Committee approves Scott's insurance bill

Karen S. Kim

GLENDALE -- The Assembly Insurance Committee has passed a bill by

state Sen. Jack Scott (D-Glendale) that would offer employees covered by

voluntary disability plans some protection.

According to the bill, the state Employment Development Department

could terminate an employer's voluntary disability plan if it is

determined the plan does not have sufficient funds to pay employees.

Under current law, employees eligible for disability benefits can

receive money through the State Disability Insurance program administered

by the Employment Development Department or rely on money from a private

voluntary plan.

Scott's bill allows the Employment Development Department to issue

benefits if the private voluntary plan is out of funds.