Bill Text: CA AB1498 | 2021-2022 | Regular Session | Amended

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Bill Title: Members of boards within the Department of Consumer Affairs: per diem.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2022-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1498 Detail]

Download: California-2021-AB1498-Amended.html

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Amended  IN  Assembly  January 03, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1498

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Introduced by Assembly Member Low

February 19, 2021

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An act to amend Sections 677.4 and 10113.72 of the Insurance Code, relating to insurance. An act to amend Section 103 of the Business and Professions Code, relating to professions and vocations, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

AB 1498, as amended, Low. Insurance: notice of policy cancellation, lapse, or termination. Members of boards within the Department of Consumer Affairs: per diem.

Existing law establishes various boards, as defined, within the Department of Consumer Affairs for the licensure and regulation of various professions and vocations. Existing law requires a member of certain boards to receive a per diem of $100 for each day actually spent in the discharge of official duties and to be reimbursed for traveling and other expenses necessarily incurred in the performance of official duties. Existing law requires payment to be made only from the fund from which the expenses of the board are paid and subject to availability of money in the fund. Existing law conditions receipt of these moneys on authorization in specified provisions, some of which authorize these expenditures from a continuously appropriated fund.

This bill would recast those provisions to, instead, base the per diem of $100 on each day that the member discharged official duties, and would require the board to define “day that the member discharged official duties” as either the “accumulation of 8 hours spent in the discharge of official duties” or as a “day on which the member performed an official duty.” By expanding the authorization for the use of moneys in a continuously appropriated fund, the bill would make an appropriation. The bill would also make nonsubstantive, clarifying changes.

Existing law requires an insurer to comply with certain procedures relating to the cancellation, lapse, or termination of an insurance policy. Existing law requires, with respect to specified insurance policies that cover loss of or damage to real property, loss of or damage to personal property, and legal liability of a natural person, a notice of cancellation for nonpayment of premiums to be given at least 10 calendar days prior to the effective date of the cancellation.

This bill, with respect to a policy described above that provides insurance coverage in an amount of $100,000 or more, would require a notice of cancellation for nonpayment of premiums to be sent by certified mail to the named insured and to any other person designated by the named insured to receive that notice.

Existing law, which became effective January 1, 2013, prohibits an individual life insurance policy from being issued or delivered in this state until the applicant has been given the right to designate at least one person, in addition to the applicant, to receive notice of lapse or termination of a policy for nonpayment of premium.

This bill would require, for an individual life insurance policy issued prior to January 1, 2013, an insurer to send a notice to a policy owner, on or before January 31, 2022, informing the policy owner of the right to designate at least one person, in addition to the applicant, to receive notice of lapse or termination of a policy for nonpayment of premium. The bill would require the insurer to include with the notice a specified form for the policy owner to make that designation.

Existing law prohibits an individual life insurance policy from lapsing or being terminated for nonpayment of premium unless the insurer, at least 30 days prior to the effective date of the lapse or termination, gives notice to the policy owner and to the person or persons designated. Existing law requires that notice to be given by first-class United States mail within 30 days after a premium is due and unpaid.

This bill, instead, would require that notice to be given by certified mail.

Digest Key

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

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Bill Text

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

SECTION 1.

 Section 103 of the Business and Professions Code is amended to read:

103.

 Each (a) A member of a board, commission, or committee board created in the various chapters of Division 2 (commencing with Section 500) and Division 3 (commencing with Section 5000), and in Chapter 2 (commencing with Section 18600) and Chapter 3 (commencing with Section 19000) of Division 8, shall receive the moneys specified in this section when if authorized by the respective provisions.

Each such

(b) A member of a board specified in subdivision (a) shall receive a per diem of one hundred dollars ($100) for each day actually spent in the discharge of official duties, that the member discharged official duties and shall be reimbursed for traveling and other expenses necessarily incurred in the performance of official duties. The board shall define “day that the member discharged official duties” for purposes of this subdivision as either of the following:

(1) Accumulation of eight hours that the member spent in the discharge of official duties.

(2) Day on which the member performed an official duty.

The

(c) The payments in each instance shall be made only from the fund from which the expenses of the agency board are paid and shall be subject to the availability of money.

Notwithstanding

(d) Notwithstanding any other provision of law, no public officer or employee shall receive per diem salary compensation for serving on those boards, commissions, or committees a board specified in subdivision (a) on any day when the officer or employee also received compensation for the officer or employee’s regular public employment.

SECTION 1.Section 677.4 of the Insurance Code is amended to read:

677.4.

(a) A notice of cancellation with respect to a policy covered under Section 675 shall be delivered at least 20 calendar days prior to the effective date of the cancellation, except that in the case of a cancellation for nonpayment of premiums, or for fraud, the notice shall be given at least 10 calendar days prior to the effective date of the cancellation. Subdivision (a) of Section 1013 of the Code of Civil Procedure is applicable if the notice is mailed.

(b)Notwithstanding any other law, with respect to a policy of insurance covered under Section 675 that provides insurance coverage in an amount of one hundred thousand dollars ($100,000) or more, a notice of cancellation for nonpayment of premiums shall be sent by certified mail to the named insured and to any other person designated by the named insured to receive that notice.

SEC. 2.Section 10113.72 of the Insurance Code is amended to read:

10113.72.

(a)An individual life insurance policy shall not be issued or delivered in this state until the applicant has been given the right to designate at least one person, in addition to the applicant, who may reside at a different address, to receive notice of lapse or termination of a policy for nonpayment of premium. The insurer shall provide each applicant with a form to make the designation. That form shall provide the opportunity for the applicant to submit the name, address, and telephone number of at least one person, in addition to the applicant, who is to receive notice of lapse or termination of the policy for nonpayment of premium.

(b)Notwithstanding any other law, for an individual life insurance policy issued prior to January 1, 2013, an insurer shall send a notice to a policy owner, on or before January 31, 2022, informing the policy owner of the right to designate at least one person, in addition to the applicant, who may reside at a different address, to receive notice of lapse or termination of a policy for nonpayment of premium. The insurer shall include with the notice a form, as described in subdivision (a), for the policy owner to make that designation.

(c)The insurer shall notify the policy owner annually of the right to change the written designation or designate one or more persons. The policy owner may change the designation more often if the policy owner chooses to do so.

(d)An individual life insurance policy shall not lapse or be terminated for nonpayment of premium unless the insurer, at least 30 days prior to the effective date of the lapse or termination, gives notice to the policy owner and to the person or persons designated pursuant to subdivision (a), at the address provided by the policy owner for purposes of receiving notice of lapse or termination. Notice shall be given by certified mail within 30 days after a premium is due and unpaid.