Bill Text: CA AB1511 | 2021-2022 | Regular Session | Amended
Bill Title: Insurance: omnibus.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-10-07 - Chaptered by Secretary of State - Chapter 627, Statutes of 2021. [AB1511 Detail]
Download: California-2021-AB1511-Amended.html
Amended
IN
Senate
June 14, 2021 |
Amended
IN
Assembly
May 03, 2021 |
Amended
IN
Assembly
April 20, 2021 |
Introduced by Committee on Insurance (Coauthor: Senator Rubio) |
February 19, 2021 |
LEGISLATIVE COUNSEL'S DIGEST
(2)Existing law authorizes the commissioner to bring a superior court action to enjoin a person who is violating or about to violate the Insurance Code. Existing law authorizes an investigator of the department’s Investigations Bureau, as well as specified employees of other state agencies, to arrest a person with a warrant, or without a warrant if specified circumstances occur, including that the person has committed a felony.
This bill would additionally authorize the commissioner to apply to the clerk of the superior court for a judgment to enforce an order requiring a person to pay a monetary penalty or reimburse the department for its prosecutorial costs. The bill would authorize an investigator of the department’s Investigations Bureau, as well as specified employees of other state agencies,
to exercise additional powers of a peace officer, including the authority to make a declaration of probable cause to receive a warrant and to make a sworn declaration for the basis of a temporary restraining order.
(3)
(4)
(5)Existing law requires an insurer to deliver or mail to the named insured an offer of renewal or a notice of nonrenewal of a residential property insurance policy at least 45 days before the policy expiration, or 75 days before the policy expiration for a notice of nonrenewal for a policy that expires on or after July 1, 2020.
Existing law provides that mailing a specified notice is complete when the notice is deposited in a facility regularly maintained by the United States Postal Service, in a sealed envelope, with postage paid, and addressed to the person at the last address that person provided to the person mailing the notice. Existing law extends the time period in which a person has a right or duty to respond to that mailed notice by 5 calendar days if the place of mailing or the recipient’s address is within California, 10 calendar days if the place of mailing or the recipient’s address is
outside of California but within the United States, or 20 calendar days if the place of mailing or the recipient’s address is outside of the United States.
On and after July 1, 2022, this bill would provide that the above-described mailing requirements and extended response time periods apply to a timely offer of renewal or notice of nonrenewal of a residential property insurance.
(6)
(7)
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 676.8 of the Insurance Code is amended to read:676.8.
(a) This section applies only to policies of workers’ compensation insurance.SECTION 1.SEC. 2.
Section 678 of the Insurance Code is amended to read:678.
(a) (1) At least 45 days before the policy expiration, an insurer shall deliver to the named insured or mail to the named insured at the address shown in the policy, either of the following:SEC. 3.
Section 1210 of the Insurance Code is amended to read:1210.
(a)SEC. 4.
Section 1210 is added to the Insurance Code, to read:1210.
(a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1152), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:SEC. 2.SEC. 5.
Section 1656.1 of the Insurance Code is amended to read:1656.1.
(a) Every application for a license filed by a corporation shall contain the names and addresses of all stockholders owning 10 percent or more of the corporation’s stock and of all officers and directors of the corporation.SEC. 3.SEC. 6.
Section 1656.2 of the Insurance Code is amended to read:1656.2.
(a) Every application for a license filed by a limited liability company shall contain the names and addresses of all members owning 10 percent or more of the membership interests of the limited liability company, and of all managers, officers, and directors, if any, of the limited liability company.SEC. 4.SEC. 7.
Section 1668 of the Insurance Code is amended to read:1668.
The commissioner may deny an application for a license issued pursuant to this chapter if any of the following are true:SEC. 5.SEC. 8.
Section 1668.5 of the Insurance Code is amended to read:1668.5.
(a) The commissioner may deny an application for a license issued pursuant to this chapter, and may suspend or revoke the permanent license of an organization licensed pursuant to this chapter as authorized by Section 1738, if the applicant or holder of the permanent license is an organization and a controlling person of the organization is any of the following:SEC. 9.
Section 1871.2 of the Insurance Code is amended to read:1871.2.
(a)SEC. 10.
Section 1871.10 is added to the Insurance Code, immediately following Section 1871.9, to read:1871.10.
It is unlawful to make or cause to be made a knowingly false or fraudulent material statement or material representation for the purpose of obtaining or amending an insurance policy under any line of insurance regulated by the department. A violation of this section is a public offense, punishable by a fine not to exceed ten thousand dollars ($10,000), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail not to exceed one year, or by both that fine and imprisonment.SEC. 11.
Section 10103.7 of the Insurance Code is amended to read:10103.7.
(a) In the event of a covered loss relating to a state of emergency, as defined in Section 8558 of the Government Code, an insured under a residential property insurance policy shall be permitted to combine payments for claims for losses up to the policy limits for the primary dwelling and other structures, for any of the covered expenses reasonably necessary to rebuild or replace the damaged or destroyed dwelling, if the policy limits for coverage to rebuild or replace the primary dwelling are insufficient. Any claims payments for losses pursuant to this subdivision for which replacement cost coverage is applicable shall be for the full replacement value of the loss without requiring actual replacement of the otherSEC. 12.
Section 10168.25 of the Insurance Code is amended to read:10168.25.
(a) This section shall apply to contracts issued on and after January 1, 2006, and may be applied by a company, on a contract-form-by-contract-form basis, to any contract issued on or after January 1, 2004, and before January 1, 2006.SEC. 13.
Section 10169.2 of the Insurance Code is amended to read:10169.2.
(a) The department shall contract with one or more independent medical review organizations in the state to conduct reviews for purposes of this article. The contracts shall be on a noncompetitive bid basis and shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code. The independent medical review organizations shall be independent of any disability insurer doing business in this state. The commissioner may establish additional requirements, including conflict-of-interest standards, consistent with the purposes of this article, that an organization shall be required to meet in order to qualify for participation in the Independent Medical Review System and to assist the department in carrying out its responsibilities.SEC. 14.
Section 10169.5 of the Insurance Code is amended to read:10169.5.
(a) After consideringSEC. 6.SEC. 15.
Section 10271 of the Insurance Code is amended to read:10271.
(a) Except as set forth in this section and in Sections 10271.1, 10292, and 10295 to 10295.19, inclusive, this chapter does not apply to, or in any way affect, provisions in life insurance, endowment, or annuity contracts, or contracts supplemental thereto, that provide additional benefits in case of death or dismemberment or loss of sight by accident, or that operate to safeguard those contracts against lapse, as described in subdivision (a) of Section 10271.1, or give a special surrender benefit, as defined in subdivision (b) of Section 10271.1, a terminal illness benefit, as defined in subdivision (d) of Section 10271.1, or an accelerated death benefit, as defined in Article 2.1 (commencing with Section 10295), in the event that the owner, insured, or annuitant, as applicable, meets the benefit triggers specified in the life insurance or annuity contract or supplemental contract.SEC. 7.SEC. 16.
Section 10271.1 of the Insurance Code is amended to read:10271.1.
(a) (1) Supplemental benefits that operate to safeguard life insurance contracts against lapse are defined as a waiver of premium benefit or a waiver of monthly deduction benefit, as applicable, in which the insurer waives the premium or monthly deduction for a life insurance contract when the insured becomes totally disabled, as defined by the supplemental benefit, and where the waiver continues until the end of the insured’s disability, or for the period specified by the supplemental benefit, consistent with paragraph (5).SEC. 8.SEC. 17.
Section 10273.6 of the Insurance Code is amended to read:10273.6.
All individual health benefit plans shall be renewable with respect to all eligible individuals or dependents at the option of the individual except as follows:SEC. 9.SEC. 18.
Section 10295 of the Insurance Code is amended to read:10295.
(a) An accelerated death benefit, as described in this section, shall not be offered, sold, issued, or marketed as health, accident, or long-term care insurance. An accelerated death benefit shall not reimburse or provide specific coverage for any health, accident, or long-term care insurance benefits.SEC. 19.
Section 11797 of the Insurance Code, as amended by Section 12 of Chapter 396 of the Statutes of 2019, is amended to read:11797.
(a) The board of directors shall cause all moneys in the State Compensation Insurance Fund that are in excess of current requirements to be invested and reinvested, from time to time, in the same manner as provided for private insurance carriers pursuant to Article 3 (commencing with Section 1170) and Article 4 (commencing with Section 1190) of Chapter 2 of Part 2 of Division 1, but excluding Sections 1191, 1191.1, 1191.5, 1192.2, 1192.4, 1192.6, 1192.7,(c)The Department of Insurance shall submit to the Legislature by January 31, 2019, a report that assesses the benefit and risk of the State Compensation Insurance Fund’s equities investment history by measuring the volatility and total return of the State Compensation Insurance Fund’s investment portfolio with and without equities. The report shall be submitted pursuant to Section 9795 of the Government Code.
(d)
SEC. 20.
Section 11797 of the Insurance Code, as amended by Section 13 of Chapter 396 of the Statutes of 2019, is amended to read:11797.
(a) The board of directors shall cause all moneys in the State Compensation Insurance Fund that are in excess of current requirements to be invested and reinvested, from time to time, in the same manner as provided for private insurance carriers pursuant to Article 3 (commencing with Section 1170) and Article 4 (commencing with Section 1190) of Chapter 2 of Part 2 of Division 1, but excluding Sections 1191, 1191.1, 1191.5, 1192.2, 1192.4, 1192.6, 1192.7, 1192.9, 1192.95, 1192.10, 1194.7, 1194.8, 1194.81, 1194.82, 1194.85, 1198, and 1199.SEC. 10.SEC. 21.
Section 12921.2 of the Insurance Code is amended to read:12921.2.
All public records of the department and the commissioner subject to disclosure under Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code shall be available for inspection and copying pursuant to those provisions at the offices of the department in the City of Oakland, the City of Los Angeles, and the City of Sacramento. Adequate copy facilities for this purpose shall be made available. Notwithstanding any other law, a person requesting copies of these records shall receive the copies from employees of the department and the fee charged for the copies shall not exceed the actual cost of producing the copies.SEC. 11.SEC. 22.
Section 12928.6 of the Insurance Code is amended to read:12928.6.
(a) Whenever the commissioner believes, from evidence satisfactory to the commissioner, that a person is violating or about to violate this code or an order or requirement of the commissioner issued or promulgated pursuant to authority expressly granted the commissioner by this code or by law, the commissioner may bring an action in the name of the people of the State of California in the superior court of the State of California against the person to enjoin that person from continuing the violation or engaging therein or doing any act in furtherance thereof. In such action an order or judgment may be entered awarding such preliminary or final injunction as is proper.SEC. 12.SEC. 23.
Section 14050 of the Insurance Code is amended to read:14050.
(a) A license shall not be issued under this chapter unless the applicant files with the commissioner a surety bond executed by a surety company authorized to do business in the state in the sum of two thousand dollars ($2,000) conditioned for the faithful and honest conduct of business by the applicant. The bond’s form, execution, and sufficiency of the sureties shall be approved by the commissioner.SEC. 13.SEC. 24.
Section 14052 of the Insurance Code is amended to read:14052.
(a) Every licensee who is required by this article to file a surety bond or a certificate of insurance shall at all times maintain on file the surety bond or certificate required by this article in full force and effect and shall maintain the names of all licensed insurance adjusters, employees, or qualified managers who may perform duties under that surety bond or certificate of insurance. If the licensee fails to maintain the surety bond or certificate or the names thereon, their license shall be immediately suspended and shall not be reinstated until an application therefor, in the form prescribed by the commissioner, is filed together with a proper surety bond or certificate.SEC. 14.SEC. 25.
Section 14062 of the Insurance Code is amended to read:14062.
The record of conviction, or a certified copy thereof, shall be conclusive evidence of the conviction, as that term is used in this article or in Section 14028 or 14028.5.SEC. 15.SEC. 26.
Section 15040 of the Insurance Code is amended to read:15040.
The record or conviction, or a certified copy thereof, shall be conclusive evidence of the conviction as that term is used in this article or in Section 15018 or 15018.5.(a)The following persons are not peace officers but may exercise the powers of arrest of a peace officer as specified in Sections 817 and 836, paragraph (1) of subdivision (f) of Section 186.11, and paragraph (1) of subdivision (b) of Section 1275.1 and the power to serve warrants as specified in Sections 1523 and 1530 during the course and within the scope of their employment, if they receive a course in the exercise of those powers pursuant to Section 832. The authority and powers of the persons designated under this section extend to any place in the state:
(1)A person employed by the Department of Business Oversight designated by the Commissioner of Business Oversight, provided that
the person’s primary duty is the enforcement of, and investigations relating to, the provisions of law administered by the Commissioner of Business Oversight.
(2)A person employed by the Bureau of Real Estate designated by the Real Estate Commissioner, provided that the person’s primary duty is the enforcement of the laws set forth in Part 1 (commencing with Section 10000) and Part 2 (commencing with Section 11000) of Division 4 of the Business and Professions Code. The Real Estate Commissioner may designate a person under this section who, at the time of that person’s designation, is assigned to the Special Investigations Unit, internally known as the Crisis Response Team.
(3)A person employed by the State Lands Commission designated by the executive officer, provided that the
person’s primary duty is the enforcement of the law relating to the duties of the State Lands Commission.
(4)A person employed as an investigator of the Investigations Bureau of the Department of Insurance, who is designated by the Chief of the Investigations Bureau, provided that the person’s primary duty is the enforcement of the Insurance Code and other laws relating to persons and businesses, licensed and unlicensed by the Department of Insurance, who are engaged in the business of insurance.
(5)A person employed as an investigator or investigator supervisor by the Public Utilities Commission, who is designated by the commission’s executive director and approved by the commission, provided that the person’s primary duty is the enforcement of the law as that duty is
set forth in Section 308.5 of the Public Utilities Code.
(6)(A)A person employed by the State Board of Equalization, Investigations Division, who is designated by the board’s executive director, provided that the person’s primary duty is the enforcement of laws administered by the State Board of Equalization.
(B)A person designated pursuant to this paragraph is not entitled to peace officer retirement benefits.
(7)A person employed by the Department of Food and Agriculture and designated by the Secretary of Food and Agriculture as an investigator, investigator supervisor, or investigator manager, provided that the person’s primary duty is enforcement of, and investigations relating to, the Food
and Agricultural Code or Division 5 (commencing with Section 12001) or Division 10 (commencing with Section 26000) of the Business and Professions Code.
(8)The Inspector General and those employees of the Office of the Inspector General designated by the Inspector General, provided that the person’s primary duty is the enforcement of the law relating to the duties of the Office of the Inspector General.
(b)Notwithstanding any other law, a person designated pursuant to this section may not carry a firearm.
(c)A person designated pursuant to this section shall be included as a “peace officer of the state” under paragraph (2) of subdivision (c) of Section 11105 for the purpose of receiving state summary criminal
history information and shall be furnished that information on the same basis as other peace officers designated in paragraph (2) of subdivision (c) of Section 11105.