Senator Roth to Chair Oversight Hearing on State Compensation Insurance Fund
Senator Richard D. Roth (D-Riverside) will chair an Oversight Hearing of the Senate Insurance Committee on Wednesday, March 11, 2015, on the State Compensation Insurance Fund (SCIF).
Established by the Legislature in 1914 and regulated by the California Department of Insurance (CDI), SCIF now boasts more than 135,000 policyholders, more than $1.4 billion in annual premiums and nearly $20 billion in assets. As California’s largest provider of workers’ compensation insurance, SCIF is a self-supporting, non-profit enterprise.
In 2007 and 2008, SCIF was the subject of serious allegations of financial and operational improprieties involving senior officials. An internal SCIF audit and an audit by CDI at the time provided scathing reviews of an organization run amok, with poor business and accounting practices throughout the organization. These alleged improprieties led to the expansion of SCIF’s Governing Board membership and subjected Board meetings to the Bagley-Keene open meetings law.
“The Legislature has not performed oversight on SCIF in almost 7 years,” said Senator Roth. “Given the impact SCIF has on businesses throughout California, it is imperative that we thoroughly examine any progress made to date. We must identify areas which require further improvement to ensure both the health of California’s workers’ compensation market as well as the State’s growing economy.”
Senator Roth requested by letters dated February 5, 2015, and February 11, 2015, President and CEO of SCIF Vernon Steiner and CDI Commissioner Dave Jones, respectively, to appear before the Senate Insurance Committee and provide information and metrics pertaining to SCIF’s operations since the Legislature last performed oversight on the Fund in 2008. Copies of both letters are attached to this release.
This oversight hearing will be available online via live stream at http://senate.ca.gov.
Senate Insurance Committee Oversight Hearing on:
State of the State Compensation Insurance Fund
- Senator Richard D. Roth, Chair, Senate Insurance Committee
- The Honorable Dave Jones, Commissioner, California Department of Insurance
- Vernon Steiner, President and CEO, State Compensation Insurance Fund (SCIF)
- Peter Guastamachio, Chief Financial Officer and Chief Investment Officer, SCIF
- Kenneth Van De Laar, Chief Risk Officer, SCIF
- Richard J. Law, Chief Operating Officer, SCIF
- Andreas W. Acker, Executive Vice President and Chief Administrative Officer, SCIF
Wednesday, March 11, 2015, 1:30pm
State Capitol, Room 112
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