AMENDED IN ASSEMBLY APRIL 28, 2003
CALIFORNIA
LEGISLATURE—2003–04 REGULAR SESSION
ASSEMBLY BILL No. 1262
Introduced by Assembly Member Matthews
February 21, 2003
An act to add Article 5 (commencing with Section 11761)
to Chapter
3 of Part 3 of Division 2 of the Insurance Code, relating
to workers’
compensation insurance.
LEGISLATIVE COUNSEL’S
DIGEST
AB 1262, as amended, Matthews. Workers’
Compensation
Insurance: study claims adjusters.
Existing law generally regulates insurers offering
workers’
compensation insurance and other specified entities
involved in
administering this type of insurance.
This bill would require the Insurance Commissioner
to adopt
regulations setting forth the minimum standards of
training,
experience, and skill that workers’ compensation claims
adjusters must
possess. The bill would require every workers’
compensation insurer, as
defined, to certify to the commissioner that the
personnel employed by
the insurer to adjust workers’ compensation claims, or
employed for
that purposes by a medical billing entity, as defined,
meet those
minimum standards.
Existing law generally regulates the issuance of
workers’
compensation insurance.
This bill would require the Insurance Commissioner to
conduct a
study examining the competitiveness of the workers’
compensation
insurance system, as specified, and to submit a report
to the Legislature
and the Governor.
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. The Insurance Commissioner shall conduct
SECTION 1. Article 5 (commencing with Section 11761) is
added to Chapter 3 of Part 3 of Division 2 of the
Insurance Code,
to read:
Article 5. Standards Applicable to Claims Adjusters
11761. (a) The
commissioner shall adopt regulations setting
forth the minimum standards of training, experience,
and skill that
workers’ compensation claims adjusters must possess to
perform
their duties with regard to workers’ compensation
claims.
(b) Every insurer shall certify to the
commissioner that the
personnel employed by the insurer to adjust workers’
compensation claims, or employed for that purpose by
any medical
billing entity with which the insurer contracts, meet
the minimum
standards adopted by the commissioner pursuant to
subdivision
(a).
(c) For the purposes of this section, ‘‘medical
billing entity’’
means a third party that reviews or adjusts workers’
compensation
medical bills for insurers.
(d) For the purposes of this section, ‘‘insurer’’
means an
insurer admitted to transact workers’ compensation
insurance in
this state, the State Compensation Insurance Fund, an
employer
that has secured a certificate of consent to
self-insure pursuant to
subdivision (b) or (c) of Section 3700 of the Labor
Code, or a
third-party administrator that has secured a
certificate of consent
pursuant to Section 3702.1 of the Labor Code.
a study of the workers’ compensation insurance system
that
examines the state of competitiveness in the market,
determines
factors affecting that state of competitiveness, and
identifies ways
to improve market functioning. The commissioner shall
submit a
report containing findings and recommendations to the
Legislature and the Governor.