AB 1985 – A Cooperative Work in Progress By Michelle Logsdon - April 26, 2002
So far, the parties involved in negotiating the evolution of AB 1985 are working together respectfully to come up with a bill that pleases as many people as possible.
Representatives of the American Insurance Association (AIA) testified before the Assembly Insurance Committee April 24 stating that they will continue open dialogue about the bill authored by Assemblyman Tom Calderon (D-Montbello) and sponsored by Insurance Commissioner Harry Low.
AB 1985 would provide the insurance commissioner with the authority to deny workers’ compensation premium rates that are not adequate to cover the insurer’s losses and expenses.
“Competition is the best regulator of rates,” said Mark Webb, AIA vice president, western region. “Initially, this bill appeared to turn the clock back to 1993 when California operated under a minimum-rate law that prevented insurers from selling their policies below an industry-wide minimum rate. AIA has concerns about this measure. However, we will continue to work with the commissioner on a standard of rate adequacy that will not hurt competition in the marketplace.”
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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