California Insurance Bills Meet Deadline for Passage

by Hinshaw & Culbertson LLP

June 1, 2012, was the deadline for Senate bills to be passed by the California State Senate and for Assembly bills to be passed by the California State Assembly. Bills that failed to meet the deadline are dead.

Senate bills that met the deadline are now being considered by the Assembly. Assembly bills that met the deadline are now being considered by the Senate.

This year’s regular legislative session will end on August 31.

Here are summaries of noteworthy insurance-related bills that survived the June 1 deadline. These bills will be considered by California legislators over the next 12 weeks. 

Senate Bills

SB 959 would repeal the additional reimbursement in excess of the workers’ compensation medical fee schedule for implantable medical hardware for spinal surgeries.

SB 1172 was expected to include provisions that would give the insurance commissioner the power to order an insurer or agent to pay restitution for Insurance Code violations. Those provisions never appeared in the bill, and SB 1172 now relates to psychotherapists. There is a possibility that the restitution provisions may be amended into another bill during the last weeks of the legislative session.

SB 1216 would conform California law to the NAIC Credit for Reinsurance Model Law

SB 1298 would permit a licensed driver to operate an autonomous vehicle on public roads if specified conditions are satisfied. The bill defines “autonomous vehicle” as a vehicle equipped with technology that has the capability to drive the vehicle without the active control or continuous monitoring by a human operator.    

SB 1448 would conform California law to the NAIC Insurance Holding Company System Regulatory Model Act.  

SB 1449 would broaden the definition of life insurance to include accelerated death benefits and waivers of surrender charges triggered by specified medical conditions.   

SB 1528 states an intention to establish a framework for compensating persons with injuries due to the fault of third parties. It is expected that SB 1528 will be amended with provisions that would nullify the California Supreme Court’s 2011 decision in Howell v. Hamilton Meats & Provisions, Inc., which held that a plaintiff’s recovery for medical damages is limited to the amount the medical care provider accepted for medical services. See the blog’s discussion of the Howell decision here.      

Assembly Bills

AB 52 would require health service plans and health insurers to obtain the insurance commissioner’s prior approval of rate changes.

AB 53 would require each admitted insurer with premiums of $100,000,000 or more to file with the insurance commissioner a report on its minority, women and disabled veteran-owned business procurement efforts.

AB 1551 would prohibit an insurer that issues or renews a private passenger auto policy to a peace officer or firefighter from increasing the premium for the policy because the peace officer or firefighter was involved in an accident while operating his or her private passenger auto in the performance of his or her duty at the request or direction of his or her employer.

AB 1687 would authorize the Workers’ Compensation Appeals Board to award attorney’s fees to an applicant who prevails in a dispute that arises in the course of the medical utilization review process.

AB 1708 would authorize auto insurers to provide proof of insurance coverage in an electronic format that may be displayed on a mobile electronic device.

AB 2152 would require a health insurer to give the Department of Insurance prior notice before the insurer terminates its contract with a provider group or hospital to provide services at alternative rates of payment.

AB 2160 would direct the insurance commissioner to treat a domestic insurer’s investment in a company that has business operations in Iran as a non-admitted asset.

AB 2303 is the Department of Insurance’s omnibus bill which addresses a variety of matters including applications for non-resident surplus lines broker licenses, pre-licensing requirements for bail agents, the creation of a limited lines license for crop insurance adjusters and changes to the conservation and liquidation process. AB 2303 would repeal the provision that excludes policies that have been in effect less than 60 days from the statute that governs the cancellation of private passenger auto policies.

AB 2406 would require the insurance commissioner to include on the Department of Insurance's website information about requests for compensation submitted by parties seeking to intervene in rate change proceedings. 


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Hinshaw & Culbertson LLP | Attorney Advertising

Written by:

Hinshaw & Culbertson LLP

Hinshaw & Culbertson LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.