State Compensation Insurance Fund

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The State Compensation Insurance Fund ( State Fund ) is a worker's compensation insurance company created as a "public company fund" by the US state of California, and today has a partial autonomy from the rest state government. This is required by state law to maintain its headquarters in San Francisco, but has regional offices throughout the state.

The State Fund was created by the Boynton Act in 1913, and it began operating in 1914. Around the same time, voters changed the California Constitution with the initiative to strengthen the constitutionality of the state workers' compensation system. This is necessary because American entrepreneurs during the early 20th century often challenged compulsory labor compensation legislation as an unconstitutional invasion of contractual freedom, an argument that had strong persuasive powers during the Lochner era. Since 1976, the constitutional basis of the State Fund has been found in Article 14, Section 4 of the state constitution:

In May 2014, the State Fund reported assets of 2013 of approximately $ 20 billion and labor of more than 4,000 people (amounts vary based on the current percentage of the State Fund market). In 2013, the State Fund market share is the largest in the state of almost 11%. Its market share jumped by more than 50 percent in 2002-2004 when a large number of private airlines left the market. In accordance with its mission, the State Fund has an open door policy, writes insurance for California businesses that require workers compensation insurance. The State Fund insures about 130,000 policyholders in California. The State Fund also serves as a third party administrator, adjusting claims to virtually all state agencies.

California is one of 21 states with competitive state funds in the workers compensation insurance market.

In 2010, the State Fund implements plans to redesign operations and reduce costs for California companies. In 2013, the State Fund announced that it reduced annual fixed costs by $ 300 million. This savings will help the State Fund maintain fair pricing and bring greater value to more California companies.

State Compensation Insurance Fund

Sabtu, 07 Juli 2018