BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1922 (Daly) - Workers' compensation policies: ancillary
agreements
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|Version: June 28, 2016 |Policy Vote: INS. 6 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 11, 2016 |Consultant: Debra Cooper |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 11, 2016
Bill
Summary: AB 1922 would codify the definition of ancillary
agreement for purposes of workers' compensation insurance and
provide that the requirement to file ancillary agreements with
the Insurance Commissioner (IC) prior to issuance shall not
apply to an ancillary agreement between an insurer and certain
California employers, as specified, if the agreement does not
change the benefits or coverage under the worker's compensation
policy.
Fiscal
Impact:
AB 1922 (Daly) Page 1 of
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Potentially significant costs to the Department of Insurance
(CDI) of $181,000 in fiscal year 2016-17, $352,000 in fiscal
year 2017-18, and ongoing costs of $317,000 per year for
analyzing filed ancillary agreements, identifying policies
exempt from filing, and ensuring compliance. (Insurance Fund)
Unknown, but potentially significant costs to CDI for their
Legal and Administrative Hearing Branches to pursue claims
identified by the audit and investigation team. (Insurance
Fund)
Committee
Amendments: Authorizes an insurer to use an ancillary agreement
that is exempted from filing and requires the insurer to provide
to the insurance commissioner a copy of the exempted ancillary
agreement.
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