Bill Text: CA AB493 | 2015-2016 | Regular Session | Introduced

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Bill Title: Insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB493 Detail]

Download: California-2015-AB493-Introduced.html

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BILL NUMBER: AB 493	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Medina

                        FEBRUARY 23, 2015

   An act to add Section 12765 to, the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 493, as introduced, Medina. Insurance.
   Existing law governs home protection contracts for the repair or
replacement of a component, system, or appliance of a home. Existing
law prohibits a person from issuing or offering to issue home
protection contracts in this state unless the person holds a home
protection company license issued by the Department of Insurance,
except as specified. Existing law requires a home protection contract
to specify, among other things, the service fee or fees, in any, to
be charged for services performed under the contract.
   This bill would prohibit a home protection contract, issued,
delivered, amended, or renewed on or after January 1, 2016, from
charging a service fee or fees if no repair is made.
   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 12765 is added to the Insurance Code, to read:
   12765.  For policies issued, delivered, amended, or renewed in
this state on or after January 1, 2016, a home protection company
shall not charge a service fee if a contractholder requests services
to be performed by the home protection company but no repair is made.