AB 1696 — Insurance omnibus: developmental services.

Summary

Existing law divides insurance into various classes, including long-term care insurance, which includes an insurance policy, certificate, or rider advertised, marketed, offered, solicited, or designed to provide coverage for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services that are provided in a setting other than an acute care unit of a hospital. Existing law, for the purposes of long-term care insurance, defines "alternate plan of care" as a plan of care developed by a licensed health care practitioner that includes a specification of long-term care services required by an insured that are not specifically defined as a covered service under the policy, and specifies that an insurer is not required to include a provision in a long-term care insurance policy that authorizes an alternate plan of care. This bill, among other things, would clarify that an insurer and an insured may agree to use an alternate plan of care even if there is no provision in the long-term care insurance policy that specifically authorizes one, that neither an insurer nor an insured is obligated to negotiate an alternate plan of care, and that if an insurer does not accept an extra-contractual request for an alternate plan of care, the rejection is not a denial of a claim. 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. This bill would require an admitted insurer to maintain all records necessary to determine the financial condition of the insurer for the current year plus the 5 previous years. Existing law provides the means by which an insurer may redomesticate its principal place of business to this state or redomesticate to any other state in which it is admitted to transact the business of insurance. Existing law defines "redomestication" as the transfer of an insurer's place of incorporation from another state to this state or from this state to another state. Existing law requires the Secretary of State to file the certificate of redomestication of an insurer for which articles of incorporation have previously been filed if the commissioner has approved the redomestication. This bill would delete the above-described requirement that the Secretary of State file the certificate of redomestication, would require an insurer redomesticating to this state to file articles of incorporation with the Secretary of State, as prescribed, and would require an insurer redomesticating to another state to file a statement of redomestication with the Secretary of State, as prescribed. Existing law requires a property broker-agent and a casualty broker-agent to, prior to acting in the capacity of an insurance broker, file and continuously maintain in force the required bond. This bill would also require a personal lines broker-agent to comply with these requirements and would require that the bond be filed with the commissioner. Existing law prohibits a person who has failed any Department of Insurance license qualification examination 10 times within the previous 12-month period from enrolling in any further license qualification examinations for a period of 12 months. This bill would delete the above-described prohibition and would instead prohibit a person from being admitted to more than 10 license qualification examinations of the same type in any 12-month period, as specified. The bill would also specify the types of license qualification examinations covered by these provisions. Existing law provides requirements for specified licensees to include certain information on business cards, written price quotations, and print advertisements distributed in this state for insurance products. This bill, commencing January 1, 2019, would exempt, among others, insurance adjusters from these requirements, would add personal lines licensees and limited lines automobile insurance agents to the list of licensees to whom these requirements apply, and would modify the required information, as specified. Existing law provides that the information obtained in the administration of the Unemployment Insurance Law is for the exclusive use and information of the Director of Employment Development in the discharge of his or her duties and is not open to the public. However, existing law requires the director to permit the use of specified information for specified purposes, and allows the director to require reimbursement for direct costs incurred. Existing law provides that a person who knowingly accesses, uses, or discloses this confidential information without authorization is guilty of a misdemeanor. Existing law establishes the Employment First Policy, which is the policy that opportunities for integrated, competitive employment be given the highest priority for working-age individuals with developmental disabilities, regardless of the severity of their disabilities. This bill would require the Director of Employment Development to provide any peace officer with the Enforcement Branch of the Department of Insurance with specified information that relates to specific insurance fraud investigations, as provided. The bill would also require the Director of Employment Development to disclose specified information to the State Department of Developmental Services to assist the State Department of Developmental Services in the implementation of the Employment First Policy. By providing this information to the Department of Insurance and the State Department of Developmental Services, this bill would expand the crime related to the unauthorized disclosure of this information, and would impose a state-mandated local program. Existing law provides that all information and records obtained by the State Department of Developmental Services in the course of providing intake, assessment, and services to persons with developmental disabilities are confidential and may only be disclosed under specified circumstances. This bill would authorize the disclosure to authorized employees of the Employment Development Department of information and records obtained in the course of providing intake, assessment, and services to persons with developmental disabilities as necessary to enable the Employment Development Department to provide specific information to the State Department of Developmental Services for purposes of the Employment First Policy. This bill would also make technical, nonsubstantive changes, delete obsolete provisions, and correct cross-references. This bill would incorporate additional changes to Section 1095 of the Unemployment Insurance Code proposed by AB 1275 to be operative only if this bill and AB 1275 are enacted and this bill is enacted last. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 10/02/17 - Chaptered Current pdf October 02, 2017
• Enrolled 09/15/17 - Enrolled pdf September 15, 2017
• Amended 09/07/17 - Amended Senate pdf September 07, 2017
• Amended 07/17/17 - Amended Senate pdf July 17, 2017
• Amended 03/27/17 - Amended Assembly pdf March 27, 2017
• Introduced 02/27/17 - Introduced pdf February 27, 2017
• AB1696 View text html

Action History

1. October 02, 2017

   Chaptered by Secretary of State - Chapter 417, Statutes of 2017.

2. October 02, 2017

   Approved by the Governor.

3. September 20, 2017

   Enrolled and presented to the Governor at 4:30 p.m.

4. September 13, 2017

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3323.).

5. September 13, 2017

   Assembly Rule 77(a) suspended. (Ayes 54. Noes 25. Page 3255.)

6. September 13, 2017

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 15 pursuant to Assembly Rule 77.

7. September 12, 2017

   Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2771.).

8. September 11, 2017

   Read second time. Ordered to third reading.

9. September 07, 2017

   Read third time and amended. Ordered to second reading.

10. August 24, 2017

    Ordered to third reading.

11. August 24, 2017

    From Consent Calendar.

12. August 22, 2017

    Read second time. Ordered to Consent Calendar.

13. August 21, 2017

    From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar.

14. July 18, 2017

    Re-referred to Com. on APPR. pursuant to Joint Rule 10.5.

15. July 17, 2017

    Read second time and amended. Ordered to consent calendar.

16. July 13, 2017

    From committee: Amend, and do pass as amended. To Consent Calendar. (Ayes 10. Noes 0.) (July 12).

17. May 24, 2017

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

18. May 11, 2017

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

19. May 11, 2017

    Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1483.)

20. May 04, 2017

    Read second time. Ordered to Consent Calendar.

21. May 03, 2017

    From committee: Do pass. To Consent Calendar. (Ayes 13. Noes 0.) (May 3).

22. April 18, 2017

    Joint Rule 62(a), file notice suspended. (Page 1059.)

23. April 17, 2017

    Re-referred to Com. on INS. pursuant to Assembly Rule 97.

24. March 30, 2017

    Read second time. Ordered to third reading.

25. March 29, 2017

    From committee: Do pass. (Ayes 12. Noes 0.) (March 29).

26. March 28, 2017

    Re-referred to Com. on INS.

27. March 27, 2017

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

28. March 16, 2017

    Referred to Com. on INS.

29. February 28, 2017

    From printer. May be heard in committee March 30.

30. February 27, 2017

    Read first time. To print.

Sponsors

• Committee on Insurance · Primary

Votes

Subjects