Seizes mortgage insurance division of PMI Group. Claim
payments are being made at 50%. The remaining amount is being
deferred as a policyholder claim. PMI ranks second nationwide
for policies in force, carrying $123 billion in coverage.
Government-run State Compensation Insurance Fund plans to
drop almost a fourth of its 6,800 employees by second-quarter
2012. Cutbacks are in areas where work has been substantially
reduced because of changes in “business processes,”
CEO says. Should save about $350 million per year. >>
Gov. Jerry Brown signed bill to control workers comp costs of
compound drugs. He also vetoed A.B. 947, which would have
lengthened temporary disability benefits to a maximum 240 weeks
in certain cases.
Insurance regulators are planning to revise hurricane
deductible rules. Prospective new rules focus only on wind
speeds measured in the state and dispense with storms’
previous designation as a hurricane or whether a hurricane
warning was issued for the storm. Proposed rules would allow
insurers to impose hurricane deductible only if winds of 74 mph
are clocked within the state. The old rules impose the
deductible beginning when a hurricane warning is declared by
the National Hurricane Center for anywhere in the state until
24 hours after the warning is terminated or the storm is
downgraded from a hurricane.
Commissioner Kevin McCarty will approve 8.9% workers comp
rate hike if National Council on Compensation Insurance
re-files request with some technical changes. McCarty still
wants legislature to rein in doctor repackaging and cost
mark-ups on prescription drugs.