Section 3761 Of Article 3. Insurance Rights And Privileges From California Labor Code >> Division 4. >> Part 1. >> Chapter 4. >> Article 3.
3761
. (a) An insurer securing an employer's liability under this
division shall notify the employer, within 15 days, of each claim for
indemnity filed against the employer directly with the insurer if
the employer has not timely provided to the insurer a report of
occupational injury or occupational illness pursuant to Section
6409.1. The insurer shall furnish an employer who has not filed this
report with an opportunity to provide to the insurer, prior to the
expiration of the 90-day period specified in Section 5402, all
relevant information available to the employer concerning the claim.
(b) An employer shall promptly notify its insurer in writing at
any time during the pendency of a claim when the employer has actual
knowledge of any facts which would tend to disprove any aspect of the
employee's claim. When an employer notifies its insurer in writing
that, in the employer's opinion, no compensation is payable to an
employee, at the employer's written request, to the appeals board,
the appeals board may approve a compromise and release agreement, or
stipulation, that provides compensation to the employee only where
there is proof of service upon the employer by the insurer, to the
employer's last known address, not less than 15 days prior to the
appeals board action, of notice of the time and place of the hearing
at which the compromise and release agreement or stipulation is to be
approved. The insurer shall file proof of this service with the
appeals board.
Failure by the insurer to provide the required notice shall not
prohibit the board from approving a compromise and release agreement,
or stipulation; however, the board shall order the insurer to pay
reasonable expenses as provided in Section 5813.
(c) In establishing a reserve pursuant to a claim that affects
premiums against an employer, an insurer shall provide the employer,
upon request, a written report of the reserve amount established. The
written report shall include, at a minimum, the following:
(1) Estimated medical-legal costs.
(2) Estimated vocational rehabilitation costs, if any.
(3) Itemization of all other estimated expenses to be paid from
the reserve.
(d) When an employer properly provides notification to its insurer
pursuant to subdivision (b), and the appeals board thereafter
determines that no compensation is payable under this division, the
insurer shall reimburse the employer for any premium paid solely due
to the inclusion of the successfully challenged payments in the
calculation of the employer's experience modification. The employee
shall not be required to refund the challenged payment.