State Compensation Insurance Fund ends group programs
 June 1, 2013

Back in 2009, in response to mounting complaints and problems with the workers' compensation program underwritten through the State Compensation Insurance Fund (SCIF), CMTA examined alternative underwriters for their workers' compensation group program. In 2010, California Manufacturers & Technology Association (CMTA) selected CompWest as their workers' compensation partner. SCIF agreed to informally continue the program with CMTA members so that participants could continue to enjoy the group discount associated with SCIF workers' compensation groups programs.

SCIF is California's residual workers' compensation market. If a California employer cannot obtain insurance in the private sector, they can always obtain coverage with SCIF. Because they assume this responsibility, which is very necessary for our state, SCIF is not required to operate as efficiently as private insurance companies. Private insurance companies must underwrite your business profitably and manage their expenses effectively to stay competitive. SCIF does not.

SCIF has been reducing the number of group programs and recently decided to terminate groups 181, 182, 183, 184 and 185. These are the manufacturing groups associated with CMTA. Shortly, you'll receive a notification from SCIF to this effect, indicating that your policy will be converted to an individual policy upon renewal. You will no longer receive the group discount. This decision to terminate these groups was SCIF's and not CMTA's. You may be eligible to participate in the CMTA-CompWest program and we recommend that you ask your broker to contact CompWest Insurance Company if you would like more information.

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