California's SCIF names new president

SAN FRANCISCO--Janet Frank, executive vp-North American field operations for CNA Financial Corp., will become president of the State Compensation Insurance Fund in October, San Francisco-based SCIF said Wednesday.

Ms. Frank will succeed Lawrence E. Mulryan, who was named interim president shortly after the troubled workers compensation insurer abruptly fired its president, James C. Tudor, and vp, Renee Koren, in March amid results of an internal review, which in part focused on its group insurance program.

Following the move, California Insurance Commissioner Steve Poizner, who has regulatory oversight over SCIF, ordered an audit and demanded structural and operational changes at the insurer.

In April, about half a dozen fraud investigators from the department's law enforcement division began investigating whether any laws were broken in the payment of administrative fees in connection with SCIF's group insurance programs, which provides discounted workers compensation insurance for members of trade associations.

Last month, the California Highway Patrol, California Department of Insurance and San Francisco District Attorney's Office formed a joint task force to investigate allegations of "potential misconduct" by former SCIF employees.

Two of SCIF's five board members resigned last year amid conflict-of-interest concerns over their role in placing and administering some group business with SCIF for which their companies received fees.

Commenting on Ms. Frank's appointment, Jeanne Cain, SCIF board chair, said in a statement: "She will be a tremendous asset to State Fund as we continue work to create an organization steeped in integrity and transparency."