BILL NUMBER: AB 1922	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Daly

                        FEBRUARY 11, 2016

   An act to amend Section 11658 of the Insurance Code, relating to
workers' compensation insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1922, as introduced, Daly. Workers' compensation policies.
   Existing law requires that a workers' compensation insurance
policy or endorsement not be issued by an insurer unless the insurer
files a copy of the form or endorsement with a rating organization
and 30 days have expired from the date the form or endorsement is
received by the Insurance Commissioner from the rating organization
without notice from the commissioner, unless the commissioner gives
written approval of the form or the endorsement prior to that time.
   This bill would exempt policies or endorsements offering
deductibles to policyholders for all or part of benefits payable
under the policy if the estimated nationwide standard premium is
$250,000 or more, and documents that do not alter, amend, or
otherwise provide for the payment of compensation or benefits,
coverage, or rating under the policy, from filing under the above
provisions.
   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 11658 of the Insurance Code is amended to read:

   11658.  (a) A workers' compensation insurance policy or
endorsement shall not be issued by an insurer to any person in this
state unless the insurer files a copy of the form or endorsement with
the rating organization pursuant to subdivision (e) of Section
11750.3 and 30 days have expired from the date the form or
endorsement is received by the commissioner from the rating
organization without notice from the commissioner, unless the
commissioner gives written approval of the form or endorsement prior
to that time.
   (b) If the commissioner notifies the insurer that the filed form
or endorsement does not comply with the requirements of law,
specifying the reasons for his or her opinion, it is unlawful for the
insurer to issue any policy or endorsement in that form.
   (c) The withdrawal of a policy form or endorsement by the
commissioner pursuant to this section shall not affect the status of
the policyholder as having secured payment for compensation or affect
the substitution of the insurer for the policyholder in workers'
compensation proceedings as set forth in the provisions of Chapter 4
(commencing with Section 3700) of Part 1 of Division 4 of the Labor
Code during the period of time in which the policy form or
endorsement was in effect.
   (d) This section  shall   does  not
apply to limited policies submitted for approval to the commissioner
pursuant to Section 11657. 
   (e) This section does not apply to policies or endorsements
offering deductibles to policyholders for all or part of benefits
payable under the policy if the estimated nationwide standard premium
is two hundred fifty thousand dollars ($250,000) or more.  

   (f) This section does not apply to documents that do not alter,
amend, or otherwise provide for the payment of compensation or
benefits, coverage, or rating under the policy.