Bill Text: CA AB1449 | 2009-2010 | Regular Session | Amended

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Bill Title: Health care coverage: solicitation.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2010-11-30 - From Senate committee without further action. [AB1449 Detail]

Download: California-2009-AB1449-Amended.html

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BILL NUMBER: AB 1449	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 23, 2009

INTRODUCED BY   Assembly Member De Leon
    (   Coauthor:   Senator  
Strickland   ) 

                        FEBRUARY 27, 2009

   An act to amend Section 1389.8 of the Health and Safety Code, and
to amend Section 10119.3 of the Insurance Code, relating to health
care coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1449, as amended, De Leon. Health care coverage: solicitation.
    Existing law, the Knox-Keene Health Care Service Plan Act of 1975
 (Knox-Keene Act) , provides for the licensure and
regulation of health care service plans by the Department of Managed
Health Care  and makes a willful violation of the act a crime
 . Existing law also provides for the regulation of health
insurers by the Department of Insurance. Existing law specifies that
certain persons who assist applicants in submitting an application to
a health care service plan or health insurer have a duty to assist
those applicants in providing answers to health questions accurately
and completely and requires those persons to make a specified
attestation on the written application.
   This bill would instead impose that requirement on certain persons
who assist applicants in completing an application for an individual
health care service plan contract or individual health insurance
policy. 
   Under existing law, a person who willfully makes a false statement
on the attestation described above is subject to a civil penalty of
up to $10,000. Under the Knox-Keene Act, these penalties are
deposited in the Managed Care Fund.  
   This bill would instead require that the penalties be deposited in
the Managed Care Administrative Fines and Penalties Fund. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1389.8 of the Health and Safety Code is amended
to read:
   1389.8.  (a) Notwithstanding any other provision of law, an agent,
broker, solicitor, solicitor firm, or sales representative who
assists an applicant in completing an application for an individual
health care service plan contract has the duty to assist the
applicant in providing answers to health questions accurately and
completely.
   (b) An agent, broker, solicitor, solicitor firm, or sales
representative who assists an applicant in completing an application
for an individual health care service plan contract shall attest on
the written application to both of the following:
   (1) That to the best of his or her knowledge, the information on
the application is complete and accurate.
   (2) That he or she explained to the applicant, in
easy-to-understand language, the risk to the applicant of providing
inaccurate information and that the applicant understood the
explanation.
   (c) If, in an attestation required by subdivision (b), a declarant
willfully states as true any material fact he or she knows to be
false, that person shall, in addition to any applicable penalties or
remedies available under current law, be subject to a civil penalty
of up to ten thousand dollars ($10,000). Any public prosecutor may
bring a civil action to impose that civil penalty. These penalties
shall be paid to the Managed Care  Fund  
Administrative Fines and Penalties Fund and shall be used for the
purposes   specified in Section 1341.45  .
   (d) An application for an individual health care service plan
contract shall include a statement advising declarants of the civil
penalty authorized under this section.
  SEC. 2.  Section 10119.3 of the Insurance Code is amended to read:
   10119.3.  (a) Notwithstanding any other provision of law, an
agent, broker, or sales representative who assists an applicant in
completing an application for an individual health insurance policy
has the duty to assist the applicant in providing answers to health
questions accurately and completely.
   (b) An agent, broker, or sales representative who assists an
applicant in completing an application for an individual health
insurance policy shall attest on the written application to both of
the following:
   (1) That to the best of his or her knowledge, the information on
the application is complete and accurate.
   (2) That he or she explained to the applicant, in
easy-to-understand language, the risk to the applicant of providing
inaccurate information and that the applicant understood the
explanation.
   (c) If, in an attestation required by subdivision (b), a declarant
willfully states as true any material fact he or she knows to be
false, that person shall, in addition to any applicable penalties or
remedies available under current law, be subject to a civil penalty
of up to ten thousand dollars ($10,000). Any public prosecutor may
bring a civil action to impose that civil penalty. These penalties
shall be paid to the Insurance Fund.
   (d) An application for an individual health insurance policy shall
include a statement advising declarants of the civil penalty
authorized under this section.