Automobile Insurance
Health Insurance
Miscellaneous
Automobile Insurance
SB 334 (Lewis-R) Automobile insurance fraud
Creates a five-year sentence enhancement for any person who knowingly causes or participates in a vehicular collision or other accident for the purpose of presenting a fake claim and who has two prior felony convictions for the same offense. Creates a two-year enhancement for any person who causes serious bodily injury to another in the course of a vehicular accident staged for the purpose of presenting a fake claim.
Chapter 189, Statutes of 1998
SB 806 (Brulte-R) Insurance: personal responsibility
Permits disclosure by an insurance institution, agent, or insurance-support organization in response to a request to verify an individual's compliance with the financial responsibility laws of the state.
(Died in Senate Insurance Committee)
SB 859 (Lewis-R) California Automobile Assigned Risk Plan
Requires the California Automobile Assigned Risk Plan to submit monthly reports to the Legislature concerning the plan, and requires that a copy of each month's report be available to the public upon request.
(Died in Assembly Insurance Committee)
SB 1002 (Brulte-R) Motor vehicle insurance
Provides that in a third party action for personal injury arising out of the operation or use of a motor vehicle, the recovery is to be reduced by amounts paid as a medical payment benefit under a policy of motor vehicle insurance, as specified.
(Died in Senate Judiciary Committee)
SB 1242 (Hughes-D) Motor vehicle insurance: loss control program
Requires the State Department of Insurance to oversee a three-year study mandating that motor vehicle insurers notify their insureds residing in high-risk areas of Los Angeles County of the opportunity to participate in a loss control program.
(Died in Senate Insurance Committee)
SB 1297 (Haynes-R) Insured automobile inspection
Repeals the law requiring insurers to inspect passenger autos prior to the issuance or amendment of collision and comprehensive coverage with respect to insureds not formerly insured with that insurer or not formerly insured with that insurer for the same coverage.
(Died in Senate Insurance Committee)
SB 1411 (Rosenthal-D) Rental vehicles
Enacts the Rental Car Damage Waiver Act, which prohibits the sale of collision damage waivers by car rental companies.
(Failed passage in Senate Insurance Committee)
SB 1447 (Burton-D) Auto insurance
Exempts from licensing by the State Department of Insurance a person working at a motor vehicle dealer who sells an automobile insurance policy coincident to the sale of a vehicle named on the policy, if a fire and casualty broker-agent is on the premises of the dealer at the time the policy is sold, and the broker-agent reviews and signs the policy application, as specified.
(Died in Senate Insurance Committee)
SB 1672 (Haynes-R) Automobile insurance: primary and excess policies
Clarifies that a car rental agency, whether through liability insurance coverage or other legal means establishing financial responsibility, is primarily liable for accidents to its workers.
(Failed passage in Senate Insurance Committee)
AB 651 (Lempert-D) Motor vehicles: financial responsibility
Revises and extends, until January 1, 2003, provisions requiring proof of financial responsibility as a condition for the renewal of a vehicle's registration. Requires insurance companies to electronically report to the State Department of Motor Vehicles (DMV) information on vehicle liability insurance policies after a specified date, and establishes confidentiality requirements for information on financial responsibility reported to DMV.
(Died in Senate Appropriations Committee)
AB 1176 (Pringle-R) Liability: auto accidents
States that no cause of action seeking general damages for accidental injury resulting from the use, operation, or maintenance of a motor vehicle may be filed until the court determines that the plaintiff has suffered a "serious injury," as specified. Creates the Motor Vehicle Insurance Basic Choice Act of 1997 that provides an alternative mechanism by which all owners of motor vehicles may satisfy the compulsory insurance requirements, at reduced cost.
(Died in Assembly Judiciary Committee)
AB 1411 (Brewer-R) Insurance rates
Permits the use of other factors that have a substantial relationship to the risk of loss that the Insurance Commissioner may approve in acting upon an insurance rate filing.
(Died in Assembly Insurance Committee)
AB 1876 (Floyd-D) Motor vehicle service contracts
Establishes a scheme to regulate service contracts.
(Died in Assembly Insurance Committee)
AB 1954 (Cedillo-D) Evidence of financial responsibility
Imposes a wider range of fines for drivers who cannot show proof of financial responsibility.
(Failed passage in Assembly Insurance Committee)
AB 2013 (Gallegos-D) California Auto Assigned Risk Plan
Allows insurers to sell discounted auto insurance policies to drivers, selected by the insurers, who are assigned to the California Automobile Assigned Risk Plan.
Died in Senate Insurance Committee)
AB 2076 (Morrissey-R) Financial responsibility
Allows any city or county to impose an assessment equal to 10% of the fine, penalty, or forfeiture imposed for violations of specified provisions of the Vehicle Code relating to financial responsibility.
(Died in Assembly Public Safety Committee)
AB 2152 (Brewer-R) Uninsured motorist coverage
Permits an insurer or an insured to request that a court consolidate a pending arbitration into an existing lawsuit concerning uninsured motorist coverage and disability.
(Died in Assembly Insurance Committee)
AB 2270 (Oller-R) Automobile insurance
Allows insurers to write personal auto policies for drivers with trucks that have a payload capacity of over 500 pounds.
Chapter 136, Statutes of 1998
AB 2314 (Papan-D) Car rentals: notices: damages waiver
Requires a rental company to disclose additional prescribed information regarding the renter's insurance coverage or protection. Provides that the maximum amount that a rental company may charge for an optional damage waiver is $9 per full or partial day for any vehicle in the entry class, as specified.
(Died in Senate Judiciary Committee)
Health Insurance
SB 317 (Calderon-D) Health care service plans
Requires health care service plan capitation-based payments to providers be computed appropriately by a qualified actuary, and requires health plans to annually update an actuarial report required by regulations, as specified.
Vetoed by the Governor
SB 330 (Rosenthal-D) Health care service plans
Requires the Attorney General (AG) to approve, in advance, any mergers, acquisitions, or change, in control of a health care service plan doing business in California. Directs the AG to review and determine whether the proposed change subsequently reduces competition or creates a monopoly.
Vetoed by the Governor
SB 393 (Rosenthal-D) Health care coverage: mid-sized employer coverage
Extends California's small employer health insurance reforms to larger groups between 51 and 100 employees by creating a "mid-sized employer" category.
Vetoed by the Governor
A similar bill was SB 1281 (Brulte-R), which died in Assembly Health Committee.
SB 406 (Rosenthal-D) Board of Managed Health Care
Establishes the Board of Managed Care in the State and Consumer Services Agency, on and after March 1, 1999, to administer and enforce the regulation of health care service plans on and after July 1, 1999, and administer and enforce the regulation of disability insurers that cover hospital, medical, and surgical benefits, preferred provider organizations, exclusive provider organizations and any other preferred provider insurers on and after July 1, 2001. Establishes the Advisory Committee on Managed Care on March 1, 1999, and makes various changes to resolving grievances. Appropriates $3 million from the State Corporations Fund to cover start-up costs. Allows the Board to require health care service plans to pay an additional assessment sufficient to pay for the start-up costs, new personnel, and operating expenses.
Vetoed by the Governor
Other legislation relating to reorganizing the regulation of health care service plans were AB 224 (Alby-R) which died in Conference; AB 1344 (Gallegos-D) which died in Conference; and AB 1515 (Baugh-R) which died in Conference.
SB 593 (Rosenthal-D) Health care coverage
Provides access to health coverage to individuals with prior group coverage and by extending California's small employer health insurance reform to self-employed individuals, under specified conditions. Becomes operative only if AB 399 is enacted.
Vetoed by the Governor
SB 625 (Rosenthal-D) Health care service plans: drugs
Requires health care service plans that include prescription drug benefits to maintain an expedited process by which prescribing providers may obtain authorization for a medically necessary nonformulary prescription drug, and requires various disclosures and recordkeeping related to plan formularies.
Chapter 69, Statutes of 1998
SB 750 (Rosenthal-D) Health care coverage
Requires health care service plans to disclose information about financial bonuses and incentives.
Chapter 835, Statutes of 1998
SB 814 (Leslie-R) Health care: unfair payment practices
Establishes specific requirements pertaining to claims submitted to health care service plans by emergency physicians.
Vetoed by the Governor
SB 915 (Haynes-R) Prepaid health plans
Requires Medi-Cal prepaid health plans to process either paper hard copy or electronically prepared and submitted claims, at the discretion of the providers, for out-of-plan claims.
(Died on Assembly Inactive File)
SB 932 (Senate Insurance Committee) Managed Risk Medical Insurance Board
Revises the statutory appointment structure of the Managed Risk Medical Insurance Board in order to stagger the terms of board members.
(Died in Senate Appropriations Committee)
SB 954 (Rosenthal-D) Health insurance access
Expresses legislative intent to establish the Health Insurance Access for Children and Families Program.
(Died at Assembly Desk)
SB 955 (Rosenthal-D) Health care service plans: enforcement
Enhances the State Department of Corporations enforcement authority over health care service plans under the Knox-Keene Act.
Chapter 836, Statutes of 1998
SB 956 (Rosenthal-D) Health insurance: anti-fraud plans
Requires health plans to establish anti-fraud plans.
Chapter 837, Statutes of 1998
SB 984 (Rosenthal-D) Health care service plans: economic profiles
Requires health care service plans to file with the State Department of Corporations a description of any economic profiling and associated policies and procedures employed by the health plan, its medical groups, and individual practice associations. Requires the Corporations Commissioner to make the findings available to the public, upon request, with certain exceptions.
Chapter 893, Statutes of 1998
SB 1129 (Sher-D) Health coverage: terminated providers
Requires health plans and disability insurers to provide continuity of care, at the request of an enrollee who is currently being treated for an acute or serious condition, or a pregnancy, by a provider terminated by the plan.
Chapter 180, Statutes of 1998
SB 1191* (Senate Insurance Committee) Health care: pilot program
Provides specified protections for the Pilot Health Care Consumers' Information and Assistance Program, a pilot program operated by the Center for Health Care Benefits in the Sacramento area.
Chapter 47, Statutes of 1998
SB 1292 (Calderon-D) Health care service plans: mental health
Requires a specialized health care service plan offering mental health services to permit an enrollee to continue treatment with a provider, if the enrollee must switch plans, subject to certain conditions.
Vetoed by the Governor
SB 1398 (Hayden-D) Healthy Families Program
Makes several changes to the Healthy Families Program, including an increase in the amount of services, and providers eligible for claims payment, and allowing eligibility for children, regardless of their date of entry into the United States.
(Died in the Assembly Appropriations Committee)
SB 1443 (Knight-R) Health care service plans: complaints
Requires health care service plans (health plans) to publish the State Department of Corporations (DOC) Internet address, the plan's telephone number, and the California Relay Services toll-free telephone numbers for the hearing and speech impaired, on specified health plan documents and notices to help patients submit complaints to DOC about their health plans.
Chapter 377, Statutes of 1998
SB 1494 (Watson-D) Health care coverage
Requires a health care service plan to provide medical and pharmaceutical services located within a 30 minute ride on public transportation from the residence of a Medi-Cal enrollee, or to provide vouchers, in suburban or urban settings. Provides health care service plans and disability insurers that establish a pattern of denying benefits or payments to provide a course of action to enrollees or insureds and may be reported to the Attorney General for investigation and possible prosecution of fraud.
(Died in Senate Insurance Committee)
SB 1504 (Rosenthal-D) Health care service plans: grievances
Requires health care service plans to provide subscribers and enrollees with written responses to grievances and provides for a procedure for settling of these grievances.
(Died in Assembly Health Committee)
Similar legislation was SB 1653 (Johnston-D), which died in Assembly Health Committee; SB 406 (Rosenthal-D), which was vetoed by the Governor; and AB 1667 (Migden-D), which died in Senate Appropriations Committee.
SB 1528 (Schiff-D) Health insurance: STRS members
Requires the State Teachers' Retirement System Board to conduct a study on providing health insurance benefits, including vision and dental care benefits, for STRS members, beneficiaries, children, and dependent parents.
Chapter 968, Statutes of 1998
SB 1537 (Rosenthal-D) Long-term care insurance
Makes various changes to the laws regulating federally tax qualified and nontax qualified long-term care insurance policies, including a provision to allow policyholders to switch between the two types of policies, if specified federal action is taken.
Chapter 1067, Statutes of 1998
SB 1548 (Rosenthal-D) Health coverage: continuation of coverage
Reduces, from 60 to 55, the age at which former employees whose health coverage under the Federal Consolidated Budget Reconciliation Act of 1985, or California Continuation Benefits Replacement Act, may further continue coverage for themselves and their spouses until the age of 65, or until other coverage is available. Eliminates the five-year limitation on continuation coverage for spouses of former employees.
Vetoed by the Governor
SB 1642 (Rosenthal-D) Health care: risk adjustment
Requires the Public Employees' Retirement System Board and the State Department of Health Services to conduct a study on incorporating a medical diagnosis risk adjustment mechanism into their health benefit program.
Vetoed by the Governor
SB 1647 (Maddy-R) Health care coverage: reconstructive surgery
Requires health care service plan contracts, excluding specialized plans, and every disability insurance policy, to cover reconstructive surgery and excludes coverage for cosmetic surgery.
(Died on Assembly Inactive File)
Similar legislation was AB 1621 (Figueroa-D), which became Chapter 788, Statutes of 1998.
SB 1654 (Johnston-D) Health insurance: genetic information
Repeals the sunset date on the law prohibiting discrimination on the basis of genetic characteristics with regard to heath care services. Modifies the definition of genetic characteristics. Prohibits insurers from requiring a test for genetic characteristics to determine insurability other than for those policies that are contingent on review or resting for other diseases or medical conditions.
Chapter 521, Statutes of 1998
A similar bill was AB 2688 (Perata-D), which died in Assembly Health Committee.
SB 1658 (Peace-D) Health care service plans: Mexico-based HMO's
Requires Mexico-based health care service plans covering Mexican nationals working in California to apply for licensure from the State Department of Corporations (DOC), and allows DOC to regulate those plans.
Chapter 1025, Statutes of 1998
SB 1689 (Rosenthal-D) Health care ombudsprograms
Requires the State Department of Corporations to fund several independent health care ombudsprograms pilot programs. Sunsets January 1, 2003.
Vetoed by the Governor
SB 1694 (Rosenthal-D) Health care service plans
Requires the Governor to appoint a representative state agency to consult with the U.S. Department of Labor with regard to overseeing employer-sponsored health benefit plans regulated under the federal Employee Retirement Insurance Security Act of 1974.
(Died in Assembly Appropriations Committee)
SB 1702 (Rosenthal-D) Health care service plans: arbitration
Requires that, if a health care service plan uses arbitration to settle disputes with enrollees or subscribers, it shall require that an arbitration award be accompanied by a written decision to the parties that contains specified information. Does not become operative unless AB 1557 is chaptered into law.
Chapter 838, Statutes of 1998
SB 1766* (Rosenthal-D) Managed care fraud
Creates the Managed Care Fraud Prosecution Program within the Office of the Attorney General in order to coordinate a statewide program and task force for investigation and prosecuting, and referring for prosecution, violations of all applicable laws pertaining to fraud associated with managed care health resources.
(Failed passage in Senate Appropriations Committee)
SB 1790 (Rosenthal-D) Health care coverage: small employer coverage
Allows small employers with between 20 and 50 employees to provide health coverage to their employees who work 20-29 hours per week on the same basis as their employees who work 30 or more hours per week.
Chapter 418, Statutes of 1998
SB 1839 (Rosenthal-D) Healthy Families Program
Expands the Healthy Families Program (HFP) eligibility to include children in families with gross incomes between 200 and 250% of the federal poverty level. Authorizes local governments to match federal funds to provide additional services to HFP children. Expands HFP coverage to provide, in specified circumstances, coverage for entire families, and authorizes the Managed Risk Medical Insurance Board to increase covered benefits provided to subscribers.
(Died in Assembly Appropriations Committee)
SB 1951 (Brulte-R) Health coverage: providers: advertising
Prohibits health plans, health insurers, and others from prohibiting health care providers from advertising.
Chapter 523, Statutes of 1998
SB 2020 (Karnette-D) Health care coverage: prostate screening
Requires specified health care service plan contracts and certain disability insurance policies to provide coverage for prostate-specific antigen testing and digital rectal exams for the screening and diagnosis of prostate cancer.
Chapter 839, Statutes of 1998
SB 2123 (Lee-D) Health care coverage: provider services
Requires specified managed care organizations and insurers to disclose each of their paneled health care providers and specified information about each third-party payer with whom they contract to provide health services, and establishes penalties for noncompliance.
(Died in Senate Appropriations Committee)
SB 2164 (Rosenthal-D) Pharmaceutical benefit management companies
Allows the State Department of Consumer Affairs to regulate pharmaceutical benefit management companies to protect the interests of health care providers, pharmacists, and patients.
(Died in Senate Appropriations Committee)
SCR 100 (Watson-D) Health care coverage
Creates the Joint Select Committee on Universal Health Access to conduct a study regarding health care financing options that will consider and compare alternative financing systems to achieve the goal of universal health care, as specified.
(Died in Senate Rules Committee)
SR 34 (Rosenthal-D) Governor's Reorganization Plan No. 1
Rejects the Governor's Reorganization Plan No. 1, which abolishes the State Department of Corporations and, instead, creates the State Department of Managed Health Care and the State Department of Financial Services to administer health care service plans.
Read and adopted
AB 7 (Brown-D) Health coverage: breast cancer
Enacts the Breast Cancer Patient Protection Act of 1997, requiring insurers that provide coverage for mastectomies and lymph node dissections to allow the length of a hospital stay associated with those procedures to be determined by the attending physician and surgeon, in consultation with the patient, as specified, consistent with sound clinical principles and processes.
Chapter 787, Statutes of 1998
AB 12 (Davis-D) Health insurance: obstetricians and gynecologists (OB-GYN)
Requires health plans to allow enrollees to seek obstetrical and gynecological physician services directly from either an OB-GYN or a family practice physician.
Chapter 22, Statutes of 1998
AB 34 (Wayne-D) Health coverage: breast cancer services
Requires health care service plan contracts and certain policies of disability insurance to provide coverage for screening for, diagnosis of, and treatment for, breast cancer. Makes other related changes related to coverage of diagnosis and treatment of breast cancer.
Vetoed by the Governor
A similar bill was AB 2211 (Wayne-D), which died in Assembly Insurance Committee.
AB 112* (Escutia-D) Continuation health coverage
Makes various changes to the California Continuation Benefits Replacement Act, which provides continuation coverage for former employees of certain small employers to conform to federal COBRA law.
Chapter 107, Statutes of 1998
AB 160 (Hertzberg-D) Health care coverage: contraceptive drugs
Enacts the Women's Contraception Equity Act, which requires health plans to provide coverage for a variety of federal Food and Drug Administration approved prescription contraceptive methods.
Vetoed by the Governor
AB 227 (Richter-R) Health care service plans: capitation payments
Provides that contracting health care providers are entitled to capitation payments from a health care service plan for (1) a new plan enrollee, as of the effective date of enrollment of the new enrollee, and (2) an enrollee who changes providers, as of the effective date of the change, or on the first month following the effective date of the change, whichever is specified in the contract. Does not apply to designated Medi-Cal capitation payment requirements.
Vetoed by the Governor
AB 269 (Ortiz-D) Patient discharge: home care
Requires a managed care organization to ensure that criteria for payment, determination of medical necessity, or other policies and procedures ensure that a patient who has been admitted to a health facility as health facility, or who has had surgery involving anesthesia is prohibited from being discharged to the community unless certain conditions are met.
(Died in Senate Insurance Committee)
AB 332 (Figueroa-D) Health care
Makes any decision regarding the "medical necessity" of health care which results in a denial of care constitute the practice of medicine subject to state regulation. Requires HMO's and health insurers to disclose the process and criteria they use to deny care, requires a patient physical exam before an HMO or insurer could deny physician-recommended care for patients facing grave health risks.
Vetoed by the Governor
AB 341 (Sweeney-D) Health care coverage: second opinions
Requires an HMO or health insurer to pay for a medically necessary or appropriate second opinion upon request by an enrollee. Specifies that it must be provided by an appropriately qualified health professional.
Vetoed by the Governor
A similar bill was AB 2264 (Baugh-R), which died in Assembly Health Committee.
AB 399 (Gallegos-D) Health care coverage
Provides, for purposes of health care service plans with respect to small employer coverage, that small employers are employers that employ at least one, but no more than 50, eligible employees, and includes self-employed individuals as eligible employees on or after July 1, 1999. Prohibits, on or after July 1, 1999, a plan contract that covers one or more enrollees from excluding coverage for any individual on the basis of a preexisting condition provision, or waivered condition for a period greater than six months following the individual's effective date of coverage. Prohibits a health care service plan from providing coverage under an individual health care service plan contract from declining to offer coverage to, or deny enrollment of, a federally eligible individual, or impose any preexisting condition exclusion with respect to the coverage.
Double-joined with SB 1790, and is contingent on the enactment of SB 593.
Vetoed by the Governor
AB 434 (Gallegos-D) Health care service plans: discrimination
Requires health plans to adjust physician economic profiles based on specified factors that may account for unused cost impacts. Prohibits discrimination against physicians that treat severely ill, costly patients, and requires health plans to provide physicians with the criteria used for credentialing and terminating contracts with providers.
Vetoed by the Governor
AB 471* (Cardoza-D) Healthy Families Program: dental plans
Requires dental plans participating in the Healthy Families Program to be subject to administrative cost limits and annual provider network reporting in the same manner as participating health plans, and adds a dentist to the program's advisory panel.
Chapter 285, Statutes of 1998
AB 497 (Wildman-D) Health insurance coverage
Requires health plans to establish and maintain a documented plan, approved by the State Department of Corporations, for ensuring timely access for enrollees to telephone representatives and urgent, nonurgent, and referral appointments.
Vetoed by the Governor
AB 589 (Figueroa-D) Health care coverage: clinical practice guidelines
Requires, if health care service plans or certain disability insurers develop, or use clinical practice guidelines, the clinical practice guidelines to be based on enumerated criteria. Requires the processes used in the development of clinical practice guidelines to be available to the public, and upon request.
(Died in Senate Insurance Committee)
AB 607 (Scott-D) Health care service plans
Requires health plan disclosure forms to contain specific information about benefits and exclusions, and the terms and conditions of coverage, and requires each plan to provide for small group and individual contracts, a uniform matrix containing the plan's major provisions.
Chapter 23, Statutes of 1998
AB 682 (Morrow-R) Health care service plans: 24-hour access
Removes an exemption in current law providing that requirements relating to payment for emergency services do not apply to health care service plans which contract with providers for the provision of emergency services and necessary medical care. Requires the State Department of Corporations to adopt emergency regulations, by July 1, 1999, relative to post stabilization medical care.
Chapter 1015, Statutes of 1998
AB 742 (Washington-D) Health care service plans
Requires health care service plans to allow a Medicare enrollee, who is discharged from an acute care hospital, to return to the skilled nursing facility, continuing care retirement community, or multilevel facility in which the enrollee resided prior to hospitalization.
Chapter 124, Statutes of 1998
AB 974 (Gallegos-D) Health care service plans: prescription drug benefits
Prohibits health plans from limiting coverage for a drug that had previously been approved by the plan. Requires specified disclosures regarding the use and contents of drug formularies.
Chapter 68, Statutes of 1998
AB 984 (Davis-D) Health care plans: medical transportation
Requires health plans and disability insurance providing emergency health services to provide ambulance transport services as a result of a "911" emergency call for assistance.
Chapter 979, Statutes of 1998
AB 992 (Perata-D) Health care service plans: services
Requires the State Department of Corporations to ascertain the number of health plans that provide specified types of nontraditional care and report to the Legislature by January 1, 2000.
Vetoed by the Governor
AB 1053 (Thomson-D) Health care service plans: pediatric vaccines
Requires health care service plans to (1) cover all pediatric vaccines that are medically necessary, (2) augment a provider's reimbursement for additions made to the child immunization schedule, and (3) prohibits plans from including vaccine costs in individual physician capitation rates.
Vetoed by the Governor
AB 1059 (Migden-D) Health insurance: domestic partners
Requires health care service plans and health insurers that offer group coverage benefits to the dependents of an employee or subscriber to offer those benefits, on the same terms, to a domestic partner.
Vetoed by the Governor
AB 1100 (Thomson-D) Health care coverage: mental illness
Requires health care service plans and health insurers to provide coverage for the diagnosis and medically necessary treatment of biologically-based severe mental illness for persons of all ages and serious emotional disturbances of children, and provide such coverage under the same terms and conditions applied to other medical conditions. Exempts, from all provisions relating to a health care service plan contract, a contract between the State Department of Health Services and a health care service plan for enrolled Medi-Cal beneficiaries.
Vetoed by the Governor
AB 1112 (Hertzberg-D) Health care coverage: prescription contraceptives
Requires health plans and disability (health) insurers to cover prescription contraceptives. Allows an employer that is a religious organization to exclude such coverage, and permits employees of religious organizations access to such coverage through a state program.
Vetoed by the Governor
AB 1181 (Escutia-D) Health care coverage: referrals
Requires health plans to establish procedures for enrollees who need continuing care from a specialist, to receive appropriate referrals.
Chapter 31, Statutes of 1998
AB 1247 (Washington-D) Health care service plans
Requires health care service plans providing services to Medi-Cal patients to contract with public teaching hospitals to provide services to those Medi-Cal patients that reside within a three-mile radius of the public teaching hospital.
(Died in Assembly Health Committee)
AB 1298 (Villaraigosa-D) Health care coverage communication
Prohibits health plans from restricting communications among enrollees, as specified.
Vetoed by the Governor
AB 1333 (Martinez-D) Health care service plans: compensation arrangements
Regulates health plan compensation arrangements in which a provider, or small provider group, receives capitation or incentive payments for a substantial portion of referral costs, and requires the use of stop-loss insurance where providers face substantial financial risk.
(Failed passage in Assembly Health Committee after it was referred when it passed the Senate)
AB 1373* (Granlund-R) Health care: children
Allows the Managed Risk Medical Insurance Board to designate not more than two community provider plans in Los Angeles County for the Healthy Families Program.
Vetoed by the Governor
AB 1377 (Gallegos-D) Health care service plans
Deletes a provision in current law that prohibits corrected deficiencies contained in health plan financial examinations from being made public. Clarifies that a plan's second opinion policy is not subject to approval or disapproval by the State Department of Corporations. Repeals the requirement that nonprofit hospital services plans file second opinion policies.
Chapter 215, Statutes of 1998
AB 1430* (Figueroa-D) Healthy Families Program
Provides reimbursement for screening and initial treatment of children who qualify for the Child Health and Disability Prevention Program, which includes children from families with income less than 200% of poverty. Payment would be from Healthy Families Program.
(Died in Senate Appropriations Committee)
AB 1557* (Gallegos-D) Health coverage: arbitration clauses
Allows a health maintenance organization to include mandatory binding arbitration only if the enrollee agrees to the provision at the time of enrollment. Prohibits plans from requiring an enrollee to agree to binding arbitration as a condition of enrollment.
(Failed passage in Senate Appropriations Committee)
AB 1560 (Scott-D) Health care service plans
Establishes timelines and other requirements for health care service plans and disability insurers to pay claims for emergency treatment. Changes from January 1, 1999 to July 1, 1999, certain required changes in a health plan disclosures form related to new continuity of care requirements and the contents of drug formularies. Limits the availability of an evidence of coverage prior to enrollment to individual and small group plan controls and any other group plan contract, the health care services of which are not negotiated.
Chapter 994, Statutes of 1998
AB 1621 (Figueroa-D) Health care coverage: reconstructive surgery
Requires every health care service plan and disability (health) insurer to provide coverage for reconstructive surgery, as defined, beginning January 1, 1999. Excludes cosmetic surgery, as defined.
Chapter 788, Statutes of 1998
Similar legislation was SB 1647 (Maddy-R), which died on the Assembly Inactive File.
AB 1711 (Aguiar-R) Health care service plans: patient rights
Establishes a Patients Bill of Rights and sets forth legislative findings and declarations regarding those rights.
(Died in Assembly Health Committee)
AB 1717 (Richter-R) Health coverage: utilization review
Revises current law relating to health plan treatment authorization criteria by establishing standards governing utilization review.
(Died in Assembly Health Committee)
Similar legislation was AB 2348 (Pringle-R), which died in Assembly Appropriations Committee.
AB 1718 (Richter-R) Health insurance: denials of coverage
Requires every health care service plan to provide an internal, independent review to examine denials of coverage by plans based on medical necessity.
(Died in Assembly Health Committee)
AB 1726 (Bustamante-D) Health care service plans
Creates the Family Health Care Service Rights Act, with specified rights for health care service plan enrollees.
Vetoed by the Governor
AB 1829* (Kuehl-D) Major Risk Medical Insurance Program
Increases the maximum annual and lifetime benefits under the Major Risk Medical Insurance Program.
(Died in Senate Appropriations Committee)
AB 1832 (Wildman-D) Health services billing: educational agencies
Establishes a local education agency billing option for services to Healthy Families-enrolled children.
Vetoed by the Governor
AB 1899 (Davis-D) Health care service plan: services
Revises the definition of basic health services with regard to health care service plans to provide that it includes ambulance and ambulance transport services provided through the "911" emergency response system.
Chapter 1026, Statutes of 1998
AB 1911 (Ashburn-R) Health care coverage: emergency services
Requires emergency services and care to be deemed medically necessary and to be covered under the Medi-Cal program, regardless of whether the emergency services and care are obtained without prior authorization. Specifies the circumstances under which Medi-Cal must pay for ambulance and ambulance transport services.
Vetoed by the Governor
AB 1959 (Gallegos-D) Health care service plans: providers: audits
Requires the State Department of Corporations to establish a working group to develop standards for quality audits of health care service plan providers.
Chapter 658, Statutes of 1998
AB 2003 (Strom-Martin-D) Health coverage: dental treatments: anesthesia
Specifies the circumstances under which a health plan or health insurer must cover general anesthesia for dental treatment and associated facility charges for dental procedures for children under seven years of age, or who are developmentally disabled, or for whom general anesthesia is medically necessary, if rendered in a hospital or surgery center setting, when the clinical status or underlying medical condition of the patient requires dental procedures that ordinarily would not require general anesthesia to be rendered in a hospital or surgery center setting. Allows the plan to require prior authorization of general anesthesia and associated charges required for dental care procedures in the same manner that prior authorization is required for other covered diseases or conditions.
Chapter 790, Statutes of 1998
AB 2037 (Kuehl-D) Health insurance: support
Allows a court to order a child support obligor to enroll a child in a health insurance plan, and to issue an earnings assignment order in an amount sufficient to pay the health insurance premium, under specified circumstances in cases in which the district attorney is providing child enforcement services.
(Died in Assembly Health Committee)
AB 2048 (Gallegos-D) Health care coverage
Requires the criteria used by health plans to determine whether to authorize or deny care for a specific procedure or condition to be available to the public upon request, and permits health plans to charge nominal fees to cover expenses for complying with such requests.
Vetoed by the Governor
AB 2079 (Villaraigosa-D) Healthy Families Program
Prohibits the total annual copayment charged to enrollees in the Healthy Families Program for health care from exceeding $200 per family, dental care from exceeding $25 per family, and vision care from exceeding $25 per family.
Vetoed by the Governor
AB 2080 (Gallegos-D) Healthy Families Program
Makes changes to the Healthy Families health insurance program for children to school district participation in outreach and education activities, and allows the Managed Risk Medical Insurance Board to increase health, dental and vision benefits to address appropriate services for children.
(Died in Senate Insurance Committee)
AB 2107* (Kaloogian-R) Income taxes: health insurance deduction
Partially conforms to federal law by phasing in a 100% deduction for the costs paid or incurred by a taxpayer for medical, dental, and/or eye care insurance.
(Died in Assembly Appropriations Committee)
Similar bill was AB 2131* (Morrissey-R), which failed passage in Assembly Revenue and Taxation Committee.
AB 2121 (Perata-D) Health care service plans: services
Requires a health care service plan to disclose to the public the criteria used by the plan to authorize or deny payment for care for a patient that has been recommended by the physician of the patient.
(Died in Assembly Health Committee)
AB 2122 (Perata-D) Health care service plans: sanctions
Prohibits a health care service plan from sanctioning a physician and surgeon for, or preventing a physician and surgeon from, providing necessary medical or health care-related information to a patient.
(Died in Assembly Health Committee)
AB 2171 (Villaraigosa-D) Healthy Families Program
Allows children who are otherwise eligible for the Healthy Families Program to enroll, regardless of their date of entry into the United States.
Vetoed by the Governor
AB 2243 (Mazzoni-D) Health care service plans: prescription refills
Provides that a health care service plan that covers prescription drug benefits is not to limit the time period in which any prescription may be refilled to less than 45 days.
(Died in Assembly Health Committee)
AB 2246 (Baldwin-R) Small employer health coverage
Requires the State Department of Corporations to enter into contracts with insurance carriers to provide high deductible health plans as coverage for purposes of medical savings accounts.
(Died in Assembly Health Committee)
AB 2256 (Cedillo-D) Health care service plans: eligibility
Requires, upon request of a plan enrollee for services covered by the plan, the plan, or the medical group, independent practice association, preferred provider organization, or managed care organization, that is contracting with the plan, is responsible for the provision of services to the enrollee, within five days of the request, to grant or deny the enrollee a visit to a class of providers of his or her choice for evaluation or treatment.
(Died in Assembly Health Committee)
AB 2264 (Baugh-R) Health care service plans: second medical opinions
Requires health care service plans to ensure that a second medical opinion is provided if medically necessary, as specified.
(Died in Assembly Health Committee)
AB 2267* (Baugh-R) Income taxes: medical expense deduction
Allows taxpayers to deduct 100% of their medical expenses without regard to whether the expenses exceed 7.5% of their adjusted gross income.
(Died in Assembly Revenue and Taxation Committee)
AB 2305 (Runner-R) Health care service plans
Requires health care service plans to cover pain management medications to terminally ill enrollees, subject to authorization, within 72 hours.
Chapter 984, Statutes of 1998
AB 2335* (Poochigian-R) Income taxes: medical savings accounts
Enacts the Medical Savings Act of 1998, which would additionally allow a deduction for the taxpayer's contributions to a California medical savings account.
(Died in Assembly Revenue and Taxation Committee)
AB 2367 (Baugh-R) Health care service plans: continuity of care
Deems health plan contracts to provide continuity of care when medically necessary, under specified conditions, for up to 90 days.
(Died in Assembly Health Committee)
AB 2403 (Shelley-D) Health care service plans: complaints
Imposes requirements on the State Department of Corporations (DOC) and health plans relating to DOC's toll-free telephone service for consumer complaints, and requires DOC to contract with nonprofit organizations to provide independent advocacy on behalf of consumers.
Vetoed by the Governor
AB 2436 (Figueroa-D) Health care service plans: decisions: liability
Makes HMO's liable, it causes harm to an enrollee, by failure to exercise ordinary care when making health care treatment decisions.
(Failed passage in Senate Appropriations Committee)
AB 2438 (Murray-D) Health care service plans: health services
Requires every health plan that provides maternity benefits to provide coverage for participation in the Expanded Apha Fet Protein (AFP) program, a statewide prenatal testing program. Prohibits health plans from requiring participation in the AFP program as a prerequisite to eligibility for any other service.
Chapter 1064, Statutes of 1998
AB 2512 (Prenter-R) Health care coverage
Provides that the patient has the right to obtain, in writing, from the plan, the name of all reviewers connected to an appeal and a claim, and the basis upon which these reviews are deemed qualified to service clinical issues.
(Died in Assembly Health Committee)
AB 2515 (Bustamante-D) Health care access: task force
Requires the Governor to convene a task force, with a prescribed membership, to research and report on issues relating to health care access.
(Died in Senate Rules Committee)
AB 2556 (Martinez-D) Health care service plans: administration
States legislative intent that health care service plans be regulated by an agency that would best ensure quality of care and be responsive to consumers.
Vetoed by the Governor
AB 2604 (Perata-D) Health care service plans: cancer treatment therapy
Requires every health care service plan that covers hospital, medical, or surgical expenses to review and respond to a request by a patient for a cancer treatment therapy within two weeks of the submission of the request.
(Died in Assembly Health Committee)
AB 2638 (Gallegos-D) Health care service plans
Requires health care service plans with provider networks, to cover visits to out-of-network providers to the same extent they cover visits in network providers, allowing cost-savings for enrollees (patient-of-service option).
(Died on Assembly Inactive File)
AB 2639 (Perata-D) Health insurance
Requires health plans and health insurers to follow certain policies and procedures when determining whether to authorize or deny treatment, and requires coverage of cancer screening tests.
Vetoed by the Governor
AB 2659 (Baugh-R) Small employer health insurance
Allows the Health Insurance Plan of California to provide coverage for employers with between 51-100 employees and review existing coverage with employers with up to 150 employees.
(Died in Senate Insurance Committee)
AB 2671 (Migden-D) Medical malpractice mutual insurance company
Allows a medical malpractice mutual insurance company to convert to a stock company by means of establishing a mutual holding company, and sets forth required criteria and procedures for the conversion process.
Chapter 421, Statutes of 1998
AB 2681 (Baugh-R) Small employer health insurance
Requires the Managed Risk Medical Insurance Board to establish a mechanism for employees of the small employer health insurance program to receive commissions for selling health insurance coverage offered through the program.
(Died in Assembly Health Committee)
AB 2715 (Aroner-D) Health insurance: Healthy Families Program
Expands the definition of traditional and safety net procedures used by the Healthy Families Program to include school-based health clinics.
(Died in Senate Insurance Committee)
AB 2780* (Gallegos-D) Healthy Families Program
Establishes the One-Month Bridge Benefit within the Medi-Cal program to allow children and families time to transition to the Healthy Families Program.
Chapter 310, Statutes of 1998
AB 2797* (Cardoza-D) Medical insurance deduction
Budget trailer bill which, among other things, increases the medical insurance deduction for self-employed individuals from 25% to 40% during the 1998 tax year.
Chapter 322, Statutes of 1998
(Died in Assembly Elections, Reapportionment and Constitutional Amendments Committee)
ACA 36 (Gallegos-D) Health care oversight
Restructures regulation of health plans, subjects health pans to liability for medical decisions, and reforms the binding arbitration process.
(Died in Assembly Elections, Reapportionment and Constitutional Amendments Committee)
AJR 48 (Richter-R) Income taxes: medical savings accounts
Requests the President and Congress of the United States to expand the federal medical savings account program to (1) remove the limit on the number of taxpayers who are allowed to have a medical savings account, (2) permit funds in a medical savings account to be used to pay insurance premiums on any employee's health care plan, or allowing those premiums to be otherwise deductible, and (3) make the savings account provisions permanent.
Resolution Chapter 142, Statutes of 1998
AJR 65 (Villaraigosa-D) Healthy Families Program
Request the federal Health Care Financing Administration, the Congress and the President of the United States, to preserve the state's plan to implement the Healthy Families Program in its current approved form.
Resolution Chapter 41, Statutes of 1998
Miscellaneous
SB 17 (Rosenthal-D) Department of Insurance: unfair claim practices
Transfers $2.5 million annually in General Fund gross premium tax receipts to the Insurance Fund for investigation and enforcement of unfair claims practices, and establishes related reporting requirements.
(Died in Assembly Appropriations Committee)
SB 213 (Kopp-I) Insurance delinquency proceedings
Clarifies that the need for written consent of the Attorney General to employ outside counsel applies to all insurance delinquency proceedings, including any judicial proceeding that is ancillary to an insurance delinquency proceeding. Reaffirms that it is in the best interest of the state for the Attorney General and the Insurance Commissioner to consult on the use of agency counsel in delinquency proceedings.
Vetoed by the Governor
SB 225 (Kopp-I) Insurance Commissioner
Provides that the people are to vote on an initiative which renders the position of Insurance Commissioner an appointed, rather than elective office subject to confirmation by the Senate and the Assembly.
(Died in Senate Rules Committee after being referred to the Committee on Joint Rule 26.5)
SB 237 (Johnson-R) Insurance: surplus lines
Defines spacecraft for purposes of current law governing spacecraft insurance. Makes technical changes to provisions of current law governing hackers of highly specialized types of surplus line insurance. Double-joined with AB 1975.
Chapter 370, Statutes of 1998
SB 245 (Haynes-R) Insurance: aircraft: skydiving
Specifies that aircraft financial responsibility requirements are not required to cover injury or death solely related to hazardous risks associated with skydiving. Requires the reporting of damage to an aircraft.
Chapter 333, Statutes of 1997
SB 266* (Rosenthal-D) California Earthquake Insurance
Requires the California Eathquake Authority (CEA) to provide a 5% premium discount for the homeowners who retrofit their homes to CEA-approved standards (or a greater discount if the CEA determines it would be actuarilly sound). Continues an existing program to mediate claims stemming from the 1996 Northridge earthquake, administered by the State Department of Insurance, to January 1, 2000.
Chapter 622, Statutes of 1998
SB 272 (Johnson-R) Insurance Commissioner
Clarifies that the Governor shall appoint the Insurance Commissioner's nominees for chief deputy and deputy director of the State Department of Insurance within 30 days of nomination. If the Governor fails to affirmatively appoint the Commissioner's nominees, they will be deemed appointed 30 days following this nomination by the Commissioner.
Chapter 598, Statutes of 1998
SB 662 (Senate Insurance Committee) Insurance: conversion
Permits mutual property-casualty insurance companies to convert to stock property-casualty insurers by means of establishing a mutual holding company, with the approval of the Insurance Commissioner, as specified.
(Died on Senate Inactive File)
SB 663 (Rosenthal-D) Insurance: receivership
Repeals state law authorizing California, through the State Department of Insurance, to be a member of the Interstate Life and Health Receivership Compact, which relates to insurer insolvencies.
Chapter 518, Statutes of 1998
SB 678 (Leslie-R) Surplus line brokers
Allows surplus line brokers and nonadmitted insurers to advertise under specified conditions, until January 1, 2002.
Chapter 233, Statutes of 1998
SB 858 (Lewis-R) Insurance
Makes technical and clarifying changes to the statutes governing the California FAIR Plan, and specifies how the California Earthquake Authority premiums are to be included in market share calculations.
Chapter 688, Statutes of 1998
SB 859 (Lewis-R) Insurance: rate hearings
Exempts an insurer's proposed average rate adjustment from prior approval by the Insurance Commissioner when it yields a rate reduction of no more than 7% for personal lines and no more than 15% for commercial lines, as specified.
(Died in Assembly Insurance Committee)
SB 953 (Rosenthal-D) Insurance: fraud
Deletes the Insurance Commissioner's duties canceling insurance fraud cases and, instead, provides for a peace officer employed by the Bureau of Fraudulent Claims in the State Department of Insurance to report violations of fraud upon making an independent determination that sufficient evidence of fraud exists to institute probable cause of violation of law, as specified.
(Died in Senate Insurance Committee)
SB 979 (Peace-D) Insurance taxation: confirmation
Provides that a written agency or written brokerage contract where the broker-agent represents the insurer has been in effect for at least one year, shall not be ended or amended by an insurer without complying with the requirement contained in the general regulations covering the business of insurance law.
(Died on Senate Inactive File)
SB 985 (Rosenthal-D) Insurance: bad faith
Increases the amount of civil liability that the Insurance Commissioner is allowed to impose for unfair claims practices. Establishes a five member advisory board on the prosecution of unfair claims settlement practices in the State Department of Insurance and requires the commissioner, in consultation with the advisory board, to appoint a task force of outside legal counsel to review and investigate such practices. Imposes a $3 million assessment on insurers to pay for the program under this bill.
(Died in Senate Judiciary Committee)
SB 1042 (Johnston-D) Insurers: insolvency
Provides that any covered policyholder's claim that is submitted to the Insurance Commissioner after a person subject to a court order to liquidate is dissolved and wound up is to be accepted and processed by the California Insurance Guarantee Association, as specified. Requires specified notice to those affected by an insurance company insolvency.
(Died in Assembly Appropriations Committee)
SB 1097 (Kopp-I) Insurance Commissioner: contributions
Prohibits any persons regulated by the Insurance Commissioner, and persons or committees which are acting on behalf of regulated persons, from making campaign contributions to a candidate for the Office of Insurance Commissioner, as specified.
(Failed passage on Senate Floor)
SB 1413 (Knight-R) Disability insurance claims
Requires the payment of disability income benefits within 30 calendar days after the insurer has received all information needed to determine liability for the claim, with interest on the payment beginning the 31st day.
Chapter 415, Statutes of 1998
SB 1419 (Kopp-I) Insurance: financing
Clarifies the definition of the "finance charge" that may be charged by an industrial loan company when financing insurance premiums. Adds to the definition of "principal balance" the words "plus fees related to the issuance of the insurance policy."
(Failed passage on Assembly Floor)
SB 1479 (Lewis-R) Life insurance: disclosures
Allows the special highlighted disclosure notice regarding illustrations which is provided to seniors who are offered individual life insurance policies or individual annuity contracts be on an attached cover sheet, or in the form of a contrasting color sticker placed on the front of the illustration. Revises the list of life insurance products not subject to the law concerning the general regulation of life insurance.
Chapter 379, Statutes of 1998
SB 1530* (Hayden-D) Insurance practices: Holocaust victims
Establishes the Holocaust Insurance Claim Recovery Team Program in the State Department of Insurance (DOI) and, for any insurer that fails to pay a Holocaust survivor's claim, suspends its certificate of authority until the claim is settled. Appropriates $4 million to DOI, from a fund comprised of undeliverable Proposition 103 rebates.
Chapter 963, Statutes of 1998
Related legislation was AB 1715* (Knox-D) which was vetoed by the Governor and AB 1334* (Knox-D), Chapter 43, Statutes of 1998.
SB 1555 (Rosenthal-D) Credit insurance
Provides a 30-day "free look" period within which consumers could rescind a policy of credit insurance.
Chapter 585, Statutes of 1998
SB 1625 (Lewis-R) Insurance: excess funds investments
Allows all domestic insurers, rather than all domestic life insurers, to make excess fund investments in specified interest-bearing notes, bonds, or obligations.
(Died in Senate Insurance Committee)
SB 1633 (Johnson-R) Insurance agents
Exempts car rental companies and employees of car rental companies, from licensure with respect to the sale of personal accident insurance, liability insurance, personal effect insurance, roadside assistance insurance, or emergency sickness insurance.
(Died in Senate Insurance Committee)
SB 1670 (Johnson-R) Insurance: fraud reporting
Changes the Bureau of Fraudulent Claims within the State Department of Insurance to the Fraud Division and recodifies existing provisions providing for immunity for insurance fraud reporting.
(Failed passage in Senate Judiciary Committee)
SB 1683 (Rosenthal-D) Title insurance
Requires the Insurance Commissioner to develop and provide a brochure for consumers who are required to buy title insurance, as specified, and to display the brochure on the Internet. Became contingent upon the enactment of AB 2492.
Chapter 732, Statutes of 1998
SB 1706 (Johnston-D) Life insurance
Permits an insurer that properly identifies the life insurance applicant upon enrollment to void that policy if an impostor is used during the enrollment process.
Chapter 184, Statutes of 1998
SB 1716* (Calderon-D) California Earthquake Authority
Makes revisions concerning assessments charged under the California Earthquake Authority Law, and changes certain dates relating to reporting by the authority and determining assessments of participating insurers.
Chapter 264, Statutes of 1998
SB 1718 (Calderon-D) Life insurance
Extends to replacement variable annuity, variable life or modified guarantee contract policies the requirement for refund of the account value and policy fee within 30 days for a policy returned during its cancellation period. Corrects a cross-reference relating to priority of claims relative to issuance of funding agreements.
Chapter 386, Statutes of 1998
SB 1745 (Knight-R) Insurance: liability
Provides that any policy of liability insurance under which an insurer is obligated to defend the insured against any suit seeking damages shall be construed to include an obligation to represent the insured in an administrative action in which it may be determined that the insured is obligated to pay damages unless the policy contains explicit language excluding the duty to defend administrative actions and the effect of that language has been orally explained to the insured, as specified.
(Died in Senate Insurance Committee)
SB 1948 (Sher-D) Insurance Commissioner: duties
Requires the Insurance Commissioner to prepare a report that details complaint and enforcement information on individual insurers, on or before July 1, 1999.
Chapter 556, Statutes of 1998
SB 2051 (Costa-D) Insurers: investments
Allows newly-incorporated insurers to make additional forms of investments if they are owned by a second financially responsible insurance company that has been conducting business in California for at least 10 years.
Chapter 495, Statutes of 1998
SB 2084 (Costa-D) Fraternal fire insurers
Changes the retention limit on fire insurance sold by certain religious organizations to 10% for any one risk, or 20% on any city block, of their capital and surplus.
Chapter 392, Statutes of 1998
SB 2096 (Mountjoy-R) Free agent insurance
Provides for a form of insurance to be known as free agent insurance. Requires free agent insurance to include specified benefits, including disability, life insurance, and annuity benefits. These benefits would be required to provide at least the same coverage as would be provided under the workers' compensation, unemployment compensation, and unemployment disability compensation laws. Provides for regulation by the Insurance Commissioner.
(Failed passage in Senate Industrial Relations Committee)
SB 2117 (Brulte-R) Preservation of evidence by insurers
Provides in a civil action for spoliation of evidence, no duty exists on an insurer to preserve physical evidence in the absence of a specific written request to do so.
(Died in Senate Judiciary Committee)
SB 2165 (Polanco-D) Insurer investments: economically targeted investments
States legislative intent and calls on insurers to enhance participation in the California Organized Investment Network. Requires the Insurance Commissioner to report to the Legislature and Governor on investment opportunities that would have benefited low-income communities that were presented to the commissioner, and whether or not those investment opportunities would qualify as fully admitted assets, as specified.
(Failed passage in Senate Appropriations Committee)
SB 2169 (Lewis-R) Insurance production agencies: licensure
Exempts an insurance service representative regularly employed on salary by an insurer, group of insurers, or managing general agent, who works with and assists agents and solicitors in soliciting, negotiating, and effectuating insurance for that insurer, group of insurers, or managing general agent from licensure.
(Died in Senate Insurance Committee)
AB 333 (Figueroa-D) Insurance: fiduciary funds
Allows insurance agents and brokers to maintain fiduciary funds in bonds or short term notes issued by the State of California and local governments
Chapter 163, Statutes of 1998
AB 887 (Ortiz-D) Firearms: insurance study
Requires each insurer issuing a policy of residential property insurance to provide certain data concerning injuries and deaths involving firearms to the Insurance Commissioner on or before June 30, 2000, as specified.
(Died in Assembly Insurance Committee)
AB 932 (Figueroa-D) Insurance: fines and penalties
Prohibits the Insurance Commissioner from using his or her name, likeness or voice in public outreach efforts funded by proceeds resulting from enforcement actions, and requires public outreach funded by enforcement actions to be germane to the issues raised by such actions.
(Died in Senate Insurance Committee)
AB 1109 (Escutia-D) Insurance: bad faith
Reinstates a private course of action, eliminated by the California Supreme Court, by authorizing an insured, prospective policyholder, or third-party claimant not the policyholder to bring an action against the person engaged in the business of insurance to recover specified damages.
(Died on Assembly Inactive File)
AB 1120 (Knox-D) Insurance: inception of loss
Extends the period a homeowner, in case of loss arising out of the hazard of earthquake, has to report a loss under a homeowner's policy from 12 months after the loss occurred to 12 months after a reasonable insured would have been aware that there was damage.
(Failed passage on Assembly Floor)
AB 1309 (Machado-D) Liability insurance: construction defects
Provides that a general liability insurance policy issued to a contractor or real estate developer may not cover any injury or progressive damage that results from a defect in construction that was reported to or discovered by the contractor or real estate developer or his or her agent prior to issuance of the policy.
(Died in Assembly Insurance Committee)
AB 1334* (Knox-D) Insurance: Holocaust victims
Allows Holocaust victims to sue an insurer doing business in California to receive proceeds due under an insurance policy.
Chapter 43, Statutes of 1998
Related legislation was SB 1530* (Hayden-D), Chapter 963, Statutes of 1998; and SB 1397 (Brulte-R), Chapter 962, Statutes of 1998.
AB 1486 (Floyd-D) Insurance
Provides that it is an unfair or deceptive practice for an insurance company to use deceptive representations or fail to disclose material facts in connection with the sale of any insurance policy or product. Provides that insurance institutions are fiduciaries of those persons to whom they sell insurance, with respect to any confidential financial and personal information received by the insurance institution.
(Died in Assembly Judiciary Committee)
AB 1524 (Leonard-R) Title insurance
Excludes from the definition of "title insurance" representations and warranties made in connection with the sale or origination of a loan for sale to the secondary market by specified institutional third parties, and makes other changes to the law.
(Died in Assembly Insurance Committee)
AB 1660 (Baca-D) Insurance agents and brokers
Requires the qualifying examination for insurance agents and brokers to be scored and the applicant to be provided notice of passage or failure of the examination within 14 days after the examination is administered. If the applicant passes the examination, the Insurance Commissioner would be required to issue a license within seven days of providing the notice.
(Died in Assembly Insurance Committee)
AB 1715* (Knox-D) Holocaust Victim Insurance Relief Act
Enacts the Holocaust Victim Insurance Act of 1998 which requires the Insurance Commissioner to set up and maintain a registry related to insurance policies of Holocaust victims, requires insurers to file or cause to be filed relevant information, and establishes a penalty for knowingly filing false information.
Vetoed by the Governor
Related legislation was SB 1530* (Hayden-D), Chapter 963, Statutes of 1998; and AB 1334* (Knox-D), Chapter 43, Statutes of 1998.
AB 1729 (Leach-R) Insurance: title insurers
Allows the State Department of Insurance to increase the minimum net requirements for all new underwritten title companies submitting a license application to the department as deemed necessary by the department.
(Died in Assembly Insurance Committee)
AB 1859 (Ackerman-R) Public works: insurance and surety requirements
Allows state agencies to use "owner-controlled" or "wrap-up insurance" programs for certain public works projects under the same donations and standards as was presently available to public agencies.
Chapter 679, Statutes of 1998
AB 1869* (Cardoza-D) Property insurance: emergencies
Requires the Insurance Commissioner to set up Insurance Disaster Assessment Teams to promptly respond to disasters, access the damage and make reports to the Commissioner, the public and to insurers.
Chapter 510, Statutes of 1998
AB 1887 (Keeley-D) Insurance agents: licensure
Defines the term "commission" in the law which licenses insurance agents to mean any fee, royalty, renumeration, compensation, payment, bonus, or consideration of any value.
(Died in Assembly Insurance Committee)
AB 1950 (Torlakson-D) Construction defects: liability of insurers
Precludes an insurer of a suspended corporation from being prosecuted in a misdemeanor action if it defends an insured suspended corporation client in a civil action relating to the insurer's responsibilities to defend and indemnify the insured.
Chapter 856, Statutes of 1998
AB 1975 (Brewer-R) Surplus line insurance brokers
Defines surplus line broker and modifies the mandatory disclosure statement that these brokers are required to provide to policyholders when selling a policy of insurance issued by an unlicensed insurer. Double-joined with SB 237.
Chapter 269, Statutes of 1998
AB 2153 (Brewer-R) Insurer insolvency
Provides an automatic 60-day, stay if court proceedings in any action involving an insolvent insurer and allows the California Insurance Guarantee Association (CIGA) reasonable access to an insolvent insurer's records as necessary for CIGA to carry out its duties.
Chapter 270, Statutes of 1998
AB 2157 (Ortiz-D) Co-insurers on pollution claims
Applies the "good faith settlement" law, currently applicable to a settlement by a joint tort-feasor or a co-obligor in tort or contract cases, to a settlement by one of several successive or concurrent insurers in contamination or pollution cases.
Vetoed by the Governor
AB 2322 (Knox-D) Insurance claims
Substantially revises the law regarding insurance claims in order to make insurers respond timely concerning claims.
(Died in Assembly Insurance Committee)
AB 2353 (Olberg-R) Surety insurers
Allows the California Integrated Waste Management Board, the State Water Resources Control Board, and the State Department of Toxic Substance Control to require, in order for these agencies to comply with federal law, an admitted surety insurer to be listed in Circular 570 issued by the United States Treasury before the insurer is deemed sufficient.
Chapter 477, Statutes of 1998
AB 2414* (Hertzberg-D) Insurance taxation: credit
Allows insurance companies to claim a 20% tax credit against the gross premium tax for deposits held in Community Development Financial Institutions.
(Died in Senate Appropriations Committee)
AB 2492 (Pringle-R) Title insurance
Permits the Insurance Commissioner to require title insurers to provide statistical information to the State Department of Insurance and changes the penalties related to unlawful title insurers' practices. Contingent on the enactment of SB 1683 (Rosenthal).
Chapter 919, Statutes of 1998
AB 2578 (Cardenas-D) Insurance: public insurance adjusters
Provides for crime penalties for operating as a public adjuster without a license, permits an insured to void a contract with an unlicensed person, and allows the Insurance Commissioner to issue a cease and desist order to an unlicensed public adjuster.
Chapter 367, Statutes of 1998
AB 2595 (Baugh-R) Insurance
Allows the Insurance Commission to contract for the service of actuarial professionals as the Commissioner deems necessary. Provides that these contracts shall not be subject to otherwise applicable provisions of the Government Code, or Public Contract Code that regulates contracting for services.
Chapter 824, Statutes of 1998
AB 2689 (Miller-R) Insurance holding companies
Clarifies a "grandfather" clause in the Insurance Holding Company System Regulatory Act. Provides that certain provisions of the act that are inapplicable to company transactions that occurred before 1943 rather than 1940.
Chapter 368, Statutes of 1998
AB 2732 (Miller-R) Insurance records: data advisory committees
Establishes data advisory committees to assist the Department of Insurance to collect industrywide information, and allows an insurer to fulfill the Department of Insurance reporting requirements with the assistance of an "advisory organization". Extends the bail agent licenses a continuing education exemption for those 70 years of age or older and in good standing as a licensee for 30 continuous years.