Insurance

Automobile Insurance

SB 1500 (Speier-D) Vehicles: financial responsibility

Requires: (1) all insurers to report electronically to the Department of Motor Vehicles (DMV) by 2006; (2) DMV to suspend registration if insurance is fraudulent or cancelled; and (3) the Department of Insurance to report on the effectiveness of the low-cost auto insurance program.

Chapter 920, Statutes of 2004

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.

(Died 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.

(Died in Assembly Insurance Committee)

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.

(Died 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.

(Died on Senate Third Reading File)

AB 1867 (Vargas-D) Insurance fraud

Increases the State Department of Insurance spending authority for local assistance to allow local district attorneys to access $5 million in funds that are dedicated for investigating and prosecuting auto fraud locally.

Chapter 773, Statutes of 2004

AB 1985 (Wolk-D) Insurance claim forms

Updates the codes by permitting auto insurers to keep electronic documents, rather than hard copies, of settlement checks, claim forms and police reports.

Chapter 93, Statutes of 2004

AB 2677 (Ridley-Thomas-D) Auto insurance: cost estimates

Requires automobile insurers to provide either a cost estimate or a referral to an insurance agent through a toll-free number or web site.

Chapter 765, Statutes of 2004

AB 2709 (Levine-D) Vehicle: financial responsibility

Requires the Department of Motor Vehicles (DMV) to develop a method by which law enforcement officers, on or after July 1, 2006, may electronically verify that an insurance policy or bond for a motor vehicle has been issued.

Chapter 948, Statutes of 2004

AB 2904* (Benoit-R) Auto insurance: express warranties

changes the definition of a manufacturer, for purposes of excluding express warranties for automobile lubricants, treatments and other fluids from the definition of automobile insurance, reducing from 10 years to nine years the requirement that the manufacturer must have continuously produced and offered the product for sale in California, allowing the sponsor to continue to sell these products in California after July 1, 2004.

Chapter 85, Statutes of 2004

AB 3088 (Jerome Horton-D) Good driver discounts

Specifies that insurers having common ownership and operating in California under common control are not required to sell good driver discount policies issued by other insurers within the Common ownership group if the commissioner determines that the insurers satisfy specified conditions.

Chapter 787, Statutes of 2004

A similar bill was AB 2249 (Jerome Horton-D) which died in Senate Insurance Committee.

Health Insurance

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.

(Died 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.

(Died in Senate Insurance 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.

(Died in Senate Insurance Committee)

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.

(Died in Senate Insurance Committee)

SB 921 (Kuehl-D) Single payer health care coverage

Establishes the California Health Care System (CHCS) administered by an elected commissioner who heads the California Health Care Agency. Provides health insurance to all California residents through a consolidated claims, financing, and administrative system. Replaces all private health insurance policies and eliminates all health insurance premiums paid by residents and their employers, except for services not provided by CHCS. Requires that the commissioner seek waivers from the federal government to merge all federal health care funds and any required state matching funds into the system. Grants the commissioner full power to supervise, plan and coordinate the delivery and financing of health care in California. Provides a comprehensive, uniform benefit package to all residents.

(Died in Assembly Appropriations Committee)

SB 1157 (Romero-D) Disability insurance: intoxication

Prohibits health insurance policies from excluding coverage for injuries sustained while the insured was intoxicated or under the influence of any controlled substance.

Vetoed by the Governor

SB 1158 (Scott-D) Hearing aids

Requires group health plan contracts and all health insurance policies issued, amended, or renewed on or after January 1, 2005, to provide coverage for hearing aids, up to $1,000, to all enrollees, subscribers, and insureds under 18 years of age at least every 36 months.

Vetoed by the Governor

A similar bill was SB 174 (Scott-D) which died in Senate Insurance Committee.

SB 1192 (Chesbro-D) Substance related disorders

Requires health care service plans and health insurers to provide coverage for the medically necessary treatment of substance-related disorders, excluding caffeine and nicotine related disorders, on the same basis as coverage is provided for any other medical condition.

(Failed passage in Assembly Health Committee)

SB 1196 (Cedillo-D) Health care applications

Authorizes the sharing of the National School Lunch Program application for purposes of determining eligibility for the Healthy Families Program and any other county- or local-sponsored health insurance program when the child does not meet eligibility requirements for Medi-Cal.

Chapter 729, Statutes of 2004

SB 1347 (Ducheny-D) Mexican health plans

Deletes the requirement that a Mexican pre-paid health plan provide benefits only for citizens of Mexico and their dependents and instead require that it provide benefits only for Mexican nationals legally employed in the County of San Diego and the County of Imperial, and their dependents, as specified. Temporarily suspends a requirement that the medical director be licensed in California. Sunsets January 1, 2008.

Chapter 491, Statutes of 2004

SB 1349 (Ortiz-D) Health care

Requires a fee be imposed on health care service plans (generally HMOs) and health insurers for purposes of funding the California Health Care Quality Improvement and Cost Containment Commission.

(Died in Assembly Appropriations Committee)

SB 1509 (Alpert-D) Health care service plans

Among other provisions, requires charitable hospitals or health care service plans to register and re-register with the Attorney General and to file IRS tax forms and annual financial reports, including expenditures and receipts to and from affiliates and for-profit entities.

(Died in Senate Appropriations Committee)

SB 1555 (Speier-D) Health care benefits: maternity services

Requires group and individual health insurance policies to provide coverage for maternity benefits, except short-term limited duration health insurance and hospital-only insurance.

Vetoed by the Governor

A similar bill was SB 897 (Speier-D) which died in Senate Rules Committee.

SB 1569 (Dunn-D) Health care service plans

Allows a provider to bring an action against a health care service plan to recover contract damages and penalties if a health care plan violates any provision of the Knox-Keene Act relating to claims processing or payment.

Vetoed by the Governor

SB 1631 (Figueroa-D) Health care coverage

Creates the California Health Care Program (CHCP) to coordinate the Medi-Cal and Healthy Families (HFP) programs for the purpose of reducing administrative costs. Also requires the Department of Health Services, which administers Medi-Cal and the Managed Risk Medical Insurance Board, which administers HFP, to carry out the duties and functions of the CHCP.

(Died in Senate Appropriations Committee)

SB 1843 (Karnette-D) Health care service plans

Requires a mother to consent to a newborn's discharge before the end of the time periods restricted by a health care service plan.

(Died in Senate Insurance 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.

(Died 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.

(Died in Assembly Appropriations Committee)

AB 254 (Montanez-D) Health care coverage: COBRA

Repeals senior COBRA continuation protections in order to allow seniors to enroll in lower-priced Health Insurance Portability and Accountability Act coverage.

Chapter 64, Statutes of 2004

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.

(Died in Assembly Health Committee)

AB 343 (Chan-D) Healthy Families Program

Prohibits charging Healthy Families Program applicants an application assistance fee.

Chapter 234, Statutes of 2004

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.

(Died 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.

(Died in Assembly Appropriations Committee)

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.

(Died 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.

(Died 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.

(Died 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.

(Died in Assembly Health Committee)

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.

(Died 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.

(Died 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.

(Died in Senate Insurance Committee)

AB 1414 (Levine-D) Discount health programs

Defines a discount health program as a person or entity that operates a program that charges a consumer a fee for accessing providers and health care services and products at a discounted rate. Establishes certain requirements for the operation of these programs and makes a violation of these requirements a crime. Makes the State Department of Insurance responsible for enforcement of the bill and requires it to charge programs a fee to cover those costs.

(Died in Senate Insurance Committee)

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.

(Died in Assembly Health Committee)

AB 1596 (Frommer-D) Health care benefits

Requires health plans to make specified benefit matrices available through an Internet link to the web sites of the State Department of Insurance and the State Department of Managed Health Care rather than be ensuring that the most current update of the matrix is available on the health plan's own web site.

Chapter 164, Statutes of 2004

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.

(Died in Assembly Health Committee)

AB 1850 (Cohn-D) Health care service plans

Requires the legislative analyst to prepare a study on health care service plans that generally pay the franchise tax.

(Died in Senate Appropriations Committee)

AB 1868 (Vargas-D) Disability insurance

Allows a disability income insurance policy to contain provisions for a rehabilitation program and may require the insured to receive specified medical care as a condition of receiving payable benefits. Contains provisions for the payment of additional disability income benefits.

(Died in Senate Insurance Committee)

AB 2033 (Nakano-D) Military benefits

Provides state health and dental benefits for all members of the California National Guard, State Military Reserves, and Naval Militia meeting specified criteria, including that they: (1) are not covered by any other health or dental care program directly or as a spouse or dependent; (2) have maintained satisfactory attendance for 12 months; and, (3) are not on active duty exceeding 29 days.

(Died in Assembly Appropriations Committee)

AB 2208 (Kehoe-D) Health care and insurance benefits

Enacts the California Insurance Equality Act which requires group health plans, health insurance, and all forms of insurance to provide equal coverage to registered domestic partners, as specified.

Chapter 488, Statutes of 2004

AB 2289 (Chan-D) Health care information

Requires each full service health plan and health insurers to submit to their regulators information pertaining to the out-of-pocket costs borne by health insurance consumers.

Vetoed by the Governor

AB 2313 (Chan-D) Health Insurance Portability and Accountability Act

Extends the date by which the state must determine which state laws are preempted by the federal Health Insurance Portability and Accountability Act, from January 1, 2005 to January 1, 2008.

Chapter 141, Statutes of 2004

AB 2315* (Maldonado-R) Health savings accounts

Conforms state law to federal law in the area of health savings accounts.

(Died in Assembly Appropriations Committee)

AB 2429 (Chavez-D) Health care service plans

Permits a contract between a fee-for-service provider and a Medi-Cal or Healthy Families health plan to be amended without the signature of the provider under specified circumstances.

Chapter 348, Statutes of 2004

AB 2494 (Lieber-D) Health care benefits: grocery stores

Conditions the receipt or renewal of a valid permit to operate a large grocery store, on providing a written commitment to indemnify affected state and local agencies for any significant expenses incurred in providing health care to grocery store employees.

(Died in Assembly Health Committee)

AB 2588 (Reyes-D) Confidentiality of medical information

Prohibits a provider of health care or a health care service plan from disclosing medical information to any third party for the purpose of medical data processing or medical record transcription.

(Died in Assembly Health Committee)

AB 2759 (Levine-D) Health care coverage

Preserves individual health care coverage to subscribers of health plans and policyholders of insurance plans that withdraw from a California Services area. Excludes preferred provider organizations.

Chapter 489, Statutes of 2004

AB 2990 (McCarthy-R) Health care service plans

Authorizes a health care service plan to offer a plan contract with a high deductible for an enrollee or subscriber who has a health savings account that plan contract complies with specified provisions of federal law.

(Died in Assembly Health Committee)

AB 2996 (Richman-R) Health care service plans

Permits health care service plans to issue contracts or policies that do not comply with the requirements of the Knox-Keene Health care Service Plan Act of 1975.

(Failed passage 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.

(Failed passage in Senate Revenue and Taxation Committee)

HR 20 (Frommer-D) Cover the Uninsured Week

Recognizes "Cover the Uninsured Week" on May 10 through May 16, 2004.

Read and adopted

Miscellaneous

SB 64* (Speier-D) Homeowners' insurance

Establishes a program for the mediation of certain residential property insurance disputes. Specifically, (1) requires the State Department of Insurance (DOI) to establish a mediation program for disputed claims occurring after September 30, 2003 related to fires in southern California, (2) changes the name of the Earthquake Insurance medication Program to the Insurance mediation Program and extends the sunset on the program to January 1, 2008, (3) authorizes DOI to impose fees of up to $1,500 for residential property mediations, (4) prohibits DOI from referring to mediation any earthquake or auto insurance claim made on or after January 1, 2006, and (5) requires the Commissioner of DOI, by October 1, 2004, to report to the Governor and the Legislature on the mediation program, as specified.

Chapter 357, Statutes of 2004

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

Provides that insurance rates, rules, and forms prescribed by insurers and approved by the Commissioner of the State Department of Insurance), pursuant to his/her regulatory authority, shall be deemed to comply with all applicable statutes and regulations, and prohibits the Commissioner 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.

(Died 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.

(Died 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.

(Died in Senate Insurance Committee)

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.

(Died 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.

(Died in Senate Insurance Committee)

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.

(Died in Senate Insurance Committee)

SB 691 (Escutia-D) Homeowner's insurance: credit history

Prohibits insurers from using credit scores to underwrite, rate, or determine placement in a particular payment plan for homeowner's insurance policies.

(Died in Assembly Insurance Committee)

SB 1088 (Scott-D) Charitable gift annuities

Allows a grants and annuities society (charity) to hold up to 50 percent of its investments backing charitable gift annuities in common stocks rather than the current limit of ten percent.

Chapter 381, Statutes of 2004

SB 1181 (Margett-R) Public officials: insurance

Permits a city or county to purchase commercially available insurance securing the faithful performance of public officers in lieu of a public official's bond, master bond, or self-insuring.

Chapter 273, Statutes of 2004

SB 1273 (Scott-D) Insurance: misrepresentations

Prohibits an insurer, agent or broker from making or using a statement that is known, or should have been known, to be a misrepresentation of the terms, benefits, or dividends of an insurance policy, and prohibits a person from making a statement that is known, or should have been known, to be a misrepresentation for the purpose of inducing another person or policyholder to take certain actions. Increases the maximum penalty for such misrepresentations to up to one year and/or a fine of up to $25,000, and provides that when the loss to the victim exceeds $10,000, the maximum fine is three times the amount of that loss.

Chapter 730, Statutes of 2004

SB 1291 (Burton-D) Insurance Commissioner

Requires the Commissioner of the State Department of Insurance to approve a class plan, a rating methodology, an underwriting or eligibility rule, or a policy form for use by an insurer that writes auto insurance, or insurance for loss or damage to real property that is used predominately for residential purposes and that consists of not more than four dwelling units if any other insurer of the same class has previously received approval and the approval remains in effect.

(Died in Assembly Insurance Committee)

SB 1315 (Ortiz-D) Insurance policies

Requires insurers seeking to make a change to the standard fire form to file a copy of the form with the Commissioner of the State Department of Insurance (Commissioner), and grants the Commissioner the right to disapprove the form under specified conditions. Requires policies that are currently being written in this state to be filed with the Commissioner for review within 90 days of the effective date of this bill.

(Failed passage in Assembly Insurance Committee)

SB 1321 (Ortiz-D) Approval of insurance rates

Requires the Commissioner of the State Department of Insurance to consider whether an insurance rate is excessive relative to the insurance company's profit margin.

(Died in Senate Insurance Committee)

SB 1323 (Ortiz-D) Homeowners' insurance

Regulates the use of credit scores in underwriting homeowners' insurance policies and prohibits insurers from reporting that an insured has made an inquiry about coverage if no claim is filed.

(Died on the Assembly Inactive File)

SB 1368 (Ortiz-D) Insurer: substitute service of process

Allows substitute service on a party's insurer if the party consents.

(Died on Assembly Third Reading File)

SB 1474 (Escutia-D) Homeowners' insurance

Prohibits insurers from refusing to issue or renew a homeowners' policy on the basis of claims made by the applicant or insured under specified conditions. Allows for specified exemptions of what is considered a "claim". Also specifies certain conditions that allow an insurer to refuse to renew or issue a homeowners' policy.

(Failed passage in Assembly Insurance Committee)

SB 1495 (Machado-D) Insurance fees

Requires an insurer to reimburse any fees and extra premium charged to an insured due to a late premium payment or lapse in coverage if the late payment or lapse in coverage was the result of fraud committed by an agent or broker.

Chapter 160, Statutes of 2004

SB 1855 (Alpert-D) Homeowners' insurance

Requires insurers to disclose the additional costs of broader coverage than the consumer's current coverage, to include additional information about the insured property on the declaration page and requires the insurer to pay full replacement value if the notice is not included in the disclosure statement. Also revises the disclosure form contained in the coverage.

Chapter 385, Statutes of 2004

SB 1872 (Denham-R) Insurance: University of California

Exempts the University of California, from restrictions placed on state agencies and their ability to negotiate life or disability insurance or an annuity.

Chapter 123, Statutes of 2004

A similar bill was AB 2965 (Samuelian-R), which died in the Assembly Insurance Committee.

SR 42 (Alarcon-D) State Department of Insurance

Requests the State Department of Insurance to assign staff to identify all claims owed by Reliance to California insureds and to monitor the payment of those claims through the bankruptcy proceedings.

(Died in Senate Rules Committee)

AB 263* (Oropeza-D) Insurance subsidiaries: taxation

Allows a corporation to deduct from income a portion of the dividends received from an insurance subsidiary, regardless whether the insurance company conducted business in California and limits a tax incentive for overcapitalization of insurance subsidiaries.

Chapter 868, Statutes of 2004

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.

(Died in Assembly Appropriations Committee)

AB 421 (Steinberg-D) Property insurance

Requires the Commissioner of the State Department of Insurance to conduct a study of the market for property and liability insurance for corporations that provide subsidized low- and moderate-income rental housing. The results of the study are to be provided to the Legislature by July 1, 2005.

Chapter 771, Statutes of 2004

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.

Chapter 4, Statutes of 2004

AB 700* (Diaz-D) Insurance

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

Chapter 47, Statutes of 2004

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.

(Died in Assembly Insurance Committee)

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.

(Died in Assembly Insurance Committee)

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.

(Died in Assembly Insurance Committee)

AB 1227 (McCarthy-R) Insurance fraud

Requires the Commissioner of the State Department of Insurance, upon good cause, to notify any insurer of its noncompliance with existing fraud investigation law and specifies the contents of the notice and requires an insurer to take certain actions after receiving such a notice.

Chapter 596, Statutes of 2004

AB 1297 (Frommer-D) Insurance: tax avoidance

Prohibits insurance policies that insure against risk associated with abusive tax shelter investments and imposes a 75 percent penalty on insurance payouts for losses associated with abusive tax shelter investments.

Vetoed by the Governor

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.

Vetoed by the Governor

AB 1728 (Assembly Insurance Committee) Insurance actuaries

Makes several substantive changes to the law regarding investments by insurers in subsidiaries, reporting requirements, disability fraud funding, and one technical change to eliminate an obsolete provision prohibiting a rollback of rates.

Chapter 599, Statutes of 2004

AB 1891 (Haynes-R) Homeowners' insurance: mold

Requires, if an insurer intends to exclude mold as a covered peril, that the insurer state the exclusion in readily understandable terms.

(Died in Assembly Insurance Committee)

AB 1953 (Vargas-D) Public insurance adjusters

Increases fines for acting as an unlicensed public adjuster. Places additional limitations on solicitation practices of public adjusters. Requires the Commissioner of the State Department of Insurance to enforce the public adjuster statutes.

Chapter 600, Statutes of 2004

AB 1955 (Vargas-D) Life insurers

Allows a for-profit life insurer to be organized as a non-profit mutual benefit corporation, subject to essentially the same regulations and requirements governing for-profit insurers, including reserve requirements and the obligation to pay gross premiums taxes.

Chapter 376, Statutes of 2004

AB 1962 (Cox-R) Underwritten title companies

Allows domestic limited liability companies to be licensed as underwritten title companies which are under the Commissioner of the State Department of Insurance purview.

(Died in Senate Judiciary Committee)

AB 2129 (Chavez-D) Seniors: life insurance and annuities

Ensures consistent use of the term "owner" rather than "insured" in the provisions governing the 30-day right to cancel individual life insurance and individual annuity contracts, as specified.

Chapter 803, Statutes of 2004

AB 2147 (Kehoe-D) Liability insurance

Requires an insurer under a wrap-up insurance policy to report workers' compensation losses and payroll information for each contractor and subcontractor to is rating organization on a timely basis and in accordance with the uniform statistical plan.

Chapter 777, Statutes of 2004

AB 2161 (Reyes-D) Structured settlement

Streamlines the filing and review procedures at the Office of the Attorney General for transfers of structured settlement rights. Revises and recasts the disclosures made to a seller or structured settlement rights by creating statutory disclosure language.

Chapter 582, Statutes of 2004

A similar bill was SB 1680 (Chesbro-D), which died in the Senate Insurance Committee.

AB 2199* (Kehoe-D) Fire insurance

Defines the measure of indemnity and place specified conditions on insurers in circumstances related to fire insurance. Allows an insured to be granted a time extension to rebuild, repair, or replace the insured property and allows an insured to rebuild, repair, or replace the property at a location other than the original insured premise, as specified.

Chapter 311, Statutes of 2004

AB 2316 (Chan-D) Life insurance

Creates the Life and Annuity Consumer Protection Fund as a special account within the Insurance Fund, and requires that the monies deposited therein from a $1 fee levied against insurers based upon each individual life insurance and annuity product worth $15,000 or more issued to a resident of this state be dedicated to protecting consumers of insurance products. Requires an insurer that chooses to charge purchasers this fee to set forth the charge separately. Provides that the Commissioner of the State Department of Insurance (Commissioner) shall distribute 50 percent of the funds within the department for consumer protection functions related to individual life insurance and annuity products, as specified, and 50 percent of the funds to district attorneys for investigating and prosecuting individual life insurance and annuity product financial abuse cases involving licensees and for other projects beneficial to insurance consumers. Provides that the Commissioner may develop guidelines and issue regulations for implementing these provisions. Requires that an insurer, upon receipt of an invoice, to transmit payment to the department for deposit in the fund, and that monies remaining in the fund at the end of the fiscal year be retained in the account and carried forward. Sunsets January 1, 2010.

Chapter 835, Statutes of 2004

AB 2384 (Nakano-D) Life insurance

Requires all life and annuity contract forms be filed by the obligor with the State Department of Insurance, requires disability insurance that contains a death benefit, accidental death insurance, and credit life insurance to pay within 30 days of death, as already required of life insurance, and makes related changes. Double-jointed with AB 1910 (Harman).

Chapter 601, Statutes of 2004

AB 2399 (Liu-D) Homeowners' insurance: dog breeds

Prohibits an insurer from refusing to issue or renew a homeowners' policy based upon the breed of dog owned by the applicant or insured.

(Died in Assembly Insurance Committee)

AB 2427 (Samuelian-R) Insurance coverage: mold

Prohibits specified policies of insurance that are issued, amended, or renewed on or after January 1, 2005, from being canceled, and prohibits an insurer from refusing to renew this policy, only on the grounds of the presence of mold if the policy contains an existing exclusion for payment of loss for that peril.

(Died in Assembly Insurance Committee)

AB 2444 (Dutton-R) Property insurance

Requires the California Fair Access to Insurance Requirements Plan Association to provide an annual report to the Legislature on policies in force for insuring qualified property and probable maximum losses in very high fire hazard zones.

(Died in Senate Insurance Committee)

AB 2490 (Maddox-R) Insurance: surplus line brokers

Allows an non-admitted insurers and surplus lines brokers selling personal lines insurance products, to immediately bind coverage with an applicant, in the same manner as non-admitted insurers and surplus lines brokers are currently authorized to do in commercial lines of insurance, as well as any umbrella coverage associated herewith. Adds a sixth disclosure to the current notice requirements of law relative to the issue of having the insurance bound immediately, and specifies that the premium will be prorated and any broker fee charged for this insurance will be refunded if coverage is cancelled. Sunsets January 1, 2008.

Chapter 95, Statutes of 2004

AB 2520 (Vargas-D) Self-service storage agents

Requires self-service storage facilities and their franchises that sell insurance in connection with self-service storage rental agreements to obtain a license from the Commissioner of the State Department of Insurance. Requires such licensees to provide training to their employees. Allows the facility to collect the monthly storage fee and insurance premium in one check, and imposes other specified duties.

Chapter 428, Statutes of 2004

AB 2557 (Koretz-D) Insurance: licensing

Increases the misdemeanor penalty for individuals who transact insurance without a license to up to one year in jail or a maximum of $50,000 (or both), requires licensees to report changes in their background information during the time that they are licensed and before renewal, and gives the Commissioner of the State Department of Insurance authority to levy penalties on a provider of continuing education courses found to be out of compliance with regulations, in addition to suspending the certification of the course.

Chapter 279, Statutes of 2004

AB 2639 (Cox-R) Title insurance

Authorizes the Commissioner of the State Department of Insurance to restrict, rather than suspend or revoke, an underwritten title company's license or certificate of authority.

(Died in Senate Insurance Committee)

AB 2962 (Pavley-D) Fire insurance

Prohibits an insurer, in the even of a total loss to the primary insured structure under a residential policy, from canceling coverage during the course of rebuilding the structure and clarifies the measurement of "actual cash value" under an open fire policy covering residences. With respect to residential insurance policies, permits insurers and the California Earthquake Authority to defer implementation of the reconstruction-related provisions of this bill to no later than October 1, 2005.

Chapter 605, Statutes of 2004

AJR 44 (Koretz-D) Holocaust era insurance policies

Urges the State Attorney General and the Commissioner of the State Department of Insurance to investigate any feasible alternatives to enacting a state law that will increase the likelihood that insurance companies will pay Holocaust era life insurance claims, and calls upon the United State Congress to pass legislation requiring insurance companies to disclose Holocaust era policy information.

Resolution Chapter 145, Statutes of 2004

Index (in Bill Order)