Arnold Signs Bill Reducing Insurer Reserves

Gov. Arnold Schwarzenegger on Thursday signed into law a bill repealing a requirement that workers' compensation insurers deposit 65% of their written premiums into reserve accounts. Senate Bill 316 by Leland Yee, D-San Francisco, also requires the Commission on Health and Safety and Workers' Compensation to contract with an independent researcher to report on the factors that led to a string of insurer insolvencies in California early this decade. The bill authorizes $1 million in funding. "The signing of SB 316 further advances the cause of decreasing workers' compensation insurance c...