Two directors of the State Compensation Insurance Fund have resigned amid concerns about possible conflicts of interest, the board chairwoman said Wednesday, the Los Angeles Times reports.

The resignations followed questions about whether the men should be fund directors at the same time that their insurance firms were collecting millions of dollars in fees from the fund.

“The potential of a conflict of interest is a problem,” said Chairwoman Jeanne Cain, a top official at the California Chamber of Commerce. “I recommend that we don’t have these kind of appointees” in the future.

State Fund is the largest insurance provider in California, issuing $6.1 billion a year in policies, and handles workers’ compensation injury claims from state government employees. It also is the largest workers’ comp carrier in the nation.

Resigning from the board were Frank DelRe, 59, president of Western Insurance Administrators Inc. of Long Beach, and Kent Dagg, 55, executive director of the Shasta Builders Exchange in Redding.

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