2. DEPARTMENT OF INDUSTRIAL RELATIONS JON WROTEN, C HIEF (916) 574-0300 jwroten@dir.ca.gov

3. SELF INSURANCE BY THE NUMBERS $175.46 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

4. SELF INSURED GROUPS (SIG)

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

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

7. 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 !!

8. OSIP IMPROVEMENTS I NTRODUCING E-F ILING ON 1-1-13 S TATEWIDE C LAIMS A DMINISTRATOR T ESTING E LECTRONIC T RANSFER F UNDS (ETF) N EWSLINE B ULLETINS AND U PDATES

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

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

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

14. SIG ACTUARIAL PEER REVIEWS

15. 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

16. SB863

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

18. 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

19. SB 863 C HANGES P ROFESSIONAL E MPLOYER O RGANIZATIONS AND SIMILAR TYPE STAFFING FIRMS N O N EW PEO S E FFECTIVE 1-1-2013 A NY CURRENT PEO S R EVOKED BY 1-1-2015

20. 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

21. 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

22. 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

23. QUESTIONS