California Workers’ Comp Highly Profitable

California’s workers’ comp insurance industry remained highly profitable in 2019, returning a pre-tax underwriting profit of 18% for the second straight year. The profitability percentage is also pre-investment income putting the profits into the 20% of premium range. However, expectations for 2020 are unclear as officials predict a 20% decline in written premium for the … Read More »

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Exclusive Remedy Doesn’t Apply In Excess Insurance Spat, Court Says

The California Insurance Guarantee Association (CIGA) will get a second chance to convince a superior court judge that an injured worker suffered a cumulative injury rather than a specific one as the Workers’ Compensation Appeals Board held. The distinction is important as CIGA is currently on the hook for the costs that a failed excess … Read More »

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CIGA Doesn’t Owe Medicare For Conditional Payments

The California Insurance Guarantee Association won a reversal of a district court decision which held that it was obligated to repay the federal Medicare program for services provided to beneficiaries to treat the effects of an industrial injury. As a secondary payer, Medicare was demanding reimbursement, but the Ninth Circuit Court of Appeal says that … Read More »

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CIGA Stuck With Ullico Claim From Staffing Company

The Second District Court of Appeal says the California Insurance Guarantee Association (CIGA) is responsible for a special employee’s workers’ comp claim even though the special employer never signed a limiting endorsement that excluded coverage for special employees from its workers’ comp policy. The court, however, says the parties actions made the endorsement valid without … Read More »

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CIGA’s Financial Outlook Continues To Improve

The California Insurance Guarantee Association (CIGA) is reporting more positive news on its financial outlook. The agency says an updated actuarial analysis trimmed one critical financial estimate by $290 million. The news follows a previous $773 million write-down that allowed CIGA’s board of directors for the first time in decades to halt the practice of … Read More »

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No Assessment, No Reinsurance For CIGA

Finances at the California Insurance Guarantee Association continue to improve to the point that the association is not issuing an assessment for the second year in a row and is – at least for now – abandoning plans to purchase reinsurance protection against future assessments. Association officials indicated that more good news could be coming … Read More »

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CIGA Leadership Adapting To Changing Claims Make-Up

The California Insurance Guarantee Association is the financial backstop for insurers in the state. Workers’ comp claims have dominated its operations for many years. Times are changing, however, and the association’s new leadership is making plans to address this emerging reality. Presiding over his first board meeting since former executive director Wayne Wilson retired, Brad … Read More »

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