Copyright © 2013 Use of this website subject to Terms and Conditions7041 Koll Center Parkway Suite 290 Pleasanton, CA 94566
Toll Free: 800-772-8998 Fax: 925-484-6014
SB 684 (Corbett), sponsored by the California Department of Insurance, advanced from two policy committees this past week.
SB 684 was initially opposed by the insurance industry. As introduced, the bill would have required dispute resolution clauses entered into between an employer and a workers' compensation insurer to specify that California law applies and the venue is to be in California. The bill was first heard in the Assembly Insurance Committee on a special hearing date on June 27th. At that time, the measure failed passage due to strong industry opposition, but reconsideration was granted.
Industry representatives worked last week with the author and the Chair and staff of the Assembly Insurance Committee to resolve concerns with the measure.
Subsequent to this week’s hearing of the Insurance Committee, stakeholders came to agreement on new language for the bill. The approach now contained in the bill involves timely disclosure to defined employers, with specified consequences for a failure to comply. The amendments resolved the issues that have been raised by various workers' compensation insurers, who are now in support of the bill.
As amended, SB 684 would require a workers' compensation insurer to disclose to a California employer, at the time an offer of insurance is made, that a dispute resolution or arbitration clause that may involve law and venue other than California may be a part of the offer.
With the new approach, SB 684 passed the Assembly Insurance Committee with a vote of 10-1. In an effort to beat the July 8th deadline for policy committees to hear measures, SB 684 was heard Thursday in the Assembly Judiciary Committee. The measure passed with a vote of 10-0. The bill now advances to the Assembly Floor. To view the entire text of the bill, please click here.