Court Rejects CIC’s Demand To Compel

The San Mateo Superior Court overseeing the conservation and rehabilitation of California Insurance Company is ordering the California Department of Insurance to provide more information about why it is claiming … Read More »

Another Staffing Agency Operator Charged

The Orange County District Attorney’s office filed charges against Karyl Lynn Reed, who operated Envoy Business Partners and Allenn Specialty Group staffing companies. Reed is charged with grand theft, forgery, and attempting to use forged insurance certificates. Reed was arraigned last week after being extradited to Orange County from Texas. Jail records indicate that she … Read More »

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Fraud Assessment Increase

California employers will be charged more to fight workers’ comp fraud next year.  The Fraud Assessment Commission voted 4-2 to boost funding by 10% to $85.7 million. The increase amounts to less than a tenth of a penny per $100 of payroll, and total fraud assessments will still be less than a cent per $100 … Read More »

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Employer’s Appeal Lacked Evidence

A California employer who appealed its workers’ comp classification assignments faces a high bar to prove its case. The appeal went to an evidentiary hearing before a California Department of Insurance administrative law judge. At the hearing, the employer’s representative – Guido Dito of D&M Risk Management Services – who is not a lawyer – … Read More »

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Will There Be Future CIGA Assessments?

The California Insurance Guarantee Association (CIGA) has good news. It is going another year without assessing California employers or other insureds to support its operations. Recent operational changes make future assessments even less likely. Association officials note that CIGA has nearly $2.7 billion in surplus across all of its lines of responsibility – workers’ compensation, … Read More »

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CDI Averages Frequency Projections For Rate Decision

Insurance Commissioner Ricardo Lara approved September 1, 2021, pure premium advisory rates that essentially split the difference between the insurance industry’s request for a 2.7% rate increase and an independent actuary’s recommendation for an 8.2% decrease. The final recommendation for a 3.4% decrease was not the only place where the California Department of Insurance divided … Read More »

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One Conviction Out of 78 Charges In Temp Agency Fraud Case

Nearly four years and two trials later, the Los Angeles District Attorney’s Office secured only a single felony conviction against the owner of a Southern California staffing company. It is for transacting insurance without a certificate of authority. The charge was one of 78 alleged in both trials, but the jury acquitted on all the … Read More »

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