State Insurance Fund
Administrative Expenses The State Insurance Fund provides workers' compensation and disability benefit insurance coverage to many of the employers in New York State. According to State law, the Fund's administrative expenses are limited to no more than 25 percent of its earned premiums. Between 1994 and 1998, the Fund's earned premiums declined significantly, and as a result, the Fund's reported administrative expenses increased from 11.7 percent to 24.1 percent of its earned premiums. We examined selected expenses reported by the Fund for 1997 and 1998 to determine whether the expenses were properly classified as administrative or nonadministrative. We identified certain expenses in both years that were incorrectly classified as nonadministrative. However, these errors were not material, because the Fund's administrative expenses did not exceed 25 percent of its earned premiums after the errors were corrected.
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