California COVID, claim acceptance, fraud bills sent to governor

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

S.B. 1127 would require employers to accept or deny liability within 75 days for certain injuries that are presumed compensable. Employers currently have 90 days to determine 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 direct the Workers’ Compensation Appeals Board to assess the reasonableness of a denial in accordance with the facts 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 104 weeks of TD available to other injured workers.

A.B. 1751 would ensure firefighters and police officers for various state agencies are covered by the COVID-19 presumption. The bill was also revised to preserve the COVID-19 presumption through Jan. 1, 2024.

S.B. 1242 would require that the training agents and brokers must complete before receiving or renewing a license includes 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 is placed would be required to report it to the insurer.

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.

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