Insurance

Automobile Insurance
Health Insurance
Earthquake Insurance
Miscellaneous

Automobile Insurance

SB 333 (Romero-D) Uninsured motorist claims

Increases from one year to two years the permitted time for an insured with uninsured motorist coverage to file a cause of action against an uninsured motorist or to commence arbitration proceedings under his/her uninsured motorist policy.

Chapter 56, Statutes of 2003

SB 551 (Speier-D) Insurance: automotive repair dealers

Codifies existing regulatory law and prohibits an insurer from requiring that an automobile be repaired at a specific automotive repair dealer, as defined. Prohibits an insurer from suggesting or recommending that an automobile be repaired at a specific automotive repair dealer unless the claimant requested the referral or the claimant is informed, in writing, of his/her rights, as specified. Requires the insurer, if the suggestion or recommendation that an automobile be repaired at a specific automotive repair dealer is contained in the insurance contract, to disclose that provision, in writing at specified times, and would prohibit the insurer, if the insured chooses the automotive repair dealer, from limiting or discounting the reasonable repair costs, as specified. Grants the State Insurance Commissioner specified enforcement powers with respect to these provisions.

Chapter 791, Statutes of 2003

SB 841* (Perata-D) Automobile insurance: persistency

Authorizes an insurer to use persistency of automobile insurance coverage as an optional rating factor in determining rates and premiums.

Chapter 169, Statutes of 2003

AB 456 (Mullin-D) Automobile insurance: liability coverage

Raises auto insurance minimum liability coverage amounts, as follows: (1) the minimum coverage for bodily injury or death of one person in any one accident would rise to $20,000 on January 1, 2006, to $25,000 on January 1, 2007, and to $30,000 on January 1, 2008; (2) the minimum coverage for bodily injury to or death of 2 or more persons in any one accident would rise to $35,000 on January 1, 2006, and to $60,000 on January 1, 2008; and (3) the minimum coverage for injury to or destruction of property of others in any one accident would rise to $10,000 on January 1, 2008.

(In Assembly Insurance Committee)

AB 631 (Koretz-D) Automobile medical payments: insurance

Defines "automobile medical payments insurance" (AMPI) and requires specific forms of policy language and certain disclosures to be included in contracts for versions of automobile insurance. Requires insurers to provide 60 days notice, and other specified conditions prior to changing any provision of an insurance agreement for automobile medical payments insurance. Requires insurers' disclosures to include any reduction in benefits that may occur as a result of coverage under AMPI.

(In Assembly Insurance Committee)

AB 984 (Vargas-D) Service contracts: automobile insurance

Defines a "vehicle service contract" and provides that this type of contract does not constitute automobile insurance when it meets specified requirements. Allows a vehicle service contract to be sold only by the seller, as defined, of the motor vehicle or watercraft covered by the contract.

Chapter 439, Statutes of 2003

AB 1181 (Ridley-Thomas-D) Automobile insurance: rating information

Requires that a policy of automobile insurance contain, at policy issuance and in each renewal notice sent prior to the renewal of the policy, a rating information disclosure regarding the information that was applied in determining the premium that was charged for the policy. Requires that the policy specify various information that was used as the basis for rating the coverage, including, among other things, the traffic convictions and the number of at fault property damage and bodily injury accidents for each rated driver or vehicle. Requires compliance with these provisions by March l, 2004.

Chapter 360, Statutes of 2003

AB 1227 (McCarthy-R) Insurance fraud

Lists the State Bureau of Automotive Repair, for the purposes of investigating auto repair or auto insurance fraud, among the agencies authorized to request and receive motor vehicle theft or motor vehicle insurance fraud information from insurers, and provides that it is declarative of existing law.

(On Assembly Inactive File)

AB 1274 (Chavez-D) Motor clubs

Clarifies current law to distinguish between risk-based motor clubs, such as the American Automobile Association and non-risk-based motor clubs that provide only maps and discount coupons. Specifies that the latter category of motor clubs is not subject to regulation by the State Insurance Commissioner of the State Department of Insurance.

Chapter 88, Statutes of 2003

AB 1318 (Maddox-R) Automobile insurance: Good Driver Discount

Requires an insurer to provide notification to an insured if the insurer determines that the insured was principally at fault in an accident. Alters existing regulations requiring insurers to provide a specific allocation of percentage of fault by providing instead that insurers are not required to provide specific allocations of percentages of fault.

(In Senate Insurance Committee)

AB 1729* (Bermudez-D) Automobile insurance: persistency

Sunsets recently passed legislation (SB 841, Perata-D), relative to "portable persistency" as of December 31, 2009, and requires that the California Research Bureau contract with a nationally recognized actuarial firm to complete a study regarding whether "portable persistency" adversely affects low-income and previously uninsured individuals more so than the "loyalty discount" currently allowed by the State Department of Insurance.

(On Assembly Third Reading File)

Health Insurance

SB 2 (Burton-D) Health care coverage

Creates the State Health Purchasing Program (Program), to be administered by the State Managed Risk Medical Insurance Board (MRMIB). Requires specified health benefits to be provided directly by employers or through the Program. Requires MRMIB to arrange health plan coverage for certain employers, who will be required to pay a fee for employee health coverage, except that employers who provide health care coverage directly will receive a credit against the fee. Requires employees and dependents of large employers to be covered beginning January 1, 2006, while it requires employees of medium employers to be covered beginning January 1, 2007, subject to certain conditions. Exempts small employers from the requirement to provide coverage and from the fee. Requires MRMIB to determine the fee to be paid by employers, provides that the associated employee contributions, which employers would be required to collect from employees, may not exceed 20 percent of the employer fee. Fees, including the employee contributions are to be collected by the State Employment Development Department and deposited in the newly created State Health Purchasing Fund (Fund). Moneys in the Fund would be continuously appropriated to MRMIB for the purposes of the Program. Authorizes MRMIB to coordinate coverage under the Program with coverage available under the Medi-Cal program, the Healthy Families Program, and other public programs, and imposes various requirements on MRMIB and the State Department of Health Services in that regard. Authorizes a loan from the General Fund to MRMIB for startup costs related to the Program, subject to appropriation by the Legislature.

Chapter 673, Statutes of 2002

Other major health coverage legislation, SB 921 (Kuehl-D), is related to a single payer universal health care delivery system.

SB 24 (Figueroa-D) Health care: accelerated enrollment

Creates the Prenatal Gateway and the Newborn Hospital Gateway to simplify enrollment of prenatal women and certain newborn infants into the Medi-Cal program.

Chapter 895, Statutes of 203

SB 26 (Figueroa-D) Health care

Requires a health care service plan or health insurer to obtain prior approval of rate increases from the State Department of Managed Health Care or State Department of Insurance, as specified, and potentially requires significant refunds of premiums previously collected.

(In Senate Insurance Committee)

SB 101 (Chesbro-D) Health care coverage: substance related disorders

Requires health care service plans and disability insurance policies to provide coverage for the treatment of medically necessary substance related disorders, excluding caffeine-related disorders, on the same basis as they provide coverage for any other medical condition.

(In Senate Insurance Committee)

SB 142 (Alpert-D) Healthy Families Program

Creates the Medi-Cal to Healthy Families Accelerated Enrollment Program, which authorizes counties to temporarily enroll children into the no-cost Medi-Cal program, if a county deems that they are eligible for the Healthy Families Program.

(In Senate Appropriations Committee)

SB 174 (Scott-D) Health care: hearing aids

Requires health care service plans and health insurers to provide coverage for hearing aids, up to $1,000, to all enrollees and subscribers under 18 years of age.

(In Senate Insurance Committee)

SB 200 (Murray-D) Long-term care insurance: genetic testing

Prohibits, until January 1, 2008, long-term care insurers from using genetic testing to determine insurability or for underwriting purposes.

Chapter 408, Statutes of 2003

SB 212 (Machado-D) Insurance: multiple employer welfare arrangements

Allows self-funded and partially self-funded Multiple Employer Welfare Arrangements (MEWAs) to invest up to 75 percent of excess funds in mutual funds. Specifies that excess funds are those over existing reserve and surplus requirements. Allows the State Insurance Commissioner to require a MEWA to dispose of an investment in certain circumstances.

Chapter 320, Statutes of 2003

SB 244 (Speier-D) Health plans: continuity of care

Revises and expands existing "continuity of care" laws under which a health plan is required, under certain circumstances, to allow an enrollee to continue to see a health care provider who is no longer contracting with the plan.

Chapter 590, Statutes of 2003

SB 260 (Romero-D) Health care service plans contracts

Requires a contract between a health care service plan and a public hospital to have rates for services not less than the average rate paid to private hospitals in the same county.

(In Assembly Health Committee)

SB 261 (Speier-D) Health care service plans

Specifies the financial information filed with the State Department of Managed Health Care (DMHC) by a risk-bearing organization (RBO), such as a medical group or independent practice association, that must be disclosed by DMHC to the public, and requires annual registration of RBOs.

Vetoed by the Governor

SB 413 (Speier-D) Health insurance counseling: fees

Permits the State Department of Aging (DOA) to increase the amount of the fee assessed on a health care service plan (HCSP) for each enrollee to offset the cost of the Health Insurance Counseling and Advocacy Program to not more than $1.20, from a current maximum of $1. Requires DOA to assess the fee annually on a HCSP for each enrollee insured under a Medicare supplement contract, including a Medicare Select contract.

Chapter 545, Statutes of 2003

SB 580* (Assembly Insurance Committee) Health care service plans

Revises the schedule of annual fees assessed on health plans by the State Department of Managed Health Care.

Chapter 12, Statutes of 2003

SB 581* (Assembly Insurance Committee) Medicare supplement insurance

Clarifies the open enrollment provisions that apply to Medicare supplement insurance, as specified.

Chapter 13, Statutes of 2003

SB 608 (Machado-D) Multiple employer welfare arrangements

Allows a multiple employer welfare arrangement to apply for, and be issued, a probationary certificate of compliance if it meets certain requirements.

(In Senate Insurance Committee)

SB 798 (Cedillo-D) Health care service plans

Requires the State Department of Managed Health Care to immediately notify a Mexican pre-paid health plan (PPHP) when it ceases to operate legally in Mexico that it is not in compliance with California law authorizing it to operate in-state, and that the PPHP must comply with the laws of Mexico, become licensed in California or cease operations in the state.

Chapter 417, Statutes of 2003

SB 853 (Escutia-D) Health insurance coverage

Requires the State Department of Managed Health Care to adopt regulations to ensure enrollees have access to language assistance in obtaining health care services by January 1, 2006.

Chapter 713, Statutes of 2003

SB 897 (Speier-D) Health plans: maternity services

Requires a health care service plan and a health insurer to provide coverage for maternity services.

(In Senate Rules Committee)

SB 969 (Bowen-D) Telephone medical advice services

Applies the current definition of telephone medical advice to health care service plans, and further defines as including assessment, evaluation, or advice to patients or their family members. Requires health plans to use licensed health care practitioners to provide telephone medical advice and prohibits unlicensed health plan staff or staff of a telephone medical advice service from using titles or designations that mislead a person to believe that they are a licensed health professional.

Chapter 885, Statutes of 2003

SR 11 (Chesbro-D) Cover the Uninsured

Commends the Cover the Uninsured for its timeless efforts on behalf of Californians during Cover the Uninsured Week of March 10 to 16, 2003.

Adopted by the Senate

A similar resolution, HR 20 (Frommer-D), never was referred to a committee.

AB 30 (Richman-R) Health care coverage

Requires the State Managed Risk Medical Insurance Board to provide a reduced Healthy Families Program benefit package to employed childless adults whom are uninsured for health care coverage. Requires these individuals to be in households with incomes that do not exceed 200 percent of the federal poverty level, and to work for employers with 50 or fewer employees, half of whom are paid wages less than 200 percent of the state's minimum wage. Provides that 50 percent of the premium for this coverage be paid by the federal government, 25 percent by the state and 25 percent by the employee.

(In Senate Appropriations Committee)

AB 37 (Yee-D) Health care coverage: mental health

Requires a health service plan and a health insurer to contract with a county department of mental health to provide all medically necessary treatment available through the department to an enrollee or insured suffering from a serious emotional disturbance, if that treatment is not available through a contracting provider.

(In Assembly Health Committee)

AB 154 (Chan-D) Health care: cultural and linguistic services

Requires health plans participating in the Healthy Families Program and Medi-Cal to submit annual reports regarding the provision of culturally and linguistically appropriate services.

(In Assembly Appropriations Committee)

AB 175 (Cohn-D) Health care provider contracts

Requires, when a contracting agent sells, leases, or transfers a health providers contract to a payor, that the rights and obligations of the provider are governed by the underlying contract between the provider and the contracting agent.

Chapter 203, Statutes of 2003

AB 262 (Chan-D) Health plans: personal information

Extends the prohibition in existing law for any health care provider, health care service plan, contractor, or corporation to intentionally share, sell, or otherwise use any medical information for any purpose not necessary to provide health care services to a patient, except as authorized by the patient, to also apply to marketing medical information.

(In Senate Appropriations Committee)

AB 293 (Daucher-R) Health care coverage: small business

Creates the Small Business Employees Access to Health Care Coverage Act, establishing a voluntary program in which a small business may limit, as specified, the amount its full-time employees are required to contribute toward the cost of their health care coverage. Allows a participating small business to authorize its full-time employees to work up to five extra hours each week, with those earnings applied towards the employee's health care contribution amount. Exempts these particular earnings from the employee's income for various purposes, including state personal income tax.

(In Assembly Health Committee)

AB 343 (Chan-D) Healthy Families Program

Prohibits charging Healthy Families Program applicants an application assistance fee.

(On Assembly Unfinished Business File)

AB 362 (Garcia-R) Health care service plans

Requires the State Department of Managed Health Care to maintain a database indicating, for each county, the names of the plans that operate in that particular county.

Chapter 80, Statutes of 2003

AB 363* (Garcia-R) Health care coverage: agricultural workers

Allows a tax credit for qualified taxpayers who provide health care coverage for their agricultural employees and their dependents.

(In Assembly Health Committee)

AB 368 (Chan-D) Health care coverage: Healthy Families Program

Requires the State Managed Risk Medical Insurance Board to establish a Healthy Families Program (HFP) local education agency (LEA) billing option to reimburse an LEA for covered services it provides a child who is enrolled in HFP.

(In Assembly Appropriations Committee)

AB 373 (Chu-D) Healthy Families Program

Requires that any subscriber in the Healthy Families Program, who is assigned to a federally qualified health center, rural clinic or primary care clinic or to a physician who is an employee of a primary care clinic, be considered to have been assigned directly to the federally qualified health center, rural clinic or primary care clinic.

Chapter 139, Statutes of 2003

AB 432 (Kehoe-D) Health care coverage

Specifies the requirements for payment of a provider claim by a health care service plan or a health insurance policy when it is a secondary payor under a coordination of benefits provision.

(In Assembly Health Committee)

AB 438 (Lieber-D) Health care coverage: osteoporosis screening

Requires osteoporosis coverage to include osteoporosis screening for female patients 50 years of age or older.

(In Assembly Health Committee)

AB 527 (Leno-D) Health insurance: Native Americans

Establishes the Native American Tribal Casino Employee Health Protection and Portability Program (Program) in the State Health and Welfare Agency, to be managed by the Native American Tribal Casino Employee Health Board, which consists of 11 members. Establishes a process where tribal gaming casino employers may provide health care coverage to the employees and dependents through a purchasing pool administered through the Program.

(In Senate Insurance Committee)

AB 1062 (Bermudez-D) Health care coverage

Requires the State Department of Health Services to integrate the Child Health and Disability Prevention Program, the Medi-Cal program, and the Healthy Families Program into one Integrated Child and Youth Health Program.

(In Assembly Health Committee)

AB 1130 (Diaz-D) Health care coverage

Appropriates monies from the County Health Initiative Matching Fund and the Federal Trust Fund necessary to fund county health insurance programs which cover between 250 percent and 300 percent of the federal poverty level.

Chapter 687, Statutes of 2003

AB 1161 (Maldonado-R) Health care service plans

Requires the State Department of Managed Health Care to maintain a comprehensive and accurate list of each health service plan that operates in the state and the counties in which the health care service plan operates.

(In Assembly Health Committee)

AB 1163 (Frommer-D) Health coverage: Healthy Families Program

Requires the State Managed Risk Medical Insurance Board and the State Department of Health Services to streamline the Healthy Families Program and Medi-Cal eligibility processes to increase retention of eligible children.

(In Assembly Appropriations Committee)

AB 1213 (Vargas-D) Health care

Modifies a limitation on the disclosure of information by health care providers risk-bearing organizations.

(In Senate Insurance Committee)

AB 1252 (Jackson-D) Insurance

Makes several technical changes to conform state law to the federal Gramm-Leach-Bliley Act. Renames various continuing education requirements for long-term care insurance agents. Adds "territory of the United States" to the list of nonresident jurisdictions. Repeals a provision of current law regarding reinsurance intermediaries not allowed under federal law.

Chapter 217, Statutes of 2003

AB 1286 (Frommer-D) Continuity of care

Allows an insured to continue to receive health care services for a specified time from a provider when a provider and a health care service plan fail to renew their contract. Requires every plan to have, and submit to the State Department of Managed Health Care, a written continuity of care policy that describes how it will handle the block transfer of enrollees from a terminated provider to a new provider.

Chapter 591, Statutes of 2003

AB 1496 (Montanez-D) Health care service plans

Requires the Director of the State Department of Managed Health Care to require health care service plans to promptly reimburse a health plan enrollee for any reasonable costs associated with health care services, subject to all of the following: (1) when the Director finds that the disputed health care services were a covered benefit under the terms and conditions of the health plan contract, (2) the services are found by the independent medical review organization to have been medically necessary, and (3) the health plan contract does not require or provide prior authorization before the health care services are provided to the enrollee.

Chapter 579, Statutes of 2003

AB 1524 (Richman-R) Health insurance coverage

Expands the scope of the County Health Initiative Matching Fund to include health insurance coverage to a parent of an eligible child participating in the Healthy Families Program and whose income does not exceed 200 percent of the poverty level.

Chapter 866, Statutes of 2003

AB 1528 (Cohn-D) Health care coverage

Requires the Governor to convene the California Health Care Quality Improvement and Cost Containment Commission at a minimum, to examine and address the following issues: (1) assessing California health care needs and available resources, (2) lowering the cost of health care coverage, (3) increasing patient choices of health coverage options and providers, (4) improving the quality of health care, (5) increasing the transparency of health care costs and the relative efficiency with which care is delivered, (6) potential for integration with workers' compensation insurance, (7) use of disease management, wellness, prevention, and other innovative programs to keep people healthy while reducing costs and improving health outcomes, (8) consolidation of existing state programs to achieve efficiencies where possible, and (9) efficient utilization of prescription drugs and technology.

Chapter 672, Statutes of 2003

AB 1552 (Pavley-D) Insurance: discretionary clauses

Prohibits a life or disability income insurance policy from being issued if the policy contains a provision giving the insurer discretionary authority to interpret the terms of the policy.

(In Assembly Health Committee)

AB 1628 (Frommer-D) Health care coverage

Requires a noncontracting hospital to contact an enrollee's health care service plan to obtain the enrollees' medical record information prior to admitting the enrollee for poststabilization care as an inpatient, or prior to transferring the enrollee for poststabilization care to a noncontracting hospital, or prior to providing poststabilization care to an enrollee who was admitted for an emergency medical condition prior to stabilization.

Chapter 583, Statutes of 2003

AB 1686 (Pacheco-R) Health care service plans

Prohibits a health care service plan from paying a claim submitted by a noncontracting provider under certain conditions, including when the claim was submitted by a noncontracting provider to a contracting provider for payment and the amount of the claim is disputed by the contracting provider.

(In Assembly Health Committee)

AJR 8 (Mountjoy-R) Long-term insurance

Requests the President and Congress of the United States to review federal income tax laws applicable to the deductibility of long-term care insurance premiums, and to enact new tax benefits allowing individuals to deduct the total cost of any premiums paid for a qualifying long-term care insurance policy or contract.

(In Senate Revenue and Taxation Committee)

Earthquake Insurance

AB 1048 (Calderon-D) Insurance: earthquake policies

Changes the California Earthquake Authority (CEA) statute by revising the definition of available capital. Excludes unearned premiums and the proceeds of bonds issued by or in the name of the CEA from the definition of available capital. Creates a definition of "unearned premium reserve" and requires assets equal to the unearned premium reserve to be retained until the policyholder claims and liabilities have been paid.

Chapter 144, Statutes of 2003

AB 1598* (Corbett-D) Earthquake Grant and Loan Program

Extends the sunset date for the Earthquake Grant and Loan Program (Program) and increases the amount of money appropriated to the Program. Specifically, this bill (1) appropriates an additional $2.9 million, plus all interest earnings calculated daily, from the California Residential Earthquake Recovery Fund to the State Department of Insurance (DOI) for the Program, (2) increases, using money appropriated by this bill, the amount that DOI may use per fiscal year to administer the Program from $265,000 to $290,000, and (3) extends the sunset date of the Program from December 1, 2004 to July 1, 2007.

Chapter 448, Statutes of 2003

Miscellaneous

SB 64 (Speier-D) Homeowners' insurance

Prohibits an insurer from refusing to renew homeowners' insurance to an existing customer unless the home is uninsurable. Expands the notice for nonrenewal to 75 calendar days. Authorizes the State Insurance Commissioner to approve/disapprove any proposed nonrenewal eligibility underwriting guidelines. Prohibits insurers from using credit ratings, reports or information to underwrite, classify or rate insurance policies. Prohibits insurers from adverse underwriting decision regarding an existing or new applicant based merely upon an applicant's inquiry about coverage.

(In Assembly Insurance Committee)

SB 154 (Oller-R) State Insurance Commissioner: approval

Provides that insurance rates, rules, and forms prescribed by insurers and approved by the State Insurance Commissioner (IC), pursuant to his/her regulatory authority, shall be deemed to comply with all applicable statutes and regulations, and prohibits the IC from challenging those previously approved items unless, after approval, changes occur in legal standards that materially affect the continued validity of those items, as approved.

(In Senate Insurance Committee)

SB 273 (Soto-D) Life and disability insurance

Exempts the University of California from the restrictions on the ability of a state department or agency to negotiate life or disability insurance or an annuity, or requiring the placing of that insurance or annuity, through particular agents, brokers, or companies.

(In Senate Insurance Committee)

SB 344 (Speier-D) Mortgage guaranty companies: insurance

Permits title and mortgage guaranty companies to offer an additional type of insurance sufficient to satisfy a lender's interest for purposes of a refinancing transaction or for a second mortgage.

(Failed passage in Senate Insurance Committee; reconsideration granted)

SB 385 (Morrow-R) Veterans: life or disability insurance

Increases the level of reserve which the State Department of Veterans Affairs is allowed to maintain under master agreements with insurance companies that provide life or disability coverage to participate in the Farm and Home Loan Program.

(In Assembly Veterans Affairs Committee)

SB 396 (Florez-D) Securities fraud: insurer's liability

Provides that an insurer is liable for a loss covered by the intentional commission of securities fraud by the insured.

(In Senate Insurance Committee)

SB 618 (Scott-D) State Insurance Commissioner: licenses

Allows the State Insurance Commissioner to suspend or revoke an insurer's license, under specified circumstances and increases a variety of fines for insurer misconduct from approximately $200 to between $1,000 and $50,000.

Chapter 546, Statutes of 2003

SB 620 (Scott-D) Annuities and life insurance

Increases the restrictions on the marketing of life insurance and annuities to senior citizens. Creates new training requirements for insurance agents and brokers. Requires additional disclosures for life insurance and annuity products. Imposes restrictions on the sale of life insurance and annuities in the home of a senior.

Chapter 547, Statutes of 2003

SB 667 (Soto-D) Property insurance: withdrawal

Prohibits an insurer issuing specified forms of property insurance from ceasing to offer any particular line of coverage without obtaining the prior approval of the State Insurance Commissioner (IC). Allows the IC to deny or delay the withdrawal if he/she determines that the withdrawal results in that insurance becoming not readily available or affordable in the voluntary insurance market.

(In Senate Insurance Committee)

AB 81 (Wyland-R) Insurance: underwriting

Prohibits insurers from declining to offer insurance based upon an inquiry about the scope or nature of coverage under a policy, if that inquiry was made known to the insurer by a specified database supplying information to insurers.

(In Senate Appropriations Committee)

AB 226 (Vargas-D) Life insurance: corporate-owned policies

Prohibits the issuance of corporate-owned life insurance policies, as specified.

Chapter 328, Statutes of 2003

AB 263* (Oropeza-D) Corporation taxes: insurance company dividends

Allows a corporation to deduct a portion of the dividends received from an insurance company subsidiary.

(In Senate Revenue and Taxation Committee)

AB 284 (Chavez-D) Deferred annuities

Creates an indexed-based interest rate for deferred annuity products, sets a single percentage of 87 percent for purposes of calculating the net considerations of all deferred annuities, and sets a flat fee of $50 per contract as the annual fee.

Chapter 381, Statutes of 2003

AB 378 (Steinberg-D) Unclaimed insurance proceeds

Incorporates unclaimed insurance proceeds made available by demutualization into the state's Unemployment Property Fund.

Chapter 304, Statutes of 2003

AB 412 (Chan-D) Insurance consumer protection

Requires the State Insurance Commissioner to convene a task force and ongoing work group on insurance fraud as it relates to senior citizens.

(In Assembly Appropriations Committee)

AB 444 (Vargas-D) Life insurers: guarantees

Authorizes the State Insurance Commissioner (IC) to issue bulletins, providing for approval on one or more expedited bases, of policies, contracts or agreements, guaranteed by an admitted life insurer, and filed with the IC. Authorizes the IC to expedite approval of an insurer's policy, contract, or agreement, upon certain other conditions. Permits the IC to establish administrative procedures, consistent with the requirements of these bulletins.

Chapter 352, Statutes of 2003

AB 652* (Leno-D) Insurers: loans

Permits California domiciled mutual insurance companies a reciprocal exchange or an interinsurance exchange to issue surplus notes on terms acceptable to the financial markets, and under appropriate regulatory control for the State Department of Insurance.

(On Assembly Third Reading File)

AB 700 (Diaz-D) Insurance

Revises provisions in the Insurance Code concerning insurers certificate of authority and what line of insurance they can transact.

(In Assembly Insurance Committee)

AB 752 (Plescia-R) Construction defects: insurance

Provides that any endorsement issued by an admitted insurer or nonadmitted insurer and governed by the Insurance Code that names an individual or entity as an additional insured under any insurance policy that is collateral to, or affects, any residential construction contract governed by the legal requirements for actions for construction defects, as specified, shall only provide the additionally-named insured individual or entity with a defense for those claims arising from, or related to, the named insured's activities.

(In Assembly Insurance Committee)

AB 794 (Frommer-D) State Department of Insurance: web site

Requires the State Department of Insurance to remove from its web site any order or pleading related to a disciplinary proceeding, enforcement action, or restricted license regarding specified licenses 10 years from the date the disciplinary or enforcement action becomes final, or the restriction is removed, except as specified. This requirement does not apply to any order or pleading related to an enforcement action resulting in a suspended or revoked license.

Chapter 310, Statutes of 2003

AB 943 (Chavez-D) Mortgage guaranty insurance

Makes several technical changes to statutory mortgage insurance company accounting practices to conform to laws in other states. Allows mortgage insurance companies to transfer, with permission of the State Insurance Commissioner (IC), funds from the contingency reserve to the unassigned surplus. Gives the IC authority to approve or deny these transfers. Requires contributions to the contingency reserve to be quarterly rather than annual.

Chapter 392, Statutes of 2003

AB 996 (Wiggins-D) Property insurance

Extends to reproductive health services facilities an existing prohibition on insurers from canceling or refusing to renew a property insurance policy due to property casualty claims arising from specified hate crimes, and further prohibits an insurer from imposing an excessive or unfairly discriminatory premium because the facility has been the victim of a hate crime.

Chapter 647, Statutes of 2003

AB 1005 (Dutra-D) Title insurance: rates

Allows title insurers to lower prices of title insurance within a given county immediately after filing the rates with the State Department of Insurance.

Chapter 440, Statutes of 2003

AB 1049 (Calderon-D) Insurance: underwriting

Prohibits an insurance institution or agent from basing an adverse underwriting decision on the fact that an individual has previously inquired and received information about the scope or nature of coverage under a residential fire or property insurance policy, if the information is received from an insurance support organization whose primary source of information is insurance institutions and the inquiry did not result in the filing of a claim.

Chapter 442, Statutes of 2003

AB 1060 (Lieber-D) Life insurance: employees

Prohibits an employer from obtaining a life insurance policy on an employee unless it first obtains the clearly expressed consent of the employee in writing and in the employee's own words, as specified, and unless it transmits that consent to the insurer. Prohibits an insurer from issuing a policy to an employer insuring the life of an employee unless it receives this consent and notifies the employee of the issuance of the policy.

(In Assembly Insurance Committee)

AB 1083 (Cogdill-R) Life insurance: notification

Prohibits an insurer from issuing a policy to an applicant that insurers the life of the applicant's spouse unless the spouse has signed the policy application or has otherwise been notified in advance of the issuance of the policy. Applies to life insurance policies with face amounts exceeding $50,000 that are issued on or after July 1, 2004.

Chapter 115, Statutes of 2003

AB 1103 (Laird-D) Life insurance: settlements

Expands the definition of "insurance settlement" to include viatical settlements, life settlements, senior settlements, or any other type of similar transaction. Requires insurance settlement licensees to obtain a written acknowledgement that the policy may be resold to other licensed persons.

(In Assembly Insurance Committee)

AB 1191 (Wiggins-D) Property insurance rates

Requires insurers to provide policyholders with the reasons for the nonrenewal of their homeowners policies and requires insurers to provide the policyholder, in writing upon request, with the reasons for the change in their annual premium. Places an implementation date of March 1, 2004.

Chapter 571, Statutes of 2003

AB 1297 (Frommer-D) Insurance

Establishes clearer guidelines as to when an insurance license is acting as a broker in the placing of a personal lines insurance policy, as specified.

(In Senate Insurance Committee)

AB 1431 (Frommer-D) Insurance administrators

Requires independent practice associations (IPAs) and organizations that adjust or settle claims on behalf of IPA member and nonmember providers to obtain a certificate of registration from the State Department of Insurance as an administrator.

(In Senate Insurance Committee)

AB 1600 (Nakano-D) Life and disability insurance

Extends the period of time that life and disability insurers must maintain records relating to the activities of their agent, authorizes the State Insurance Commissioner (IC) to collect and report data relating to life and disability insurance, and establishes civil penalties for failure to comply with the IC's request for information.

Chapter 166, Statutes of 2003

AB 1727 (Assembly Insurance Committee) Property insurance

Requires homeowners and residential property or liability insurers to give a 20-day written advance notice of cancellation except in the case of nonpayment of premiums, or for fraud, for which a 10-day advance written notice of cancellation is required.

Chapter 148, Statutes of 2003

AB 1728 (Assembly Insurance Committee) Long-term care insurers

Authorizes the State Insurance Commissioner to review and negotiate rates charged to long-term care insurers by actuaries.

(In Senate Insurance Committee)

ACR 74 (Steinberg-D) Holocaust Era Insurance Claims

States the position of the Legislature that Holocaust-related funds obtained by the International Commission on Holocaust Era Insurance Claims (Commission) be disbursed to, or on behalf of, Holocaust survivors living in poverty, in order to meet their basic needs, including food, shelter, and medical care, thereby allowing them to live out the remainder of their lives in comfort and dignity. Requests that the Commissioner of the State Department of Insurance utilize his seat on the Commission to implement the intent of the Legislature.

Resolution Chapter 97, Statutes of 2003

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