Self-Insurers Security Fund

Media Statement: Mainstay Business Solutions

2011-11-29T06:11:12Z

MEDIA STATEMENT

The California Self-Insurers’ Security Fund (”Security Fund”) issued the following statement today (November 29, 2011) in response to media inquiries about litigation filed by the Security Fund regarding Mainstay Business Solutions.

On November 23, 2011, the Security Fund filed an amended lawsuit in the Sacramento Superior Court against Mainstay Business Solutions, the Blue Lake Rancheria tribe, and certain individuals associated with same. The Security Fund also named numerous staffing companies and employers as defendants. The Security Fund will further amend the complaint as the names of additional employers become known.

Mainstay Business Solutions is a tribal staffing company associated with the Blue Lake Rancheria tribe. Mainstay was admitted into self-insurance in March 2005. Both Mainstay Business Solutions and the Blue Lake Rancheria waived sovereign immunity in connection with the entry into self-insurance. In April, 2011, Acting Director Christine Baker of the Department of Industrial Relations revoked Mainstay’s Certificate of Consent of Self-Insure, declared Mainstay in default of its self-insurance obligations, and turned the administration of the claims over to the Security Fund. Collateral posted by Mainstay was also turned over to the Security Fund and appears insufficient to fully fund the claims liability.

The Security Fund’s lawsuit seeks to recover amounts that the Security Fund has paid, or will pay in the future, for the unfunded claims and expenses. In addition to suing Mainstay and the Blue Lake Rancheria, the Security Fund has joined numerous staffing companies and worksite employers who obtained employees from Mainstay under various arrangements. All common law joint employers share joint and several liability for the workers’ compensation liabilities of their injured employees. Following the default, the Security Fund has claims for reimbursement against all joint employers under the California Labor Code and common law.

The Security Fund’s policy is not to comment on potential or pending litigation except in media statements posted on this website. Please check back for updates. In the meantime, it defers requests for any other information about Mainstay’s situation to the Department of Industrial Relations, Office of Self Insurance Plans.

Media Contact: Stevan Allen (916) 448-1336 or stevan@allenstrategic.com

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Established in 1984 by the California State Legislature, the Self-Insurers’ Security Fund is a non-profit organization responsible for managing the collective liabilities of workers compensation claims arising when former self-insured private companies operating in California become insolvent. The Security Fund’s stated mission is to: “To provide continuity of workers’ compensation benefits to injured workers of insolvent, private self-insured companies at the lowest overall long-term cost, equitably distributed to the self-insurance community.” For more information, please visit www.securityfund.org.

Webinar Overview: Alternative Security Program Powerpoint 2011

2011-11-16T11:11:33Z

To view the PowerPoint from our November 15th Webinar presentation, please click below:

Default of the Contractors Access Program of California (CAP)

2010-11-18T05:11:54Z

MEDIA STATEMENT

The California Self-Insurers’ Security Fund (The Fund) issued this statement today (Nov. 18, 2010) in response to media inquiries about the recent default of the Contractors Access Program of California (CAP), a self-insured group that is a member of the Fund. Please attribute this statement to Jeff Pettegrew, the Fund’s Executive Director.

The Fund has been closely monitoring the situation with the Contractors Access Program of California (CAP) self-insurance group since this past May, when Bickmore Risk Services & Consulting (BRS) was first appointed by the California Department of Industrial Relations as the Conservator to manage CAP’s financial affairs and to conserve, or liquidate, the group as appropriate.

Among other things, the default means that the Self-Insurers’ Security Fund is now responsible to insure the timely payment of workers’ compensation benefits to the injured workers covered by the group. Given its ongoing involvement, the Fund is fully prepared to assume responsibility for CAP’s workers compensation claims and to insure the continuity of benefits to those injured workers.

Despite our solid financial footing, we regard CAP’s default with the utmost seriousness. We are aware of the role of CRM/Majestic in the administration of the group. The resulting situation raises numerous complex legal issues, along with public policy questions about the future of group self-insurance in California. In the coming days and months, the Fund will be exploring the full range of options available to it, with respect to the group, its membership and third parties.

It would be inappropriate for the Fund to provide any additional detail given the highly sensitive and fluid nature of this matter. Accordingly, we defer requests for additional information or comment on CAP’s default to the California Department of Industrial Relations, Office of Self-Insurance Plans, or to BRS.

Media Contact: Stevan Allen (916) 448-1336 or stevan@allenstrategic.com

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Established in 1984 by the California State Legislature, the Self-Insurers’ Security Fund (referred to simply as the Fund) is a non-profit organization responsible for managing the collective liabilities of workers comp claims arising when former self-insured private companies operating in California become insolvent. The Legislature created the Fund in order to ensure the continuity of workers compensation benefits of self-insured companies that have defaulted on their worker comp obligations – usually due to bankruptcy. The Security Fund oversees nearly $6.5 billion in open private-sector workers compensation claim liabilities associated with its more than 500 individual member companies and more than 25 self-insured groups. Its stated mission is to: “To provide continuity of workers’ compensation benefits to injured workers of insolvent, private self-insured companies at the lowest overall long-term cost, equitably distributed to the self-insurance community.” For more information, please visit www.securityfund.org

Webinar Overview: Alternative Security Program Powerpoint 2010

2010-11-10T03:11:45Z

To view the PowerPoint from our November 10th Webinar presentation, please click below:

Alternative Security Program PowerPoint

Media Statement: Contractors Access Program of California

2010-05-03T02:05:57Z

Download this media statement as a PDF.

The California Self-Insurers’ Security Fund (The Fund) issued the following statement today (May 3, 2010) in response to media inquiries about the state’s announcement it has appointed a conservator to manage the Contractors Access Program of California (CAPC), a self-insured group that is a member of the Fund. This statement should be attributed to Jeff Pettegrew, Executive Director of the Fund.

As is the case with issues concerning any of our private self-insured member entities, the Security Fund has been monitoring this situation closely. Through our on-going communications with the California Department of Industrial Relations and Office of Self-Insurance Plans (OSIP), we have been apprised that Bickmore Risk Services & Consulting (BRS) has been appointed as the Conservator to assume responsibility for one of our member Self-Insured Groups (SIG’s) – the Contractors Access Program of California (CAPC).

We applaud the state for its intervention and possess confidence in the ability of the new Conservator to take control of managing the financial affairs of the CAPC SIG.

BRS is highly qualified to serve as a SIG Conservator. The firm is headquartered in Sacramento with over 75 experienced risk management consultants, including credentialed safety and insurance professionals, pool managers, CPAs, attorneys, credentialed actuaries, and certified workers’ compensation specialists.

Any time a Conservator is appointed, the situation is one of significant transition and fluidity. Out of respect to this – as well as the established regulatory process – we would refer any requests for additional details or information concerning this matter to OSIP, which has direct authority in this matter.

Media Contact: Stevan Allen (916) 448-1336 or stevan@allenstrategic.com

Newsroom Introduction

2009-11-13T01:11:07Z

As a regulated entity, it is important for the Security Fund to communicate with its member companies, the State of California and the workers compensation industry. One way we do this is through the media, especially the trade press that covers the workers compensation industry.

If you are a member of the media and need information, please contact our communications representative, Stevan Allen at (916) 448-1336 or (916) 718-2999.