BILL NUMBER: AB 2192 CHAPTERED 09/26/02 CHAPTER 879 FILED WITH SECRETARY OF STATE SEPTEMBER 26, 2002 APPROVED BY GOVERNOR SEPTEMBER 25, 2002 PASSED THE ASSEMBLY AUGUST 28, 2002 PASSED THE SENATE AUGUST 27, 2002 AMENDED IN SENATE AUGUST 22, 2002 AMENDED IN SENATE JUNE 20, 2002 AMENDED IN SENATE JUNE 3, 2002 AMENDED IN ASSEMBLY MAY 7, 2002 AMENDED IN ASSEMBLY APRIL 30, 2002 AMENDED IN ASSEMBLY APRIL 25, 2002 INTRODUCED BY Assembly Member Chavez FEBRUARY 20, 2002 An act to amend Section 11752.7 of the Insurance Code, relating to workers' compensation insurance. LEGISLATIVE COUNSEL'S DIGEST AB 2192, Chavez. Workers' compensation insurance: rating information. Existing law authorizes a licensed rating organization to make available experience rating information in its records to insurers admitted to transact workers' compensation insurance if the insurer, agent, or broker submits a written request that meets certain requirements. Under existing law, a willful violation of these provisions is punishable as a misdemeanor offense. This bill would provide that a licensed rating organization may not enter into a contract or agreement that prohibits information services companies in the business of publishing or providing experience rating information prior to a specified date from continuing to receive and provide that information. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares that it is the intent of the State of California to foster a competitive marketplace for workers' compensation insurance to serve employers and their injured employees. In order to achieve this goal, the Legislature finds and declares that it is important for insurers, agents, and brokers to have access to and share information developed by insurers and reported to insurance advisory and rating organizations, as required by law, that is necessary to underwrite insurance and facilitate the transaction of workers' compensation insurance in this state. The provisions of this act are intended to further the Legislature's intent. SEC. 2. Section 11752.7 of the Insurance Code is amended to read: 11752.7. (a) A licensed rating organization may make available experience rating information contained in its records to any insurer admitted to transact workers' compensation insurance in this state or to any insurance agent or broker that is licensed to transact workers' compensation insurance in this state, if the insurer, agent, or broker submits a written request to the licensed rating organization stating all of the following: (1) The requesting insurer is admitted to transact workers' compensation insurance in this state or that the requesting agent or broker is licensed to transact workers' compensation insurance in this state. (2) The information requested. (3) The information requested will be used to facilitate the transaction of workers' compensation insurance by the insurer, agent, or broker. (4) The information received will not be released by the agent or broker to others, except to facilitate the transaction of workers' compensation insurance by the requesting agent or broker. (b) The licensed rating organization may, but shall not be required to, verify that an insurer requesting information under this section is admitted to transact workers' compensation insurance in this state or that an insurance agent or broker requesting information under this section is licensed to transact workers' compensation insurance in this state. (c) For purposes of this section: (1) "Experience rating information" means information released on microfiche, at an Internet Web site or other electronic format, or in other forms or media by a licensed rating organization that identifies all experience-rated employers, and the experience ratings and classifications or experience modifications that apply or applied to those employers. (2) "Transaction," as applied to workers' compensation insurance, includes any of the following: (A) Solicitation. (B) Negotiations preliminary to execution of a contract of insurance. (C) Execution of a contract of insurance. (D) Resolution of matters arising out of the contract and subsequent to its execution. (d) Experience rating information made available pursuant to this section shall be confidential and shall not be used for any purpose other than to facilitate the transaction of workers' compensation insurance by the insurer, agent, or broker receiving the information pursuant to this section. (e) Notwithstanding any other provision of law, including this section, a licensed rating organization may not enter into a contract or other agreement, including its constitution, articles of incorporation, or bylaws that prohibits information services companies in the business of publishing or providing experience rating information immediately prior to September 15, 1989, from continuing on or after September 15, 1989, to receive and provide to others experience rating information from whatever sources and in whatever forms or media. (f) No licensed rating organization, member of a licensed rating organization, member of a committee of a licensed rating organization when acting in its capacity as a member of the committee, or officer or employee of a licensed rating organization when acting within the scope of his or her employment, shall be liable to any person for injury, personal or otherwise, or damages caused or alleged to have been caused, either directly or indirectly, by the disclosure of information pursuant to this section, or to the members of those organizations, or for the accuracy or completeness of the information disclosed. (g) This section shall not be construed as implying the existence of liability in circumstances not defined in this section, nor as implying a legislative recognition that, except for the enactment of this section, a liability has existed or would exist in the circumstances stated in this section. (h) This section shall not be construed as limiting any authority of a licensed rating organization to disclose information contained in its records to others.