BILL NUMBER: AB 879	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 28, 2009
	AMENDED IN ASSEMBLY  MARCH 23, 2009

INTRODUCED BY   Assembly Member Hernandez

                        FEBRUARY 26, 2009

   An act to add Section 3702.11 to the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 879, as amended, Hernandez. Workers' compensation:
self-insurers: financial audits.
   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.
   Existing law requires the administrative director to conduct
audits of insurers, self-insured employers, and 3rd-party
administrators to ensure that injured workers are promptly and
accurately receiving the full measure of compensation they are
entitled to receive.
   This bill would require a group self-insurer to annually file with
the director an audited financial statement and an actuarial
 analysis of its historical loss development  
certification of reserve   adequacy  , as prescribed.
The bill would require that the audited financial statement and
actuarial  analysis   certification  be
made available to the public, as prescribed.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 3702.11 is added to the Labor Code, to read:
   3702.11.  (a) A group self-insurer shall annually file both of the
following with the director, in the form prescribed by the director:

   (1) An audited financial statement prepared by an independent,
certified public accountant. 
   (2) An actuarial analysis, by program year, done of the group
self-insurer's historical claim loss development, performed by an

    (2)     An actuarial certification of
reserve adequacy by program year performed by an  independent
actuary who is an associate or a fellow of the Casualty Actuary
Society or a member of the American Academy of Actuaries.
   (b) The audited financial statement and actuarial 
analysis   certification  shall be made available
to the public, except that  no  individually
identifiable claimant  or  information and 
individual member financial information shall  not  be made
public.