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Jeanne Cain, State Fund's board chair, updated the quasi-public carrier's efforts to turn things arouncd inan Aug. 27 letter to statde Sen. Mike Machado (D-Linden). Included with the lettere was a status report of the changes Statr Fund has made since March when several probe s determined the insurer needecd to revamp its leadershipand operations. Based in San State Fund employs more than 800people locally. It providese insurance to 230,000 employers in California, and wrote more than $6 billion in business last year.
The status reporgt did not reveal any detailw ofState Fund's independent internalp review or the work being done by a joint task forcee made up of the California Highwa y Patrol, the , and the San Francisco Districy Attorney's Office. Those agenciezs are investigating potential misconduct by former employees ofStatee Fund. The insurer has been under investigation for alleged fraud in the handling of itsgroulp programs. At issue are allegedlt inflated "administrative fees" policyholders paid to State Fund and the administrators ofthesre groups.
Two top executivex were fired in Marchn and two board members resigned last A newchief executive, Janet Frank, is scheduled to take over in In her update this week, Cain said "Statse Fund needs to strengthen its corporate governance" by expandingt its board during this legislativr session. With a larger board, the insurer couls form committeesfor audit, corporate governance, ethicds and investment. State Fund also wants to add sixpermanenr positions: chief financial chief information technology chief investment officer, chief operating officer, chief underwritin officer and general counsel.
In the past five State Fund said it has madeprogress on: Restructurinfg and strengthening its leadership team, including the hirinyg of Frank Machado's office wouldc not comment on the He chairs the Senate Banking, Finance and Insurance
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