Calif. Governor, Commissioner Propose Legislation To Oversee State Fund

August 16, 2006

California’s Governor Arnold Schwarzenegger and Insurance Commissioner John Garamendi have jointly submitted legislation to establish oversight responsibility and regulatory authority for the State Compensation Insurance Fund.

The legislation assures appropriate regulation of State Fund as an insurance carrier by the California Department of Insurance while preserving the authority of the Governor and State Fund’s Board of Directors over its assets and operations as well as preserving the oversight responsibility of the Legislature.

State Fund Acting President, Jim Tudor, said, “State Fund supports the legislation submitted today by Governor Schwarzenegger and Insurance Commissioner Garamendi and welcomes the resolution of the critical issues between State Fund and the Department of Insurance. State Fund would like to thank the Governor and the Insurance Commissioner for their leadership in drafting this legislation.”

Established by the California Legislature in 1914, San Francisco-based State Compensation Insurance Fund is a self-supporting, nonprofit, fairly competitive public enterprise that provides workers’ compensation insurance coverage at cost to California employers. Web site: www.scif.com.

Topics California Legislation

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Latest Comments

  • August 16, 2006 at 6:27 am
    Employer says:
    This is a big mistake and it reflects the greed by Agents. Who then writes policies when competitive rating and irresponsible reserving runs carriers out of the State? All o... read more
  • August 16, 2006 at 6:24 am
    Employer says:
    The Fund \"has to\" write policies, no matter how bad the risk is, unlike private carrier, which can pick and chose and then leave the state when they end up under reserving o... read more
  • August 16, 2006 at 3:56 am
    Agent says:
    I think the State Fund should be dumped and replaced with something like the Assigned Risk, where all carriers doing work comp must take their share of risks, big & small.

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