Becoming State Fundable By Robert Warne - April 21, 2003
California Insurance Commissioner, John Garamendi provided some clarity today to a couple of the dilemmas borne by the recent announcement that an employer needed three declinations before it was State Fundable.
In his April 21 announcement he said that companies with an estimated annual premium (EAP) of $25,000 or less could apply for coverage without proving it had been denied three times for coverage.
He also said that companies with an EAP over $25,000 wouldn’t need three written and signed declinations before it could seek coverage from the Fund as well. Brokers and employers could approach the Fund after a declaration was filed that documented their unsuccessful attempts to obtain coverage.
Aside from the logistical issues related to smaller companies obtaining three declinations when they couldn’t even get their foot in the door with a broker, the Department of Insurance found that State Fund could improve its financial condition by just shedding some of its larger accounts that could obtain coverage elsewhere.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA