{"id":537,"date":"2010-11-30T07:50:37","date_gmt":"2010-11-30T12:50:37","guid":{"rendered":"http:\/\/peopros.com\/index.php\/?p=537"},"modified":"2010-11-30T07:52:06","modified_gmt":"2010-11-30T12:52:06","slug":"state-declares-default-for-contractors-sig","status":"publish","type":"post","link":"http:\/\/peopros.com\/index.php\/state-declares-default-for-contractors-sig\/","title":{"rendered":"California State Declares Default for Contractors SIG"},"content":{"rendered":"

\"\"<\/a>F<\/big>rom California’s Workers’ Comp Executive Site<\/a><\/p>\n

California’s self-insured group (SIG) industry suffered its first official failure yesterday when Department of Industrial Relations director John Duncan declared the Contractors Access Program of California (CAP) in default due to insufficient funds. The workers’ comp SIG had less than half of the funding required by the state and efforts to correct the deficit by collecting from members who are jointly and severally liable, have been unsuccessful.<\/p>\n

With the declaration of default, DIR transferred responsibility for benefit payments for injured workers to the Self-Insurers\u2019 Security Fund (SISF). Duncan said he understood the seriousness of the action for CAP’s member employers, but maintains it was necessary after remedial actions failed to correct a deficit that exceeds 50% of the group’s required funding. He noted that member employers will be addressed “fairly and equitably.\u201d<\/p>\n

The group’s daily operations have been under the control of Bickmore Risk Services since May when DIR wrested control of the SIG from New York-based Compensation Risk Managers (CRM), which now operates as Majestic Capital. While SISF now has responsibility for claims payment it also has access to the group’s remaining assets and security deposit. Additionally, efforts to recoup additional funds from the group’s member employers are expected to continue.<\/p>\n

The full scope of the members’ financial liability has not been made public, but DIR says that it had less than 50% of the funding required by state law. A lawsuit filed by 11 members of the group against CRM and brokers is seeking tens of millions of dollars in damages to help off-set their joint and several liability that’s estimated to be in excess of $20 million.<\/p>\n

Look for additional coverage in the next premium edition of Workers’ Comp Executive. <\/a><\/p>\n

Note: There are no PEOs in the SIG that we know of. PEOs are normally required to carry full insurance.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

From California’s Workers’ Comp Executive Site California’s self-insured group (SIG) industry suffered its first official failure yesterday when Department of Industrial Relations director John Duncan declared the Contractors Access Program of California (CAP) in default due to insufficient funds. The workers’ comp SIG had less than half of the funding required by the state and […]<\/p>\n","protected":false},"author":6,"featured_media":538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[8,20,7],"tags":[14,139,138,140,134,133,137,12,50,135,136,10],"class_list":["post-537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-businessinsurancenews","category-featured","category-workerscomp","tag-business-insurance","tag-california-employee-leasing","tag-california-peo","tag-california-self-insured-fund","tag-california-sig","tag-california-workers-comp","tag-comp-insurance","tag-peo-insurance","tag-peo-solution","tag-self-insurance-funds","tag-self-insured-comp","tag-workers-comp"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t