Section 3702.6 Of Article 1. Insurance And Security From California Labor Code >> Division 4. >> Part 1. >> Chapter 4. >> Article 1.
3702.6
. (a) The director shall establish an audit program
addressing the adequacy of estimates of future liability of claims
for all private self-insured employers, and shall ensure that all
private self-insured employers are audited within a three-year cycle
by the Office of Self Insurance Plans.
(b) Each public self-insurer shall advise its governing board
within 90 days after submission of the self-insurer's annual report
of the total liabilities reported and whether current funding of
those workers' compensation liabilities is in compliance with the
requirements of Government Accounting Standards Board Publication No.
10.
(c) The director shall, upon a showing of good cause, order a
special audit of any public self-insured employer to determine the
adequacy of estimates of future liability of claims.
(d) For purposes of this section, "good cause" means that there
exists circumstances sufficient to raise concerns regarding the
adequacy of estimates of future liability of claims to justify a
special audit.