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This week, IBA West CEO Clark Payan presented the following testimony to the Senate Insurance Committee in support of AB 228. The bill would allow State Fund to sell workers’ compensation insurance outside the state of California.
Insurance brokers who serve employers with operations and employees in other states, are today required to obtain multiple workers’ compensation policies – one policy with State Fund insuring the California-only exposure and another policy with an insurer licensed to place coverage for the out-of-state exposure. This process is time consuming, inefficient and costly for the broker and the policyholder.
AB 228 will provide an option for California insurance brokers to serve their California clients and enhance competition in the California workers’ compensation marketplace. This legislation will give brokers the ability to place workers’ compensation insurance with the State Fund in the same manner as they do when they place coverage for an employer with multistate operations with an insurance company licensed in multiple jurisdictions. This change will make it easier for brokers to do business with the State Fund and benefit California insurance consumers. -- Clark Payan, IBA West CEO