Section 3702.1 Of Article 1. Insurance And Security From California Labor Code >> Division 4. >> Part 1. >> Chapter 4. >> Article 1.
3702.1
. (a) No person, firm, or corporation, other than an insurer
admitted to transact workers' compensation insurance in this state,
shall contract to administer claims of self-insured employers as a
third-party administrator unless in possession of a certificate of
consent to administer self-insured employers' workers' compensation
claims.
(b) As a condition of receiving a certificate of consent, all
persons given discretion by a third-party administrator to deny,
accept, or negotiate a workers' compensation claim shall demonstrate
their competency to the director by written examination, or other
methods approved by the director.
(c) A separate certificate shall be required for each adjusting
location operated by a third-party administrator. A third-party
administrator holding a certificate of consent shall be subject to
regulation only under this division with respect to the adjustment,
administration, and management of workers' compensation claims for
any self-insured employer.
(d) A third-party administrator retained by a self-insured
employer to administer the employer's workers' compensation claims
shall estimate the total accrued liability of the employer for the
payment of compensation for the employer's annual report to the
director and shall make the estimate both in good faith and with the
exercise of a reasonable degree of care. The use of a third-party
administrator shall not, however, discharge or alter the employer's
responsibilities with respect to the report.