Statement from Janet Frank, State Fund President:

SAN FRANCISCO/SACRAMENTO – “We appreciate the California Department of Insurance’s (CDI) review of State Fund operations and welcome their comments and recommendations. Thanks in large part to the leadership and tenacity of our Board of Directors, change has been underway at State Fund for more than a year. In fact State Fund has already accomplished or begun to implement most of the recommendations in CDI’s report.

“The fact that CDI accepted State Fund’s 2006 Financial Statement demonstrates State Fund remains on solid financial ground despite undergoing one of the most difficult periods in workers’ compensation history. Our dual role as both a market of choice and the safety net for California employers seeking workers’ compensation insurance provides enormous value to California employers and workers alike.

“Although State Fund has undergone transformative change, it is clear we must remain committed to this path. We recognize there have been problems, but are pleased to have turned a significant corner on this difficult period as we move forward and continue to fulfill our important mission in California’s insurance market. The CDI report released today will serve as a clear roadmap as we continue our work to bring efficiency, transparency and accountability to State Fund’s operations. ”

Statement from Jeanne Cain, State Fund Board Chair:

“We appreciate the thorough review CDI conducted and agree with the course of action they have outlined for State Fund. We have been moving in this direction for quite some time and will remain committed to doing so until the job is done. We have great confidence in Janet Frank’s ability and resolve to continue State Fund’s transformation.

“We will need legislation to enact some of the most important recommendations such as adding new exempt management positions and increasing the size of the Board. We hope we will be able to count on the Insurance Commissioner’s office and other policy makers to help us succeed on that front.”

Created by the California Legislature in 1914, State Fund is a nonprofit, self-supporting, fairly competitive public enterprise that guarantees a permanent workers’ compensation insurance marketplace at cost for California employers. State Fund has acted as both a moderating and stabilizing influence on the workers’ compensation market.