Bill Text: CA AB1104 | 2019-2020 | Regular Session | Introduced

California Assembly Bill 1104 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: California Life and Health Insurance Guarantee Association.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-09-05 - Chaptered by Secretary of State - Chapter 236, Statutes of 2019. [AB1104 Detail]

Download: California-2019-AB1104-Introduced.html

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1104

Introduced by Assembly Member Calderon

February 21, 2019

An act to amend Section 1067.06 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 1104, as introduced, Calderon. California Life and Health Insurance Guarantee Association.

Existing law requires the formation of the California Life and Health Insurance Guarantee Association to provide coverage for persons for direct, nongroup life, health, annuity, and supplemental policies or contracts of insurance, except as specified, in case of failure in the performance of contractual obligations under policies and contracts because of the impairment or insolvency of the member insurer that issued the policies or contracts. Existing law requires the board of directors of the association consist of not less than 9 nor more than 13 member insurers, as specified.

This bill would direct the Insurance Commissioner to appoint 2 additional members to the board of directors who represent the public generally. The bill would prohibit an officer, director, or employee of an insurance company or health maintenance organization, or any person engaged in the business of insurance from serving as a public representative.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1067.06 of the Insurance Code is amended to read:

1067.06.

(a) The board of directors of the association shall consist of not less than nine nor more than 13 member insurers serving terms as established in the plan of operation. The insurer members of the board shall be selected by member insurers subject to the approval of the commissioner. The board shall also include two additional members who represent the public generally. The public representatives shall be appointed by the commissioner. A public representative may not be an officer, director, or employee of an insurance company or a health maintenance organization, or any person engaged in the business of insurance. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members, subject to the approval of the commissioner. To select the initial board of directors, and initially organize the association, the commissioner shall give notice to all member insurers of the time and place of the organizational meeting. In determining voting rights at the organizational meeting each member insurer shall be entitled to one vote in person or by proxy. If the board of directors is not selected within 60 days after notice of the organizational meeting, the commissioner may appoint the initial members.

(b) In approving selections or in appointing members to the board, the commissioner shall consider, among other things, whether all member insurers are fairly represented.

(c) Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors, but members of the board shall not otherwise be compensated by the association for their services.