CHAPTER 4. Compensation Insurance and Security [3700. - 3823.]

Chapter 4 enacted by Stats. 1937, Ch. 90.

§§ 3700–3823 · 86 sections

1. ARTICLE 1. Insurance and Security §§ 3700–3709.5 · 28 sections

   • § 3700 Every employer except the state shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay…
   • § 3700.1 As used in this article: (a) “Director” means the Director of Industrial Relations. (b) “Private self-insurer” means a private employer which has secured the…
   • § 3700.5 (a) The failure to secure the payment of compensation as required by this article by one who knew, or because of his or her knowledge or experience should be…
   • § 3701 (a) Each year every private self-insuring employer shall secure incurred liabilities for the payment of compensation and the performance of the obligations of…
   • § 3701.3 The director shall return to a private self-insured employer all individual security determined, with the consent of the Self-Insurers’ Security Fund, to be in…
   • § 3701.5 (a) If the director determines that a private self-insured employer has failed to pay workers’ compensation as required by this division, the security deposit…
   • § 3701.7 Where any employer requesting coverage under a new or existing certificate of consent to self-insure has had a period of unlawful uninsurance, either for an…
   • § 3701.8 (a) As an alternative to each private self-insuring employer securing its own incurred liabilities as provided in Section 3701, the director may provide by…
   • § 3701.9 (a) A certificate of consent to self-insure shall not be issued after January 1, 2013, to any of the following: (1) A professional employer organization. (2) A…
   • § 3702 (a) A certificate of consent to self-insure may be revoked by the director at any time for good cause after a hearing. Good cause includes, among other things,…
   • § 3702.1 (a) No person, firm, or corporation, other than an insurer admitted to transact workers’ compensation insurance in this state, shall contract to administer…
   • § 3702.2 (a) All self-insured employers shall file a self-insurer’s annual report in a form prescribed by the director. Public self-insured employers shall provide…
   • § 3702.3 Failure to submit reports or information as deemed necessary by the director to implement the purposes of Section 3701, 3702, or 3702.2 may result in the…
   • § 3702.5 (a) (1) The cost of administration of the public self-insured program by the Director of Industrial Relations shall be borne by the Workers’ Compensation…
   • § 3702.6 (a) The director shall establish an audit program addressing the adequacy of estimates of future liability of claims for all private self-insured employers,…
   • § 3702.7 A certificate of consent to administer claims of self-insured employers may be revoked by the director at any time for good cause after a hearing. Good cause…
   • § 3702.8 (a) Employers who have ceased to be self-insured employers shall discharge their continuing obligations to secure the payment of workers’ compensation that…
   • § 3702.9 (a) In addition to remedies and penalties otherwise provided for a failure to secure the payment of compensation, the director may, after a determination that…
   • § 3702.10 The director, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, may adopt, amend, and…
   • § 3703 So long as the certificate has not been revoked, and the self-insurer maintains on deposit the requisite bond or securities, the self-insurer shall not be…
   • § 3705 The Self-Insurers’ Security Fund or the surety making payment of compensation hereunder shall have the same preference over the other debts of the principal or…
   • § 3706 If any employer fails to secure the payment of compensation, any injured employee or his dependents may bring an action at law against such employer for…
   • § 3706.5 The provisions of this article and Sections 4553, 4554, and 4555, and any other penalty provided by law for failure to secure the payment of compensation for…
   • § 3707 The injured employee or his dependents may in such action attach the property of the employer, at any time upon or after the institution of such action, in an…
   • § 3708 In such action it is presumed that the injury to the employee was a direct result and grew out of the negligence of the employer, and the burden of proof is…
   • § 3708.5 If an employee brings such an action for damages, the employee shall forthwith give a copy of the complaint to the Uninsured Employers Fund of the action by…
   • § 3709 If, as a result of such action for damages, a judgment is obtained against the employer, any compensation awarded, paid, or secured by the employer shall be…
   • § 3709.5 After the payment of attorney’s fees fixed by the court, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the…
2. ARTICLE 2. Uninsured Employers Fund §§ 3710–3733 · 33 sections

   • § 3710 (a) The Director of Industrial Relations shall enforce the provisions of this article. The director may employ necessary investigators, clerks, and other…
   • § 3710.1 Where an employer has failed to secure the payment of compensation as required by Section 3700, the director shall issue and serve on such employer a stop…
   • § 3710.2 Failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order issued…
   • § 3710.3 Whenever a stop order has been issued pursuant to Section 3710.1 to a motor carrier of property subject to the jurisdiction and control of the Department of…
   • § 3711 The director, an investigator for the Department of Insurance Fraud Bureau or its successor, or a district attorney investigator assigned to investigate…
   • § 3712 (a) The securing of the payment of compensation in a way provided in this division is essential to the functioning of the expressly declared social public…
   • § 3714 (a) All cases involving the Uninsured Employers Fund or the Subsequent Injuries Fund as a party or involving death without dependents shall only be heard for…
   • § 3715 (a) Any employee, except an employee as defined in subdivision (d) of Section 3351, whose employer has failed to secure the payment of compensation as required…
   • § 3716 (a) If the employer fails to pay the compensation required by Section 3715 to the person entitled thereto, or fails to furnish the bond required by Section…
   • § 3716.1 (a) In any hearing, investigation, or proceeding, the Attorney General, or attorneys of the Department of Industrial Relations, shall represent the director…
   • § 3716.2 Notwithstanding the precise elements of an award of compensation benefits, and notwithstanding the claim and demand for payment being made therefor to the…
   • § 3716.3 (a) Notwithstanding any other provision of law to the contrary, when the director obtains a judgment against an uninsured employer, the director may, in…
   • § 3716.4 Whenever a final judgment has been entered against a motor carrier of property subject to the jurisdiction and control of the Department of Motor Vehicles or a…
   • § 3716.5 In the payment of workers’ compensation benefits from the Uninsured Employers Fund, the director shall do the following: (a) Designate the job classifications…
   • § 3717 (a) A findings and award that is the subject of a demand on the Uninsured Employers Fund or an approved compromise and release or stipulated findings and award…
   • § 3717.1 In any claim in which an alleged uninsured employer is a corporation, the director may cause substantial shareholders and parents, as defined by Section 3717,…
   • § 3717.2 Upon request of the director, the appeals board shall make findings of whether persons are substantial shareholders or parents, as defined in Section 3717. The…
   • § 3718 The cause of action provided in Section 3717 and any cause of action arising out of Section 3722 may be joined in one action against an employer. The amount…
   • § 3719 Any suit, action, proceeding, or award brought or made against any employer under Section 3717 may be compromised by the director, or such suit, action, or…
   • § 3720 (a) When the appeals board or the director determines under Section 3715 or 3716 that an employer has not secured the payment of compensation as required by…
   • § 3720.1 (a) In any claim in which the alleged uninsured employer is a corporation, for purposes of filing certificates of lien pursuant to Section 3720, the director…
   • § 3720.2 (a) In a claim in which the uninsured employer or a substantial shareholder, as determined pursuant to this article, has caused to be recorded in a county a…
   • § 3721 The director shall provide the employer with a certificate of cancellation of lien after the employer has paid to the claimant or to the Uninsured Employers…
   • § 3722 (a) At the time the stop order is issued and served pursuant to Section 3710.1, the director shall also issue and serve a penalty assessment order requiring…
   • § 3725 If an employer desires to contest a penalty assessment order, the employer shall file with the director a written request for a hearing within 15 days after…
   • § 3726 (a) When no petition objecting to a penalty assessment order is filed, a certified copy of the order may be filed by the director in the office of the clerk of…
   • § 3727 If the director determines pursuant to Section 3722 that an employer has failed to secure the payment of compensation as required by this division, the…
   • § 3727.1 The director may withdraw a stop order or a penalty assessment order where investigation reveals the employer had secured the payment of compensation as…
   • § 3728 (a) The director may draw from the State Treasury out of the Uninsured Employers Benefits Trust Fund for the purposes of Sections 3716 and 3716.1, without at…
   • § 3730 When the last day for filing any instrument or other document pursuant to this chapter falls upon a Saturday, Sunday or other holiday, such act may be…
   • § 3731 Any stop order or penalty assessment order may be personally served upon the employer either by (1) manual delivery of the order to the employer personally or…
   • § 3732 (a) If compensation is paid or becomes payable from the Uninsured Employers Fund, whether as a result of a findings and award, award based upon stipulations,…
   • § 3733 (a) The Legislature finds and declares that it is in the best interest of the State of California to provide a person, regardless of his or her citizenship or…
3. ARTICLE 2.5. Self-Insurers’ Security Fund §§ 3740–3747 · 8 sections

   • § 3740 It is the intent of the Legislature in enacting this article and Article 1 (commencing with Section 3700) to provide for the continuation of workers’…
   • § 3741 As used in this article: (a) “Director” means the Director of Industrial Relations. (b) “Private self-insurer” means a private employer which has secured the…
   • § 3742 (a) The Self-Insurers’ Security Fund shall be established as a Nonprofit Mutual Benefit Corporation pursuant to Part 3 (commencing with Section 7110) of…
   • § 3743 (a) Upon order of the director pursuant to Section 3701.5, the fund shall assume the workers’ compensation obligations of an insolvent self-insurer. (b)…
   • § 3744 (a) (1) The fund shall have the right and obligation to obtain reimbursement from an insolvent self-insurer up to the amount of the self-insurer’s workers’…
   • § 3745 (a) The fund shall maintain cash, readily marketable securities, or other assets, or a line of credit, approved by the director, sufficient to immediately…
   • § 3746 The fund shall annually contract for an independent certified audit of the financial activities of the fund. An annual report on the financial status of the…
   • § 3747 This article shall be known and may be referred to as the “Young-La Follette Self-Insurers’ Security Act.”
4. ARTICLE 3. Insurance Rights and Privileges §§ 3750–3762 · 13 sections

   • § 3750 Nothing in this division shall affect: (a) The organization of any mutual or other insurer. (b) Any existing contract for insurance. (c) The right of the…
   • § 3751 (a) No employer shall exact or receive from any employee any contribution, or make or take any deduction from the earnings of any employee, either directly or…
   • § 3752 Liability for compensation shall not be reduced or affected by any insurance, contribution or other benefit whatsoever due to or received by the person…
   • § 3753 The person entitled to compensation may, irrespective of any insurance or other contract, except as otherwise provided in this division, recover such…
   • § 3754 Except as provided in paragraph (12) of subdivision (f) of Section 1202.4 of the Penal Code, payment, in whole or in part, of compensation by either the…
   • § 3755 If the employer is insured against liability for compensation, and if after the suffering of any injury the insurer causes to be served upon any compensation…
   • § 3756 If at the time of the suffering of a compensable injury, the employer is insured against liability for the full amount of compensation payable, he may cause to…
   • § 3757 If it thereafter appears to the satisfaction of the appeals board that the insurer has assumed the liability for compensation, the employer shall thereupon be…
   • § 3758 A proceeding to obtain compensation shall not abate on account of substitution of the insurer in place of the employer and on account of the dismissal of the…
   • § 3759 The appeals board may enter its order relieving the employer from liability where it appears from the pleadings, stipulations, or proof that an insurer joined…
   • § 3760 Every employer who is insured against any liability imposed by this division shall file with the insurer a complete report of every injury to each employee as…
   • § 3761 (a) An insurer securing an employer’s liability under this division shall notify the employer, within 15 days, of each claim for indemnity filed against the…
   • § 3762 (a) Except as provided in subdivisions (b) and (c), the insurer shall discuss all elements of the claim file that affect the employer’s premium with the…
5. ARTICLE 4. Construction Permit § 3800 · 1 section

   • § 3800 (a) Every county or city which requires the issuance of a permit as a condition precedent to the construction, alteration, improvement, demolition, or repair…
6. ARTICLE 5. Workers’ Compensation Misrepresentations §§ 3820–3823 · 3 sections

   • § 3820 (a) In enacting this section, the Legislature declares that there exists a compelling interest in eliminating fraud in the workers’ compensation system. The…
   • § 3822 The administrative director shall, on an annual basis, provide to every employer, claims adjuster, third party administrator, physician, and attorney who…
   • § 3823 (a) The administrative director, in coordination with the Bureau of Fraudulent Claims of the Department of Insurance, the Medi-Cal Fraud Task Force, and the…