California 2009-2010 Regular Session Status: Enacted 1 D cosponsors

AB 2404 — Insurance.

Last action — Chaptered by Secretary of State - Chapter 387, Statutes of 2010.

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

This bill has been enacted into law. Introduced February 19, 2010. Enacted.

Prognosis

Likely to advance 76% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) Existing law requires that unless the insurance contract provides otherwise, an insured person is entitled to a return of his or her premium if the policy is canceled, rejected, surrendered, or rescinded, as provided. This bill would require that any insurance policy that includes a provision to refund a premium other than on a pro rata basis, including the assessment of cancellation fees, disclose that fact in writing, including the actual or maximum fees or penalties applied, which would be permitted to be stated in the form of percentages of the premium. The disclosure would be required to be made prior to, or concurrent with, the application and prior to each renewal, as provided. The disclosure would not be required if the policy provision permits, but does not require, the insurer to refund a premium other than on a pro rata basis, and the insurer refunds the premium on a pro rata basis. If an application is made by telephone, the disclosure would be required to be mailed to the applicant or insured within 5 business days. The disclosure requirements would apply prospectively and only to policies issued or renewed on or after January 1, 2012. This bill would not require any additional disclosure of a fee or penalty for early cancellation if that disclosure is required by any other provision of law. (2) Existing law requires the Insurance Commissioner to conduct an examination of the business and affairs of insurers admitted in this state at least once every 5 years. In scheduling and determining the nature, scope, and frequency of the examinations, the commissioner is required to consider the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, market analysis results, including consumer complaint analysis, evaluation of ongoing regulatory activities, analysis of data derived from industry surveys or interrogatories, and other criteria as set forth in the Examiner's Handbook or in the Market Regulation Handbook adopted by the National Association of Insurance Commissioners that are in effect at the time of the examination. This bill would authorize the commissioner to postpone a market conduct examination, otherwise required, for up to 3 years if information derived from a market analysis indicates that the prior examination of the insurer resulted in no significant negative findings, the number of consumer complaints received by the insurer is in the lowest quartile of complaints, on a ratio basis, for insurers in that line of business, and the market analysis identifies no other issues of significant concern.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 387, Statutes of 2010.

  2. Approved by the Governor.

  3. Enrolled and to the Governor at 2:30 p.m.

  4. Senate amendments concurred in. To enrollment. (Ayes 75. Noes 1. Page 6586.)

  5. Assembly Rule 77 suspended. (Page 6558.)

  6. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77.

  7. Read third time, passed, and to Assembly. (Ayes 26. Noes 10. Page 4784.)

  8. Read second time. To third reading.

  9. Read third time, amended. To second reading.

  10. Read second time. To third reading.

  11. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

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

  13. From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 6. Noes 3.) (June 30).

  14. Referred to Com. on B., F. & I.

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

  16. Read third time, passed, and to Senate. (Ayes 72. Noes 0. Page 5236.)

  17. Read second time. To Consent Calendar.

  18. From committee: Do pass. To Consent Calendar. (May 12).

  19. Re-referred to Com. on APPR.

  20. Read second time and amended.

  21. From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 21).

  22. Re-referred to Com. on INS.

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

  24. Referred to Com. on INS.

  25. Read first time.

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

  27. Introduced. To print.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 2 co-sponsors · 119 not signed on · 1 voted No

Sponsors (1)

  • Hill

Co-sponsors (2)

Not signed on (119)

119 members have not signed on to this bill.

Show all 119 →

"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 2404 HILL Concurrence in Senate Amendments

Passed 86 Yea · 1 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 81102
Democratic 2001
Republican 3000
Total 86103
% of votes cast 96%1%0%3%
How each member voted (90)
Member Party Vote
Eng — Yea
Carter — Yea
Chesbro — Yea
Conway — Yea
Bill — Yea
Tom — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Bass — Yea
Beall — Yea
Cook — Yea
Coto — 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
Charles — Not Voting
Fuentes — Yea
Furutani — Yea
Galgiani — Yea
Gilmore — Yea
Hagman — Yea
Hall — Yea
Hayashi — Yea
Hernandez — Yea
Huber — Yea
Huffman — Yea
Knight — Yea
Logue — Yea
Mendoza — Yea
Miller — Yea
Monning — Yea
Nava — Yea
Nestande — Yea
Norby — Not Voting
Ruskin — Yea
Skinner — Yea
Smyth — Yea
Swanson — Yea
Torlakson — Yea
Torrico — Yea
Villines — Yea
Adams — Yea
Ammiano — Yea
Anderson — Nay
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Hill — Yea
Jeffries — Yea
Lieu — Yea
Ma — Yea
Nielsen — Yea
Silva — Yea
Solorio — Yea
Torres — Yea
Tran — Yea
Feuer — Yea
Evans — Yea
Davis — Yea
DeVore — Yea
Fuller — Yea
Garrick — Yea
Gatto — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Not Voting
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Assembly 3rd Reading AB2404 Hill By Calderon

Passed 27 Yea · 10 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 25903
Democratic 2000
Republican 0100
Total 271003
% of votes cast 68%25%0%8%
How each member voted (40)
Member Party Vote
Yee — Yea
Cedillo — Yea
Wyland — Nay
Cogdill — Nay
Corbett — Yea
Florez — Yea
Hancock — Yea
Hollingsworth — Nay
Lowenthal — Yea
Negrete — Yea
Correa — Yea
Huff — Nay
Kehoe — Yea
Liu — Yea
Runner — Nay
DeSaulnier — Yea
Denham — Nay
Ducheny — Yea
Dutton — Nay
McLeod — Yea
Pavley — Yea
Romero — Yea
Simitian — Yea
Alquist — Yea
Ashburn — Nay
Steinberg — Yea
Wiggins — Not Voting
Wolk — Yea
Aanestad — Yea
Blakeslee — Yea
Harman — Not Voting
Leno — Yea
Oropeza — Not Voting
Price — Yea
Walters — Nay
Wright — Yea
Emmerson — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

AB 2404 HILL Consent Calendar Second Day Regular Session

Passed 80 Yea · 0 Nay · 11 Other
Party YeaNayPresentNot Voting
Unaffiliated 740011
Democratic 3000
Republican 3000
Total 800011
% of votes cast 88%0%0%12%
How each member voted (91)
Member Party Vote
Hagman — Yea
Carter — Yea
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
Davis — Yea
Bill — Yea
Tom — Yea
Eng — Yea
Fuentes — Yea
Fuller — Yea
Charles — Yea
De — Yea
Leon — Yea
Fong — Yea
Anderson — Yea
Bass — Yea
Beall — Yea
Blakeslee — Yea
DeVore — Yea
Yamada — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
De — Not Voting
La — Not Voting
Torre — Not Voting
Fletcher — Not Voting
John — Not Voting
A. — Not Voting
Perez — Not Voting
Garrick — Yea
Gilmore — Yea
Hall — Yea
Harkey — Not Voting
Hayashi — Yea
Hill — Yea
Huber — Yea
Jeffries — Yea
Knight — Yea
Logue — Yea
Mendoza — Yea
Miller — Yea
Nava — Not Voting
Nestande — Yea
Norby — Yea
Ruskin — Yea
Silva — Yea
Skinner — Yea
Solorio — Yea
Swanson — Yea
Torres — Yea
Torrico — Yea
Tran — Yea
Adams — Yea
Ammiano — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Hernandez — Yea
Huffman — Yea
Lieu — Yea
Ma — Yea
Monning — Yea
Nielsen — Yea
Smyth — Yea
Torlakson — Yea
Villines — Not Voting
Emmerson — Yea
Evans — Not Voting
Feuer — Yea
Furutani — Yea
Galgiani — Yea
Beth Gaines — Yea
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 Yea

Official roll call →

Do pass, to Consent Calendar.

Passed 16 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 16001
Democratic 0001
Total 16002
% of votes cast 89%0%0%11%
How each member voted (18)
Member Party Vote
Hall — Yea
Charles — Not Voting
Conway — Yea
Harkey — Yea
Hill — Yea
Coto — Yea
Miller — Yea
Norby — Yea
Skinner — Yea
Solorio — Yea
Torlakson — Yea
Ammiano — Yea
Bradford — Yea
Nielsen — Yea
Torrico — Yea
Davis — Yea
Fuentes — Yea
Calderon, Lisa Democratic Not Voting

Official roll call →

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

Passed 13 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 10000
Democratic 2000
Republican 1000
Total 13000
% of votes cast 100%0%0%0%
How each member voted (13)
Member Party Vote
Carter — Yea
Charles — Yea
Salas — Yea
Feuer — Yea
Hagman — Yea
Anderson — Yea
Torres — Yea
Blakeslee — Yea
Hayashi — Yea
Solorio — Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Niello, Roger W. Republican Yea

Official roll call →

Subjects

finance health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 2404 do?
(1) Existing law requires that unless the insurance contract provides otherwise, an insured person is entitled to a return of his or her premium if the policy is canceled, rejected, surrendered, or rescinded, as provided. This bill would require that any insurance policy that includes a provision to refund a premium other than on a pro rata basis, including the assessment of cancellation fees, disclose that fact in writing, including the actual or maximum fees or penalties applied, which would be permitted to be stated in the form of percentages of the premium. The disclosure would be required to be made prior to, or concurrent with, the application and prior to each renewal, as provided. The disclosure would not be required if the policy provision permits, but does not require, the insurer to refund a premium other than on a pro rata basis, and the insurer refunds the premium on a pro rata basis. If an application is made by telephone, the disclosure would be required to be mailed to the applicant or insured within 5 business days. The disclosure requirements would apply prospectively and only to policies issued or renewed on or after January 1, 2012. This bill would not require any additional disclosure of a fee or penalty for early cancellation if that disclosure is required by any other provision of law. (2) Existing law requires the Insurance Commissioner to conduct an examination of the business and affairs of insurers admitted in this state at least once every 5 years. In scheduling and determining the nature, scope, and frequency of the examinations, the commissioner is required to consider the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, market analysis results, including consumer complaint analysis, evaluation of ongoing regulatory activities, analysis of data derived from industry surveys or interrogatories, and other criteria as set forth in the Examiner's Handbook or in the Market Regulation Handbook adopted by the National Association of Insurance Commissioners that are in effect at the time of the examination. This bill would authorize the commissioner to postpone a market conduct examination, otherwise required, for up to 3 years if information derived from a market analysis indicates that the prior examination of the insurer resulted in no significant negative findings, the number of consumer complaints received by the insurer is in the lowest quartile of complaints, on a ratio basis, for insurers in that line of business, and the market analysis identifies no other issues of significant concern.
Who sponsors AB 2404?
AB 2404 is sponsored by Correa, Hill, and Calderon, Lisa (Democratic).
What is the current status of AB 2404?
This bill has been enacted into law. Introduced February 19, 2010. Enacted.
Where can I track AB 2404?
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