Litigation Against Broker in Failed New York SIG

Nearly three dozen employers that were members of a failed self-insurance group (SIG) in New York State are taking their brokers to court seeking damages that could go into the tens of millions of dollars. The group’s workers’ comp liabilities at one point were underfunded to the tune of $220 million and former members still … Read More »

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Brokers Have No Duty To Insured’s Re Financial Health of SIGs

A California Court of Appeal refused to overturn long-standing case law that an insurance broker “owes no duty to its clients to investigate the financial condition of an insurer before placing insurance with it on their behalf.” The issue arose in a lawsuit that two employers from the now defunct Contractors Access Program self-insured group … Read More »

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Qualified SIGs Could Gain Deposit Relief

The change in the state’s workers’ comp, security deposit rules for self-insured employers has put several self-insured groups (SIGs) in arrears with the Office of Self Insurance Plans (see related story on page 3), but for the others – the financially capable SIGs – constructive changes may be on the way. Efforts are underway to … Read More »

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Controversy over Proposed SIG Rules Changes

Operators of some self-insured groups (SIGs) are warning that proposed rule changes mandated by SB 863 could drive some groups out of business by setting onerous workers’ comp security deposit requirements. But the hue and cry is not universal. Other SIG operators say they are comfortable with the changes, while some outside the SIG industry, … Read More »

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Self Insured Groups: New Deposit & Assessment Rules

New rules governing the actuarial reports, security deposits and annual assessments for self-insured groups (SIGs) are out. SIG insiders are saying much of the initial concern has been muted. The Department of Industrial Relations’ Office of Self Insured Plans (OSIP) created the proposed final rules after a great deal of groaning and much bellyaching (read … Read More »

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SIG Security Fund Concept Moves Forward As A Study

California’s self-insured group (SIG) industry could ultimately get its own security fund that would take over workers’ comp payments when a SIG fails. Ultimately, this would make each SIG employer member not only joint and severally responsible for the other members in their own group, but for every member of every other group. Getting the … Read More »

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ANOTHER SIG AUGERS INTO DEFAULT

The Healthcare Industry Self Insurance Program (HISIP), a self insured group (SIG) has failed. The SIG was unable to fully fund its workers’ comp obligations. The group primarily covered employers operating nursing homes, assisted-living centers, skilled nursing facilities and other health care operations. The Office of Self Insurance Plans (OSIP) issued a letter of default … Read More »

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Setting the Stage for 2012

California’s workers’ comp community underwent a significant amount of change in 2011 from the top and on down the line, and much of that change is setting the stage for an even more eventful 2012. Workers’ comp costs continue to increase and rates are following suit, but not all the metrics are reported as they … Read More »

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