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California Insurance Commissioner Dave Jones reported Wednesday the state legislature passed a workers’ compensation reform bill, S.B. 684, which he said could make arbitration proceedings more fair and transparent for employers.
“In order to provide a lower quote, an insurer will often require terms for arbitration to take place out of state under another state’s law,” according to the Insurance Commissioner’s office. “S.B. 684 would require that employers be notified up front when they receive a quote that they can negotiate the dispute resolution provisions, particularly whether or not to arbitrate out of state and under a law other than California. If the employer decides to accept that quote, a signature will be required on the disclosure to indicate that they understand and accept the terms of the agreement.”
The bill will now go to Gov. Jerry Brown, who will decide whether to sign it into law.