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Member, Beacon International Group, Ltd.
SACRAMENTO, Calif.—California Gov. Arnold Schwarzenegger has vetoed a bill that would have required policyholders and their workers compensation insurers to resolve certain disputes about California claims within the state.
A.B. 2490, sponsored by Assemblyman Dave Jones, D-Sacramento, also sought to mandate that employers and insurers with contracts containing arbitration clauses settle any California dispute under the state’s laws.
In a veto letter dated Sept. 30, the governor said the bill is unnecessary because there is no evidence that a problem exists and the legislation could reduce “the competitive market for workers compensation California now enjoys.”
Gov. Schwarzenegger also said that “the high-deductible contract negotiations the bill seeks to impact are conducted by sophisticated participants on both sides of the table that are well-versed in all aspects of workers compensation and other insurance products,” which also made the legislation unnecessary.