State Fund Defends Reserves Despite Audit Concerns

California State Compensation Insurance Fund's executives and its auditors have opposing opinions on the carrier's reserve position and the gulf between them amounts to over $1 billion. PricewaterhouseCoopers states that State Fund's net loss and loss adjustment expense reserves should have been increased to $9.8 billion, or by $1 billion, from the $8.8 billion shown in the State Fund's financial statements. The California Department of Insurance financial surveillance unit agrees with PwC. However, Milliman USA, State Fund's hired "outside" actuary, agreed with State Fund's ...