Train workers' insurance fund authorized to offer death benefits for surviving family members
News: 2014 Press Release
SACRAMENTO, Calif. - Insurance Commissioner Dave Jones today announced that Governor Brown has signed AB 2734 authored by the Assembly Committee on Insurance. This omnibus bill clarifies and improves various sections of the Insurance Code, the body of law which provides for consumer protections and regulation of insurance companies. This bill, which received unanimous, bipartisan support throughout the legislative process, is sponsored by Commissioner Jones and the California Department of Insurance.
"Train engineers, conductors and other railroad workers face dangerous conditions," said Commissioner Jones. "Among a number of improvements to the insurance laws, AB 2734 allows these workers to be offered the chance to obtain death benefits for their families in the event they are killed on the job."
AB 2734 provides the Locomotive Engineers and Conductors Mutual Protection Association (LECMPA) the authority to offer an accidental death benefit in addition to job protection insurance to their members. Each year families of union transportation workers face the risk of the devastating loss of a loved one due to their often hazardous occupations. With the passage of this omnibus bill, railroad workers will gain an important insurance protection that will benefit both them and their families.
This bill also clarifies an important element of the law authorizing Commissioner Jones to survey the supplier diversity efforts of insurance companies which is part of Commissioner Jones' Insurance Diversity Initiative. In the first year of surveying insurance companies' efforts to diversify their procurement of goods and service, many insurance companies and stakeholders were unable to properly determine if a supplier was a "California business" as that term was not fully defined in the original law. This omnibus bill clarifies the definition of California business so that insurance companies can better understand what they need to report. The insurance commissioner's Insurance Diversity Initiative encourages insurers to buy more goods and services from women, minority and veteran-owned businesses.
In addition, AB 2734 makes several other changes to better conform some of California's insurance laws with model insurance laws approved by the National Association of Insurance Commissioners.
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LECMPA is a non-profit cooperative assessment insurer with over 27,000 union members who come from many areas of the transportation industry and various crafts within that industry
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.