California 2013-2014 Regular Session Status: In Committee

SB 214 — Long-term care: financing.

Last action — Returned to Secretary of Senate pursuant to Joint Rule 56.

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

This bill died with 2013-2014 Regular Session. It reached “In Committee” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 regulates the business of life settlement contracts, and defines a life settlement contract as, among other things, a written agreement solicited, negotiated, or entered into in this state between a life settlement provider and an owner of a life insurance policy, establishing the terms under which compensation or any thing of value will be paid, which compensation or thing of value is less than the expected death benefit of the insurance policy or certificate, in return for the owner's assignment, transfer, sale, devise, or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation. Existing law requires, however, that the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract. Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law requires applicants to meet certain financial eligibility requirements to qualify for Medi-Cal. This bill would authorize the owner of a life insurance policy, with a face value of more than $10,000, to enter into a life settlement contract where the proceeds of the contract would be placed in a state or federally insured account in an irrevocable trust to be paid directly to a health care provider for qualified long-term care services, as defined, for the recipient of those services. The bill would also require, in addition to the currently applicable requirements, that under the life settlement contract the lesser of 5% of the face value of the life insurance policy or $5,000 be reserved as a death benefit, the balance of proceeds of the life settlement contract that remain at the death of the insured be paid to the policy owner's estate or a named beneficiary, and the total amount payable on behalf of the recipient pursuant to the life settlement contract be stated in the contract. The bill would require the life settlement provider, among other things, to maintain a surety bond, executed and issued by an insurer authorized to issue surety bonds in this state, a policy of errors and omissions insurance, or a deposit of cash, certificates of deposit or securities, or any combination thereof, in the amount of $500,000, and that all life settlement contract forms be filed with and approved by the Department of Insurance, and any advertising and marketing materials used by a life settlement provider be filed with the department. The bill would require the State Department of Health Care Services to provide notice of this option as part of the application for enrollment in the Medi-Cal program. The bill would prohibit state or federal Medi-Cal funds from being used until the funds in the irrevocable trust are spent down to a level where only the amount reserved as a death benefit is left. The bill would require the State Department of Health Care Services to seek any necessary federal approvals and to adopt regulations, in consultation with the Insurance Commissioner, no later than September 1, 2014, to initially implement these provisions, as provided.

Bill Text

Action History

  1. Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. Re-referred to Coms. on INS. and HEALTH.

  3. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  4. Referred to Com. on RLS.

  5. From printer. May be acted upon on or after March 14.

  6. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

  • Calderon

Co-sponsors (1)

Not signed on (120)

120 members have not signed on to this bill.

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"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

Subjects

healthcare health-insurance
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Frequently asked questions

What does SB 214 do?
Existing law regulates the business of life settlement contracts, and defines a life settlement contract as, among other things, a written agreement solicited, negotiated, or entered into in this state between a life settlement provider and an owner of a life insurance policy, establishing the terms under which compensation or any thing of value will be paid, which compensation or thing of value is less than the expected death benefit of the insurance policy or certificate, in return for the owner's assignment, transfer, sale, devise, or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation. Existing law requires, however, that the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract. Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law requires applicants to meet certain financial eligibility requirements to qualify for Medi-Cal. This bill would authorize the owner of a life insurance policy, with a face value of more than $10,000, to enter into a life settlement contract where the proceeds of the contract would be placed in a state or federally insured account in an irrevocable trust to be paid directly to a health care provider for qualified long-term care services, as defined, for the recipient of those services. The bill would also require, in addition to the currently applicable requirements, that under the life settlement contract the lesser of 5% of the face value of the life insurance policy or $5,000 be reserved as a death benefit, the balance of proceeds of the life settlement contract that remain at the death of the insured be paid to the policy owner's estate or a named beneficiary, and the total amount payable on behalf of the recipient pursuant to the life settlement contract be stated in the contract. The bill would require the life settlement provider, among other things, to maintain a surety bond, executed and issued by an insurer authorized to issue surety bonds in this state, a policy of errors and omissions insurance, or a deposit of cash, certificates of deposit or securities, or any combination thereof, in the amount of $500,000, and that all life settlement contract forms be filed with and approved by the Department of Insurance, and any advertising and marketing materials used by a life settlement provider be filed with the department. The bill would require the State Department of Health Care Services to provide notice of this option as part of the application for enrollment in the Medi-Cal program. The bill would prohibit state or federal Medi-Cal funds from being used until the funds in the irrevocable trust are spent down to a level where only the amount reserved as a death benefit is left. The bill would require the State Department of Health Care Services to seek any necessary federal approvals and to adopt regulations, in consultation with the Insurance Commissioner, no later than September 1, 2014, to initially implement these provisions, as provided.
Who sponsors SB 214?
SB 214 is sponsored by Calderon and Beth Gaines.
What is the current status of SB 214?
This bill died with 2013-2014 Regular Session. It reached “In Committee” 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 SB 214?
Track SB 214 free on One Click Politics — get push/email alerts when it moves.

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