AIA Statement on Gov. Jerry Brown’s Veto of AB 1922

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Katie Pettibone, Western Region Vice President for the American Insurance Association (AIA), released the following statement today in response to California Governor Jerry Brown’s veto of AB 1922.

Katie Pettibone, Western Region Vice President for the American Insurance Association (AIA), released the following statement today in response to California Governor Jerry Brown’s veto of AB 1922. The AIA-sponsored legislation streamlined the contracting process for large employers and insurers’ workers’ compensation policies. AB 1922, which passed the legislature with no opposition, was introduced in response to onerous new regulations that went into effect April 1 for high-deductible workers’ compensation policies.

Ms. Pettibone’s statement follows:

“AIA was pleased that Governor Brown recognized the need for continuing reforms in the workers’ compensation system by signing AB 1244, a bill that combats workers’ compensation fraud, and SB 1160 which among other things reforms the lien process. While the governor’s veto of AB 1922 was disappointing, his veto message recognized the importance of allowing more time for the new regulation to take effect and did not oppose a future iteration of the bill.

AB 1922 was strongly supported by both legislative houses, where not a single ‘no’ vote was cast. We view this and the Administration’s willingness to revisit the issue, if there are problems for companies in the implementation of the new regulation, as a win.”

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Celebrating its 150th year in 2016, the American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 350 insurers that write more than $140 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage for small businesses, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.

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