Bill Text: CA SB1242 | 2021-2022 | Regular Session | Amended
Bill Title: Insurance.
Spectrum: Committee Bill
Status: (Passed) 2022-09-18 - Chaptered by Secretary of State. Chapter 424, Statutes of 2022. [SB1242 Detail]
Download: California-2021-SB1242-Amended.html
Amended
IN
Assembly
June 15, 2022 |
Amended
IN
Senate
March 24, 2022 |
Introduced by Committee on Insurance (Senators Rubio (Chair), Archuleta, Bates, Borgeas, Dodd, Glazer, Hueso, Hurtado, Jones, Melendez, Portantino, and Roth) |
February 17, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
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Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 106 of the Insurance Code is amended to read:106.
(a) Disability insurance includes insurance appertaining to injury, disablement or death resulting to the insured from accidents, and appertaining to disablements resulting to the insured from sickness.SEC. 2.
Section 396 of the Insurance Code is amended to read:396.
(a) An insurer shall do either of the following:SEC. 3.
Section 510 of the Insurance Code is amended to read:510.
(a) Whenever a policy of insurance specified in Section 660 or 675, a policy of life insurance as defined in Section 101, a policy of disability insurance as defined in Section 106, or a certificate of coverage as defined in Section 10270.6, is first issued to or delivered to a new insured or a new policyholder in this state, or when a bail bond as defined in Section 1800.4 is first executed or delivered, the insurer shall include a written disclosure containing the name, address, toll-free telephone number, and The
(b)This section shall become operative on January 1, 2017.
SEC. 3.SEC. 4.
Section 676.2 of the Insurance Code is amended to read:676.2.
(a) This section applies only to policies of commercial insurance that are subject to Section 675.5.SEC. 4.SEC. 5.
Section 676.8 of the Insurance Code is amended to read:676.8.
(a) This section applies only to policies of workers’ compensation insurance.SEC. 5.SEC. 6.
Section 677.2 of the Insurance Code is amended to read:677.2.
(a) This section applies only to policies covered by Section 675.5.SEC. 6.SEC. 7.
Section 677.4 of the Insurance Code is amended to read:677.4.
A notice of cancellation with respect to a policy covered under Section 675 shall be delivered at least 20 calendar days prior to the effective date of the cancellation, except that in the case of a cancellation for nonpayment of premiums, or for fraud, the notice shall be given at least 10 calendar days prior to the effective date of the cancellation. The time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if the notice is mailed.SEC. 7.SEC. 8.
Section 678 of the Insurance Code is amended to read:678.
(a) (1) At least 45 days before the policy expiration, an insurer shall deliver to the named insured or mail to the named insured at the address shown in the policy, either of the following:SEC. 8.SEC. 9.
Section 678.1 of the Insurance Code is amended to read:678.1.
(a) This section applies only to policies of insurance of commercial insurance that are subject to Sections 675.5 and 676.6.SEC. 9.SEC. 10.
Section 785 of the Insurance Code is amended to read:785.
(a) All insurers, brokers, agents, and others engaged in the transaction of insurance owe a prospective insured who is 65 years of age or older, a duty of honesty, good faith, and fair dealing. This duty is in addition to any other duty, whether express or implied, that may exist.SEC. 11.
Section 799.02 of the Insurance Code, as added by Section 3 of Chapter 184 of the Statutes of 2020, is amended to read:799.02.
(a) A life or disability income insurer shall not decline an application or an enrollment request for coverage under a policy or certificate for life insurance or disability income insurance based solely on the results of a positive HIV test, regardless of when or at whose direction the test was performed.(d)This section applies to a policy, certificate, application, or enrollment request that meets both of the following requirements:
(1)It is issued, delivered, or received on or after January 1, 2023.
(2)In order to be effective, its issuance, delivery, or granting
SEC. 12.
Section 1652 of the Insurance Code is amended to read:(a)A license under this chapter, Chapter 5A (commencing with Section 1759), Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), and Chapter 8 (commencing with Section 1831), of Part 2 of Division 1, and Chapter 1 (commencing with Section 14000) and Chapter 2 (commencing with Section 15000) of Division 5
1652.
(a) The commissioner shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice pursuant to subdivision (u) of Section 11105 of the Penal Code, and the Department of Justice shall provide to the commissioner a state or federal response pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code, for all applicants of each of the following:
(b)
(c)
(d)
SEC. 13.
Section 1725.5 of the Insurance Code is amended to read:1725.5.
(a) A person licensed under(c)
(d)
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(k)This section shall become operative on January 1, 2019.
SEC. 14.
Section 1749 of the Insurance Code is amended to read:1749.
The department shall require all new applicants for license as a property broker-agent, casualty broker-agent, limited lines automobile insurance agent, personal lines broker-agent, life agent, or accident and health or sickness agent to meet prelicensing education standards as follows:SEC. 15.
Section 1749.3 of the Insurance Code is amended to read:1749.3.
An individual licensed as a life agent or an accident and health or sickness agent and also licensed as a property or casualty broker-agent, or an individual only licensed as a property or casualty broker-agent, shall complete those courses, programs of instruction, or seminars approved by the commissioner for the type of license held. Completion of specified product training required in subdivision (d) of Section 1749.33, subdivision (b) of Section 1749.8, and paragraph (4) of subdivision (a) of Section 10234.93 may result in the completion of more than the minimum of required continuing education hours. The minimum number of hours required is as follows:SEC. 16.
Section 1749.31 of the Insurance Code is amended to read:1749.31.
(a) An individual licensed as a personal lines broker-agent shall complete required continuing education courses, programs of instruction, or seminars approved by the commissioner. The personal lines broker-agent shall complete 24 hours, of which three hours shall be in ethics, during each two-year license term as defined in subdivision (d) of Section 1625.5. On and after March 1, 2023, the three-hour ethics course shall include one hour of study on insurance fraud.SEC. 17.
Section 1749.32 of the Insurance Code is amended to read:1749.32.
(a) An individual licensed as a limited lines automobile insurance agent shall complete required continuing education courses, programs of instruction, or seminars approved by the commissioner. The minimum number of hours required is 20 hours, of which three hours shall be in ethics, per license term prior to the renewal of the license. On and after March 1, 2023, the three-hour ethics course shall include one hour of study on insurance fraud.SEC. 18.
Section 1749.33 of the Insurance Code is amended to read:1749.33.
(a) A life agent licensee shall satisfactorily complete 24 hours of instruction, of which three hours shall be in ethics, prior to renewal of the license. On and after March 1, 2023, the three-hour ethics course shall include one hour of study on insurance fraud. These hours of instruction may be completed at any time prior to renewal of the license.SEC. 10.SEC. 19.
Section 1758.9 of the Insurance Code is amended to read:1758.9.
No person shall sell or solicit any form of credit insurance in this state unless that person is licensed as an insurance agent or broker pursuant to Article 3 (commencing with Section 1631) or is licensed as a credit insurance agent or endorsee under this article.SEC. 20.
Section 1871.2 of the Insurance Code is amended to read:1871.2.
(a) An insurer who, in connection with any insurance application, contract, or provision ofSEC. 21.
Section 1872.4 of the Insurance Code is amended to read:1872.4.
(a) Any company licensed to write insurance in this state thatSEC. 22.
Section 1872.41 is added to the Insurance Code, to read:1872.41.
(a) An agent or broker who, before placing an insurance application with an insurer, reasonably suspects or knows that a fraudulent application is being made shall, within 60 days after the determination by the agent or broker that the application appears to be fraudulent, submit to the Fraud Division, using the electronic form within Fraud Division’s Consumer Fraud Reporting Portal, the information requested by the form and any additional information relative to the factual circumstances of the application and the alleged material misrepresentations contained in the application. All data fields within the Fraud Division’s Consumer Fraud Reporting Portal electronic form shall be completed accurately, to the best of the agent or broker’s ability. An agent or broker shall not submit a fraud referral anonymously. The Fraud Division shall review each report and undertake further investigation it deems necessary and proper to determine the validity of the allegations.SEC. 23.
Section 1872.51 is added to the Insurance Code, to read:1872.51.
(a) An agent or broker who furnishes written or oral information pursuant to Section 1872.41, or an authorized governmental agency, or its employees, that furnishes or receives written or oral information pursuant to Section 1872.41 or assists in an investigation of a suspected insurance fraud violation conducted by an authorized governmental agency, shall not be subject to any civil liability in a cause or action if the insurer, authorized agent, agent or broker, or authorized governmental agency acted in good faith, without malice, and reasonably believes that the action taken was warranted by the then-known facts, obtained by reasonable efforts.SEC. 24.
Section 1879.2 of the Insurance Code is repealed.(a)Any insurer that prints, reproduces, or furnishes a form to any person upon which that person gives notice to the insurer of a claim under any contract of insurance or makes a claim against the insurer for any loss, damage, liability, or other covered event shall cause to be printed or displayed, in comparative prominence compared to other contents, the following statement: “Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.” The statement shall be preceded by the words: “For your protection California law requires the following to appear on this form” or other explanatory words of similar meaning.
(b)Any insurer that has produced or caused to be printed forms containing the statement required by subdivision (a), as originally added by Chapter 1008 of the Statutes of 1994, may continue to use those forms until December 31, 1996. This subdivision is intended to prevent any unnecessary waste of resources that might result from insurers’ efforts to comply with conflicting provisions of law.
SEC. 11.SEC. 25.
Section 10111.2 of the Insurance Code is amended to read:10111.2.
(a) Under a policy of disability insurance other than health insurance, as defined in Section 106, including a policy of disability income insurance, as defined in subdivision (c) of Section 799.01, payment of benefits to the insured shall be made within 30 calendar days after the insurer has received all information needed to determine liability for a claim. However, the 30-calendar-day period shall not include any time during which the insurer is doing any of the following:SEC. 12.SEC. 26.
Section 10144.55 of the Insurance Code is amended to read:10144.55.
(a) Every policy of disability income insurance, as defined in subdivision (c) of Section 799.01, that is of a short-term limited duration of two years or less, that is issued, amended, or renewed on or after July 1, 2014, and that provides disability income benefits shall provide coverage for disability caused by severe mental illnesses.SEC. 27.
Section 10235.45 of the Insurance Code is amended to read:10235.45.
(a) If a life insurance policy(1)The scheduled payment date and an option to cancel the payment before the payment date. The policyholder or certificate holder may cancel the payment by contacting the insurer at the insurer’s address or telephone number at any time before the payment date.
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