In a scathing report released this week, California Departmentof Insurance Commissioner Steve Poizner slammed the state'sworkers' compensation fund -- known as State Fund -- stating thatthe organization contained "serious structural and operationalissues."

Created by the California Legislature in 1914, State Funddescribes itself as "a nonprofit, self-supporting, fairlycompetitive public enterprise that guarantees a permanent workers'compensation insurance marketplace for California employers." Ithas approximately 220,000 policyholders.

The review marks the culmination of an intensive review andinvestigation that began back in the spring of 2007. Ordered byCommissioner Poizner, the audit included both an operational reviewand a financial examination. It looked at governance and managementpractices, group association programs, information technology,district offices and claim processing centers -- including aninitial operational review of four district offices and three claimprocessing centers-- and business services.

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