State Fund wins lawsuit filed by Los Angeles company over claims management policies.SAN FRANCISCO--(BUSINESS WIRE)--July 23, 1996--A jury has unanimously rejected a lawsuit by a Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. clothing recycling company against State Compensation Insurance Fund The State Compensation Insurance Fund (SCIF or State Fund) is a workers' compensation insurer that is operated as a public enterprise created by the U.S. state of California. , California's largest workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurance carrier. The Los Angeles County Superior Court jury verdict further validates the claims management policies of State Fund and also dismisses various claims for damages in the "bad faith" lawsuit filed by Atlas Mill Supply, Inc. Atlas alleged State Fund mishandled and also "over-reserved" workers' compensation claims which increased premiums and lowered dividends. State Fund, which provides workers' compensation coverage to approximately half of all California businesses, insured Atlas for over three decades. The Atlas case is among several widely-watched lawsuits filed by a group of Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, attorneys, including Nicholas Roxborough, over State Fund's claims reserving and handling practices. "State Fund has always set reserves that are appropriate and realistic for each individual case and there has never been an incentive for State Fund to mishandle mis·han·dle tr.v. mis·han·dled, mis·han·dling, mis·han·dles 1. To deal with clumsily or inefficiently; mismanage. 2. To treat roughly; maltreat. claims," said State Fund President K.C. Bollier. "The jury vindicated State Fund and we are confident that other meritless suits against the Fund will also fail." Bollier noted that State Fund's underwriting and claims management policies have also been historically validated in extensive audits conducted over the past five years by the California Department of Insurance The California Department of Insurance (CDI), established in 1868, is the angency charged with overseeing the regulation of insurance regulations, enforcing statutes mandating consumer protections, educating consumers, and fostering the stability of insurance markets in the state (DOI (Digital Object Identifier) A method of applying a persistent name to documents, publications and other resources on the Internet rather than using a URL, which can change over time. ) and independent actuaries. "This is a victory for State Fund and our 250,000 employer policyholders," Bollier added. "The jury's decision further underscores the validity of our claims management." In its most recent audit of State Fund, Bollier said, the DOI concluded that State Fund's reserves were "adequate" and that "the Fund monitors its case development on a timely basis." State Compensation Insurance Fund is California's largest provider of workers' compensation insurance coverage with approximately 250,000 policyholders. Established by the California Legislature in 1914, the State Fund assures the availability of workers' compensation insurance to all California employers and competes with private carriers -- at no cost to taxpayers. The State Fund is a self-supporting, non-profit public enterprise, which returns all funds in excess of expenses, claims and necessary surplus to its California employer policyholders. CONTACT: State Fund Charles Savage Charles Savage is the name of:
or Healy Partners Jim Zelinski, 415/546-6166 |
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