Government

The Security Fund was the creation of the California State Legislature, which wrote provisions into the law that require ongoing regulatory coordination and oversight of both the Fund and its members.

The Default Process

DIR monitors each self-insured and determines if and when a self-insured is declared to be in default, which typically arises after Chapter 7 bankruptcy or company insolvency. Once this occurs, the insolvent self-insured’s estate of workers comp claims is then turned over to the Fund to manage and administer until all of the estate’s claim obligations are settled and/or legally closed.