News: 2009 Press Release

Insurance Commissioner Steve Poizner issued the following statement regarding the State Fund audit released today:

"Eighteen months ago, the Department of Insurance completed a thorough review of State Fund's operations. Our review identified 110 specific issues that we directed State Fund to address. Among these findings were a number of serious structural and operational issues including needed enhancements to State Fund's corporate governance and board oversight. A follow-up review conducted by the Department determined that as of now, State Fund has fully remediated 53 of these findings and made progress on remediating 40 additional concerns. The follow-up review also identified further specific issues that must be resolved. While I commend State Fund and Jan Frank for the work they have done, it is imperative that they move expeditiously to address the remainder of the findings.

"A healthy and efficient State Fund is essential to a functioning and efficient worker's compensation insurance market. Additionally, every government entity must streamline operations and achieve greater efficiencies. This includes State Fund. I will continue to monitor the progress of State Fund to ensure they operate effectively and transparently."

A copy of the report can be found at http://www.insurance.ca.gov/0250-insurers/0300-insurers/0400-reports-examination/upload/StateCompensationInsuranceFund08.pdf.

Commissioner Poizner has worked to maintain a stable and efficient workers compensation insurance market. Recently, he called an investigatory hearing to determine the most effective ways to slow the increase in workers comp insurance costs. This hearing is scheduled to be held on June 8 in Sacramento.