This is the third report of a major insurance unit issued in the last two months, with operational reviews of State Fund and the Workers' Compensation Insurance Rating Bureau released recently.
CIGA is the so-called safety net that pays the claims of insolvent property, casualty and workers' comp insurance carriers that are licensed to do business in the state. It is funded by assessments paid by insurance companies.
The operational review made 83 specific recommendations, including:
- CIGA should develop standardized fees and payment schedules along with measurable performance standards and expectations that should be coordinated with CIGA's audit process.
- CIGA should develop a consistent contract process to include a review of the initial contract with standardized review intervals. The process should also document a standardized method by which a contract would be terminated.
- CIGA should review and evaluate the basis and process for the consolidation and related costs associated with the transition of cradle to grave contracts.
A copy of the report can be found at www.insurance.ca.gov.