Court Rejects SIG’s Joint Liability Assessment

Members of self-insured groups (SIGs) are jointly and severally liable for each other’s losses, but a California Court of Appeal says the individual liability applies only to losses from years in which a member was actively covered by the group. The court rejected a self-insured group administrator’s attempt to assess former members of the failed … Read More »

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SISF Gets Its Lawyers Back… Maybe

A California Court of Appeal says it isn’t necessary to automatically disqualify the lead counsel for the California Self-Insurers’ Security Fund for hiring away a defense attorney from the other side in an on-going case. But it also chose to give the lower court a chance to determine if disqualification is warranted. The lower court … Read More »

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40M SISF Lawsuit In Jeopardy

California’s Self-Insurers’ Security Fund’s (SISF) $40 million lawsuit for joint and several liability against hundreds of former members of a failed healthcare industry self-insured group (SIG) has been delayed. A court has forced it to obtain new counsel. The case, which is over three years old, is being stayed to give SISF time to find … Read More »

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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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Judge Approves CAP Good Faith Settlement

Sacramento Superior Court Judge David Brown has granted the motion for a good faith settlement of claims against members of the failed Contractors Access Program Self-Insured Group (For previous coverage … Read More »

CAP Settlement Gets Tentative Approval

A Sacramento Superior Court is giving its preliminary approval to the planned dissolution of the Contractors Access Program (CAP). But one former director questions whether the proposed settlement lets some players off the hook, and is demanding his day in court. The issue will be argued in court next month, but those overseeing the failed … Read More »

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Court Set to Rule On CAP Dissolution Plan

A Sacramento Superior Court is set to rule tomorrow on a plan for dissolving the failed Contractors Access Program (CAP) self-insured group (SIG) that will keep the group from following its parent CRM Holdings into bankruptcy. But the fallout from the $38 million failure — California’s first for an active SIG — is still being … Read More »

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