State of California

  M E M O R A N D U M

  REFERENCE CODE:
  97-039

  DATE:
  October 28, 1997

  TO:
  Personnel Officers
  Return-to-Work/Claims Coordinators

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Workers' Compensation Insurance

  CONTACT:
  Jamie Meyers, Workers' Compensation Programs Administrator
  (916) 327-4024, Calnet 467-4024
  FAX: (916) 322-3769
  OFFICE VISION: DPA(JLMEYERS)
  INTERNET: JLMEYERS@SMTP.DPA.CA.GOV


  This PML is to remind departments of their options in
  obtaining workers' compensation coverage for their
  employees as outlined in Management Memo 95-21.
  Departments have three options:
  
  To be legally uninsured and to have their claims
  administered by State Compensation Insurance Fund.
  To purchase an insurance policy from State Compensation
  Insurance Fund.
  To purchase workers' compensation insurance from any
  other insurance company which is licensed to do business
  in the state.
  
  In most instances it is more cost effective for a state
  agency to remain legally uninsured under the Master
  Agreement between the Department of Personnel
  Administration and State Compensation Insurance Fund.
  There are however several instances when it is more
  prudent to have an insurance policy.  These may include:
  
  The department, board or commission is small, or
  specially funded, and could not afford to pay for the
  costs of a catastrophic claim. (Total payroll of
  around $1 million.)
  The department has employees who permanently reside
  out-of-state or out-of-the-country.
  The department is federally funded.
  
  
  
  If you have questions in regards to the legally uninsured
  program, please contact Jamie Meyers of the Workers'
  Compensation Program at (916) 327-4024.
  
  If you have questions about purchasing workers'
  compensation insurance, please contact the Office of Risk
  and Insurance Management in the Department of General
  Services and ask for the workers' compensation advisor at
  (916) 445-2184.
  
  
  
  
  Kathie Vaughn, Chief
  Benefits Division