California Assembly Bill AB879 Amended / Bill

 BILL NUMBER: AB 879AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 28, 2009 AMENDED IN ASSEMBLY MARCH 23, 2009 INTRODUCED BY Assembly Member Hernandez FEBRUARY 26, 2009 An act to add Section 3702.11 to the Labor Code, relating to workers' compensation. LEGISLATIVE COUNSEL'S DIGEST AB 879, as amended, Hernandez. Workers' compensation: self-insurers: financial audits. Existing law establishes a workers' compensation system, administered by the Administrative Director of the Division of Workers' Compensation, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires the administrative director to conduct audits of insurers, self-insured employers, and 3rd-party administrators to ensure that injured workers are promptly and accurately receiving the full measure of compensation they are entitled to receive. This bill would require a group self-insurer to annually file with the director an audited financial statement and an actuarial  analysis of its historical loss development   certification of reserve   adequacy  , as prescribed. The bill would require that the audited financial statement and actuarial  analysis   certification  be made available to the public, as prescribed. 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. Section 3702.11 is added to the Labor Code, to read: 3702.11. (a) A group self-insurer shall annually file both of the following with the director, in the form prescribed by the director: (1) An audited financial statement prepared by an independent, certified public accountant.  (2) An actuarial analysis, by program year, done of the group self-insurer's historical claim loss development, performed by an   (2)     An actuarial certification of reserve adequacy by program year performed by an  independent actuary who is an associate or a fellow of the Casualty Actuary Society or a member of the American Academy of Actuaries. (b) The audited financial statement and actuarial  analysis   certification  shall be made available to the public, except that  no  individually identifiable claimant  or  information and  individual member financial information shall  not  be made public.