For Release: May 6, 2009 NEWS STATEMENT
Commissioner Poizner Calls on State Fund to Move Expeditiously to Implement Recommendations
Insurance Commissioner Steve Poizner issued the following statement regarding the State Fund audit
released today:
"Eighteen months ago, the Department of Insurance completed a thorough review of State Fund's
operations. Our review identified 110 specific issues that we directed State Fund to address. Among
these findings were a number of serious structural and operational issues including needed
enhancements to State Fund's corporate governance and board oversight. A follow-up review
conducted by the Department determined that as of now, State Fund has fully remediated 53 of these
findings and made progress on remediating 40 additional concerns. The follow-up review also
identified further specific issues that must be resolved. While I commend State Fund and Jan Frank for
the work they have done, it is imperative that they move expeditiously to address the remainder of the
findings.
"A healthy and efficient State Fund is essential to a functioning and efficient worker's compensation
insurance market. Additionally, every government entity must streamline operations and achieve
greater efficiencies. This includes State Fund. I will continue to monitor the progress of State Fund to
ensure they operate effectively and transparently."
A copy of the report can be found at
http://www.insurance.ca.gov/0250-insurers/0300-insurers/0400-reports-examination/upload/StateComp
ensationInsuranceFund08.pdf.
Commissioner Poizner has worked to maintain a stable and efficient workers compensation insurance
market. Recently, he called an investigatory hearing to determine the most effective ways to slow the
increase in workers comp insurance costs. This hearing is scheduled to be held on June 8 in
Sacramento.
Commissioner Poizner Calls on State Fund to Move Expeditiously to Implement Recommendations
Insurance Commissioner Steve Poizner issued the following statement regarding the State Fund audit
released today:
"Eighteen months ago, the Department of Insurance completed a thorough review of State Fund's
operations. Our review identified 110 specific issues that we directed State Fund to address. Among
these findings were a number of serious structural and operational issues including needed
enhancements to State Fund's corporate governance and board oversight. A follow-up review
conducted by the Department determined that as of now, State Fund has fully remediated 53 of these
findings and made progress on remediating 40 additional concerns. The follow-up review also
identified further specific issues that must be resolved. While I commend State Fund and Jan Frank for
the work they have done, it is imperative that they move expeditiously to address the remainder of the
findings.
"A healthy and efficient State Fund is essential to a functioning and efficient worker's compensation
insurance market. Additionally, every government entity must streamline operations and achieve
greater efficiencies. This includes State Fund. I will continue to monitor the progress of State Fund to
ensure they operate effectively and transparently."
A copy of the report can be found at
http://www.insurance.ca.gov/0250-insurers/0300-insurers/0400-reports-examination/upload/StateComp
ensationInsuranceFund08.pdf.
Commissioner Poizner has worked to maintain a stable and efficient workers compensation insurance
market. Recently, he called an investigatory hearing to determine the most effective ways to slow the
increase in workers comp insurance costs. This hearing is scheduled to be held on June 8 in
Sacramento.
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