PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550. - 11895.]
Heading of Part 3 amended by Stats. 1979, Ch. 373.
§§ 11550–11895 · 279 sections
CHAPTER 1. General Regulations §§ 11550–11629.88 · 102 sections
ARTICLE 1. Reserves of Insurers §§ 11550–11557 · 9 sections
- § 11550 As used in this article, the term “liability” means liability and common carrier liability insurance.
- § 11551 As used in this article, the term “compensation” means workers’ compensation insurance.
- § 11552 As used in this article, the term “earned premium,” means the amount remaining of the gross premiums charged on all policies written, including all determined…
- § 11553 As used in this article, the terms “loss payments,” and “loss expense payments,” mean all payments to claimants or on account of claims. Such payments include…
- § 11554 In estimating the condition of any insurer admitted to transact such liability or compensation insurance, the commissioner shall charge as liabilities, among…
- § 11555 An insurer transacting such compensation or liability insurance shall include the following schedules in its annual statement required by law: (a) A schedule…
- § 11555.2 Each insurer transacting insurance covering liability for malpractice of any person licensed under the Dental Practice Act (Chapter 4 (commencing with Section…
- § 11556 The reserve for outstanding losses and loss expenses under such liability or compensation insurance shall be determined in accordance with the regulations of…
- § 11557 Whenever the reserves for outstanding liability or compensation losses and loss expenses of any insurer, computed pursuant to this article, seem inadequate to…
ARTICLE 2. Actions on Policies Containing Liability Provisions §§ 11580–11589.5 · 38 sections
- § 11580 A policy insuring against losses set forth in subdivision (a) shall not be issued or delivered to any person in this state unless it contains the provisions…
- § 11580.01 (a) A policy insuring against legal liability arising from the rendering of professional services by an insured licensed pursuant to the provisions of Division…
- § 11580.02 A liability insurer may review bills submitted for the defense of its insured, but shall not compensate a reviewer based on any of the following: (a) A…
- § 11580.04 Any additional insured endorsement issued by an admitted or nonadmitted insurer for the benefit of a public agency in connection with, collateral to, or…
- § 11580.05 The Legislature declares that the public policy of this state in regard to provisions authorized or required to be included in policies affording automobile…
- § 11580.06 Except as may be otherwise provided in this article: (a) The term “motor vehicle” means any vehicle designed for use principally upon streets and highways and…
- § 11580.07 Except when required by a conditional sales vendor, no person or entity who is licensed pursuant to Chapter 5 (commencing with Section 1621) of Part 2 of…
- § 11580.08 With respect to disclosure of the fact of an arrest for any violation of the Vehicle Code or of a city or county ordinance or resolution relating to vehicles…
- § 11580.09 (a) Any policy of automobile liability insurance shall contain a notice stating limits of future coverage. The notice shall be prominently displayed on the…
- § 11580.010 (a) Any automobile liability insurer that is responsible for coverage for ordinary, reasonable, and necessary medical transportation services provided to an…
- § 11580.011 (a) As used in this section, “child passenger restraint system” means a system as described in Section 27360 of the Vehicle Code. (b) Every policy of…
- § 11580.1 (a) No policy of automobile liability insurance described in Section 16054 of the Vehicle Code covering liability arising out of the ownership, maintenance, or…
- § 11580.15 Subject to the approval of the Insurance Commissioner, every admitted insurer issuing or renewing motor vehicle liability policies as defined in Section 16054…
- § 11580.17 The department shall not prohibit an insurer from electing to inspect physically a motor vehicle for purposes of issuing a policy for collision or…
- § 11580.2 (a) (1) No policy of bodily injury liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle, except for…
- § 11580.23 (a) If a suit for bodily injury has been filed against an uninsured motorist in a court of competent jurisdiction, notice in writing of the suit shall be…
- § 11580.24 (a) A private passenger motor vehicle insured by its owner pursuant to a policy of insurance subject to Section 11580.1 or 11580.2 shall not be classified as a…
- § 11580.241 (a) A personal vehicle sharing program shall, for each vehicle that it facilitates the use of, do all of the following: (1) Provide both of the following…
- § 11580.25 No motor vehicle insured pursuant to a policy of insurance issued under Section 11580.1 or 11580.2 shall be classified as a common carrier, livery, or for-hire…
- § 11580.26 (a) Except where a named insured has agreed pursuant to Section 11580.2 to delete the coverages provided by that section, no policy of bodily injury liability…
- § 11580.27 (a) For purposes of insurance, a motor vehicle insured pursuant to a policy of insurance issued under Section 11580.1 or 11580.2 shall not be classified as a…
- § 11580.3 When an insured entitled to recovery under uninsured motorists’ coverage is a minor, an arbitration award upon the minor’s claim is deemed to be a compromise…
- § 11580.4 In any action or arbitration proceeding to determine whether an insured shall be entitled to recovery of damages under uninsured motorist coverage, the…
- § 11580.5 No award made in an arbitration proceeding instituted pursuant to Section 11580.2 shall be deemed to be res judicata or collateral estoppel in any court action…
- § 11580.6 Where a policy of liability insurance covering the ownership, maintenance, or use of a motor vehicle or aircraft contains a provision indicating that coverage…
- § 11580.8 The Legislature declares it to be the public policy of this state to avoid so far as possible conflicts and litigation, with resulting court congestion,…
- § 11580.9 (a) Where two or more policies affording valid and collectible automobile liability insurance apply to the same motor vehicle in an occurrence out of which a…
- § 11580.10 Any liability insurer issuing or renewing an automobile liability policy or a motor vehicle liability policy within the meaning of subdivision (a) of Section…
- § 11581 Upon any proceeding supplementary to execution, such judgment debtor may be required to exhibit any policy carried by him, insuring him against the liability…
- § 11582 No settlement made under a motor vehicle liability insurance policy of a claim against any insured thereunder arising from any accident or other event insured…
- § 11583 No advance payment or partial payment of damages made by any person, or made by his insurer under liability insurance as defined in subdivision (a) of Section…
- § 11584 No policy of insurance issued or delivered in this state covering any loss, expense or liability arising out of the ownership, maintenance, or use of an…
- § 11585 (a) No policy of insurance for residential property located within California shall be issued or delivered, and no existing policy of insurance for residential…
- § 11586 (a) On and after the effective date of this section, each insurer licensed to issue automobile liability insurance or common carrier liability insurance, and…
- § 11588 No insurer authorized to do business in this state and to provide professional liability insurance to persons lawfully engaged in the practice of medicine or…
- § 11589 No insurer who provides professional liability insurance for physicians and surgeons or dentists shall increase the premium for such insurance, impose a…
- § 11589.1 (a) (1) An insurer shall not refuse to issue or renew, nor shall terminate, professional liability insurance for a health care provider in this state, solely…
- § 11589.5 No insurer who provides professional liability insurance for persons licensed under the provisions of Part 1 (commencing with Section 10000) of Division 4 of…
ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees §§ 11590–11593 · 4 sections
- § 11590 Except as provided in Section 11591, no policy providing comprehensive personal liability insurance may be issued or renewed in this state on or after January…
- § 11591 The requirements of Section 11590 shall be inapplicable to any such policy of insurance or endorsement where the services of such employee are in connection…
- § 11592 Notwithstanding the provisions of subdivision (f) of Section 1851, the rates, classifications, and rating systems for the workers’ compensation insurance…
- § 11593 The premium charge for the coverage required by Section 11590 shall not be separately stated from that charged for other coverage under the policy in the…
ARTICLE 3. Capital Requirements of Reserve Basis Insurers §§ 11600–11602 · 3 sections
- § 11600 An incorporated insurer issuing policies of liability, workers’ compensation, or common carrier liability insurance, shall be governed by the paid-in capital…
- § 11601 Except as restricted by its charter, such an incorporated insurer, having such a paid-in capital, may transact all three of such insurances.
- § 11602 Any such insurer which on July 26, 1919, was authorized by its charter to transact liability insurance may transact workers’ compensation and common carrier…
ARTICLE 4. Assigned Risk Plans §§ 11620–11627 · 24 sections
- § 11620 (a) The commissioner, after a public hearing, shall approve or issue a reasonable plan for the equitable apportionment, among insurers admitted to transact…
- § 11621.1 In the event an insurer discontinues writing automobile liability insurance in this state but retains its license to write that business, it shall continue to…
- § 11621.2 (a) An insurer that is no longer licensed to write automobile liability insurance in this state shall have its plan business treated in the same manner as its…
- § 11621.3 Insurer groups under the same ownership may elect to be treated as one insurer for purposes of participating in the plan and receiving its assignments and…
- § 11621.4 (a) New plan assignments to a participating insurer may be suspended or a participating insurer may be relieved of its obligation to renew existing assigned…
- § 11621.5 (a) In the event proceedings have been initiated by the commissioner to have an insurer declared insolvent, and a receiver or liquidator has been appointed,…
- § 11622 (a) A plan shall require the issuance of a policy affording coverage in the amount of fifteen thousand dollars ($15,000) for bodily injury to, or death of,…
- § 11622.5 The plan shall provide for effective dates for coverage consistent with all of the following: (a) Except as provided in this section, in no event shall…
- § 11623 (a) (1) To assist the commissioner in carrying out the purposes of this article, an advisory committee composed of 15 members is created. The commissioner…
- § 11623.5 (a) Groups of insurers not under common ownership or management may form a limited assignment distribution arrangement. Each arrangement shall have one…
- § 11624 The plan shall contain: (a) Standards for determining eligibility of applicants for insurance, including a requirement of a certificate of eligibility as…
- § 11624.08 The plan shall require a certificate of eligibility to accompany the application for coverage. The certificate shall indicate whether or not the applicant…
- § 11624.09 Upon a determination by the plan that a certificate of eligibility is defective due to an omission or mistake which is immaterial to determining the…
- § 11624.1 (a) An insurer shall mail a policy within 30 days of the receipt of an assignment. (b) Upon the determination of an insurer to whom an assignment is made that…
- § 11624.2 (a) An insurer shall acknowledge in writing within 15 days the receipt of a request for the endorsement of an assigned risk policy. The mailing of the…
- § 11624.3 Any return premium checks due to an insured or to a lender subject to the provisions of subdivision (g) of Section 673 on account of a cancellation or…
- § 11624.4 Every insurer to whom an assignment is made shall do all of the following: (a) Provide policyholders with information on how to report claims. (b) Provide…
- § 11624.5 No insurance agent, broker or solicitor shall make any charge to the applicant, directly or indirectly, for furnishing any person the necessary application…
- § 11624.6 Every insurer, agent, or broker assigned an application by the plan may conclusively rely on the acceptance, rejection, or waiver of coverages stated in the…
- § 11624.7 Within 60 days after the effective date of any policy issued or renewed under this article, the insurer shall obtain from the Department of Motor Vehicles, or…
- § 11625 If an insurer admitted to transact liability insurance fails to subscribe to the plan or to any amendments thereto, the commissioner shall give 10 days’…
- § 11626 If the commissioner, after hearing upon not less than ten (10) days’ notice, finds that any insurer has failed to perform any of the duties required of it by…
- § 11626.1 (a) No insurer shall downgrade the rating, or otherwise adversely affect the insurability, of a person insured under Section 11622.1 solely because of that…
- § 11627 In this article, “insurer” includes reciprocal or interinsurance exchanges.
ARTICLE 5. Motor Vehicle Liability Insurance §§ 11628–11629.5 · 6 sections
- § 11628 (a) (1) No admitted insurer that is licensed to issue and issuing motor vehicle liability policies, as defined in Section 16450 of the Vehicle Code, shall fail…
- § 11628.3 (a) Based on the actuarial and loss experience data available to each insurer, including the driving records of mature driver improvement course graduates, as…
- § 11628.5 No admitted insurer, licensed to issue motor vehicle liability policies as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an…
- § 11628.7 No admitted insurer, licensed to issue motor vehicle liability policies as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an…
- § 11629 Each separate act of an insurer or its agent in violation of Section 11628 or 11628.5 shall render the insurer liable in damages in the amount of one hundred…
- § 11629.5 Any insurer which has refused to issue to an applicant a policy of insurance in violation of Section 11628 or 11628.5 and which has been required to pay…
ARTICLE 5.5. California Low-Cost Automobile Insurance Program §§ 11629.7–11629.88 · 18 sections
- § 11629.7 (a) There is established, within the California Automobile Assigned Risk Plan established under Section 11620, a low-cost automobile insurance program for all…
- § 11629.71 A low-cost automobile insurance policy for purposes of the program established under this article shall have all of the following attributes: (a) The policy…
- § 11629.72 (a) The annual rate offered under the program for each of the counties in California shall be established at a date according to the discretion of the…
- § 11629.73 A low-cost automobile insurance policy under the program shall only be available for purchase by persons who satisfy the following eligibility requirements:…
- § 11629.731 A person who meets the requirements of subdivision (a) of Section 11629.73, and who claims that he or she meets the requirements of subdivisions (b) to (e),…
- § 11629.74 (a) Application may be made through any producer certified by the plan. The applicant, in order to demonstrate financial eligibility to purchase a low-cost…
- § 11629.745 (a) An agent or broker, hereafter referred to as a producer, who conducts business in a county in which a low-cost automobile insurance policy is available…
- § 11629.75 (a) A certified producer shall provide to an applicant for a low-cost automobile insurance policy under this article a notice relating to coverage under the…
- § 11629.76 (a) (1) For a low-cost automobile insurance policy issued pursuant to the program, certified producers shall be entitled to the same commission rate as is paid…
- § 11629.77 (a) A low-cost automobile insurance policy issued pursuant to the program shall be canceled only for the following reasons: (1) Nonpayment of premium. (2)…
- § 11629.78 (a) An insured under the program shall not purchase automobile liability insurance coverage that is in addition to the liability coverage provided by the…
- § 11629.8 Notwithstanding the coverage amounts required by Section 16056 of the Vehicle Code, a low-cost automobile policy issued under the program shall satisfy the…
- § 11629.81 (a) The California Automobile Assigned Risk Plan shall report to the commissioner on an annual basis, and at those additional times as it deems prudent, on the…
- § 11629.82 Nothing in this article is intended to amend or otherwise affect or interpret any provision of Proposition 103, approved by the electors on November 8, 1988,…
- § 11629.85 (a) (1) Notwithstanding Section 10231.5 of the Government Code, on or before March 15, 2024, and on or before March 15 every year thereafter, the commissioner…
- § 11629.86 (a) A California Automobile Assigned Risk Plan certified producer may accept and process an application to purchase a low-cost automobile insurance policy…
- § 11629.87 The department shall, in consultation with the CAARP Advisory Committee, establish and maintain a consumer-oriented internet website that provides all of the…
- § 11629.88 An applicant shall not be required to provide a copy of the applicant’s or other household member’s driver’s license, if the Department of Insurance finds that…
CHAPTER 2. Workers’ Compensation Policies §§ 11630–11665 · 28 sections
ARTICLE 1. Definitions §§ 11630–11631 · 2 sections
ARTICLE 2. Policy Provisions §§ 11650–11665 · 26 sections
- § 11650 Every contract insuring against liability for compensation and every compensation policy is conclusively presumed to contain all of the provisions required by…
- § 11651 Every such contract or policy shall contain a clause to the effect that the insurer will be directly and primarily liable to any proper claimant for payment of…
- § 11652 Every such contract or policy shall contain a clause to the effect that, as between the employee and the insurer, notice to or knowledge of the occurrence of…
- § 11653 Every such contract or policy shall contain a clause to the effect that jurisdiction of the employer will, for the purpose of the law imposing liability for…
- § 11654 Every such contract or policy shall contain a clause to the effect that the insurer will in all things be bound by and subject to the orders, findings,…
- § 11655 Such policy shall not contain any provisions relieving the insurer from payment when the employer becomes insolvent or obtains a discharge in bankruptcy, or…
- § 11656 Such policy shall also provide that the employee has a first lien upon any amount which becomes owing to the employer from the insurer on account of the…
- § 11656.1 Upon request of the State Department of Social Services, the State Compensation Insurance Fund may issue one workers’ compensation insurance policy insuring…
- § 11656.5 In order to permit employees of small farms to be brought under the provisions of the Workers’ Compensation Law, employers of agricultural labor who are…
- § 11656.6 An insurer may issue a workers’ compensation policy insuring an organization or association of employers as a group if the organization or association complies…
- § 11656.7 Each member of an organization insured under a group policy shall be treated as a single and separate entity as respects rates, classifications and rating…
- § 11656.8 Nothing in Section 11656.6 or 11656.7 shall be construed to supersede, modify, or otherwise affect in any way the provisions of Section 11656.5.
- § 11656.9 To encourage and facilitate the participation of agencies, entities or institutions, public or private, in economic opportunity programs authorized under…
- § 11657 Subject to the provisions of Sections 11659 and 11660, limited workers’ compensation policies may be issued insuring either the whole or any part of the…
- § 11658 (a) A workers’ compensation insurance policy or endorsement shall not be issued by an insurer to any person in this state unless the insurer files a copy of…
- § 11658.5 (a) (1) An insurer that intends to use a dispute resolution or arbitration agreement to resolve disputes arising in California out of a workers’ compensation…
- § 11659 Such approved form of policy, limited pursuant to Section 11657, shall not be otherwise limited except by indorsement thereon in accordance with a form…
- § 11660 Failure to observe the requirements of Sections 11657 and 11659 shall render a policy issued under Section 11657, and not complying therewith, unlimited.
- § 11661 An insurer shall not insure against the liability of the employer for the additional compensation recoverable for serious and willful misconduct of the…
- § 11661.5 An insurer shall not insure an employer against his liability for additional compensation arising out of injuries to illegally employed persons under 16 years…
- § 11661.6 (a) An insurer shall not insure an employer against his or her obligation to reimburse the insurer for the amount of increase in indemnity payment as provided…
- § 11662 Whenever any employer is insured against liability for compensation with any insurer, such insurer is subrogated to the rights of the employer to recover…
- § 11663 As between insurers of general and special employers, one which insures the liability of the general employer is liable for the entire cost of compensation…
- § 11663.5 (a) Upon receiving a written request from an insured or the agent or broker of record where authorized by the insured, an insurer shall provide a premium and…
- § 11664 (a) This section applies only to policies of workers’ compensation insurance. (b) A notice of nonrenewal shall be in writing and shall be delivered or mailed…
- § 11665 (a) An insurer who issues a workers’ compensation insurance policy to a roofing contractor holding a C-39 license from the Contractors’ State License Board…
CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance §§ 11690–11761 · 87 sections
ARTICLE 1. Deposits by Workers’ Compensation Insurers §§ 11690–11703 · 26 sections
- § 11690 For purposes of this article: (a) “Compensable workers’ compensation claim” means a claim where the claimant is entitled to benefits under the workers’…
- § 11691 (a) (1) In order to provide protection to the workers of this state in the event that the insurers issuing workers’ compensation insurance to employers fail to…
- § 11691.1 The fees for filing a schedule of securities with the Treasurer, and making a deposit of the same, and for each withdrawal, substitution, or any other change…
- § 11691.2 The deposit required pursuant to Section 11691 shall be security for the payment of the insurer’s obligations on worker’s compensation insurance transacted in…
- § 11691.3 The commissioner shall establish a list of all insurers or reinsurers authorized to reinsure the injury, disablement, or death portions of policies of workers’…
- § 11692 A certificate of authority to transact workers’ compensation insurance in this state shall not be issued nor renewed to any insurer until the deposit required…
- § 11692.5 On and after the effective date of this article, the commissioner shall collect a late filing fee from any admitted insurer or reinsurer that fails to deposit…
- § 11693 The deposit required pursuant to Section 11691 shall be adjusted on or prior to March 31 of each year in an amount as follows: (a) Not less than the sum of the…
- § 11694 After the first annual statement to the commissioner covering business of the insurer for a full year in this state, the deposit required pursuant to Section…
- § 11694.5 On or before March 1 and May 15 of each year, the insurers or reinsurers subject to Section 11694 shall file a report in the form and manner prescribed by the…
- § 11695 Where an admitted insurer has voluntarily ceased to do in this state the business for which a deposit is required pursuant to Section 11691, the deposit shall…
- § 11696 In the event an insurer not in a delinquency proceeding fails to pay any compensable workers’ compensation claim against it, or fails to pay, to the extent of…
- § 11697 The payment of a workers’ compensation claim by the commissioner shall constitute a satisfaction of the claim to the extent of the payment made. In the event…
- § 11698 (a) In the event any one of the eventualities described in paragraph (1), (2), (3), or (4), transpires, the commissioner shall immediately take control or…
- § 11698.01 When the commissioner is authorized to proceed under Section 11698 he or she may do either of the following: (a) Subject to Sections 11698.2, 11698.21, and…
- § 11698.02 The proceeds of the deposit required pursuant to Section 11691 shall be used solely to pay compensable workers’ compensation claims under the insured or…
- § 11698.1 From time to time and in any event at or prior to the time of the filing of his or her petition for discharge as receiver, the commissioner shall do the…
- § 11698.2 If the commissioner enters into a reinsurance and assumption agreement as provided in subdivision (a) of Section 11698.01, that agreement shall provide for all…
- § 11698.21 (a) The reimbursement provision referred to in subdivision (c) of Section 11698.2 shall provide for the transfer of the securities in the deposit to the…
- § 11698.22 The commissioner shall not enter into an agreement with an insurer if its reinsurance and assumption of liability will impair its solvency or render its…
- § 11698.3 (a) If the insurer is a member insurer of the California Insurance Guarantee Association (the association) and has been the subject of an order of liquidation…
- § 11699 Unless the deposit required pursuant to Section 11691 is withdrawn by the commissioner pursuant to the authority granted him or her by this article, it, or any…
- § 11700 The deposit required pursuant to Section 11691, unless withdrawn by the commissioner, shall be used only for the payment of compensable workers’ compensation…
- § 11701 The commissioner may revoke the certificate of authority to transact workers’ compensation insurance or to reinsure the injury, disablement, or death portions…
- § 11702 The provisions of this article shall not apply to workers’ compensation insurance covering those persons defined as employees by subdivision (d) of Section…
- § 11703 An insurer desiring to write workers’ compensation insurance shall maintain or provide occupational safety and health loss control consultation services…
ARTICLE 2. State Rate Supervision §§ 11730–11742 · 14 sections
- § 11730 The following definitions govern the construction and meaning of the terms used in this article: (a) “Classification system” or “classification” means a plan,…
- § 11731 This article applies to workers’ compensation insurance and employers’ liability insurance written in connection therewith.
- § 11732 Rates shall be adequate to cover an insurer’s losses and expenses. Rates shall not tend to create a monopoly in the market. For the purpose of this section,…
- § 11732.5 Rates shall not be unfairly discriminatory. Rates are unfairly discriminatory if, after allowing for practical limitations, price differentials fail to reflect…
- § 11733 In determining whether rates comply with Section 11732, the following criteria shall apply: (a) Due consideration may be given to past and prospective loss and…
- § 11734 (a) Every workers’ compensation insurer shall adhere to a uniform experience rating plan filed with the commissioner by a rating organization designated by the…
- § 11735 (a) Every insurer shall file with the commissioner all rates and supplementary rate information that are to be used in this state. The rates and supplementary…
- § 11736 An experience rating plan shall contain reasonable eligibility standards, provide adequate incentives for loss prevention, and shall provide for sufficient…
- § 11736.5 (a) The commissioner shall establish, by regulation, those forms of collateral or security that an insurer may designate to secure the deductible amount of any…
- § 11737 (a) The commissioner may disapprove a rate if the insurer fails to comply with the filing requirements under Section 11735. (b) The commissioner may disapprove…
- § 11738 A classification shall take no account of any physical impairment of employees or the extent to which employees may have persons dependent upon them for…
- § 11739 (a) An insurer shall not use any plan for the payment of dividends to policyholders by reason of a participating provision in a workers’ compensation insurance…
- § 11740 Rates and supplementary rate information filed for use in this state pursuant to this article and Article 3 (commencing with Section 11750), as added and…
- § 11742 (a) The Legislature finds and declares that the insolvencies of more than a dozen workers’ compensation insurance carriers have seriously constricted the…
ARTICLE 3. Rating and Other Organizations §§ 11750–11759.2 · 44 sections
- § 11750 (a) The purpose of this article is to promote the public welfare by regulating concert of action between insurers in collecting and tabulating rating…
- § 11750.1 As used in this article, unless a different meaning is manifest, the term: (a) “Insurer” means every insurer authorized to transact workers’ compensation…
- § 11750.2 The provisions of this article shall apply to all workers’ compensation insurance and employer’s liability insurance incidental thereto and written in…
- § 11750.3 A rating organization may be organized pursuant to this article and maintained in this state for the following purposes: (a) To provide reliable statistics and…
- § 11751 On and after January 1, 1952, a rating organization shall not conduct its operations in this state without first having filed with the commissioner a written…
- § 11751.1 To obtain and retain a license, a rating organization shall provide satisfactory evidence to the commissioner that it shall do all of the following: (a) Permit…
- § 11751.2 The commissioner shall examine each application for license to act as a rating organization and the documents filed therewith and may make any further…
- § 11751.25 Notwithstanding Section 11751, each rating organization possessing a license of indefinite term pursuant to this article shall owe and pay to the commissioner…
- § 11751.3 (a) Subject to the approval of the commissioner, a rating organization licensed under this article may adopt any reasonable constitution, articles of…
- § 11751.35 (a) Four members of the public, two representing organized labor and two representing insured employers, appointed pursuant to subdivision (b) of Section…
- § 11751.4 From and after the taking effect of this act, it shall be the duty of every insurer to be a member of a rating organization. No insurer may at the same time…
- § 11751.5 The commissioner, after notice and hearing, may promulgate reasonable rules and statistical plans, which may be modified from time to time and which shall be…
- § 11751.55 If an insurer, the State Compensation Insurance Fund, a rating organization, or an advisory organization requests an official action by the commissioner under…
- § 11751.7 (a) The rating organization designated the statistical agent pursuant to Section 11751.5 shall provide to the Director of Industrial Relations, upon request,…
- § 11751.8 An insurer shall report to its rating organization as corrections or revisions of losses, pursuant to the unit statistical plan and uniform experience rating…
- § 11751.82 (a) An insurer under a wrap-up insurance policy shall report workers’ compensation losses and payroll information for each contractor and subcontractor to its…
- § 11751.9 Whenever a claim or claims used in an experience rating are closed and reported pursuant to the unit statistical plan approved by the commissioner and are…
- § 11752 The commissioner may, as often as reasonable and necessary, make or cause to be made an examination of each rating or advisory organization to ascertain…
- § 11752.1 The officers, managers, agents and employees of any such organization may be examined by the commissioner at any time under oath and shall exhibit all books,…
- § 11752.2 The reasonable cost of any examination authorized by this article of any rating or advisory organization shall be paid by the organization examined.
- § 11752.5 (a) Subject to subdivision (b), a licensed rating organization shall make available any policy information contained in its records to the following: (1) The…
- § 11752.6 (a) A licensed rating organization shall make available, in writing, to an employer insured under a workers’ compensation policy, all policyholder information…
- § 11752.7 (a) A licensed rating organization may make available experience rating information contained in its records to any insurer admitted to transact workers’…
- § 11752.75 (a) (1) Notwithstanding any other provision of law, a licensed rating organization shall, pursuant to regulations adopted by the commissioner after notice and…
- § 11752.8 (a) For all policies of insurance issued, or renewed for the first time on or after January 1, 1995, the insurer shall provide a notice, approved by the…
- § 11752.9 Notwithstanding subdivision (d) of Section 11750.3, a rating organization shall provide a policyholder with written notification if it imposes a change in the…
- § 11753 No advisory organization shall conduct its operations in this State unless and until it has filed with the commissioner: a. A copy of its constitution,…
- § 11753.1 (a) Any person aggrieved by any decision, action, or omission to act of a rating organization may request that the rating organization reconsider the decision,…
- § 11753.2 (a) If a change in a classification assignment on a workers’ compensation insurance policy is due to an erroneous classification and results in a decreased…
- § 11753.3 Notwithstanding Section 1851.1, a workers’ compensation insurance rating organization licensed pursuant to the provisions of this article which does not make…
- § 11754 If the commissioner has good cause to believe that a rating or advisory organization or an insurer does not comply with the requirements of this article…
- § 11754.1 If the commissioner has good cause to believe such noncompliance to be wilful, or if within the period prescribed by the commissioner in the notice required by…
- § 11754.2 If, after a hearing pursuant to Section 11754.1, the commissioner finds: a. That any rating or advisory organization or other organization authorized by this…
- § 11754.3 In addition to other penalties provided in this code the commissioner may suspend or revoke the license of any rating organization or insurer which fails to…
- § 11754.4 Except as otherwise provided in this article, all proceedings in connection with the denial, suspension or revocation of a license of a rating organization or…
- § 11754.5 Any finding, determination, rule, ruling, or order made by the commissioner under this article or Article 2 (commencing with Section 11730) shall be subject to…
- § 11755 No person, insurer, rating or advisory organization shall willfully withhold information from, or knowingly give false or misleading information to, the…
- § 11756 (a) Any person, insurer, or organization, who fails to comply with a final order of the commissioner under this article shall be liable to the state in an…
- § 11757 Nothing in this article shall be construed to prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by…
- § 11758 No act done, action taken or agreement made pursuant to the authority conferred by this article shall constitute a violation of or grounds for prosecution or…
- § 11758.1 The provisions of this article shall not apply to the workers’ compensation insurance covering those persons defined as employees by subdivision (d) of Section…
- § 11759 The Legislature hereby finds and declares as follows: The Legislature pursuant to its plenary power over workers’ compensation granted by Section 4 of Article…
- § 11759.1 A rating organization shall, no later than June 1 of each year, notify the Governor and the Legislature that a report containing an analysis of all losses and…
- § 11759.2 (a) A licensed rating organization designated as the Insurance Commissioner’s statistical agent shall prepare a report to be submitted to the Insurance…
ARTICLE 4. Penalties for Misrepresentation §§ 11760–11760.1 · 2 sections
- § 11760 (a) It is unlawful to make or cause to be made any knowingly false or fraudulent statement, whether made orally or in writing, of any fact material to the…
- § 11760.1 (a) If an employer fails to provide for access by the insurer or its authorized representative to its records, to enable the insurer to perform an audit to…
ARTICLE 5. Standards Applicable to Claims Adjusters § 11761 · 1 section
- § 11761 (a) The commissioner shall adopt regulations setting forth the minimum standards of training, experience, and skill that workers’ compensation claims adjusters…
CHAPTER 4. The State Compensation Insurance Fund §§ 11770–11886.2 · 58 sections
ARTICLE 1. Organization and Powers §§ 11770–11805 · 34 sections
- § 11770 (a) The State Compensation Insurance Fund is continued in existence, to be administered by its board of directors for the purpose of transacting workers’…
- § 11771 The State shall not be liable beyond the assets of the State Compensation Insurance Fund for any obligations in connection therewith.
- § 11771.5 Any advertising of the State Compensation Insurance Fund shall include the following disclaimer: “The State Compensation Insurance Fund is not a branch of the…
- § 11772 There shall not be any liability in a private capacity on the part of the board of directors or any member thereof, or any officer or employee of the fund for…
- § 11773 The fund shall be organized as a public enterprise fund.
- § 11774 The assets of the fund shall be applicable to the payment of losses sustained on account of insurance and to the payment of the salaries and other expenses…
- § 11775 The fund shall, after a reasonable time during which it may establish a business, be fairly competitive with other insurers, and it is the intent of the…
- § 11776 The actual loss experience and expense of the fund shall be ascertained on or about the first of January in each year for the year preceding. If it is then…
- § 11777 Such cash dividend or credit is to be in an amount which the board of directors in its discretion considers to be the employer’s proportion of divisible…
- § 11778 The fund may transact workers’ compensation insurance required or authorized by law of this state to the same extent as any other insurer. The fund shall be…
- § 11779 The fund may insure California employers against their liability for compensation or damages for injury or death under the United States Longshoremen’s and…
- § 11780 The fund may also insure an employer against his or her liability for damages under the laws of the State of California arising out of bodily injury to or…
- § 11780.5 (a) The fund may also insure a California employer against his or her liability for workers’ compensation benefits, under the law of any other state, for…
- § 11781 The board of directors is hereby vested with full power, authority and jurisdiction over the State Compensation Insurance Fund. The board of directors may…
- § 11781.5 The State Compensation Insurance Fund may acquire and own real property for a branch office in the City of Los Angeles when so determined by the board of…
- § 11782 All business and affairs of the fund shall be conducted in the name of the State Compensation Insurance Fund, and in that name, without any other name or…
- § 11783 The State Compensation Insurance Fund may: (a) Sue and be sued in all actions arising out of any act or omission in connection with its business or affairs.…
- § 11784 In conducting the business and affairs of the fund, the president of the fund may do any of the following: (a) Enter into contracts of workers’ compensation…
- § 11785 (a) The board of directors shall appoint a president, a chief financial officer, a chief operating officer, a chief information technology officer, a chief…
- § 11785.5 (a) Notwithstanding any other provision of law to the contrary, the members of the Board of Directors of the State Compensation Insurance Fund and officers of…
- § 11786 Before entering on the duties of his or her office, the president shall qualify by giving an official bond approved by the board of directors in the sum of…
- § 11787 The board of directors may delegate to the president of the fund, under those rules and regulations and subject to those conditions as it from time to time…
- § 11788 The State Treasurer shall be custodian of all securities belonging to the State Compensation Insurance Fund, except as otherwise provided in this chapter. He…
- § 11790 All securities belonging to the fund shall be delivered to the State Treasurer and held by him or her until otherwise disposed of as provided in this chapter.…
- § 11793 Expenditures made by the State Compensation Insurance Fund are exempted from the provisions of Part 3 (commencing with Section 900) of Division 3.6 of Title 1…
- § 11797 (a) The board of directors shall cause all moneys in the State Compensation Insurance Fund that are in excess of current requirements to be invested and…
- § 11800 All moneys in the State Compensation Insurance Fund, in excess of current requirements and not otherwise invested, may be deposited by the board of directors…
- § 11800.1 The board of directors may, with the approval of the State Treasurer, authorize the establishment of an account or fund in the State Treasury in the name of…
- § 11800.2 The State Controller shall keep a special ledger account pertaining to the State Compensation Insurance Fund. In the State Controller’s general ledger this…
- § 11801 The assets, premiums, reserves, investment income, and any and all property of whatsoever kind derived or acquired by the fund from its transaction of its…
- § 11802 All premiums, reserves, investment income, and all property of whatsoever kind derived or acquired by the fund from its transaction of insurance pursuant to…
- § 11803 All claims, costs of doing business, liabilities, expenses, and obligations arising out of or related to the fund’s transaction of insurance pursuant to the…
- § 11804 Joint or shared use of office building space, whether owned, leased or rented, and the joint use of all furniture, automobiles, office equipment, supplies and…
- § 11805 The State Compensation Insurance Fund shall report annually to the Legislature as soon after the close of the calendar year as is feasible, with respect to its…
ARTICLE 2. Rates §§ 11820–11822 · 3 sections
- § 11820 Subject to the provisions of Article 2 (commencing with Section 11730) of Chapter 3, the board of directors shall establish the rates to be charged by the…
- § 11821 Within each class of business insured such rates shall be fixed, so far as practicable, in accordance with the following elements: (a) Bodily risk or safety,…
- § 11822 The rates fixed by the board of directors shall be that percentage of the payroll of any employer which, in the long run and on the average, will produce a…
ARTICLE 3. Policies §§ 11840–11846 · 6 sections
- § 11840 The insurance contracts or policies of the State Compensation Insurance Fund may be either limited or unlimited. The insurance contracts or policies may be…
- § 11841 Nothing in this chapter shall prevent: (a) Any applicant for insurance from being covered temporarily until the application is finally acted upon. (b) An…
- § 11843 The State Compensation Insurance Fund may issue policies including, with their employees, employers who perform labor incidental to their occupations, and…
- § 11844 Such policies covering employers shall insure to such employers and working members of their families the same compensations provided for their employees, and…
- § 11845 The estimations of the wage values, respectively, of such insured employers and members of their families shall be reasonable and shall be separately stated in…
- § 11846 The policies may likewise be sold to self-employing persons and to casual employees. The insureds, for the purpose of the insurance, shall be deemed to be…
ARTICLE 4. Reports and Statements § 11860 · 1 section
- § 11860 Each quarter the president of the State Compensation Insurance Fund shall make a report to the Governor of the business done by the State Compensation…
ARTICLE 5. Coverage of Public Employers §§ 11870–11874 · 5 sections
- § 11870 The state, any agency, department, division, commission, board, bureau, officer or other authority thereof, and each county, city and county, city, school…
- § 11871 The State Compensation Insurance Fund may enter into a master agreement with the Department of Human Resources to render services in the adjustment and…
- § 11872 The fund may annually enter into agreements with state agencies for service to be rendered to the fund. These state agencies include, but shall not be limited…
- § 11873 (a) Except as provided by subdivision (b), the fund shall not be subject to the provisions of the Government Code made applicable to state agencies generally…
- § 11874 On the effective date of this act the Controller shall draw his or her warrant in favor of the State Compensation Insurance Fund for the total amount of the…
ARTICLE 6. Penalties §§ 11880–11881 · 2 sections
- § 11880 (a) It is unlawful to make or cause to be made any knowingly false or fraudulent statement, whether made orally or in writing, of any fact material to the…
- § 11881 Whenever in Chapter 4, Part 3, Division 2 of the Insurance Code the term “State Industrial Accident Commission” or “Industrial Accident Commission” or…
ARTICLE 7. Transfer of Ownership §§ 11885–11886.2 · 7 sections
- § 11885 (a) The Director of Finance is hereby authorized to act as agent for the state and, in that capacity, to sell a portion of, or otherwise obtain value for, the…
- § 11885.3 In order to accomplish the purpose of this article, the State Compensation Insurance Fund and its board of directors shall participate fully in good faith with…
- § 11885.5 Notwithstanding any other law, the approval of neither the Attorney General, nor the Insurance Commissioner, nor the Director of General Services is required…
- § 11885.7 (a) The Director of Finance shall deposit all proceeds of any sale of, or any funds achieved through any other disposition of, the State Compensation Insurance…
- § 11885.9 (a) Notwithstanding any other law, the Director of Finance is authorized to enter into agreements with firms or individuals to act as advisers to the state in…
- § 11886 (a) The Director of Finance, in consultation with the State Treasurer, shall select firms or individuals to provide advisory services based on demonstrated…
- § 11886.2 (a) The Director of Finance shall notify the Joint Legislative Budget Committee in writing upon his or her determination that neither the sale nor any other…
CHAPTER 5. Market Assistance Program for Long-Term Health Care Facility Liability Insurance §§ 11890–11892 · 3 sections
- § 11890 As used in this chapter: (a) “Long-term health care facility” has the same meaning as that term is defined in Section 1418 of the Health and Safety Code. (b)…
- § 11891 (a) If the commissioner finds after a public hearing that liability insurance for long-term health care facilities, residential care facilities for the…
- § 11892 (a) The commissioner may order the creation of an unincorporated, not-for-profit, temporary joint underwriting association for liability insurance,…
CHAPTER 6. Commercial Property: Vehicle Barrier Discount § 11895 · 1 section
- § 11895 (a) An insurer may consider the installation of vehicle barriers as a safety measure and may provide or offer a discount on the property owner’s insurance…