California proposal would point out arbitration agreement

Terms of workers' comp policies would be more transparent, according to supporters of legislation before Gov. Jerry Brown. It would require insurance carriers to ensure employers are on board with policy language for resolving disputes.

According to supporters of S.B. 684, employers are not necessarily aware of certain specified conditions associated with a quote for a workers' comp policy, such as a requirement that arbitration must take place out of state under another state's law. That can help lower the quote, they say.

The proposal would require that employers be notified up front that they can negotiate the dispute resolution provision. If the employer decides to accept the insurer's quote, a signature will be required to indicate that they understand and accept the terms.

NFL seeks to seal the deal against players filing in California (04/19/12)
Washington: DLI looks to establish medical provider network (09/10/12)
Physician-owned surgery centers come under researchers' scrutiny (06/18/12)
Coalition disputes contentions in think tank's report on N.Y. assessments (04/19/12)
Report outlines effective strategies for successful self-insurance groups (06/18/12)

In urging the governor to sign the measure, Insurance Commissioner Dave Jones said the bill creates an important protection for employers by "no longer allowing insurers to force businesses, small and large, to arbitrate out of state without their foreknowledge and consent." He also said the proposal would ensure that employers and insurers "both freely and mutually agree to terms of the workers' compensation policy."

Read more at the WorkersComp Forum homepage.

September 29, 2011

Newsletter Sign-up