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.
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
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