Executives at the California State Compensation Insurance Fund have asked the state's California Highway Patrol to investigate the fund, but police have not decided if they will accept the case.

Tom Marshall, a spokesman for the California Highway Patrol, said the department did receive a request from State Fund for an investigation, but the police need to evaluate whether an investigation is warranted before deciding if the department will accept the request.

Mr. Marshall said the department would make no additional comments on the matter until after an investigation is completed, if it does accept the request.

He did not disclose what the nature of the request is, but did say it was made by executives at the fund.

The State Compensation Insurance Fund provides protection for California's workers' compensation residual market.

A hearing was held by the State Senate in March examining the operations of State Fund in the wake of the insurer's board removing James Tudor, president, and Renee Koren, vice president.

No reasons were given for the dismissals.

The California Department of Insurance announced an audit of State Fund March 28 to look into governance and management issues. The audit comes on the heels of allegations of the misuse of administrative fees that are intended to go to education and loss mitigation of businesses, said Jennifer Kerns, a department spokeswoman.

She said the investigative request to the California Highway Patrol is unrelated to the department's audit.

"[Commissioner Steve Poizner] is concerned with a series of mismanagement issues and the lack of proper accountability and transparency," she said, adding that the commissioner believes the state's citizens deserve a "healthy and accountable" program.

A spokesman for State Fund said an internal investigation by the board should be completed by the end of this month. He described the request for an investigation to the California Highway Patrol during an internal investigation as routine.

Special Reports /

Calif. State Cops Asked Into State Comp Fund Inquiry

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