Bill Text: CA AB2586 | 2017-2018 | Regular Session | Introduced
Bill Title: Workers’ compensation.
Spectrum: Partisan Bill (Independent 1-0)
Status: (Introduced - Dead) 2018-03-05 - Referred to Com. on INS. [AB2586 Detail]
Download: California-2017-AB2586-Introduced.html
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
Assembly Bill | No. 2586 |
Introduced by Assembly Member Mayes |
February 15, 2018 |
An act to amend Section 11753.1 of the Insurance Code, and to amend Section 5814.1 of the Labor Code, relating to workers’ compensation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2586, as introduced, Mayes.
Workers’ compensation.
Existing law regulates workers’ compensation insurance rates and, among other things, requires rates to be adequate to cover an insurer’s losses and expenses. Existing law provides that a person aggrieved by a decision, action, or omission of a rating organization may request reconsideration, and if the request for reconsideration is rejected or is not acted upon within 30 days, the person may file an appeal with the Insurance Commissioner, as specified.
This bill would extend the timeline for reconsideration to 45 days, after which a person may then appeal the decision, action, or omission of the rating organization with the commissioner.
Existing law establishes the Workers’ Compensation Appeals Board to exercise all judicial powers vested in it, as specified, including workers’ compensation proceedings for the recovery of compensation. Existing law authorizes the director of
the Department of Industrial Relations to provide compensation at his or her discretion from the Uninsured Employers Fund in specified workers’ compensation cases if compensation is not being provided to the applicant. Existing law provides that if payment of compensation has been unreasonably delayed or refused before the issuance of an award, and the director has paid that discretionary compensation, the Workers’ Compensation Appeals Board is required to award the director 10% of the compensation paid by the director, to be paid by the employer in addition to other specified penalties.
This bill would instead require the Workers’ Compensation Appeal Board to award the director an amount not to exceed 10% of the compensation paid to an applicant by the director.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 11753.1 of the Insurance Code is amended to read:11753.1.
(a)(b) Any An insurer adopting a change in the classification assignment of an employer that results in an increased premium shall notify the employer in
writing, or if the insurance was transacted through an insurance agent or broker, the insurer shall notify the agent or broker who shall notify the employer in writing of the change and the reasons for the change. Any An employer receiving this notice shall have the right to request reconsideration and appeal the reclassification pursuant to this section. The notice required by this section shall inform the employer of his or her rights pursuant to this section. No A notification shall not be required when
if the change is a result of a regulation adopted by the Department of Insurance or other action by or under the authority of the commissioner.
An insurer shall provide written notification of the revised classification assignment to an employer within 30 days after adoption.