Opinion No. (2000)

BILL LOCKYER Attorney General CLAYTON P. ROCHE Deputy Attorney General THE HONORABLE STEPHEN J. SMITH, DIRECTOR OF INDUSTRIAL RELATIONS, has requested an opinion on the following question: In view of the qualification of Propositions 30 and 31 on the March 7, 2000 ballot, may public sector self-insured employers purchase special excess workers' compensation insurance policies effective January 1, 2000? CONCLUSION Regardless of the qualification of Propositions 30 and 31 on the March 7, 2000 ballot, public sector self-insured employers may purchase special excess workers' compensation insurance policies effective January 1, 2000. ANALYSIS In 1999, the Legislature enacted two interrelated statutes. (Stats. 1999, chs. 720, 721.) Chapter 720 authorizes third party claimants to sue insurance companies for unfair claims settlement practices and is known as the "Fair Insurance Responsibility Act of 2000." Chapter 721 amends chapter 720 but also contains two provisions concerning a different subject matter. Sections 5 and 7 of chapter 721 authorize public sector employers who are self-insured to purchase excess workers' compensation insurance to discharge their continuing obligations as…