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April 19, 2024
Workers Compensation Bill 2024: One percent of employee’s salary to contribute to workers’ compensation fund in Kenya.

April 15, 2024
Colorado Worker Shows Head Injury Happened as a Consequence of a Knock on the Head at Work

April 4, 2024
Callfornia Division of Workers' Compensation Pharmacy and Therapeutics Committee Meeting Scheduled for April 17, 2024

April 3, 2024
California Division of Workers' Compensation Posts Adjustments to Official Medical Fee Schedule (DMEPOS)

The California Insurance Guarantee Assn. (CIGA) could no longer bench the weight of the state’s failed work comp carriers without some assistance. So May 14, the California Insurance Commissioner, John Garamendi stepped in to spot CIGA as it maxes out on a remaining set of 40,000 claims.

The burden of carrier dysfunction has become so tremendous that the projected $300 million CIGA expects to raise from the recently enacted 2 percent surcharge will only cover a third of what it expects to payout for medical and disability obligations.

With $3 billion in liabilities eclipsing it’s $977 million in assets, Garamendi told the Los Angeles Times that if CIGA were a company it would be bankrupt.

Two things were set in motion Wednesday that will provide some temporary relief.

One, CIGA received permission from Garamendi to borrow $170 million from a pool of funds used to compensate auto and homeowner policyholders when such carriers become insolvent.

And two, CIGA plans to ask the Legislature for permission to issue about $500 million in revenue bonds to help stabilize the financial situation it has been placed in by picking up the claims 25 other companies couldn’t handle since 2000.

The option to bump up the surcharge another percent was entertained but CIGA’s Executive Director, Larry Mulryan didn’t think the idea would go over too well with employers already outraged over the high cost of workers’ compensation.