| 1 | 1 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 373Introduced by Assembly Member MelendezFebruary 09, 2017 An act to amend Section 3702.1 of the Labor Code, relating to workers compensation. LEGISLATIVE COUNSEL'S DIGESTAB 373, as introduced, Melendez. Workers compensation.Existing law prohibits any person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance, from contracting to administer claims of self-insured employers as third-party administrators unless they are in possession of a certificate of consent to administer self-insured employers workers compensation claims.This bill would make technical, nonsubstantive changes to the those provisions. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 3702.1 of the Labor Code is amended to read:3702.1. (a) No A person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers workers compensation claims.(b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director.(c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers compensation claims for any self-insured employer.(d) A third-party administrator retained by a self-insured employer to administer the employers workers compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employers annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employers responsibilities with respect to the report. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 373Introduced by Assembly Member MelendezFebruary 09, 2017 An act to amend Section 3702.1 of the Labor Code, relating to workers compensation. LEGISLATIVE COUNSEL'S DIGESTAB 373, as introduced, Melendez. Workers compensation.Existing law prohibits any person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance, from contracting to administer claims of self-insured employers as third-party administrators unless they are in possession of a certificate of consent to administer self-insured employers workers compensation claims.This bill would make technical, nonsubstantive changes to the those provisions. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill No. 373 |
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| 13 | 13 | | Introduced by Assembly Member MelendezFebruary 09, 2017 |
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| 15 | 15 | | Introduced by Assembly Member Melendez |
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| 16 | 16 | | February 09, 2017 |
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| 18 | 18 | | An act to amend Section 3702.1 of the Labor Code, relating to workers compensation. |
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| 20 | 20 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 22 | 22 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | AB 373, as introduced, Melendez. Workers compensation. |
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| 26 | 26 | | Existing law prohibits any person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance, from contracting to administer claims of self-insured employers as third-party administrators unless they are in possession of a certificate of consent to administer self-insured employers workers compensation claims.This bill would make technical, nonsubstantive changes to the those provisions. |
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| 28 | 28 | | Existing law prohibits any person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance, from contracting to administer claims of self-insured employers as third-party administrators unless they are in possession of a certificate of consent to administer self-insured employers workers compensation claims. |
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| 30 | 30 | | This bill would make technical, nonsubstantive changes to the those provisions. |
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| 31 | 31 | | |
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| 32 | 32 | | ## Digest Key |
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| 34 | 34 | | ## Bill Text |
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| 36 | 36 | | The people of the State of California do enact as follows:SECTION 1. Section 3702.1 of the Labor Code is amended to read:3702.1. (a) No A person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers workers compensation claims.(b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director.(c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers compensation claims for any self-insured employer.(d) A third-party administrator retained by a self-insured employer to administer the employers workers compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employers annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employers responsibilities with respect to the report. |
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| 38 | 38 | | The people of the State of California do enact as follows: |
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| 40 | 40 | | ## The people of the State of California do enact as follows: |
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| 42 | 42 | | SECTION 1. Section 3702.1 of the Labor Code is amended to read:3702.1. (a) No A person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers workers compensation claims.(b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director.(c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers compensation claims for any self-insured employer.(d) A third-party administrator retained by a self-insured employer to administer the employers workers compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employers annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employers responsibilities with respect to the report. |
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| 44 | 44 | | SECTION 1. Section 3702.1 of the Labor Code is amended to read: |
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| 46 | 46 | | ### SECTION 1. |
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| 48 | 48 | | 3702.1. (a) No A person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers workers compensation claims.(b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director.(c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers compensation claims for any self-insured employer.(d) A third-party administrator retained by a self-insured employer to administer the employers workers compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employers annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employers responsibilities with respect to the report. |
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| 50 | 50 | | 3702.1. (a) No A person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers workers compensation claims.(b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director.(c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers compensation claims for any self-insured employer.(d) A third-party administrator retained by a self-insured employer to administer the employers workers compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employers annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employers responsibilities with respect to the report. |
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| 52 | 52 | | 3702.1. (a) No A person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers workers compensation claims.(b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director.(c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers compensation claims for any self-insured employer.(d) A third-party administrator retained by a self-insured employer to administer the employers workers compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employers annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employers responsibilities with respect to the report. |
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| 56 | 56 | | 3702.1. (a) No A person, firm, or corporation, other than an insurer admitted to transact workers compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers workers compensation claims. |
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| 58 | 58 | | (b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director. |
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| 60 | 60 | | (c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers compensation claims for any self-insured employer. |
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| 62 | 62 | | (d) A third-party administrator retained by a self-insured employer to administer the employers workers compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employers annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employers responsibilities with respect to the report. |
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