The California Insurance Guarantee Assn., an emergency fund that covers workers' compensation claims, is asking to borrow $1.5 billion in order to avoid bankruptcy. Rising premiums and larger payouts are causing a crisis in workers' comp insurance. across the state. State Sen. Tom McClintock, a member of the Labor and Industrial Relations Committee, feels that the workers' comp system must be overhauled before more money is invested.
See "Fallback Claims Fund Is Struggling", Peter Nicholas, Los Angeles Times, July 15, 2003