Chapter 8. Office of the Director
Subchapter 2. Administration of Self-Insurance Plans
Article 9. Recordkeeping and Audits

§15405. Confidentiality.

(a) Financial information submitted to the Director or Chief to establish the solvency and worth of any self-insurer, applicant to be self-insured, third party administrator, or of a guarantor of a self-insurer or applicant to be self-insured shall be considered confidential in accordance with California Government Code Sections 6254 and 6255, and California Labor Code Section 3701.8(b)(5). Except as otherwise provided by law, such information shall not be disclosed to any other entity or person without an order from an appropriate court or administrative subpoena from an agency of the State, with the following exceptions:

(1) The Chief shall disclose any financial information to the Self-Insurers' Security Fund on any private self-insurer whose liabilities have been turned over to the Fund pursuant to Labor Code Section 3701.5, or that has filed bankruptcy, failed to pay its liabilities, or failed to post an increase in deposit due that would potentially put the Fund at risk for the self-insurer's liabilities.

(2) Pursuant to Labor Code Section 3701.8(b)(5) and Section 15220.1(d) of these regulations, the Chief may provide to the Self-Insurers' Security Fund any financial information for any self-insurer needed to determine and set deposit assessments for self-insured employers.

(3) Notwithstanding this section, the Board of Trustees of any private group self-insurer currently or previously self-insured pursuant to Labor Code Section 3700(b) and sections 15470 through 15500 of these regulations shall upon written request provide a copy of the group's most recent certified, independently audited financial statement to any affiliate employer of the group. The Chief also may provide to the Self-Insurers' Security Fund financial information, including actuarial reports, of any group self-insurer, so that the Security Fund may determine the financial risk and stability of the group.

(b) Self-Insurers' Annual Reports filed with the Office of Self-Insurance Plans pursuant to Labor Code Section 3702.2 and Section 15251 of these regulations shall be considered confidential in accordance with Government Code Sections 6254 and 6255 and Labor Code Section 3701.8(b)(5). Except as otherwise provided by law, information from the annual reports showing the extent of liabilities of self-insured employers shall not be disclosed to any other entity or person without an order from an appropriate court or administrative subpoena from an agency of the State, with the following exceptions:

(1) The Chief shall provide copies of any Self-Insurer's Annual Reports and/or lists of open indemnity claims to the Self-Insurers' Security Fund for any private or group self-insurer whose liabilities have been turned over to the Fund pursuant to Labor Code Section 3701.5 or that has filed bankruptcy, failed to pay its liabilities, or failed to post an increase in deposit due that would potentially put the Fund at risk for the self-insurer's liabilities.

(2) Pursuant to Labor Code Section 3701.8(b)(5) and Section 15220.1(d) of these regulations, the Chief may provide to the Self-Insurers' Security Fund copies of any and all Self-Insurer's Annual Reports needed to determine and set deposit assessments for self-insured employers, except that lists of open indemnity claims shall not be provided to the Security Fund for the sole purpose of setting deposit assessments.

(3) For public self-insured employers and/or Joint Powers Authorities only, copies of and/or data from Self-Insurers' Annual Reports may be provided to parties pursuant to Labor Code Section 3702.2(c) and Government Code Section 6253 upon written request to the Chief, except that no information identifying injured workers or dependents or related to specific claims may be provided.

(c) Except as otherwise provided by law, information obtained from any audit regarding the nature, extent or financial liability of any self-insurer's workers' compensation claims, together with any and all specific information regarding any claims, shall not be disclosed to any other entity or person without an order from an appropriate court or administrative subpoena from an agency of the State, with the following exceptions:

(1) The Chief may provide copies of audit reports to the Self-Insurers' Security Fund for any private self-insurer whose liabilities have been turned over to the Fund pursuant to Labor Code Section 3742, et seq. or that has filed bankruptcy, failed to pay its liabilities, or failed to post an increase in deposit due that would potentially put the Fund at risk for the self-insurer's liabilities.

(2) The Chief may provide copies of any audit reports and/or Self-Insurer's Annual Reports to the Division of Workers' Compensation in conjunction with any requests for audit and/or investigation by the Division of Workers' Compensation or Office of Self-Insurance Plans.

(d) Except as otherwise provided by law, information obtained from actuarial reports shall not be disclosed to any other entity or person without an order from an appropriate court or administrative subpoena from an agency of the State, with the following exception: the Chief may provide copies of actuarial reports to the Self-Insurers' Security Fund.

Note: Authority cited: Sections 54, 55, 3701.8(b)(5), 3702.2 and 3702.10, Labor Code; and Sections 6253, 6254 and 6255, Government Code. Reference: Sections 59, 129, 3700, 3701.5, 3702.2, 3702.6, 3702.10, 3740, 3741, 3742, 3743, 3744, 3745 and 3746, Labor Code; and Sections 6253, 6254 and 6255, Government Code.

HISTORY

1. Amendment filed 2-19-92; operative 3-20-92 (Register 92, No. 13).

2. Amendment of section and Note filed 3-2-2009; operative 3-2-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 10).

3. Amendment of subsection (a)(3), new subsection (d) and amendment of Note filed 9-19-2011; operative 10-19-2011 (Register 2011, No. 38).

4. Amendment filed 12-14-2016; operative 1-1-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 51).