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California COVID, Claims Approval, Fraud Bills Sent to Governor



California lawmakers on Wednesday sent three more workers’ comp bills to the governor on Wednesday.

SB 1127 would require employers to accept or deny liability within 75 days for certain injuries deemed compensable. Employers currently have 90 days to establish liability for most claims.

The bill would also create a new penalty for unreasonably denying any claim identified in Labor Code sections 3212 through 3213.2 that would be equal to five times the amount of delayed benefits and capped at $50,000. The bill would task the Workers’ Compensation Appeal Board with assessing the reasonableness of a refusal in accordance with the circumstances of the case.

Finally, the bill would allow firefighters and peace officers to receive up to 240 weeks of temporary disability benefits for presumptive cancer claims, rather than the 1

04 weeks of TD available to other injured workers.

AB 1751 would ensure that firefighters and police officers for various government agencies are covered by the covid-19 presumption. The bill was also revised to preserve the covid-19 presumption through January 1, 2024.

SB 1242 would require training agents and brokers must complete before receiving or renewing a license include at least one hour on insurance fraud.

The bill would also require agents or brokers who suspect or know of a fraudulent application for coverage to report it to the Department of Insurance. And agents or brokers who know or suspect fraud after a policy has been placed would be required to report it to the insurance company.

Gov. Gavin Newsom will have until the end of September to sign the bills, veto them or allow them to become law without his signature.

WorkCompCentral is a sister magazine to Business Insurance. More stories here.


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