FLASH: PEO In Default On Self-Insured Obligations

FLASH: PEO In Default On Self-Insured Obligations

From: Workers’ Comp Executive Newsdesk [mailto:newsdesk@wcexec.com]
Sent: Wednesday, June 20, 2012 8:15 AM

Subject: FLASH: PEO In Default On Self-Insured Obligations

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Wednesday, June 20, 2012

FLASH REPORT!

Says Self-Insured Employee Leasing Firm Is In Default

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A Florida-based self-insured employee leasing firm is in hot water with California regulators. Office of Self Insurance Plans (OSIP) director Jon Wroten declared Administrative Concepts Corp. to be in default of its obligations as a self-insured employer in California. It is a professional employer organization (PEO), according to the Department of Industrial Relations.

The move opens the door for OSIP to seize the security deposit the company is required to have on file with the state and take over its workers’ comp claims. While the order of default was just issued, OSIP revoked the firm’s certificate to self-insure nearly a year ago.

According to DIR spokesman Dean Fryer, all of the specific information about the company and deposit size is confidential and not able to be released.

"The default was triggered as Administrative Concepts Corp. failed to pay required workers’ compensation benefit payments to its injured workers as required by the California Labor Code. OSIP just became aware of this situation," Fryer says. "The security deposit appears to be sufficient to fully cover the estimated future liability exposure."

The company is based in Bradenton, Fla. and was originally licensed to do business in California in April 2009. It received its certificate to self-insure on Feb. 1, 2010, which means it was permissibly self-insured for 17 months.

-30-

(Filed by Brad Cain in San Francisco)

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