California 2009-2010 Regular Session Status: To Executive

AB 730 — Health insurance: unlawful postclaims underwriting: penalties.

Last action — Consideration of Governor's veto stricken from file.

  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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 the practice of postclaims underwriting, which is defined to mean the rescinding, canceling, or limiting of a health insurance policy or certificate due to the insurer's failure to complete medical underwriting and resolve all reasonable questions arising from written information submitted on or with an insurance application. Existing law provides that any person willfully violating various provisions governing disability insurance policies, including health insurance policies, or orders of the commissioner in that regard, shall forfeit to the state a sum not to exceed $118 for each violation. Existing law requires these sums to be paid to the Insurance Commissioner and transmitted to the State Treasury for deposit in the General Fund. This bill would provide that a health insurer that unlawfully engages in the postclaims underwriting of a health insurance policy shall be liable to the state for a civil penalty to be fixed by the commissioner in an amount not to exceed $5,000, except that if the insurer knew, or had reason to know, that the act of postclaims underwriting was unlawful, the civil penalty shall be fixed by the commissioner in an amount not to exceed $10,000 for each act or violation. The bill would require the first $118 of these penalties to be deposited in the General Fund and the balance to be deposited in the Major Risk Medical Insurance Fund, to be used, upon appropriation by the Legislature, for the Major Risk Medical Insurance Program. The bill would make other related changes.

Bill Text

Action History

  1. Consideration of Governor's veto stricken from file.

  2. Consideration of Governor's veto pending.

  3. Vetoed by Governor.

  4. Enrolled and to the Governor at 1 p.m.

  5. Senate amendments concurred in. To enrollment. (Ayes 51. Noes 25. Page 3197.)

  6. Assembly Rule 77 suspended. (Ayes 50. Noes 26. Page 3191.)

  7. In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 10 pursuant to Assembly Rule 77.

  8. Read third time, passed, and to Assembly. (Ayes 22. Noes 16. Page 2157.)

  9. Read second time. To third reading.

  10. From committee: Do pass. (Ayes 8. Noes 5.) (August 24).

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

  12. In committee: Hearing postponed by committee.

  13. Read second time, amended, and re-referred to Com. on APPR.

  14. From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 3. Noes 2.) (July 14).

  15. From committee: Do pass, and re-refer to Com. on JUD. Re-referred. (Ayes 8. Noes 3.) (July 8).

  16. In committee: Hearing postponed by committee.

  17. Referred to Coms. on HEALTH and JUD.

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

  19. Read third time, passed, and to Senate. (Ayes 53. Noes 23. Page 1719.)

  20. Action rescinded and record expunged whereby a final roll call vote was taken.

  21. Read second time. To third reading.

  22. From committee: Do pass. (Ayes 11. Noes 0.) (May 13).

  23. Re-referred to Com. on APPR.

  24. Read second time and amended.

  25. From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (April 21).

  26. From committee: Do pass, and re-refer to Com. on JUD. Re-referred. (Ayes 12. Noes 3.) (April 14).

  27. Re-referred to Com. on HEALTH.

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

  29. Referred to Coms. on HEALTH and JUD.

  30. From printer. May be heard in committee March 29.

  31. Read first time. To print.

Sponsors

  • De La Torre · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 4 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 730 DE LA TORRE Concurrence in Senate Amendments

Passed 60 Yea · 28 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 562603
Democratic 3000
Republican 1200
Total 602803
% of votes cast 66%31%0%3%
How each member voted (91)
Member Party Vote
Hagman — Nay
Hall — Yea
Carter — Yea
Feuer — Yea
Chesbro — Yea
Furutani — Yea
Galgiani — Yea
Charles — Yea
Hayashi — Yea
Hernandez — Yea
Hill — Yea
Huffman — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
John — Yea
A. — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Beall — Yea
Block — Yea
Coto — Yea
Krekorian — Yea
Ma — Yea
Nava — Yea
Ruskin — Yea
Saldana — Yea
Conway — Nay
Bill — Nay
Tom — Nay
Fletcher — Nay
Yamada — Yea
Audra — Nay
Cook — Nay
Fuller — Nay
Garrick — Nay
Harkey — Nay
Jeffries — Nay
Knight — Nay
Blakeslee — Nay
Duvall — Not Voting
Mendoza — Not Voting
Miller — Nay
Silva — Nay
Skinner — Yea
Smyth — Nay
Swanson — Yea
Torlakson — Yea
Torrico — Yea
Tran — Yea
Adams — Nay
Ammiano — Yea
Anderson — Nay
Bass — Yea
Blumenfield — Yea
Brownley — Yea
Buchanan — Yea
Huber — Yea
Lieu — Yea
Logue — Nay
Monning — Yea
Nestande — Nay
Nielsen — Nay
Solorio — Yea
Torres — Yea
Villines — Yea
Emmerson — Not Voting
Eng — Yea
Evans — Yea
Davis — Yea
DeVore — Nay
Fuentes — Yea
Gilmore — Nay
Beth Gaines — Nay
Bill Berryhill — Nay
Bill Berryhill — Nay
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Nay
Strickland, Tony Republican Nay

Official roll call →

Assembly 3rd Reading AB730 De La Torre By Lowenthal

Passed 23 Yea · 16 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 211502
Democratic 2000
Republican 0100
Total 231602
% of votes cast 56%39%0%5%
How each member voted (41)
Member Party Vote
Yee — Yea
Cedillo — Yea
Florez — Yea
Hancock — Yea
Corbett — Yea
Ducheny — Yea
Wyland — Nay
Lowenthal — Yea
Negrete — Yea
Runner — Nay
Cogdill — Nay
Correa — Nay
Harman — Nay
Huff — Nay
Kehoe — Yea
Leno — Yea
Benoit — Nay
Cox — Nay
Dutton — Nay
Liu — Yea
McLeod — Yea
Pavley — Yea
Price — Yea
Simitian — Yea
Steinberg — Yea
Wiggins — Yea
Wolk — Yea
Aanestad — Nay
Alquist — Yea
Ashburn — Nay
Hollingsworth — Nay
Maldonado — Yea
Oropeza — Not Voting
Romero — Not Voting
Walters — Nay
Wright — Nay
DeSaulnier — Yea
Denham — Nay
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Do pass.

Passed 8 Yea · 5 Nay
Party YeaNayPresentNot Voting
Unaffiliated 8500
Total 8500
% of votes cast 62%38%0%0%
How each member voted (13)
Member Party Vote
Yee — Yea
Hancock — Yea
Corbett — Yea
Oropeza — Yea
Price — Yea
Runner — Nay
Walters — Nay
Kehoe — Yea
Leno — Yea
Wolk — Yea
Wyland — Nay
Cox — Nay
Denham — Nay

Official roll call →

Do pass, but re-refer to the Committee on Judiciary.

Passed 9 Yea · 3 Nay
Party YeaNayPresentNot Voting
Unaffiliated 9200
Republican 0100
Total 9300
% of votes cast 75%25%0%0%
How each member voted (12)
Member Party Vote
Cedillo — Yea
Negrete — Yea
McLeod — Yea
Alquist — Yea
Pavley — Yea
Wolk — Yea
Aanestad — Nay
Leno — Yea
Maldonado — Yea
Cox — Nay
DeSaulnier — Yea
Strickland, Tony Republican Nay

Official roll call →

AB 730 DE LA TORRE Assembly Third Reading

Passed 62 Yea · 25 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 562404
Democratic 5000
Republican 1101
Total 622505
% of votes cast 67%27%0%5%
How each member voted (92)
Member Party Vote
Hagman — Nay
La — Yea
Carter — Yea
Chesbro — Yea
Charles — Yea
De — Yea
Beall — Yea
Torre — Yea
De — Yea
Leon — Yea
Bonnie — Yea
V. — Yea
Manuel — Yea
Perez — Yea
John — Yea
A. — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Conway — Nay
DeVore — Nay
Duvall — Not Voting
Bill — Nay
Berryhill — Nay
Tom — Nay
Berryhill — Nay
Eng — Yea
Evans — Yea
Fuentes — Yea
Fuller — Nay
Fletcher — Nay
Gaines — Nay
Galgiani — Yea
Audra — Not Voting
Anderson — Nay
Blakeslee — Nay
Garrick — Nay
Gilmore — Nay
Hall — Yea
Harkey — Nay
Hernandez — Yea
Hill — Yea
Huffman — Yea
Jeffries — Nay
Krekorian — Yea
Lieu — Yea
Mendoza — Yea
Miller — Nay
Monning — Yea
Nava — Yea
Price — Yea
Ruskin — Yea
Silva — Nay
Smyth — Nay
Solorio — Yea
Torlakson — Yea
Torres — Yea
Tran — Yea
Villines — Nay
Adams — Nay
Ammiano — Yea
Bass — Yea
Block — Yea
Blumenfield — Yea
Brownley — Yea
Buchanan — Yea
Hayashi — Yea
Huber — Yea
Knight — Nay
Logue — Yea
Ma — Yea
Nestande — Not Voting
Nielsen — Nay
Skinner — Yea
Swanson — Yea
Torrico — Yea
Cook — Nay
Emmerson — Not Voting
Coto — Yea
Feuer — Yea
Davis — Yea
Yamada — Yea
Furutani — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Lowenthal, Josh Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Nay
Strickland, Tony Republican Not Voting

Official roll call →

Do pass.

Passed 15 Yea · 0 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 14005
Democratic 1000
Republican 0001
Total 15006
% of votes cast 71%0%0%29%
How each member voted (21)
Member Party Vote
Charles — Yea
De — Yea
Leon — Yea
John — Yea
A. — Yea
Perez — Yea
Audra — Not Voting
Hall — Yea
Krekorian — Yea
Duvall — Not Voting
Miller — Not Voting
Nielsen — Not Voting
Solorio — Yea
Ammiano — Yea
Harkey — Not Voting
Price — Yea
Skinner — Yea
Torlakson — Yea
Davis — Yea
Calderon, Lisa Democratic Yea
Strickland, Tony Republican Not Voting

Official roll call →

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

Passed 16 Yea · 3 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 14304
Republican 1001
Democratic 1000
Total 16305
% of votes cast 67%13%0%21%
How each member voted (24)
Member Party Vote
Carter — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Bonnie — Yea
Salas — Yea
Gaines — Nay
Fletcher — Not Voting
Audra — Not Voting
Hall — Yea
Conway — Nay
Hayashi — Yea
Hernandez — Yea
Nava — Not Voting
Adams — Nay
Ammiano — Yea
Block — Yea
Hill — Yea
Emmerson — Not Voting
Lowenthal, Josh Democratic Yea
Jones, Brian W. Republican Yea
Strickland, Tony Republican Not Voting

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does AB 730 do?
Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law prohibits a health insurer from engaging in the practice of postclaims underwriting, which is defined to mean the rescinding, canceling, or limiting of a health insurance policy or certificate due to the insurer's failure to complete medical underwriting and resolve all reasonable questions arising from written information submitted on or with an insurance application. Existing law provides that any person willfully violating various provisions governing disability insurance policies, including health insurance policies, or orders of the commissioner in that regard, shall forfeit to the state a sum not to exceed $118 for each violation. Existing law requires these sums to be paid to the Insurance Commissioner and transmitted to the State Treasury for deposit in the General Fund. This bill would provide that a health insurer that unlawfully engages in the postclaims underwriting of a health insurance policy shall be liable to the state for a civil penalty to be fixed by the commissioner in an amount not to exceed $5,000, except that if the insurer knew, or had reason to know, that the act of postclaims underwriting was unlawful, the civil penalty shall be fixed by the commissioner in an amount not to exceed $10,000 for each act or violation. The bill would require the first $118 of these penalties to be deposited in the General Fund and the balance to be deposited in the Major Risk Medical Insurance Fund, to be used, upon appropriation by the Legislature, for the Major Risk Medical Insurance Program. The bill would make other related changes.
Who sponsors AB 730?
AB 730 is sponsored by De La Torre.
What is the current status of AB 730?
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 730?
Track AB 730 free on One Click Politics — get push/email alerts when it moves.

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