Two directors of California’s State Compensation Insurance Fund have resigned, following concerns about possible conflicts of interest, industry sources are reporting.
Frank DelRe, 59, president of Western Insurance Administrators Inc. of Long Beach, Calif., and Kent Dagg, 55, executive director of the Shasta Builders Exchange in Redding, Calif., resigned after questions arose about a conflict of interest between serving on State Fund’s board while their insurance firms collected fees from the organization.
The resignations stemmed from questions about the appropriateness of the men serving on the board of the State Fund while their insurance firms were collecting fees from the organization.
DelRe was appointed in 2003 by Gov. Gray Davis. Dagg was appointed in 2004 by Gov. Arnold Schwarzenegger.
A related article on the resignations can be found on The Los Angeles Times web site at: http://www.latimes.com/business/la-fi-insure16nov16,1,7000860.story?coll=la-headlines-business.
State Fund confirmed the resignations and declined to comment further.
Sources: State Fund, IBA West, KPMG Insurance Insider
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