Insurance Commissioner Sues To Halt Sale Of SCIF Assets

One of the ways in which the State is attempting to raise funds for this year's budget is the sale or other disposition of assets belonging to the State Compensation Insurance Fund (SCIF), the workers' compensation insurer of last resort in California. Believing that these assets may only be used for purposes related to workers' compensation, Insurance Commissioner Steve Poizner has filed a lawsuit to stop the sale or other disposition of SCIF assets. A copy of the Petition/Complaint is here. The principal thrust of the complaint is that the sale violates Article XIV, Section 4 of the California Constitution, which requires the Legislature to establish a "complete system of workers' compensation. The Complaint also alleges a violation of Article II, Section 10(c). Howard Rice is representing the Commissioner, along with Adam Cole, Chief Counsel for the Department of Insurance (DOI), and several other lawyers from the DOI.
ps. Here is an article on the lawsuit, from last Friday's Los Angeles Times.