State Fund Board Members Resign
The chair of the State Compensation Insurance Fund on Wednesday announced that two board members have resigned after discussions of perceived conflicts of interest, the Los Angeles Times reports.
State Fund is a state-run fund that is the largest insurance provider in California, and the largest workers' compensation carrier in the nation. The five-member board is appointed by the governor.
State Fund Chair Jeanne Cain said that Frank DelRe, president of Western Insurance Administrators, and Kent Dagg, executive director of Shasta Builders Exchange, cited personal reasons in their resignations.
The members' private insurance companies were paid millions of dollars in "administration fees" from State Fund for placing clients' workers' compensation insurance policies with the fund.
Cain and Insurance Commissioner John Garamendi (D) both said that future board appointments must ensure no conflicts of interest (Lifsher, Los Angeles Times, 11/16).