SCIF’s Tier Modifier In Dispute Again

State Compensation Insurance Fund and Sessions Payroll Management have a contentious history, and that’s not about to change any time soon. The companies are engaged in ongoing litigation and are now back at it. Now it’s before the California Department of Insurance’s administrative hearing bureau for another fight over SCIF’s tiered rating system. State Fund’s … Read More »

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Brother & Sister Face Workers’ Comp Fraud Charges

The Los Angeles District Attorney’s Office filed a 12-count indictment against the brother and sister owners of a Southern California construction company.  Allegedly State Compensation Insurance Fund was cheated out of $6 million in premium. Charged are Enrique Vera, the owner of Ultimate Inc., and his sister Gloria Vera the company’s office manager. The pair … Read More »

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Coverage B Fight Goes to The Ninth Circuit

A former insured of the State Compensation Insurance Fund is taking to the Ninth Circuit Court of Appeal its demand for SCIF to defend it in three civil lawsuits. State Fund prevailed in the lower court arguing that it has no duty to defend the company under Part 2 [aka coverage B] of its workers’ … Read More »

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X-Mod Changes for 2019

Brokers and employers should get ready for yet more changes to California’s experience rating formula. In 2019 changes will reduce the impact of first aid type claims on employers’ X-Mods but will also result in small X-Mod increases for loss-free accounts. The changes eliminate the first $250 from all claims which means that claims with … Read More »

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Major Rewrite of Private Schools Classifications

The Workers’ Compensation Insurance Rating Bureau is looking to restructure the classifications covering private schools, including programs that provide services to the disabled and seniors, vocational schools, K-College schools, and their associated personnel. Currently, these disparate operations are grouped together in two classifications – 8868 covering the academic professionals and 9101 covering the non-academic staff. … Read More »

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Union Says Tesla’s Injury Rates Out Of Line

The Tesla Motors factory in Fremont California may be part of the high-tech digital revolution, but employees there say it has an old school analog problem – too much of the workforce is getting injured on the job. A new report – notably linked to union organizers – says Tesla’s recordable injury is 31% higher … Read More »

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$32M In Premium Fraud Alleged

The San Francisco District Attorney filed seven counts of workers’ compensation insurance premium fraud against the owner of a Bay Area cleaning company – GMG Janitorial.  It is accused of running two sets of books to lower its workers’ comp bill. Overall the owner, Gina Marie Gregori of Lafayette is facing 19 felony counts for running … Read More »

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Simplified X-Mod Formula For 2019

The Workers’ Compensation Insurance Rating Bureau will propose simplifying the state’s experience rating formula in 2019 to just three components – actual primary losses, expected excess losses and total expected losses. The change, says the Bureau, will not have any impact on computed mods as the current calculation already gives no weight to an employer’s … Read More »

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