State Accident Insurance Fund
Encyclopedia
The State Accident Insurance Fund Corporation (SAIF) is a not-for-profit, state-chartered workers’ compensation insurance company in the U.S. state
of Oregon
. It provides workers' compensation
insurance for Oregon employers.
SAIF was created in 1914 by the Oregon Legislative Assembly
as a state agency, and in 1980 became America's
first public corporation specializing in workers' compensation insurance.
SAIF's practices have been the subject of some scrutiny and controversy in recent years.
SAIF does not pay state income tax
, which gives it the ability to price its policies more aggressively than it otherwise might, and take large profits as well. Private competitor Liberty Northwest, a subsidiary of Liberty Mutual
, is the state's second-largest provider of workers' compensation insurance; it has been openly critical of the laws regulating SAIF for some time.
In 2004, voters rejected a ballot measure
that would have abolished SAIF. The measure was defeated with 61% of the vote, but public debate over its management continued.
In 2005, state senator
Vicki Walker
publicly questioned whether SAIF's cost savings was coming at the expense of denying legitimate claims. SAIF was also investigated for failing to provide documents to the nonprofit Oregonians for Sound Economic Policy, specifically regarding a contract with former Governor
Neil Goldschmidt
. The Senate considered, but did not pass, a bill that would have forced SAIF to disclose more of its records, in 2005. SAIF was found to have been "sloppy," but not criminal, at the investigation's conclusion in 2006. SAIF issued a report on its status to Governor Ted Kulongoski
in early 2005.
Over half a million people (35% of Oregon's workforce) are insured by SAIF.
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
. It provides workers' compensation
Workers' compensation
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence...
insurance for Oregon employers.
SAIF was created in 1914 by the Oregon Legislative Assembly
Oregon Legislative Assembly
The Oregon Legislative Assembly is the state legislature for the U.S. state of Oregon. The Legislative Assembly is bicameral, consisting of an upper and lower house: the Senate, whose 30 members are elected to serve four-year terms; and the House of Representatives, with 60 members elected to...
as a state agency, and in 1980 became America's
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
first public corporation specializing in workers' compensation insurance.
SAIF's practices have been the subject of some scrutiny and controversy in recent years.
SAIF does not pay state income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
, which gives it the ability to price its policies more aggressively than it otherwise might, and take large profits as well. Private competitor Liberty Northwest, a subsidiary of Liberty Mutual
Liberty Mutual
Liberty Mutual Group, more commonly known by the name of its primary line of business Liberty Mutual, is a diversified global insurer and the third largest property and casualty insurer in the United States based on 2010 net written premium. It is the 82nd company on the Fortune 500 list for 2011...
, is the state's second-largest provider of workers' compensation insurance; it has been openly critical of the laws regulating SAIF for some time.
In 2004, voters rejected a ballot measure
Oregon Ballot Measure 38 (2004)
Ballot Measure 38 of 2004 would have abolished Oregon's State Accident Insurance Fund , a nonprofit state-chartered workers' compensation provider. SAIF's assets would have been sold and the revenues from the sale would have been used to fund schools and other state services...
that would have abolished SAIF. The measure was defeated with 61% of the vote, but public debate over its management continued.
In 2005, state senator
Oregon State Senate
The Oregon State Senate is the upper house of the state-wide legislature for the U.S. state of Oregon. Along with the lower chamber Oregon House of Representatives it makes up the Oregon Legislative Assembly. There are 30 members of the State Senate, representing 30 districts across the state,...
Vicki Walker
Vicki Walker
Vicki Lynn Walker is an American politician and administrator from Oregon. She is the Oregon State Director for Rural Development with the U.S. Department of Agriculture. A member of the Democratic Party, Walker previously served in both houses of the Oregon Legislature and briefly served as chair...
publicly questioned whether SAIF's cost savings was coming at the expense of denying legitimate claims. SAIF was also investigated for failing to provide documents to the nonprofit Oregonians for Sound Economic Policy, specifically regarding a contract with former Governor
Governor of Oregon
The Governor of Oregon is the top executive of the government of the U.S. state of Oregon. The title of governor was also applied to the office of Oregon's chief executive during the provisional and U.S. territorial governments....
Neil Goldschmidt
Neil Goldschmidt
Neil Edward Goldschmidt is an American businessman and former Democratic politician from Oregon who held local, state, and federal offices over three decades. After serving as the governor of Oregon, Goldschmidt is widely considered the most influential figure in the state's politics, both as an...
. The Senate considered, but did not pass, a bill that would have forced SAIF to disclose more of its records, in 2005. SAIF was found to have been "sloppy," but not criminal, at the investigation's conclusion in 2006. SAIF issued a report on its status to Governor Ted Kulongoski
Ted Kulongoski
Theodore R. "Ted" Kulongoski is an American politician, who served as the 36th Governor of Oregon. A Democrat, he has served in both houses of the Oregon Legislative Assembly, as the state Insurance Commissioner, the Attorney General, and an Associate Justice on the Oregon Supreme Court.-Early...
in early 2005.
Over half a million people (35% of Oregon's workforce) are insured by SAIF.