The State Compensation Insurance Fund (SCIF) is administered by its board of directors to transact workers' compensation insurance (Insurance Code §11770). Under §11775, the fund is to be fairly competitive with other insurers and is intended to become neither more nor less than self-supporting. It is not limited to public employers, and charging below cost indefinitely would conflict with the self-supporting goal.

Who may place business with SCIF: §11784(c) says the president may not refuse any workers' compensation risk under state law tendered with the premium, with two exceptions. The president may decline a risk that does not meet the minimum requirements of the industrial accident prevention authorities, or one that is beyond the safe carrying of the fund. A poor loss record or earlier declinations by other insurers are not listed reasons. The fund may also inspect and audit payrolls (§11784(e)).

Why a producer would use SCIF: because the fund generally may not refuse a compensation risk tendered with the premium, it works as a market for employers that private insurers will not take. Example: a small roofing company with a poor loss record has been declined by several private insurers, but it meets all safety requirements and is ready to pay. Its producer can turn to SCIF.