Bill Text: CA AB2776 | 2015-2016 | Regular Session | Introduced
Bill Title: Insurance: claims settlement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - Died at Desk. [AB2776 Detail]
Download: California-2015-AB2776-Introduced.html
BILL NUMBER: AB 2776 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Chu
FEBRUARY 19, 2016
An act to amend Section 790.034 of the Insurance Code, relating to
insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2776, as introduced, Chu. Insurance: claims settlement.
Existing law specifies various acts that are defined as unfair
methods of competition and deceptive acts or practices in the
business of insurance. Existing law, on January 1, 2017, requires
that regulations adopted by the Insurance Commissioner, with regard
to unfair business practices as it relates to the settlement of
claims, take into consideration settlement practices by classes of
insurers, and every insurer, upon receiving notice of a claim, is
required to immediately, but no more than 15 calendar days after
receipt of the claim, provide the insured with a legible reproduction
of specified provisions of law along with a written notice
containing specified language.
This bill would make technical, nonsubstantive changes to that
provision.
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 790.034 of the Insurance Code, as added by
Section 7 of Chapter 348 of the Statutes of 2015, is amended to read:
790.034. (a) Regulations adopted by the commissioner pursuant to
this article that relate to the settlement of claims shall take into
consideration settlement practices by classes of insurers.
(b) (1) Upon receiving notice of a claim, every
each insurer shall immediately, but no
not more than 15 calendar days after receipt of the
claim, provide the insured with a legible reproduction of
subdivisions (h) and (i) of Section 790.03 along with a written
notice containing the following language in at least 10-point type:
"In addition to Section 790.03 of the Insurance Code, Fair Claims
Settlement Practices Regulations govern how insurance claims must be
processed in this state. These regulations are available at the
Department of Insurance Internet Web site, www.insurance.ca.gov, or
by calling the department's consumer information line at
1-800-927-HELP(4357). You may also obtain a copy of this law and
these regulations free of charge from this insurer."
(2) Every insurer shall provide, when requested orally or in
writing by an insured, a legible reproduction of Section 790.03
of the Insurance Code and copies of Sections
2695.5, 2695.7, 2695.8, and 2695.9 of Subchapter 7.5 of Chapter 5 of
Title 10 of the California Code of Regulations, unless the
regulations are inapplicable to that class of insurer. This law and
these regulations shall be provided to the insured within 15 calendar
days of request.
(3) The provisions of this subdivision shall apply to all insurers
except for those that are licensed pursuant to Chapter 1 (commencing
with Section 12340) of Part 6 of Division 2, with respect to
policies and endorsements described in Section 790.031.
(c) This section shall become operative on January 1, 2017.
