DEPARTMENT OF INDUSTRIAL RELATIONS JON WROTEN, C HIEF (916)

SELF INSURANCE BY THE NUMBERS $ B ILLION - T OTAL P AYROLL 4,002,919 C OVERED E MPLOYEES 1 OUT OF EVERY 4 WORKERS IN C ALIFORNIA IS COVERED BY S ELF I NSURANCE

SELF INSURED GROUPS (SIG)

SELF INSURED GROUPS 31 SIG S IN C ALIFORNIA 23 ARE A CTIVE 4,719 - SIG E MPLOYERS

SELF INSURED GROUPS 2.25% OF C ALIFORNIA W ORKFORCE 354,000 - T OTAL E MPLOYEES $ 4.8 BB – T OTAL P AYROLL

SELF INSURED GROUPS T OTAL EFL $ 150,675,479 P OSTED D EPOSIT $ 219,134,602 R EQUIRED D EPOSIT $ 217,054,946 D EPOSIT S URPLUS $ 2,079,656 SIG S MOVED FROM A DEPOSIT DEFICIT LAST YEAR TO DEPOSIT SURPLUS THIS YEAR !!

OSIP IMPROVEMENTS I NTRODUCING E-F ILING ON S TATEWIDE C LAIMS A DMINISTRATOR T ESTING E LECTRONIC T RANSFER F UNDS (ETF) N EWSLINE B ULLETINS AND U PDATES

L ACK OF R EGULATORY O RDER Board of Trustees SIG Administrator Members Auditors Actuary TPA

B RINGING O RDER TO D ISARRAY Auditors Actuary TPA Members Board of Trustees SIG Administrator

REGULATORY GUIDANCE LETTERS Board of Trustees Financial Auditors Actuaries Members Actuarial Rate Plans

SIG ACTUARIAL PEER REVIEWS

REGULATORY EXAMINATIONS 6 SPECIAL EXAMINATIONS ORDERED CA-SIG NEGOTIATED EXEMPTION IF SIG’s VOLUNTARILY PROVIDED A REGULATORY EXAMINATION VERY FEW SIGs HAVE TAKEN ADVANTAGE OF THE VOLUNTARY EXAMINATIONS

SB863

SB 863 C HANGES S ECURITY D EPOSIT 80% C ONFIDENCE L EVEL IS G ONE T AX G AP IS G ONE

A CTUARIAL B ASED C OLLATERAL D EPOSIT A CTUARIAL C ENTRAL E STIMATE ( EXPECTED ) I NCLUDING IBNR, ULAE AND ALAE SB 863 C HANGES S ECURITY D EPOSIT

SB 863 C HANGES P ROFESSIONAL E MPLOYER O RGANIZATIONS AND SIMILAR TYPE STAFFING FIRMS N O N EW PEO S E FFECTIVE A NY CURRENT PEO S R EVOKED BY

SB 863 C HANGES S ELF I NSURERS S ECURITY F UND G REATER I NVOLVEMENT IN COLLATERAL DECISIONS SISF IS I NDEMNIFIED FROM LIABILITY IF OSIP DOES NOT IMMEDIATELY TURN OF DEFAULTED LIABILITIES

FUTURE OF SIGs AND SELF INSURANCE IN CALIFORNIA E XPANDING D EMAND FOR S ELF I NSURANCE I NCREASED A CCESSIBILITY TO BECOME S ELF I NSURED S TREAMLINING APPLICATION AND APPROVAL PROCESS

2013 REGULATORY PLAN C ONTINUE TO I MPLEMENT SB863 A LIGNING REGULATIONS WITH A FRAMEWORK FOR THE FUTURE O PPORTUNITIES WILL EXIST FOR PUBLIC PARTICIPATION AND INPUT INTO THE PROC ESS

QUESTIONS