AB 1922 Summary

• Requires insurers to file ancillary agreements (supplementary contracts relating to workers' compensation policies) with rating organizations and receive 30-day approval from the Insurance Commissioner before issuing to California employers, effective January 1, 2017.

• Exempts ancillary agreements from filing requirements if issued with policies containing deductibles or retrospective rating of $250,000 or more and the employer meets at least three criteria including having a broker, 500+ employees, $20+ million annual payroll, or $1+ million standard premium.

• Prohibits ancillary agreements from modifying coverage, cancellation provisions, dispute resolution terms, premiums, or benefits unless filed and approved; policy terms take precedence over conflicting ancillary agreement provisions.

• Requires insurers to provide draft ancillary agreements with written quotes and notify the Insurance Commissioner within 30 days of issuing exempt agreements; ancillary agreements must disclose they have not been filed or approved.

• Amends dispute resolution requirements to apply to ancillary agreements and collateral/security agreements; establishes January 1, 2022 sunset date unless extended by later legislation.