Bill Text: CA AB989 | 2009-2010 | Regular Session | Introduced

California Assembly Bill 989 (Prior Session Legislation)

Introduced

Bill Title: Senior insurance: actions against insurers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB989 Detail]

Download: California-2009-AB989-Introduced.html

BILL NUMBER: AB 989	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Block

                        FEBRUARY 27, 2009

   An act to amend Section 789 of the Insurance Code, relating to
senior insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 989, as introduced, Block. Senior insurance: actions against
insurers.
   Existing law generally regulates insurance transactions with
persons 65 years of age and older. Under existing law, the Insurance
Commissioner has the administrative authority to bring actions
against insurers who violate those provisions and the Attorney
General, district attorney, and city attorney have the authority to
bring actions for injunctive relief, damages, and penalties, as
specified, against insurers who violate those provisions.
   This bill would state that any person who is harmed as a result of
a violation of those provisions may bring a civil action for
compensatory damages and any other remedies otherwise provided by
law.
   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 789 of the Insurance Code is amended to read:
   789.  (a) The commissioner shall have the administrative authority
to assess penalties against insurers, brokers, agents, and other
entities engaged in the transaction of insurance or any other person
or entity for violations of this article.
   (b) Upon a showing of a violation of this article in any civil
action, a court may also assess the penalties prescribed in this
chapter.
   (c) Whenever the commissioner has reasonable cause to believe or
determines after a public hearing that any insurer, agent, broker, or
other person or entity engaged in the transaction of insurance, has
violated this article the commissioner shall make and serve upon the
insurer, broker, agent, or other person or entity a notice of
hearing. The notice shall state the commissioner's intent to assess
the administrative penalties, the time and place of the hearing, and
the conduct, condition or ground upon which the commissioner is
holding the hearing, and assessing the penalties. The hearing shall
occur within 30 days after the notice is served. Within 30 days after
the hearing the commissioner shall issue an order specifying the
amount of the penalties to be paid. The penalties resulting from the
hearing shall be paid to the Insurance Fund.
   (d) The powers vested in the commissioner by this section shall be
in addition to any and all powers and remedies vested in the
commissioner by law.
   (e) Actions for injunctive relief, penalties specified in Section
789.3, damages, restitution, and all other remedies in law, may be
brought in superior court by the Attorney General, district attorney,
or city attorney on behalf of the people of California.  Any
person who is harmed as a result of a violation of this article may
bring a civil action for compensatory damages and any other remedies
otherwise provided by law.  The court shall award reasonable
attorney's fees and court costs to the prevailing plaintiff who
establishes a violation of this article.