California 2009-2010 Regular Session Status: To Executive

AB 2540 — Health insurance: postclaims underwriting: unfair and deceptive practices.

Last action — Vetoed by Governor.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law prohibits a health insurer from engaging in postclaims underwriting, as defined, and requires an insurer that willfully violates that provision to pay a $118 penalty to the state. Existing law prohibits any person in the state from engaging in any trade practices that are defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance and makes a person who engages in those practices liable to the state for a civil penalty not to exceed $5,000 or $10,000, as specified. This bill would include engaging in health insurance postclaims underwriting as an unfair method of competition or unfair or deceptive act or practice in the business of insurance. The bill would specify the penalties that could be levied on a person who engages in postclaims underwriting, as specified, and would require that the amount by which a penalty exceeds $118 be deposited in the Major Risk Medical Insurance Fund to be used, upon appropriation by the Legislature, for the California Major Risk Medical Insurance Program.

Bill Text

Action History

  1. Vetoed by Governor.

  2. Enrolled and to the Governor at 4 p.m.

  3. Senate amendments concurred in. To enrollment. (Ayes 61. Noes 16. Page 6712.)

  4. Assembly Rule 77 suspended. (Ayes 49. Noes 27. Page 6645.)

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 26 pursuant to Assembly Rule 77.

  6. Read third time, passed, and to Assembly. (Ayes 26. Noes 8. Page 4816.)

  7. Read second time. To third reading.

  8. From committee: Do pass. (Ayes 8. Noes 1.) (August 2).

  9. Read second time and amended. Re-referred to Com. on APPR.

  10. From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 23).

  11. Referred to Com. on HEALTH.

  12. In Senate. Read first time. To Com. on RLS. for assignment.

  13. Read third time, passed, and to Senate. (Ayes 76. Noes 0. Page 5161.)

  14. Read second time. To Consent Calendar.

  15. From committee: Do pass. To Consent Calendar. (May 5).

  16. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 16. Noes 0.) (April 20).

  17. Re-referred to Com. on HEALTH.

  18. From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

  19. Referred to Com. on HEALTH.

  20. Read first time.

  21. From printer. May be heard in committee March 23.

  22. Introduced. To print.

Sponsors

  • De La Torre · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 2 voted No

Sponsors (1)

  • De La Torre

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 2540 DE LA TORRE Concurrence in Senate Amendments

Passed 72 Yea · 17 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 671601
Democratic 3000
Republican 2100
Total 721701
% of votes cast 80%19%0%1%
How each member voted (90)
Member Party Vote
Hall — Yea
Carter — Yea
Chesbro — Yea
Coto — Yea
Davis — Yea
Evans — Yea
Fuentes — Yea
Bill — Yea
Tom — Yea
Furutani — Yea
Galgiani — Yea
Gatto — Yea
Hagman — Yea
Charles — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Ammiano — Yea
Bass — Yea
Beall — Yea
Block — Yea
Blumenfield — Yea
Yamada — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
John — Yea
A. — Yea
Perez — Yea
Gilmore — Nay
Audra — Nay
Conway — Nay
Harkey — Nay
Hayashi — Yea
Hill — Yea
Huber — Yea
Jeffries — Nay
Knight — Nay
Logue — Nay
Mendoza — Yea
Miller — Yea
Monning — Yea
Anderson — Nay
Cook — Nay
Nestande — Nay
Norby — Nay
Ruskin — Yea
Skinner — Yea
Smyth — Nay
Swanson — Yea
Torlakson — Yea
Torrico — Yea
Tran — Yea
Adams — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Hernandez — Yea
Huffman — Yea
Lieu — Yea
Ma — Not Voting
Nava — Yea
Nielsen — Yea
Silva — Yea
Solorio — Yea
Torres — Yea
Villines — Yea
Eng — Yea
Feuer — Yea
DeVore — Nay
Fuller — Nay
Garrick — Nay
Beth Gaines — Nay
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Nay

Official roll call →

Assembly 3rd Reading AB2540 De La Torre By Romero

Passed 27 Yea · 8 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 25705
Democratic 2000
Republican 0100
Total 27805
% of votes cast 68%20%0%13%
How each member voted (40)
Member Party Vote
Yee — Yea
Florez — Yea
Cedillo — Yea
Hancock — Yea
Corbett — Yea
Ducheny — Yea
Liu — Yea
Lowenthal — Yea
Negrete — Yea
Romero — Yea
Steinberg — Yea
Wyland — Nay
Runner — Not Voting
Cogdill — Nay
Huff — Nay
Ashburn — Nay
Dutton — Nay
Walters — Nay
Wiggins — Not Voting
Aanestad — Yea
Alquist — Yea
Blakeslee — Yea
Harman — Not Voting
Hollingsworth — Nay
Kehoe — Yea
Leno — Yea
McLeod — Yea
Oropeza — Not Voting
Pavley — Yea
Price — Yea
Simitian — Yea
Wolk — Yea
Wright — Yea
Emmerson — Yea
Correa — Yea
DeSaulnier — Yea
Denham — Not Voting
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Do pass.

Passed 8 Yea · 1 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 8102
Total 8102
% of votes cast 73%9%0%18%
How each member voted (11)
Member Party Vote
Yee — Yea
Wyland — Not Voting
Corbett — Yea
Leno — Yea
Alquist — Yea
Price — Yea
Wolk — Yea
Ashburn — Nay
Kehoe — Yea
Walters — Not Voting
Emmerson — Yea

Official roll call →

AB 2540 DE LA TORRE Consent Calendar Second Day Regular Session

Passed 88 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 83002
Democratic 2001
Republican 3000
Total 88003
% of votes cast 97%0%0%3%
How each member voted (91)
Member Party Vote
Carter — Yea
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
Bill — Yea
Tom — Yea
Evans — Yea
Feuer — Yea
Fuentes — Yea
Charles — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Ammiano — Yea
Anderson — Yea
Bass — Yea
Beall — Yea
Davis — Yea
Yamada — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
John — Yea
A. — Yea
Perez — Yea
Galgiani — Yea
Garrick — Yea
Hagman — Yea
Hall — Yea
Hayashi — Yea
Hernandez — Yea
Huber — Yea
Jeffries — Yea
Knight — Yea
Lieu — Yea
Ma — Yea
Mendoza — Yea
Monning — Yea
Nava — Yea
Norby — Not Voting
Ruskin — Yea
Silva — Yea
Smyth — Yea
Solorio — Yea
Torlakson — Yea
Torres — Yea
Tran — Yea
Villines — Yea
Adams — Yea
Blakeslee — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Hill — Yea
Huffman — Yea
Logue — Yea
Miller — Yea
Nestande — Yea
Nielsen — Yea
Skinner — Not Voting
Swanson — Yea
Torrico — Yea
Emmerson — Yea
Eng — Yea
DeVore — Yea
Fuller — Yea
Furutani — Yea
Gilmore — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Not Voting
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass, to Consent Calendar.

Passed 19 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 18000
Democratic 1000
Total 19000
% of votes cast 100%0%0%0%
How each member voted (19)
Member Party Vote
Charles — Yea
De — Yea
Leon — Yea
Hall — Yea
Harkey — Yea
Conway — Yea
Ammiano — Yea
Miller — Yea
Nielsen — Yea
Skinner — Yea
Torlakson — Yea
Bradford — Yea
Norby — Yea
Solorio — Yea
Torrico — Yea
Coto — Yea
Davis — Yea
Fuentes — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Do pass and be re-referred to the Committee on Appropriations.

Passed 20 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 1000
Unaffiliated 17004
Republican 2000
Total 20004
% of votes cast 83%0%0%17%
How each member voted (24)
Member Party Vote
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Salas — Yea
Audra — Yea
De — Not Voting
Leon — Not Voting
Fletcher — Not Voting
Carter — Not Voting
Hayashi — Yea
Hernandez — Yea
Monning — Yea
Nava — Yea
Smyth — Yea
Ammiano — Yea
Conway — Yea
Emmerson — Yea
Eng — Yea
Beth Gaines — Yea
Caballero, Anna M. Democratic Yea
Jones, Brian W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Subjects

health-insurance
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Frequently asked questions

What does AB 2540 do?
Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law prohibits a health insurer from engaging in postclaims underwriting, as defined, and requires an insurer that willfully violates that provision to pay a $118 penalty to the state. Existing law prohibits any person in the state from engaging in any trade practices that are defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance and makes a person who engages in those practices liable to the state for a civil penalty not to exceed $5,000 or $10,000, as specified. This bill would include engaging in health insurance postclaims underwriting as an unfair method of competition or unfair or deceptive act or practice in the business of insurance. The bill would specify the penalties that could be levied on a person who engages in postclaims underwriting, as specified, and would require that the amount by which a penalty exceeds $118 be deposited in the Major Risk Medical Insurance Fund to be used, upon appropriation by the Legislature, for the California Major Risk Medical Insurance Program.
Who sponsors AB 2540?
AB 2540 is sponsored by De La Torre.
What is the current status of AB 2540?
This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 2540?
Track AB 2540 free on One Click Politics — get push/email alerts when it moves.

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Last checked for changes 3 months ago · updated continuously

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