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California: News and Insight on Business in the Golden
State | THE STATE / INSURANCE

Workers' Comp Firms Fined More in '97

April 17, 1998|Stuart Silverstein

California authorities assessed penalties totaling $1.27 million last year against workers' compensation insurance companies and other workers' comp claim administrators, up from $1.16 million the year before. "We are finding unacceptably high amounts of unpaid compensation due to injured workers, late payment of benefits and failure to notify employees of their rights to benefits in a timely manner," said Casey L. Young, administrative director of the California Division of Workers' Compensation. State auditors found that in 16% of the cases they investigated, claims administrators had failed to pay all of the compensation due injured workers. That was up from 12.7% in 1996.

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