Bill Text: CA SB342 | 2009-2010 | Regular Session | Introduced

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Bill Title: Workers' compensation: claims administration.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB342 Detail]

Download: California-2009-SB342-Introduced.html

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BILL NUMBER: SB 342	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Runner

                        FEBRUARY 25, 2009

   An act to amend Section 3702.1 of the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 342, as introduced, Runner. Workers' compensation: claims
administration.
   Existing law establishes a workers' compensation system,
administered by the Administrative Director of the Division of
Workers' Compensation, to compensate an employee for injuries
sustained in the course of his or her employment, and requires an
employer to provide, or pay for all reasonable costs of, medical
services necessary to care for, or relieve, work-related injuries.
   Existing law prohibits a person, firm, or corporation, other than
an insurer admitted to transact workers' compensation insurance in
this state, to contract to administer claims of self-insured
employers as a 3rd-party administrator without a certificate of
consent.
   This bill would make technical, nonsubstantive changes to the
above provision.
   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 3702.1 of the Labor Code is amended to read:
   3702.1.  (a) No person, firm, or corporation, other than an
insurer admitted to transact workers' compensation insurance in this
state, shall contract to administer claims of self-insured employers
as a third-party administrator unless  they are  in
possession of a certificate of consent to administer self-insured
employers workers' compensation claims.
   (b) As a condition of receiving a certificate of consent, all
persons given discretion by a third-party administrator to deny,
accept, or negotiate a workers' compensation claim shall demonstrate
their competency to the director by written examination, or other
methods approved by the director.
   (c) A separate certificate shall be required for each adjusting
location operated by a third-party administrator. A third-party
administrator holding a certificate of consent shall be subject to
regulation only under this division with respect to the adjustment,
administration, and management of workers' compensation claims for
any self-insured employer.
   (d) A third-party administrator retained by a self-insured
employer to administer the employer's workers' compensation claims
shall estimate the total accrued liability of the employer for the
payment of compensation for the employer's annual report to the
director and shall make the estimate both in good faith and with the
exercise of a reasonable degree of care. The use of a third-party
administrator shall not, however, discharge or alter the employer's
responsibilities with respect to the report.