Bill Text: CA AB2578 | 2013-2014 | Regular Session | Introduced

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

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Bill Title: Insurance: disability insurance: life insurance: accelerated death benefit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-16 - Chaptered by Secretary of State - Chapter 360, Statutes of 2014. [AB2578 Detail]

Download: California-2013-AB2578-Introduced.html

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BILL NUMBER: AB 2578	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dababneh

                        FEBRUARY 21, 2014

   An act to amend Section 10203.8 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2578, as introduced, Dababneh. Insurance: group life insurance.

   Existing law authorizes a life insurer to issue life, disability,
term, and endowment insurance on the group plan with rates less than
the usual rates for those insurance types. Existing law prescribes
the permissible forms of group life insurance. Existing law provides
that one of those forms of group life insurance is a policy covering
the lives of every eligible member of a group of persons who become
or are named depositors under an eligible savings account plan if,
among other conditions, the total amount of insurance under the
policy on any one depositor does not exceed $1,500 on any one life.
   This bill would increase the maximum amount of insurance on any
one life under the policy to $3,000.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 10203.8 of the Insurance Code is amended to
read:
   10203.8.  Life insurance conforming to all of the following
conditions is another form of group life insurance:
   (a) Covering the lives of every eligible member of a group of
persons who become or are named depositors under a savings account
plan, established by a financial institution including subsidiary or
affiliated persons, which plan provides for periodic deposits of like
amounts.
   (b) The period during which the deposits may be made under the
plan does not exceed 60 consecutive months, and the total amount of
insurance under the policy on any one depositor does not exceed the
difference between the amounts deposited and the maximum amount that
may be deposited under the plan and does not exceed  one
thousand five hundred dollars ($1,500)   three thousand
dollars ($3,000)  on any one life.
   (c) The group numbers 100 new entrants yearly.
   (d) The policy is issued upon application of and made payable to
the financial institution as beneficiary, and the premiums are paid
by or through the financial institution.
   (e) The policy of insurance conforming to this section is not
subject to Section 10209  or  of this code or
Section 704.100 of the Code of Civil Procedure.