State Compensation Insurance Fund News

CEOs of California Sewing Firms Sentenced for Workers’ Comp Fraud

Sisters who are CEOs of sewing companies that are subcontracted by True Religion jeans have been sentenced for conspiring with their accountant to hide tens of millions in payroll to avoid paying for workers’ compensation insurance. Sung Hyun Kim and …

California State Fund Files for Workers’ Comp Rate Decrease

The State Compensation Insurance Fund is seeking to cut its workers’ compensation rates, per a recent filing with the California Department of Insurance. The rate filing also includes an overall 9.5 percent rate reduction due to improvements in State Fund’s …

California State Fund to Roll out New Medical Provider Network

State Compensation Insurance Fund will soon transition to a new outcomes-based medical provider network following a California Division of Workers’ Compensation approval of the new MPN called the State Fund MPN by Harbor Health. State Fund said it is transitioning …

Workers’ Comp Hearing Rep. in California Caught Cashing Dead Client’s Settlement

A California workers’ compensation hearing officer was arrested for allegedly trying to steal a settlement check from his client. Department of Insurance detectives arrested Ramon Humerto Otero, 37, of Adelanto, and Efrain Heredia Ojeda, 43, of Corona, on multiple felony …

California State Fund Files April 1 Rating Plan

California’s State Compensation Insurance Fund has filed for a 9 percent increase in collectible premium that will apply to new and renewal workers’ compensation policies effective on or after April 1. Although the rate plan is designed to generate an …

California’s State Fund Names Guastamachio Chief Financial Officer

California’s State Compensation Insurance Fund has appointed Peter Guastamachio as its chief financial officer. Guastamachio had been acting CFO since November 2013, and also serves as chief investment officer. As CFO, Guastamachio will direct all of State Fund’s financial policies—including financial forecasting, accounting, …

New California State Fund CEO Steiner Has Ties to Zenith, WCRI

The State Compensation Insurance Fund Board of Directors on Tuesday named Vernon Steiner as the new president and CEO of California’s largest workers’ compensation provider. The appointment is on a four-year contract with an annual salary of $450,000 plus a …

California Business Owner To Pay Millions For Workers’ Comp Fraud

Richard Lopez Escamilla Jr., 47, was sentenced in Kings County Superior Court in California on Dec.4 to one felony count of insurance fraud and was ordered to pay restitution of nearly $4.2 million to State Compensation Insurance Fund, SeaBright Insurance …

California State Fund CEO and CFO Resign

Two top executives at California’s State Compensation Insurance Fund have resigned. State Fund President and CEO Tom Rowe and Chief Financial Officer Dan Sevilla will resign from State Fund, the board of directors for California’s largest worker’s compensation provider announced …

State Fund Begins Distributing $100M Dividend

California’s State Compensation Insurance Fund will begin issuing $100 million worth of dividend payments to eligible policyholders in early July, the state’s largest workers’ compensation insurer announced on Tuesday. The dividend be paid on the 2012 policy year, and eligible policyholders will …