Calif. Comp Fund CEO Leaving
By Caroline McDonald
NU Online News Service, Sept. 16, 2:41 p.m. EST?Kenneth C. Bollier, chief executive officer of California's State Compensation Insurance Fund, has announced he will leave his position at year's end.
He will be succeeded by Dianne Oki, SCIF executive vice president, according to SCIF spokesman Jim Zelinski.
Mr. Bollier, who has been with the State Fund for 38 years, made the announcement at the State Fund board of directors meeting last week, Mr. Zelinski said.
Mr. Bollier exits the fund after a testy exchange of letters with California's top regulator. The correspondence began with a warning from California Insurance Commissioner Harry W. Lowe that the fund must provide a detailed financial stability action plan or risk "corrective actions" by the department.
In December 2001, SCIF was downgraded, based on the fund's reserves, to double-B-plus from triple-B-plus by Standard & Poor's. The fund had been put on a CreditWatch status in November because of "concerns over the fund's very rapid growth, which accelerated in the third quarter of 2001 with $2.6 billion of net premiums in the first nine months of 2001," according to S&P.
Just last week, the State Fund and Aon Re announced a $1.45 billion reinsurance arrangement to satisfy solvency concerns.
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