Getting Carriers to Sign on the Dotted Line?
By Robert Warne - August 27, 2003 The weighty topic of work comp reform has provided a significant amount of leverage for candidates in the upcoming recall election. But just as the polarizing topic is being used to sway voters before Oct. 7, it is also currently being used to manipulate those who stand to gain or lose from certain pieces of legislation under consideration.
Businesses leaders such as Costco CEO and President Jim Sinegal joined Insurance Commissioner John Garamendi today to call for immediate action to overhaul the current system.
But at the same time, members of the special legislative committee dealing with the reform issue are calling for certain assurances from carriers before they put the final touches on any legislation.
According to the Sacramento Bee, Sen. Richard Alarcon (D-San Fernando) told Garamendi Aug. 26, that he doesn’t trust insurance companies and that he doesn’t want to implement legislation to line their pockets.
He is demanding that carriers promise in writing to cut premiums if the Legislature enacts the proposed tough reforms.
The commissioner explained to Alarcon, that premium relief would be a reality if the current work comp system is repaired, but he didn’t believe that carriers could be baited into signing any pledges.
An American Insurance Association lobbyist told the Bee that it’s unreasonable to expect carriers to commit to premium cuts up front, especially since the cost savings promised with AB 749 last year, have yet to materialize.
So while talking about work comp reform may prove effective politically, we’ll just have to wait and see if crafting such reforms in the midst of political chaos can bring about the meaningful changes necessary to salvage the state’s ailing system and put it back on the road to recovery.
| 
__May11th2017.gif)
.gif)