Bill Text: CA SB1170 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Senior insurance.
Spectrum: Moderate Partisan Bill (Democrat 13-4)
Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 653, Statutes of 2012. [SB1170 Detail]
Download: California-2011-SB1170-Amended.html
Bill Title: Senior insurance.
Spectrum: Moderate Partisan Bill (Democrat 13-4)
Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 653, Statutes of 2012. [SB1170 Detail]
Download: California-2011-SB1170-Amended.html
BILL NUMBER: SB 1170 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2012
INTRODUCED BY Senator Leno
( Coauthor: Senator
Strickland )
( Coauthor: Assembly Member
Chesbro )
FEBRUARY 22, 2012
An act to amend Section 1770 of the Civil Code, and to
amend Sections 787 and , 787.1 ,
and 789.10 of , and to add Section 785.5 to,
the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 1170, as amended, Leno. Senior insurance.
(1) Existing law makes it unlawful to engage in specified
practices, unfair methods of competition, and unfair or deceptive
acts or practices in a transaction intended to result or that results
in the sale or lease of goods or services, including making false or
misleading statements concerning the existence of price reductions,
or the home solicitation of a consumer who is a senior citizen where
a loan is made encumbering the primary residence of that consumer for
purposes of paying for home improvements. A consumer who suffers
damages as a result of the use or employment of the prohibited acts
or practices may bring an action to recover civil damages of at least
$1,000, and, if the victim is a senior citizen and the trier of fact
makes specified findings, including that the consumer has suffered
substantial physical, emotional, or economic damage resulting from
the defendant's conduct, to recover an additional amount of up to
$5,000.
This bill would expand that provision to include advertising or
promoting any event, presentation, seminar, workshop, or other public
gathering regarding veterans' benefits or entitlements that does not
include a statement that the person disseminating the statement is
not authorized to file an initial application for veterans' benefits
or that the event is not sponsored by or affiliated with specified
veterans' organizations, including the United States Department of
Veterans Affairs. The bill would also make a conforming change.
(2) Existing law provides that all insurers, brokers, agents, and
others engaged in the transaction of insurance owe a prospective
insured who is 65 years of age or older, a duty of honesty, good
faith, and fair dealing. This duty is in addition to any other duty,
whether express or implied, that may exist.
This bill would make it unlawful for an insurance agent who is not
licensed as an attorney to deliver to a person who is 65 years of
age or older, or for an insurance agent who is licensed as an
attorney to deliver to a person who is 65 years of age or older in
that person's home, a living trust or other legal document if a
purpose of the delivery is to sell an insurance product.
(3) Existing law requires any person who meets with a senior in
the senior's home to deliver a specified notice to the senior in
writing and in 14-point type no less than 24 hours prior to that
individual's initial meeting in the senior's home.
This bill would additionally require the notice to be delivered no
more than 14 days prior to the meeting. The bill would also require
that the notice be a stand alone document in 16-point, rather than
14-point, type, that the notice include specified information
regarding the agent, including his or her full name and license
number, and that the notice include a specified statement.
(1)
(4) Existing law sets certain standards with regard to
any advertisement, as defined, or other device designed to produce
leads based on a response from a potential insured that is directed
to a person 65 years of age or older, including, but not limited to,
disclosing certain information, not using certain language, names,
letters, or symbols, and not using specified deceptive or misleading
practices and materials.
This bill would change the definition of advertisement to also
include worksheets, questionnaires, or other materials designed to
collect personal or financial information about a prospective insured
or annuitant. The bill would also add veterans organizations or
agencies and the United States Department of Veterans Affairs to the
list of those entities that cannot be used in specified deceptive or
misleading advertising practices and materials.
(2)
(5) Existing law provides that a broker or agent may
not use a senior designation unless he or she has met certain
conditions, including, but not limited to, that the broker or agent
has been granted the right and is currently authorized to use the
senior designation by the organization that issues the designation,
and the senior designation has been approved by the Insurance
Commissioner for use by brokers and agents in the sale of insurance
to seniors, as provided. Existing law deems certain words, phrases,
acronyms, and logos as a senior designation.
This bill would add the term terms
"entitlement, " "expert," and "veteran" to those
words deemed a senior designation.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1770 of the Civil
Code is amended to read:
1770. (a) The following unfair methods of competition and unfair
or deceptive acts or practices undertaken by any person in a
transaction intended to result or which results in the sale or lease
of goods or services to any consumer are unlawful:
(1) Passing off goods or services as those of another.
(2) Misrepresenting the source, sponsorship, approval, or
certification of goods or services.
(3) Misrepresenting the affiliation, connection, or association
with, or certification by, another.
(4) Using deceptive representations or designations of geographic
origin in connection with goods or services.
(5) Representing that goods or services have sponsorship,
approval, characteristics, ingredients, uses, benefits, or quantities
which they do not have or that a person has a sponsorship, approval,
status, affiliation, or connection which he or she does not have.
(6) Representing that goods are original or new if they have
deteriorated unreasonably or are altered, reconditioned, reclaimed,
used, or secondhand.
(7) Representing that goods or services are of a particular
standard, quality, or grade, or that goods are of a particular style
or model, if they are of another.
(8) Disparaging the goods, services, or business of another by
false or misleading representation of fact.
(9) Advertising goods or services with intent not to sell them as
advertised.
(10) Advertising goods or services with intent not to supply
reasonably expectable demand, unless the advertisement discloses a
limitation of quantity.
(11) Advertising furniture without clearly indicating that it is
unassembled if that is the case.
(12) Advertising the price of unassembled furniture without
clearly indicating the assembled price of that furniture if the same
furniture is available assembled from the seller.
(13) Making false or misleading statements of fact concerning
reasons for, existence of, or amounts of price reductions.
(14) Representing that a transaction confers or involves rights,
remedies, or obligations which it does not have or involve, or which
are prohibited by law.
(15) Representing that a part, replacement, or repair service is
needed when it is not.
(16) Representing that the subject of a transaction has been
supplied in accordance with a previous representation when it has
not.
(17) Representing that the consumer will receive a rebate,
discount, or other economic benefit, if the earning of the benefit is
contingent on an event to occur subsequent to the consummation of
the transaction.
(18) Misrepresenting the authority of a salesperson,
representative, or agent to negotiate the final terms of a
transaction with a consumer.
(19) Inserting an unconscionable provision in the contract.
(20) Advertising that a product is being offered at a specific
price plus a specific percentage of that price unless (A) the total
price is set forth in the advertisement, which may include, but is
not limited to, shelf tags, displays, and media advertising, in a
size larger than any other price in that advertisement, and (B) the
specific price plus a specific percentage of that price represents a
markup from the seller's costs or from the wholesale price of the
product. This subdivision shall not apply to in-store advertising by
businesses which are open only to members or cooperative
organizations organized pursuant to Division 3 (commencing with
Section 12000) of Title 1 of the Corporations Code where more than 50
percent of purchases are made at the specific price set forth in the
advertisement.
(21) Selling or leasing goods in violation of Chapter 4
(commencing with Section 1797.8) of Title 1.7.
(22) (A) Disseminating an unsolicited prerecorded message by
telephone without an unrecorded, natural voice first informing the
person answering the telephone of the name of the caller or the
organization being represented, and either the address or the
telephone number of the caller, and without obtaining the consent of
that person to listen to the prerecorded message.
(B) This subdivision does not apply to a message disseminated to a
business associate, customer, or other person having an established
relationship with the person or organization making the call, to a
call for the purpose of collecting an existing obligation, or to any
call generated at the request of the recipient.
(23) The home solicitation, as defined in subdivision (h) of
Section 1761, of a consumer who is a senior citizen where a loan is
made encumbering the primary residence of that consumer for the
purposes of paying for home improvements and where the transaction is
part of a pattern or practice in violation of either subsection (h)
or (i) of Section 1639 of Title 15 of the United States Code or
subsection (e) of Section 226.32 of Title 12 of the Code of Federal
Regulations.
A third party shall not be liable under this subdivision unless
(A) there was an agency relationship between the party who engaged in
home solicitation and the third party or (B) the third party had
actual knowledge of, or participated in, the unfair or deceptive
transaction. A third party who is a holder in due course under a home
solicitation transaction shall not be liable under this subdivision.
(24) (A) Charging or receiving an unreasonable fee to prepare,
aid, or advise any prospective applicant, applicant, or recipient in
the procurement, maintenance, or securing of public social services.
(B) For purposes of this paragraph, the following definitions
shall apply:
(i) "Public social services" means those activities and functions
of state and local government administered or supervised by the State
Department of Health Care Services, the State Department of Public
Health, or the State Department of Social Services, and involved in
providing aid or services, or both, including health care services,
and medical assistance, to those persons who, because of their
economic circumstances or social condition, are in need of that aid
or those services and may benefit from them.
(ii) "Public social services" also includes activities and
functions administered or supervised by the United States Department
of Veterans Affairs or the California Department of Veterans Affairs
involved in providing aid or services, or both, to veterans,
including pension benefits.
(iii) "Unreasonable fee" means a fee that is exorbitant and
disproportionate to the services performed. Factors to be considered,
when appropriate, in determining the reasonableness of a fee, are
based on the circumstances existing at the time of the service and
shall include, but not be limited to, all of the following:
(I) The time and effort required.
(II) The novelty and difficulty of the services.
(III) The skill required to perform the services.
(IV) The nature and length of the professional relationship.
(V) The experience, reputation, and ability of the person
providing the services.
(C) This paragraph shall not apply to attorneys licensed to
practice law in California, who are subject to the California Rules
of Professional Conduct and to the mandatory fee arbitration
provisions of Article 13 (commencing with Section 6200) of Chapter 4
of Division 3 of the Business and Professions Code, when the fees
charged or received are for providing representation in
administrative agency appeal proceedings or court proceedings for
purposes of procuring, maintaining, or securing public social
services on behalf of a person or group of persons.
(25) (A) Advertising or promoting any event, presentation,
seminar, workshop, or other public gathering regarding veterans'
benefits or entitlements that does not include the following
statement in the same type size and font as the term "veteran" or the
variation of that term:
(i) "I am not authorized to file an initial application for
Veterans' Aid and Attendance benefits on your behalf, or to represent
you before the Board of Veterans' Appeals within the United States
Department of Veterans Affairs in any proceeding on any matter,
including an application for such benefits. It would be illegal for
me to accept a fee for preparing that application on your behalf."
The requirements of this clause do not apply to a person licensed to
act as an agent or attorney in proceedings before Agencies of
Original Jurisdiction and the Board of Veterans' Appeals within the
United States Department of Veterans Affairs when that person is
offering those services at the advertised event.
(ii) The statement in clause (i) shall also be disseminated, both
orally and in writing, at the beginning of any event, presentation,
seminar, or public gathering regarding veterans' benefits or
entitlements.
(B) Advertising or promoting any event, presentation, seminar,
workshop, or other public gathering regarding veterans' benefits or
entitlements which is not sponsored by, or affiliated with, the
United States Department of Veterans Affairs, the California
Department of Veterans Affairs, or any other congressionally
chartered or recognized organization of honorably discharged members
of the Armed Forces of the United States, or any of their auxiliaries
that does not include the following statement, in the same type size
and font as the term "veteran" or the variation of that term:
"This event is not sponsored by, or affiliated with, the United
States Department of Veterans Affairs, the California Department of
Veterans Affairs, or any other congressionally chartered or
recognized organization of honorably discharged members of the Armed
Forces of the United States, or any of their auxiliaries. None of the
insurance products promoted at this sales event are endorsed by
those organizations, all of which offer free advice to veterans about
how to qualify and apply for benefits."
(i) The statement in this subparagraph shall be disseminated, both
orally and in writing, at the beginning of any event, presentation,
seminar, or public gathering regarding veterans' benefits or
entitlements.
(ii) The requirements of this subparagraph shall not apply in a
case where the United States Department of Veterans Affairs, the
California Department of Veterans Affairs, or other congressionally
chartered or recognized organization of honorably discharged members
of the Armed Forces of the United States, or any of their auxiliaries
has granted written permission to the advertiser or promoter for the
use of its name, symbol, or insignia to advertise or promote the
event, presentation, seminar, workshop, or other public gathering.
(b) (1) It is an unfair or deceptive act or practice for a
mortgage broker or lender, directly or indirectly, to use a home
improvement contractor to negotiate the terms of any loan that is
secured, whether in whole or in part, by the residence of the
borrower and which is used to finance a home improvement contract or
any portion thereof. For purposes of this subdivision, "mortgage
broker or lender" includes a finance lender licensed pursuant to the
California Finance Lenders Law (Division 9 (commencing with Section
22000) of the Financial Code), a residential mortgage lender licensed
pursuant to the California Residential Mortgage Lending Act
(Division 20 (commencing with Section 50000) of the Financial Code),
or a real estate broker licensed under the Real Estate Law (Division
4 (commencing with Section 10000) of the Business and Professions
Code).
(2) This section shall not be construed to either authorize or
prohibit a home improvement contractor from referring a consumer to a
mortgage broker or lender by this subdivision. However, a home
improvement contractor may refer a consumer to a mortgage lender or
broker if that referral does not violate Section 7157 of the Business
and Professions Code or any other provision of law. A mortgage
lender or broker may purchase an executed home improvement contract
if that purchase does not violate Section 7157 of the Business and
Professions Code or any other provision of law. Nothing in this
paragraph shall have any effect on the application of Chapter 1
(commencing with Section 1801) of Title 2 to a home improvement
transaction or the financing thereof.
SEC. 2. Section 785.5 is added to the
Insurance Code , to read:
785.5. (a) It shall be unlawful for any insurance agent who is
not licensed as an attorney to deliver to a person who is 65 years of
age or older, a living trust or other legal document if a purpose of
the delivery is to sell an insurance product.
(b) It shall be unlawful for any insurance agent who is licensed
as an attorney to deliver to a person who is 65 years of age or
older, in that person's home, a living trust or other legal document
if a purpose of the delivery is to sell an insurance product.
(c) This section does not apply to the delivery of previously
purchased insurance products.
SECTION 1. SEC. 3. Section 787 of
the Insurance Code is amended to read:
787. Any advertisement or other device designed to produce leads
based on a response from a potential insured that is directed towards
persons 65 years of age or older shall prominently disclose that an
agent may contact the applicant if that is the fact. In addition, an
agent who makes contact with a person as a result of acquiring that
person's name from a lead generating device shall disclose that fact
in the initial contact with the person.
(a) An insurer, agent, broker, solicitor, or other person or other
entity shall not solicit persons 65 years of age and older in this
state for the purchase of disability insurance, life insurance, or
annuities through the use of a true or fictitious name that is
deceptive or misleading with regard to the status, character, or
proprietary or representative capacity of the entity or person, or to
the true purpose of the advertisement.
(b) For the purposes of this section, an advertisement includes
envelopes, stationery, business cards, worksheets, questionnaires, or
other materials designed to describe and encourage the purchase of a
policy or certificate of disability insurance, life insurance, or an
annuity, or to collect personal or financial information about a
prospective insured or annuitant purchaser of
an annuity .
(c) Advertisements shall not employ words, letters, initials,
symbols, or other devices that are so similar to those used by
governmental agencies, a nonprofit or charitable institution,
veterans organization or agency, senior organization, or other
insurer that they could have the capacity or tendency to mislead the
public. Examples of misleading materials ,
include, but are not limited to, those which imply any of the
following:
(1) The advertised coverages are somehow provided by or are
endorsed by any governmental agencies, nonprofit or charitable
institutions, veterans organizations or agencies, or senior
organizations.
(2) The advertiser is the same as, is connected with, or is
endorsed by governmental agencies, nonprofit or charitable
institutions, veterans organizations or agencies, or senior
organizations.
(d) An advertisement may not use the name of a state or political
subdivision thereof in a policy name or description.
(e) An advertisement may not use any name, service mark, slogan,
symbol, or any device in any manner that implies that the insurer, or
the policy or certificate advertised, or that any agency who may
call upon the consumer in response to the advertisement, is connected
with a governmental agency, such as the Social Security
Administration or the United States Department of Veterans Affairs.
(f) An advertisement may not imply that the reader may lose a
right, or privilege, or benefits under federal, state, or local law
if he or she fails to respond to the advertisement.
(g) An insurer, agent, broker, or other entity may not use an
address so as to mislead or deceive as to the true identity,
location, or licensing status of the insurer, agent, broker, or other
entity.
(h) An insurer may not use, in the trade name of its insurance
policy or certificate, any terminology or words so similar to the
name of a governmental agency, governmental program, or veterans
organization or agency as to have the capacity or the tendency to
confuse, deceive, or mislead a prospective purchaser.
(i) All advertisements used by agents, producers, brokers,
solicitors, or other persons for a policy of an insurer shall have
written approval of the insurer before they may be used.
(j) An insurer, agent, broker, or other entity may not solicit a
particular class by use of advertisements which state or imply that
the occupational or other status as members of the class entitles
them to reduced rates on a group or other basis when, in fact, the
policy or certificate being advertised is sold on an individual basis
at regular rates.
(k) In addition to any other prohibition on untrue, deceptive, or
misleading advertisements, no advertisement for an event where
insurance products will be offered for sale at, or as a result of,
the event may use the terms "seminar," "class," "informational
meeting," "benefits assistance," "qualification information," or
substantially equivalent terms to characterize the purpose of the
public gathering or event unless it adds the words "and insurance
sales presentation" immediately following those terms in the same
type size and font as those terms.
(l) Any advertisement for an event, presentation, seminar,
workshop, or other public gathering regarding veterans' benefits or
entitlements is required to comply with the requirements of paragraph
(25) of subdivision (a) of Section 1770 of the Civil Code.
SEC. 2. SEC. 4. Section 787.1 of the
Insurance Code is amended to read:
787.1. (a) The following definitions apply to this section:
(1) "Senior designation" means any degree, title, credential,
certificate, certification, accreditation, or approval, that
expresses or implies that a broker or agent possesses expertise,
training, competence, honesty, or reliability with regard to advising
seniors in particular on finance, insurance, or risk management.
(2) "Use" means utilizing a word, phrase, acronym, or logo, in any
oral or written communication from which a sale of insurance to a
senior may directly or indirectly result, that states or suggests,
alone or in context, that a broker or agent holds a senior
designation.
(b) (1) A broker or agent may not use a senior designation unless
all of the following conditions have been met:
(A) The broker or agent has been granted the right to use the
senior designation by the organization that issues the senior
designation, and the broker or agent is currently authorized by the
organization to use the designation.
(B) The senior designation has been approved by the commissioner
for use by brokers and agents in the sale of insurance to seniors.
(C) The broker or agent has been licensed for at least four years
in any state or United States territory to sell the types of
insurance with which the designation is used.
(2) A broker or agent may not use a senior designation in a manner
that misleads a person as to the significance of the senior
designation. Each time a broker or agent uses a senior designation in
a writing, the writing shall also contain the words "California" or
"CA" next to "Insurance Agent" or "Insurance Broker Agent" and
"License," and these words shall be located immediately prior to the
broker's license number or the agent's license number, in type that
is in the same font and at least the same size as the type used for
the senior designation. The requirements set forth in this
subdivision are in addition to the requirements of Section 1725.5 and
shall apply regardless of whether the broker or agent is an
insurance agent, as defined in Section 1621. For purposes of this
paragraph, "writing" means business cards, written price quotations,
and print advertisements distributed exclusively in this state.
(c) The commissioner shall approve a senior designation only if
the organization that issues the designation satisfies all of the
following requirements with respect to the designation:
(1) The organization has applied for approval on a form prescribed
by the commissioner.
(A) The department may require the filing of any supplementary
documents and declarations it deems necessary to determine whether
the prerequisites for approval have been met.
(B) Before or after approval, an organization shall notify the
department in writing within 45 days following any material change in
information recorded on the application form or in declarations or
documents submitted along with it or in response to a department
request.
(2) The designation is accredited by the National Commission for
Certifying Agencies, or the organization or the designation is
accredited by an agency that is on the United States Department of
Education's list entitled "Accrediting Agencies Recognized for Title
IV Purposes" and it is established to the satisfaction of the
commissioner that the agency is qualified to accredit an organization
or designation involved with financial services provided to seniors.
(3) The organization requires California candidates for the
designation to demonstrate superior expertise in advising seniors in
particular in finance, insurance, or risk management by passing
examinations that are based on applicants with no prior insurance
education or experience completing at least 75 hours of study
covering at least the following topics: aspects of aging, health care
coverage, long-term care insurance, financial planning for
retirement, investments, estate planning, and ethics. Textbooks or
other study materials may use chapter and subchapter titles that
differ from those general topics as long as the essential content is
the same. No part of the examinations, textbooks, or other study
materials may concern techniques on how to increase the amount of
insurance or financial products one sells, or recommend the selling
of products offered by specific companies.
(d) (1) In determining whether to approve a senior designation for
use in the sale of insurance to seniors, the commissioner shall also
ensure that the organization that issues the senior designation
fulfills the following:
(A) Is exclusively an educational or certification organization,
and is not directly or indirectly, through an affiliate or partner,
involved in selling insurance, nor receives any compensation directly
or indirectly from any sale of insurance, other than the receipt of
charitable gifts by a nonprofit institution.
(B) Maintains standards and procedures for disciplining its
designees for improper or unethical conduct, as established by proven
complaints or by disciplinary action by a government licensing
agency or a quasi-governmental licensing and regulatory organization.
The standards and procedures shall include, at a minimum:
(i) A written procedure to receive, log, and conduct a preliminary
review of complaints alleging improper, illegal, or unethical
conduct.
(ii) Written standards for determining when a complaint warrants
further investigation into the merits of the allegations contained
therein.
(iii) Written standards and procedures to ensure that, once a
complaint is determined to warrant further investigation, the
investigation is diligently conducted.
(iv) Written standards for determining when to file disciplinary
charges based on the results of an investigation.
(v) Written standards and procedures to ensure due process in the
adjudication of disciplinary charges by adjudicators who are fair,
knowledgeable, and otherwise qualified.
(vi) Written standards and procedures for the imposition of
appropriate sanctions, including, when warranted, revocation of the
designation.
(C) Maintains a code of ethics for its California designees
consistent with that of one of the designations recited in Section
1749.4.
(e) (1) A word, phrase, acronym, or logo shall be deemed a senior
designation if it contains the word "senior," "Medicare," "Medi-Cal,"
"retire," "mature," "entitlements, "
"gerontology," "elder," or "veteran," or any variation or synonym of
one of these words within several words of the word "certified,"
"chartered," "registered," "adviser," "expert, "
"specialist," "consultant," "agent," "broker," "insurance,"
"planner," "professional," "enrolled," "accredited," "analyst," or
"fellow," or any variation or synonym of one of these words. A word,
phrase, acronym, or logo may constitute a senior designation if it
meets the definition in paragraph (1) of subdivision (a) regardless
of whether it contains one of the words recited in this subdivision.
(2) A word, phrase, acronym, or logo shall not constitute a senior
designation if it is a job title or description of an employee of a
governmental entity, or of an organization with a contract with that
governmental entity to provide free counseling to seniors.
(3) No exemption exists under this section for use of a senior
designation that constitutes a job title or description or part of a
job title or description, except as provided in paragraph (2).
(4) An advanced academic degree, such as a Ph.D., M.B.A., or M.S.,
may be used without compliance with subdivision (d), if the degree
was awarded by an institution of higher education that has been
accredited by an organization that is on the United States Department
of Education's list entitled "Accrediting Agencies Recognized for
Title IV Purposes."
(f) A violation of subdivision (b) by a broker or agent shall be
grounds for suspension or revocation of the broker's or agent's
license pursuant to Sections 1668 and 1738. Such a violation also
shall be grounds for a cease and desist order and monetary penalty
pursuant to Section 12921.8, as if the broker or agent had acted in a
capacity for which a license was required but not possessed.
(g) Any person who grants to a California resident the right to
use a senior designation that has not been approved by the
commissioner, without
reasonably attempting to determine whether California is one of the
designee's residences, shall be subject to a cease and desist order
and monetary penalty pursuant to Section 12921.8, as if the person
had acted in a capacity for which a license was required but not
possessed.
(h) The disciplinary and remedial authority recited in this
subdivision shall be in addition to any other disciplinary and
remedial authority included in this code.
(i) Notwithstanding any other provision of this code, the criteria
in Sections 1668 and 1668.5 apply to an organization that issues a
senior designation, and the commissioner may deny or rescind approval
of an organization issuing a senior designation based on that
criteria.
(j) The commissioner shall maintain a list of senior designations
approved pursuant to subdivisions (c), (d), and (e) and shall publish
the current list on the Internet Web site of the Department of
Insurance.
(k) This section shall apply to all types of insurance, including
those listed in paragraphs (1) and (2) of subdivision (c) of Section
785, except those listed in paragraphs (3) to (7), inclusive, and
paragraph (9) of subdivision (c) of Section 785 and subdivision (d)
of Section 785.
(l) The commissioner may, upon receipt of a petition from an
organization, issue written confirmation that a designation issued by
that organization is exempt from the requirement of approval
pursuant to this section. The commissioner may issue confirmation if
the designation, according to its title or curriculum, or in its
actual use, concerns almost exclusively subject matters other than
insurance or financial services sold to seniors in particular.
(m) (1) The commissioner may rescind approval of a designation
whenever there has been a material change in the management or
operation of the organization that issues the designation, or in the
procedures or criteria for issuance of the designation, such that if
the organization were to apply for approval of the designation
subsequent to the change, approval would be denied.
(2) Any rescission of the approval of a designation shall be after
notice and a hearing conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, as if the approval were a license, and the
commissioner shall have all of the powers granted therein.
SEC. 5. Section 789.10 of the
Insurance Code is amended to read:
789.10. (a) This section applies to the sale, offering for sale,
or generation of leads for the sale of life insurance, including
annuities, to senior insureds or prospective insureds by any person.
(b) Any A person who meets with a
senior in the senior's home is required to deliver a notice in
writing to the senior no less than 24 hours and no more than 14
days prior to that individual's initial meeting in the senior's
home. If the senior has an existing insurance relationship with an
agent and requests a meeting with the agent in the senior's home the
same day, a notice shall be delivered to the senior prior to the
meeting. The notice shall be in substantially the following
form a stand alone document , with the
appropriate information inserted , in 14-point type:
and without any attachments. It shall be written in
bold 16-point type and include all of the following , but
no other, information:
"(1) During this visit or a followup visit, you will be given a
sales presentation on the following indicate all that apply]:
(1) The agent's full name as it appears on his or her California
insurance license.
(2) The agent's license number.
(3) The agent's mailing address and phone number listed on his or
her California insurance license.
(4) The following disclosure:
(A) "I am a licensed insurance agent. My purpose for coming to
your home is to sell, discuss, and/or deliver one of the following
indicate all that apply]:
( ) Life insurance, including annuities .
( ) Other insurance products specify]: _________________.
(2)
(B) You have the right to have other persons present at
the meeting, including family members, financial advisors ,
or attorneys.
(3)
(C) You have the right to end the meeting at any time.
(4)
(D) You have the right to contact the Department of
Insurance for information, or to file a complaint. The notice shall
include the consumer assistance telephone numbers at the department]
(5)
(E) The following individuals will be coming to your
home: list all attendees, and insurance license information, if
applicable]"
(c) Upon contacting the senior in the senior's home, the person
shall, before making any statement other than a greeting, or asking
the senior any other questions, state that the purpose of the contact
is to talk about insurance, or to gather information for a followup
visit to sell insurance, if that is the case, and state all of the
following information:
(1) The name and titles of all persons arriving at the senior's
home.
(2) The name of the insurer represented by the person, if known.
(d) Each person attending a meeting with a senior shall provide
the senior with a business card or other written identification
stating the person's name, business address, telephone number, and
any insurance license number.
(e) The persons attending a meeting with a senior shall end all
discussions and leave the home of the senior immediately after being
asked to leave by the senior.
(f) A person may not solicit a sale or order for the sale of an
annuity or life insurance policy at the residence of a senior, in
person or by telephone, by using any plan, scheme, or ruse that
misrepresents the true status or mission of the contact.
