California Code of Regulations › Title 8 - Industrial Relations › Division 1 - Department of Industrial Relations › Chapter 4.5 - Division of Workers' Compensation › Subchapter 1 - Administrative Director-Administrative Rules › Article 1.6 - Ethical Standards of Workers' Compensation Administrative Law Judges; Enforcement of Standards › Section 9721.21 - Restriction on Investments

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A workers' compensation administrative
					 law judge may not have an ownership interest in, either in his individual
					 capacity or as a fiduciary, and may not purchase an interest in, an insurance
					 carrier which either writes policies of workers' compensation insurance to
					 employers in the state of California or is authorized to write policies of
					 workers' compensation insurance to employers in the state of
					 California.
(b) A workers'
					 compensation administrative law judge who, as of the date this regulation
					 becomes effective, has an interest in an insurance company described in
					 subdivision (a), shall dispose of the interest or terminate the fiduciary
					 relationship within one year of the date this regulation becomes
					 effective.
(c) A workers'
					 compensation administrative law judge who acquires an interest in an insurance
					 company described in subdivision (a) through gift, inheritance or devise, or by
					 becoming a fiduciary for a person, estate, or trust which has an interest in
					 such an insurance company, shall dispose of the acquired interest or terminate
					 the fiduciary relationship within one year.
(d) Upon application by a workers'
					 compensation administrative law judge who acquired an interest in an insurance
					 company described in subdivision (a) through gift, inheritance or devise, or by
					 becoming a fiduciary for a person, estate, or trust which has an interest in
					 such an insurance company, and upon the showing of hardship to the judge or to
					 the person, trust, or estate for whom the judge is serving as fiduciary, the
					 Administrative Director may grant an extension of time to dispose of the
					 acquired interest or to terminate the fiduciary relationship or may grant an
					 exemption if the value of the interest is de minimus.
(e) The obligation of a workers' compensation
					 administrative law judge under the California Code of Judicial Ethics to
					 "manage personal investments and financial activities so as to minimize the
					 necessity for disqualification" includes the obligation not to acquire or hold
					 investments in self-insured employers who are reasonably likely to be defendant
					 employers in cases at the district office where the judge is usually
					 employed.
(f) An ownership interest
					 in a corporation which owns, wholly or in part, an insurance carrier which
					 either writes policies of workers' compensation insurance to employers in the
					 state of California or is authorized to write policies of workers' compensation
					 insurance to employers in the state of California, is not an ownership interest
					 in that insurance carrier. This subdivision shall not affect a judge's
					 disqualification or obligation to disclose.
1. New
						section filed 8-25-2008; operative 9-24-2008 (Register 2008, No.
						35).
Note: Authority cited: Sections
						  123.6,
						  133 and
						  5307.3, Labor
						  Code. Reference: Sections
						  111 and
						  123.6, Labor
						  Code.