BILL NUMBER: AB 1449 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member De Leon 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 introduced, De Leon. Health care coverage: solicitation. Existing law, the Knox-Keene Health Care Service Plan Act of 1975, 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. 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 insubmittingcompleting an applicationto afor 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 insubmittingcompleting an applicationto a health care service planfor 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. (d)AAn application for an individual health care service planapplicationcontract 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 agentor, broker , or sales representative who assists an applicant insubmittingcompleting an applicationto afor an individual healthinsurerinsurance policy has the duty to assist the applicant in providing answers to health questions accurately and completely. (b) An agentor, broker , or sales representative who assists an applicant insubmittingcompleting an applicationto a health insurerfor an individual health insurance p olicy 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)AAn application for an individual health insuranceapplicationpolicy shall include a statement advising declarants of the civil penalty authorized under this section.