its Individual Account Adjustment Program.