SB 604: California Insurance Guarantee Association: definitions.

Existing law establishes the California Insurance Guarantee Association to provide coverage against losses arising from the failure of an insolvent property, casualty, or workers compensation insurer to discharge its obligations under its insurance policies. Existing law requires the association to pay and discharge all covered claims, which includes the obligations of the insolvent insurer.

This bill would additionally provide that a covered claim includes a claim filed by an employee of a general employer that has entered into a contractual relationship with a special employer that is a self-insured governmental entity. The bill would provide that in that case, if certain criteria are met, the contractual agreement would be conclusive proof that the special employer never intended to provide workers compensation insurance for the employees of the general employer.