Bill Text: CA AB1551 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Housing.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-09-25 - Chaptered by Secretary of State - Chapter 555, Statutes of 2012. [AB1551 Detail]

Download: California-2011-AB1551-Amended.html

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BILL NUMBER: AB 1551	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 5, 2012

INTRODUCED BY   Assembly Member Torres
    (   Coauthor:   Senator   Pavley
  ) 

                        JANUARY 26, 2012

   An act to amend Sections 488.5  and   , 
557.5  , and 791.12  of the Insurance Code, and to amend
Section 16051 of the Vehicle Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1551, as amended, Torres. Insurance: public safety employees:
accidents.
   Existing law provides that no insurer shall, in issuing or
renewing a private automobile insurance policy to a peace officer,
member of the Department of the California Highway Patrol, or
firefighter, with respect to his or her operation of a private motor
vehicle, increase the premium on that policy for the reason that the
insured or applicant for insurance has been involved in an accident
while operating an authorized emergency vehicle, as defined, in the
performance of his or her duty during the hours of his or her
employment.
   This bill would also provide that no insurer shall, in issuing or
renewing a private automobile insurance policy to a peace officer,
member of the Department of the California Highway Patrol, or
firefighter, with respect to his or her operation of a private
passenger motor vehicle, increase the premium on that policy for the
reason that the insured or applicant for insurance has been involved
in an accident while operating his or her private passenger motor
vehicle in the performance of his or her duty at the request or
direction of the employer.
   Existing law provides that a peace officer, member of the
Department of the California Highway Patrol, or firefighter shall not
be required to report any accident in which he or she is involved
while operating any employer-leased or employer-rented vehicle, in
the performance of his or her duty during the hours of his or her
employment, to any person who has issued that peace officer, member
of the Department of the California Highway Patrol, or firefighter a
private automobile insurance policy. 
   This bill would additionally provide that a peace officer, member
of the Department of the California Highway Patrol, or firefighter
shall not be required to report, and the employer of the same may not
request or require that a peace officer, member of the Department of
the California Highway Patrol, or firefighter report, any accident
in which he or she is involved while operating a private passenger
motor vehicle at the request or direction of his or her employer in
the performance of the employee's duty to any person who has issued
that peace officer, member of the Department of the California
Highway Patrol, or firefighter a private automobile insurance policy.
 
   The 
    This  bill would  also  provide that in
the event of a loss or injury that occurs  as the result of an
accident  during any time period when  the 
 a private passenger motor  vehicle is operated  by an
employee who is a peace officer, member of the Department of the
California Highway   Patrol, or firefighter and used by him
or her  at the request or direction of the employer in the
performance of the employee's duty, the vehicle's owner shall have no
liability, and the employer shall be considered the owner of the
vehicle for  liability purposes   the purpose of
any liability and defense of the claim  .  The bill would
require the peace officer, member of the Department of the California
Highway Patrol, or firefighter to report and provide, within 10 days
of the accident, to his or her private automobile insurer all
documentation and information known to him or her related to the
accident. The bill would impose a similar duty on both the employer
and employee if it is subsequently discovered that the employer did
not direct or request the employee to use the vehicle when the loss
occurred.  The bill would  require that  
prohibit, only under specified circumstances,  a good faith
delay by an employee in reporting the accident to his or her private
passenger motor vehicle liability insurer, under the circumstances
described,  cannot be   from being  used by
the insurer as a basis to claim delayed reporting, noncooperation,
prejudice, or the like as a means of avoiding the defense or
indemnity obligations that would otherwise exist under the terms of
the automobile liability insurance policy or applicable law in the
absence of delayed reporting.
   The bill would make conforming changes relating to proof of
financial responsibility  and adverse underwriting decisions
 , in the event of an accident involving a private passenger
motor vehicle operated on behalf of a public agency  , as
specified  .
   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 488.5 of the Insurance Code is amended to read:

   488.5.  (a) An insurer shall not, in issuing or renewing a private
automobile insurance policy to a peace officer, member of the
Department of the California Highway Patrol, or firefighter, with
respect to his or her operation of a private passenger motor vehicle,
increase the premium on that policy for the reason that the insured
or applicant for insurance has been involved in an accident while
operating an authorized emergency vehicle, as defined in subdivision
(a) or (f) of Section 165 of the Vehicle Code or in paragraph (1) or
(2) of subdivision (b) of Section 165 of the Vehicle Code, or any
employer-leased vehicle or employer-rented vehicle, in the
performance of his or her duty during the hours of his or her
employment, or was involved in an accident while operating his or her
private passenger motor vehicle in the performance of his or her
duty at the request or direction of the employer.
   (b) An insurer shall not, in issuing or renewing a private
automobile insurance policy to a federal officer or federal customs
agent, with respect to his or her operation of a private motor
vehicle, increase the premium on that policy for the reason that the
insured or applicant for insurance has been involved in an accident
while operating an official government vehicle in the performance of
his or her duty during the hours of his or her employment.
   (c) As used in this section:
   (1) "Peace officer" means every person defined in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code.

   (2) "Policy" shall have the same meaning as defined in subdivision
(a) of Section 660.
  SEC. 2.  Section 557.5 of the Insurance Code is amended to read:
   557.5.  (a) A peace officer, member of the Department of the
California Highway Patrol, or firefighter shall not be required to
report, nor shall any employer of the same be authorized to request
or require that a peace officer, member of the Department of the
California Highway Patrol, or firefighter report, any accident in
which he or she is involved while operating an authorized emergency
vehicle, as defined in subdivision (a), (b), or (f) of Section 165 of
the Vehicle Code,  or  any employer-leased or
employer-rented  vehicle, or any private passenger motor
vehicle that is owned, leased, or rented by the employee, if operated
at the request or direction of the employer in the performance of
the employee's duty   vehicle in the performance of his
or her duty during the hours of his or her employment,  to any
person who has issued that peace officer, member of the Department of
the California Highway Patrol, or firefighter a private automobile
insurance policy.
   (b) (1) Notwithstanding any other provision of law or any
provision in a private passenger motor vehicle owner's automobile
liability insurance policy, in the event of a loss or injury that
occurs  as the result of an accident  during any time period
when  the   that private passenger motor 
vehicle is operated  by an employee who is a peace officer,
member of the Department of the California Highway Patrol, or
firefighter and is used by him or her  at the request or
direction of the employer in the performance of the employee's duty,
the vehicle's owner shall have no liability.  The peace officer,
member of the Department of the California Highway Patrol, or
firefighter shall report and provide, within 10 days of the accident,
to his or her private automobile insurer all documentation and
information known to him or her related to the accident.  The
employer shall be considered the owner of the vehicle for the purpose
of  Section 17150 of the Vehicle Code   any
liability and   defense of the claim  , and any losses
shall be borne solely by the employer.
   (2) Notwithstanding any other provision of law, the employer shall
assume liability for  and defense of  a claim in which a
dispute exists as to whether the employer directed or requested the
employee to use the private passenger motor vehicle when the loss
occurred that gave rise to the claim.  The 
    (3)     If it is subsequently determined
that the employer did not direct or request the employee  to
use the private passenger motor vehicle when the loss occurred, the
employer and employee shall provide notice to the private passenger
motor vehicle's insurer of this determination and provide all
documentation and information known to him or her related to the
claim or loss to the private passenger motor vehicle's insurer within
10 days of the determination. The  private passenger motor
vehicle insurer that insures the vehicle shall reimburse the employer
 the reasonable costs of defense  to the extent of the
insurer's obligation  and up to the coverage limits  under
the applicable automobile liability insurance policy  if it
is subsequently determined that the employer did not direct or
request the employee to use the private passenger motor vehicle when
the loss occurred that gave rise to the claim  . 
   (3) 
    (4)  A good faith delay by an employee in reporting the
accident to his or her private passenger motor vehicle liability
insurer, under the circumstances described in this section, shall not
be used by the insurer as a basis to claim delayed reporting,
noncooperation, prejudice, or the like as a means of avoiding the
defense or indemnity obligations that would otherwise exist under the
terms of the automobile liability insurance policy or applicable law
in the absence of delayed reporting.  This subdivision shall
apply only if the employee complies with requirements set forth in
paragraphs (1) and (3).  
   (5) This subdivision shall not apply to the operation of a private
passenger motor vehicle when operated by an employee, otherwise
subject to this section, for the purposes of reporting to or from his
or her regularly assigned work location. 
   (c) As used in this section:
   (1) "Peace officer" means every person defined in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code.

   (2) "Policy" shall have the same meaning as defined in subdivision
(a) of Section 660.
   (3) "Private passenger motor vehicle" or "private motor vehicle"
means a motor vehicle that is insured under a personal automobile
liability insurance policy insuring a single individual or
individuals residing in the same household as the named insured, but
does not include a vehicle with less than four wheels.
   SEC. 3.    Section 791.12 of the   Insurance
Code   is amended to read: 
   791.12.  No insurance institution or agent may base an adverse
underwriting decision in whole or in part on the following:
   (a) On the fact of a previous adverse underwriting decision or on
the fact that an individual previously obtained insurance coverage
through a residual market mechanism; provided, however, an insurance
institution or agent may base an adverse underwriting decision on
further information obtained from an insurance institution or agent
responsible for a previous adverse underwriting decision. The further
information, when requested, shall create a conclusive presumption
that the information is necessary to perform the requesting insurer's
function in connection with an insurance transaction involving the
individual and, when reasonably available, shall be furnished the
requesting insurer and the individual, if applicable.
   (b) On personal information received from an insurance-support
organization whose primary source of information is insurance
institutions; provided, however, an insurance institution or agent
may base an adverse underwriting decision on further personal
information obtained as the result of information received from an
insurance-support organization.
   (c) On the fact that an individual has previously inquired and
received information about the scope or nature of coverage under a
residential fire or property insurance policy, if the information is
received from an insurance-support organization whose primary source
of information is insurance institutions and the inquiry did not
result in the filing of a claim. 
   (d) On the fact that an accident involving a peace officer, member
of the California Highway Patrol, or firefighter has been reported
and the insurer retains no liability pursuant to Section 488.5 and
subdivision (b) of Section 557.5. 
   SEC. 3.   SEC. 4.   Section 16051 of the
Vehicle Code is amended to read:
   16051.  (a) Evidence may be established by filing a report
indicating that the motor vehicle involved in the accident was owned,
rented, or leased by or under the direction of the United States,
this state, or any political subdivision of this state or
municipality thereof.
   (b) Evidence may be established by filing a report indicating that
the motor vehicle involved in the accident was owned and operated by
a peace officer, member of the Department of the California Highway
Patrol, or firefighter in the performance of his or her duty, and at
the request of or under the direction of the United States, this
state, or any political subdivision or municipality of this state.