The California Insurance Guarantee Association’s board of directors learned this month that the agency’s projected expenses for the coming fiscal year are down nearly $38 million – a 45% reduction – from the agency’s budget just three years ago. Driving the savings are reduced spending on outside attorneys and decreased use of third-party administrators (TPAs). …
The Assembly Insurance Committee last week passed three bills that amend the requirements for some workers’ comp reports, increase oversight of a key industry resource, and would extend the California Insurance Guarantee Association’s bond issuing authority. The bills advanced without opposition. Two of the bills are Committee bills, but Committee chair Assemblyman Tom Daly (D-Anaheim) …
The Senate Rules Committee gave its unanimous approval to Insurance Commissioner Ricardo Lara’s appointment of Joe Holloway (see photo) to be the chief executive officer of California’s Conservation and Liquidation Office. Holloway has been with the agency for nearly two decades and overseen numerous carrier insolvencies and conservations. He replaces David Wilson, who retired last …
The California Insurance Guarantee Association continues to make progress in closing out workers’ comp claims and reducing future liabilities. A restructured claim handling process is also lowering its expenses in real-time. The association’s board of directors heard that CIGA nearly reached its full-year claims closure goal by the fiscal year’s halfway point and that its …
The California Insurance Guarantee Association continues to make headway in reducing the outstanding balance for the workers’ comp claims it inherited from failed workers’ comp carriers. Its board of directors heard earlier this month that it is still on track to pay claims without any need for additional assessments on California employers. “This is a …
The bill signing season is well underway. Governor Gavin Newsom put pen to paper on many bills, including measures increasing the number of exemptions to the Dynamex ABC test and a bill requiring employers to report workplace cases of COVID-19 to local and state public health officials. In addition to these measures, brokers should take …
California’s backstop for the insurance industry is sitting in solid financial shape despite the economic downturn’s negative impact on interest rates. Executive Director Brad Roeber and his team at the California Insurance Guarantee Association report that even under a pessimistic “worst-case” workers’ comp claims cost scenario, the agency has enough cash and assets to pay …