AB 2586

Bill Subjects

Abstract

Existing law regulates workers' compensation insurance rates and, among other things, requires rates to be adequate to cover an insurer's losses and expenses. Existing law provides that a person aggrieved by a decision, action, or omission of a rating organization may request reconsideration, and if the request for reconsideration is rejected or is not acted upon within 30 days, the person may file an appeal with the Insurance Commissioner, as specified. This bill would extend the timeline for reconsideration to 45 days, after which a person may then appeal the decision, action, or omission of the rating organization with the commissioner. Existing law establishes the Workers' Compensation Appeals Board to exercise all judicial powers vested in it, as specified, including workers' compensation proceedings for the recovery of compensation. Existing law authorizes the director of the Department of Industrial Relations to provide compensation at his or her discretion from the Uninsured Employers Fund in specified workers' compensation cases if compensation is not being provided to the applicant. Existing law provides that if payment of compensation has been unreasonably delayed or refused before the issuance of an award, and the director has paid that discretionary compensation, the Workers' Compensation Appeals Board is required to award the director 10% of the compensation paid by the director, to be paid by the employer in addition to other specified penalties. This bill would instead require the Workers' Compensation Appeal Board to award the director an amount not to exceed 10% of the compensation paid to an applicant by the director.