BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1427
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                           ASSEMBLY COMMITTEE ON INSURANCE
                                 Jose Solorio, Chair
             AB 1427 (Committee on Insurance) - As Introduced:  March 22, 
                                        2011
           
          SUBJECT  :   Workers' compensation insurance: fraud

           SUMMARY  :   Repeals an obsolete requirement of the Bureau of 
          State Audits to submit a report on workers' compensation, and 
          replaces a rarely used word in the Insurance Code with a 
          commonly used word.  Specifically,  this bill  :

          1)Repeals the requirement of the Bureau of State Audits to 
            submit a report on workers' compensation to the Senate Labor 
            and Industrial Relations Committee and to the Assembly 
            Insurance Committee by May 1, 2004.

          2)Replaces the word "indorsement" with the word "endorsement" in 
            one section of law governing limited workers' compensation 
            policies.

           EXISTING LAW  :

          1)Requires the Bureau of State Audits to submit, by May 1, 2004, 
            an evaluation report regarding workers' compensation to the 
            Senate Committee on Labor and Industrial Relations and to the 
            Assembly Insurance Committee.  This report is required to 
            evaluate the effectiveness of the Fraud Assessment Commission, 
            the Fraud Division, the Department of Insurance, the 
            Department of Industrial Relations, and local law enforcement 
            agencies including district attorneys, in identifying, 
            investigating, and prosecuting workers' compensation fraud and 
            the willful failure to secure payment of workers' 
            compensation.

          2)Provides, in one section of law, that a limited workers' 
            compensation policy is not limited except by indorsement to 
            the policy in accordance with a form prescribed by the 
            Insurance Commissioner.   
           
           FISCAL EFFECT  :   None.

           COMMENTS  :








                                                                  AB 1427
                                                                  Page  2


           1)Background  .  Each year the Assembly Insurance Committee 
            introduces a set of committee bills, authored by a majority of 
            the committee Members, to address non-controversial issues.  
            This bill repeals the requirement to submit a report 7 years 
            ago, and applies a common word in one Insurance Code section 
            to become consistent with the other Insurance Code sections.  
            The bill is also available for noncontroversial issues 
            relating the workers' compensation that may arise during the 
            Legislative Session.


           



          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None received.

           Opposition 
           
          None received.

           
          Analysis Prepared by  :    Manny Hernandez / INS. / (916) 319-2086