Bill Text: CA AB947 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Workers' compensation: temporary disability payments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2011-10-07 - Vetoed by Governor. [AB947 Detail]

Download: California-2011-AB947-Introduced.html

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BILL NUMBER: AB 947	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 18, 2011

   An act to amend Section 11734 of the Insurance Code, relating to
workers' compensation insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 947, as introduced, Solorio. Workers' compensation insurance:
rates.
   Existing law requires workers' compensation insurers to adhere to
a uniform experience rating plan filed with the Insurance
Commissioner by a rating organization designated by the commissioner
and subject to his or her disapproval. Existing law authorizes an
insurer to develop its own classification system upon which a rate
may be made or adopt the classification system developed by the
designated rating organization; provided, however, that any
classification system developed by an insurer be filed with the
commissioner 30 days prior to its use.
   This bill would instead require that any classification system
developed by an insurer be approved by the commissioner prior to its
use.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11734 of the Insurance Code is amended to read:

   11734.  (a) Every workers' compensation insurer shall adhere to a
uniform experience rating plan filed with the commissioner by a
rating organization designated by the commissioner and subject to his
or her disapproval.
   (b) The commissioner shall designate a rating organization to
assist him or her in gathering, compiling, and reporting relevant
statistical information, and to develop a classification system. An
insurer may develop its own classification system upon which a rate
may be made or adopt the classification system developed by the
designated rating organization; provided, however, that any
classification system developed by an insurer  must be filed
with the commissioner 30 days   shall be approved by the
commissioner  prior to its use. The commissioner shall
disapprove a classification system filed by an insurer pursuant to
this section if the insurer fails to demonstrate that the data
thereby produced can be reported consistent with the uniform
statistical plan or the classification system developed by the rating
organization. Every workers' compensation insurer shall record and
report its workers' compensation experience to the designated rating
organization as set forth in the uniform statistical plan approved by
the commissioner.
   (c) The designated rating organization shall develop and file
manual rules, subject to the approval of the commissioner, reasonably
related to the recording and reporting of data pursuant to the
uniform statistical plan, uniform experience rating plan, and any
classification systems that may be in effect. Every workers'
compensation insurer shall adhere to the approved manual rules and
experience rating plan in writing and reporting its business.
 No   An  insurer shall  not 
agree with any other insurer or with a rating organization to adhere
to manual rules that are not reasonably related to the recording and
reporting of data pursuant to the uniform statistical plan or
classification system developed by the rating organization.
   (d) The designated rating organization shall also develop and file
with the commissioner a weekly premium per employee for each
classification used or proposed for use by that organization. The
weekly premium shall be developed by applying the proposed rate for
each classification to the state average weekly wage. For the purpose
of this section, "state average weekly wage" means the average
weekly wage paid by employers to employees covered by unemployment
insurance as reported by the United States Department of Labor for
California for the 12 months ending March 31 of the calendar year
preceding the year in which the injury occurred.