If states like California want to be in the insurance business, they should at least level the playing field by having their funds pay the same taxes and operating under the same rules as private market carriers. The unfair competitive advantages enjoyed by the State Fund help make California a very volatile marketplace.
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.
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 or \”profit\” reduces. If the Fund did not hold up the insolvency problems by private carriers, I would have no place to turn to get W.C. Insurance. Try thinking for the good of the State and not the good of your pocket.
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 of the sudden the carriers taking their share \”big & small\” become burdened because there are fewer and fewer.
If states like California want to be in the insurance business, they should at least level the playing field by having their funds pay the same taxes and operating under the same rules as private market carriers. The unfair competitive advantages enjoyed by the State Fund help make California a very volatile marketplace.
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.
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 or \”profit\” reduces. If the Fund did not hold up the insolvency problems by private carriers, I would have no place to turn to get W.C. Insurance. Try thinking for the good of the State and not the good of your pocket.
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 of the sudden the carriers taking their share \”big & small\” become burdened because there are fewer and fewer.