California vetoes new workers comp legislation

Gov. Arnold Schwarzenegger this week sided with insurers in vetoing legislation that would have forced workers compensation insurers to submit dispute-resolution clauses to the state’s insurance commissioner for review, according to a California lawmaker.

The legislation would also have required workers compensation dispute-resolution clauses to specify that California law applies in coverage disagreements involving California employers.

Currently, California law requires workers compensation insurers to submit for approval their policy forms to the insurance commissioner but does not require that side agreements be reviewed or agreed upon.

In a Sept. 30 veto message, the Governor Arnold Schwarzenegger said that the bill is unnecessary because there is no evidence a problem exists and it could reduce “the competitive market for workers compensation California now enjoys.”

“The high-deductible contract negotiations the bill seeks to impact are conducted by sophisticated participants on both sides of the table that are well-versed in all aspects of workers compensation and other insurance products.”

If you are seeking experienced advice when it comes to a workers compensation case, contact the Des Moines workers’ compensation attorneys of LaMarca Law Group, P.C. at 877-327-2600 today.


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