SCIF Responds To Calif. Commissioner
By Caroline McDonald
NU Online News Service, June 21, 12:16 p.m. EST? The State Compensation Insurance Fund has submitted a response to California Insurance Commissioner Harry Low’s demands for a financial action plan, but neither side released details.
“We did receive SCIF’s response to the Commissioner’s May 29 letter,” said Scott Edelen, spokesperson for Mr. Low. “It’s in the process of being reviewed by the appropriate branches and divisions here at CDI.”
He continued that, “There hasn’t been a timeline stated for a response. I also don’t know if that portion will be public, because SCIF has asked that this correspondence be confidential.”
SCIF’s request for confidentiality comes after an exchange of letters between the two agencies was made public. The correspondence was released following a request under California’s public records law (NU Hot News, June 7, 2002).
In his May 29 letter to SCIF President Kenneth C. Bollier, Mr. Low warned SCIF to submit a comprehensive financial stability action plan or risk “formal corrective actions pursuant to the Insurance Code.”
Mr. Bollier’s heated response stated that most of Mr. Low’s directives “would lead to draconian price increases for thousands of California employers” as well as exceed what “State Fund needs to achieve surplus adequacy.”
Mr. Edelen’s advice on the issue was to “Stay tuned, it seems to change day-to-day.”