The California Department of Insurance ruled an Indiana insurance carrier cannot enforce the terms of the collateral and indemnity agreements that were part of a large deductible workers’ comp program. The carrier did not file the side agreements for approval before they were used. The ruling stems from a dispute between Protective Insurance, formerly Baldwin …
The Second District Court of Appeal says that Travelers Indemnity Co. cannot enforce the arbitration clause in a retrospective rating plan endorsement because the carrier failed to file the documents before use. The court of Appeal is refusing to upset a trial court finding that the arbitration provisions are “unenforceable and void.” The court also …
Insurance Commissioner Dave Jones is being asked to rule in another case involving unfiled side or collateral agreements, this time involving the Travelers (NYSE: TRV). The employer filing the request maintains that the program contracts for its large deductible policy altered the premium charged for the underlying guaranteed cost workers’ comp policy and changed the …
An insurance industry-backed bill to exempt carriers from having to file the collateral agreements and side agreements to many workers’ comp policies is moving through the Legislature in spite of opposition from the California Department of Insurance and some employer representatives. The measure, AB 1922 by Assemblyman Tom Daly (D-Anaheim), easily cleared the Assembly Insurance …
Growing concern over the legality and enforceability of the myriad endorsements and side agreements that insurance carriers are adding to California workers’ comp policies is manifesting in a number of ways. The California Department of Insurance continues its update of regulations governing their use, and a state administrative law judge is set to rule on …
The California Department of Insurance is preparing to update regulations governing workers’ comp policy forms, side agreements and policy endorsements that insurance carriers must file for approval before using. The planned updates are in part a response to the ongoing disputes that employers with large deductible policies have had with carriers over arbitration provisions and …