California Insurance Commissioner John Garamendi expressed pleasure at the appointment by the Governor of three new members of the Board of SCIF. In a news release the Commissioner telegraphed his relief that the board now has a full membership.

"This is very good news for California businesses. I am extremely pleased that the Governor has appointed three capable, knowledgeable and reform-minded individuals to the board of the State Compensation Insurance Fund," Garamendi said. "I agree with the Governor that this board must play a critical role in increasing competition in the workers' compensation marketplace, resulting in lower costs for businesses.

"As I have said repeatedly," the Commissioner said, "the creation of an efficiently and effectively run State Fund, which controls nearly 60 percent of the workers' compensation market, is critical to every small business in California, and to the state's economy as a whole. The Governor's action today is a big step in the right direction.

Governor Schwarzenegger's appointed Jeanne Cain, as Chairman, and Kent Dagg and Vincent Mudd as members of the State Compensation Insurance Fund Board.

Rumors in the industry are running rampant and include everything from a complete replacement of the Executive Committee to the immediate naming of a new president. Rumors also have it that the Board will direct SCIF staff to immediately file for lower rates, drop the litigation with the Department, and even go so far as to turn SCIF into an assigned risk. But all those are just rumors. What is really going to happen not many people know ... yet.

What is known is that the Governor's staff has called a meeting of the new members to brief them on what it feels is needed. The meeting with the Governor's staff is scheduled for Wednesday in Sacramento. The Board will meet as a whole Thursday morning in San Francisco.