Placebo Policy Pusher Heyday By Robert Warne - June 26, 2003
California Insurance Commissioner John Garamendi reiterated for the second time in about a week that employers exercise caution when signing on for work comp coverage from the lowest possible bidder.
In a June 25th statement he said, “Bogus workers' compensation insurance is a serious and growing threat to employers in the State of California. An alarming number of reports indicate that unscrupulous firms are using the dire situation in this broken workers' comp system to entice employers with sales pitches that seem too good to be true. Unfortunately, they are too good to be true.”
With work comp premiums breaching historical thresholds; affordable coverage may not be legitimate legal coverage. Because the Department of Insurance has received mounting complaints from companies that have been hoodwinked, the DOI is taking action.
The commissioner reminded the public that,“California law calls for severe and immediate penalties to be meted out by the Department of Industrial Relations (DIR) should an employer operate without proper workers' comp coverage. Whether intentional or inadvertent, the penalties for this violation remain the same.”
So if an employer is perusing lowball alley to satisfy the state’s work comp requirements, the commissioner said to take the time to verify the carrier is authorized to write business in California.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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