December 15, 2017

Mainstay Business Solutions De-certified as a Self Insurer, Workers’ Comp Clients Must Secure Another Insurer

Sacramento, CA – Employers who secure workers’ compensation for their workforce through Mainstay Business Solutions are urged to immediately secure another source of coverage after the Department of Industrial Relations revoked Mainstay’s certificate of consent to self insure due to Mainstay’s inability to pay benefits to injured workers. Mainstay’s existing workers comp claims are now being paid by the California Self Insurers’ Security Fund.

The Department of Industrial Relations’ office of Self-Insurance Programs (DIR/SIP) revoked the certificate on April 18 after a partial audit determined a shortfall of $4.7 million and revealed that Mainstay’s claims were under-reserved by at least $2 to $3 million. Mainstay also failed to post $1.8 million of the $18.7 million security deposit required for its workers’ compensation injuries.

Source: CA DIR

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