Post on 24-Dec-2015
transcript
CALIFORNIA INSURANCE GUARANTEE ASSOCIATION
2005
HISTORY
ESTABLISHED IN 1969
CALIFORNA INSURANCE CODE, – ARTICLES 14.2 AND 14.25– §1063
CIGA Structure
BOARD OF GOVERNORS
– APPOINTED BY THE INSURANCE COMMISSIONER
– 9 MEMBER COMPANIES– 4 MEMBERS FROM PUBLIC SECTOR
CIGA ORGANIZATION
Board of Governors
– Executive Director Finance Department Human Resources Operations Audit Claims
- Liability Department
- Workers’ Compensation Department
FUNDING Assessments
Distributions form Estates
Investment income
Borrowed funds
CIGA FUNDS
WORKERS’ COMPENSATION
PERSONAL LINES
OTHER
NOT COVERED
Life, Annuity and Disability Title Fidelity and Surety Credit Mortgage & financial Ocean marine
IMPORTANT
CIGA
IS NOT
AN
INSURANCE COMPANY
ISSUES NO POLICIES
COLLECTS NO PREMIUM
NO PROFITS
ASSUMES NO CONTRACTUAL OBLIGATIONS TO THE INSUREDS
HOW IS CIGA TRIGGERED?
SUPERIOR COURT LIQUIDATION ORDER
AND A FINDING OF INSOLVENCY OF THE INSURER
Pre-2000
4,100 Claims WC claims– 5 WC claims staff– 1 TPA
2,360 Liability claims– 6 liability claims staff– 1 TPA
Post 2000
LMI Insurance Co. – 727 liability claims
Superior National Ins. Companies– 31, 140 wc claims
Credit General Ins. – Ohio– 2,800 wc claims– 942 liability claims
HIH & Great States Ins.– 7,492 wc claims
2001
Amwest Surety Ins. Co– 174 Auto & Liability claims
Sable Ins. Co – 578 wc claims– 279 liability claims
Frontier Pacific Ins. – 2,824 auto & liability
2001
Far West Insurance – 284 auto & liability claims
Reliance Insurance Companies – 7,984 wc claims– 7,900 auto & liability claims
PHICO– 506 wc claims– 77 liability claims
2002
National Auto & Casualty – 75 wc claims– 1,610 auto & homeowners
Western Specialty .– 655 auto & liability claims
Paula Insurance Co– 3,593 wc claims
2002
American Horizon– 159 auto & liability
Alistar Insurance– 380 wc claims– 1,039 auto & liability claims
2003
Western Growers– 600 wc claim
Millers Insurance Co.– 138 auto & liability
Legion & Villanova Insurance Companies– 15,000 wc claims– 12,100 auto & liability claims
2003
Home Insurance Co.– 1,000 wc claims– 3,500 liability claims
Fremont Indemnity– 15,000 wc claims– 500 liability claims
Pacific National Insurance Co.– 1,750 wc claims– 365 liability claims
2003
Wasatch Crest– 138 liability claims
2004
Commercial Casualty Ins. of NC– 1,168 liability claims
Protective National Ins. Co.– 10 liability claims
Casualty Reciprocal Exchange– 500 wc claims– 2 liability claims
American Bonding.– 12 liability claims
Growth by Year
Year Takeover 2000 33,466
2001 28,771
2002 8,127
2003 50,091
2004 1,692
2005 ???...................
Staffing Today
In house claims staffing: – 50 WC– 24 Auto & Liability
TPA’s– 12 with 23 locations– Approximately 560 claims staff
adjusters, supervisors & managers
CURRENT OBLIGATIONS
5,445 Liability Claims– 3,969 handled in-house
54,000 Workers’ Compensation Claims– 4,600 handled in-house– 49,400 handled by Third Party Claims
Administrators (TPA)
TPA OVERSIGHT CIGA PHILOSOPHY
7 COMPLIANCE REPRESENTATIVES
• IRVINE• CALABASAS• RANCHO CORDOVA• SAN DIEGO• PASADENA
COVERED CLAIMS
– DUTIES1063.2(a)1063.2(b)
SPECIFIC NON-COVERED CLAIMS
1063.1(c)– CT claims with other insurance– Contribution– DWD– MEDI-CAL/Medicare
SPECIFIC NON-COVERED CLAIMS
CT CLAIMS– Insurance Code §1063.1(c)(9)(i) -- other coverage
available to employee
SPECIFIC NON-COVERED CLAIMS
CONTRIBUTION– Insurance Code §1063.1(c)(5)
SPECIFIC NON-COVERED CLAIMS
General Special Employment
SPECIFIC NON-COVERED CLAIMS
GOVERNMENT CLAIMS– §1063.1(c)(4) – EDD – LC §4706.5 (DWD)