Legislation aimed at bringing more workers' compensation insurers into California has been approved by the legislature and sent to Governor Arnold Schwarzenegger.
Authored by state Senator Leland Yee, D-San Francisco, the legislation would remove workers' compensation from the list of coverages for which insurers must maintain minimum reserves for outstanding losses and loss expenses.
Supporters of SB 316, including the Association of California Insurance Companies, have argued that the reserve requirement has been surpassed by more recent tools to ensure an insurer's solvency.
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