Workers comp policyholders can negotiate dispute provisions under new Calif. law

SACRAMENTO—California Gov. Jerry Brown on Friday signed legislation into law that requires insurers to warn workers compensation policyholders that they have a right to negotiate contract dispute-resolution provisions.

The California Department of Insurance sponsored S.B. 684, which requires that insurers intending to use a dispute resolution or arbitration agreement to resolve disputes with California employers disclose that the terms of such arrangements are negotiable.

Beginning July 1, 2012, workers comp insurers also must disclose to employers contemporaneously with a written quote that the choice of venue for dispute resolution might be a jurisdiction outside of California.