BILL NUMBER: AB 1262	CHAPTERED  10/01/03

	CHAPTER  637
	FILED WITH SECRETARY OF STATE  OCTOBER 1, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2003
	PASSED THE SENATE  SEPTEMBER 12, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 12, 2003
	CONFERENCE REPORT NO.  1
	PROPOSED IN CONFERENCE  SEPTEMBER 9, 2003
	AMENDED IN SENATE  JULY 14, 2003
	AMENDED IN SENATE  JUNE 25, 2003
	AMENDED IN ASSEMBLY  APRIL 28, 2003

INTRODUCED BY   Assembly Member Matthews

                        FEBRUARY 21, 2003

   An act to add Article 5 (commencing with Section 11761) to Chapter
3 of Part 3 of Division 2 of the Insurance Code, relating to workers'
compensation insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1262, Matthews.  Workers' compensation insurance:  claims
adjusters.
   Existing law generally regulates insurers offering workers'
compensation insurance and other specified entities involved in
administering this type of insurance.
   This bill would require the Insurance Commissioner to adopt
regulations setting forth the minimum standards of training,
experience, and skill that workers' compensation claims adjusters
must possess.  The bill would require every workers' compensation
insurer, as defined, to certify to the commissioner that the
personnel employed by the insurer to adjust workers' compensation
claims, or employed for that purpose by a medical billing entity, as
defined, meet those minimum standards.


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


  SECTION 1.  Article 5 (commencing with Section 11761) is added to
Chapter 3 of Part 3 of Division 2 of the Insurance Code, to read:

      Article 5.  Standards Applicable to Claims Adjusters

   11761.  (a) The commissioner shall adopt regulations setting forth
the minimum standards of training, experience, and skill that
workers' compensation claims adjusters must possess to perform their
duties with regard to workers' compensation claims.  The regulations
adopted pursuant to this section shall, to the greatest extent
possible, encourage the use of existing private and public education,
training, and certification programs.
   (b) Every insurer shall certify to the commissioner that the
personnel employed by the insurer to adjust workers' compensation
claims, or employed for that purpose by any medical billing entity
with which the insurer contracts, meet the minimum standards adopted
by the commissioner pursuant to subdivision (a).
   (c) For the purposes of this section, "medical billing entity"
means a third party that reviews or adjusts workers' compensation
medical bills for insurers.
   (d) For the purposes of this section, "insurer" means an insurer
admitted to transact workers' compensation insurance in this state,
the State Compensation Insurance Fund, an employer that has secured a
certificate of consent to self-insure pursuant to subdivision (b) or
(c) of Section 3700 of the Labor Code, or a third-party
administrator that has secured a certificate of consent pursuant to
Section 3702.1 of the Labor Code.