Last go-around we ran a letter from a reader inside State Compensation Insurance Fund who had something to say about our coverage of his employer and the inner workings of California’s largest workers’ comp carrier. Well, that letter prompted more than a few of you to respond. Here’s a sampling of the responses.
Dear Workers’ Comp Executive,
William F. obviously lives in a bubble, oblivious to what the rest of the world sees.
1. State Fund did not “bail out” the rest of the industry. They created the crisis, and because they are the “carrier of last resort,” they were obligated to afford coverage.
2. If SCIF employees are in search of respect, perhaps some ethics training would put them on a path to start earning it instead of thinking they’re entitled to it simply because they’re state employees.
3. Ms. Frank did not go to work for a competitor; she accepted employment with a carrier that has a focus on a different segment of the market.
“No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth!” — Ronald Reagan
R.M.
Responding to Mr. La Valley,
Yes, SCIF has provided WC insurance to many businesses over many years. And they have also collected premiums for the risks they have insured.
This is their mandate, and they have done it. They have also benefited well from being known as Carrier of California in the minds of many employers. However, in the course of time, and as they have grown during their 100 years of mandated existence, they have become lazy and grumpy.
Grumpy that many are looking into their operations, including the insider, chummy Association deals. Grumpy that their people must start to work more diligently.
Perhaps it is a start in the right direction when even a CA Assembly member puts forth a bill in the Legislature that would hold SCIF to claims management standards on par with normative industry standards.
Wow, what is that saying about the claims handling methods at SCIF? When even the (woeful) CA Legislature begins to notice one’s problems, one has problems indeed.
Best wishes to Ms. Frank’s successor.
Michael Vrchota
Client Care Insurance Services
Dear Workers’ Comp Executive,
The handcuffs, along with the double standard of performance the legislature and the D.O.I. place on SCIF, are sickening. Let SCIF compete from a pricing standpoint and they will outdistance every other insurance company from a service and infrastructure standpoint. They should be “allowed” to compete to keep the accounts they cleaned up from a loss standpoint instead of having to overprice them. When all of the agency plans could not find a market for their customers, State Fund was there. There is no other insurance company more under the microscope than SCIF. WHY? When have you folks beat up any other insurance company like you beat up SCIF?
Michael Der Manouel Sr., President
M.D. Manouel Insurance Agency, Inc