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Thursday, December 7, 2017
Little Explanation for Large Increase in SIF Costs
- State: California
- Topic: Top
- - Popular with: Legal
- - 0 shares
California employers will pay more in assessments for subsequent injury claims next year than they h…
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2 Comments
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Dec 7, 2017 a 7:17 am PST
It's very simple. There are far more SIF claims than there were a few years ago. Whereas a handful of firms used to pursue SIF, now CAAA is giving seminars on the topic and seemingly every attorney knows the basics.
Frank Neuhauser Dec 7, 2017 a 7:12 am PST
The first comment is half the explanation. Both applicant and defense attorneys are aggressively exploiting SIF by agreeing to settle cases, especially apportioned cases, just below the 70% threshold that would make the insurer liable for Life Pensions. Then the applicant's attorney uses the settlement (with "agreed" apportionment) as evidence of eligibility for a LP paid by SIF. A simple way for defense attorneys to lower the insurer's cost and applicants' attorneys to increase the settlement by placing large liabilities on SIF. This has been even easier to do since the 1.4 multiplier under SB863 replaced the lower multipliers (FEC) under SB899 . When the defense and applicant bars feign ignorance, it's disingenuous. SIF has become an extra pool of money both parties can use while taxing employers.