California 2019-2020 Regular Session Status: Passed Assembly

AB 2398 — California Insurance Guarantee Association.

Last action — Referred to Com. on INS.

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

This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 creates the California Insurance Guarantee Association (CIGA) and requires all insurers admitted to transact specified insurance lines in this state to become members. Under existing law, CIGA pays and discharges covered claims, which are the obligations of an insolvent insurer that meet specified requirements, including, for a policy of workers' compensation insurance, that the obligation is to provide workers' compensation benefits under California's workers' compensation law. Under existing law, an obligation to a state or to the federal government is not a covered claim. Existing law requires CIGA to collect premium payments from its member insurers sufficient to discharge its obligations. Existing law requires CIGA to adopt a plan of operation that requires a member insurer to recoup the premium charge paid by the member insurer through a surcharge on premiums charged for insurance policies. Existing law requires CIGA to reimburse member insurers who report surcharge collections that are less than what they paid in the preceding year's premium charge. This bill would expand covered claims under CIGA to include benefits under the workers' compensation law of any state if the injured worker is a California resident and not otherwise entitled to coverage from another organization similar to CIGA, obligations for medical services provided by a medical facility owned in whole or in part by a state or federal agency, and claims arising under a policy that has been statutorily allocated to or assumed by a company that is later placed in liquidation if the claim would have been a covered claim if the original company had been placed in liquidation. The bill would require each member insurer to file a report to CIGA within 90 days after filing an annual statement indicating the amount of premiums not subject to CIGA's premium charge and the amount of special excess workers' compensation premiums for the preceding calendar year. The bill would authorize an insurer to amend its reports indicating the amount of surcharges collected for the prior 5 years if it discovers there was an error in the original reports.

Bill Text

Action History

  1. Referred to Com. on INS.

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

  3. Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 4601.)

  4. Read second time. Ordered to Consent Calendar.

  5. From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 7).

  6. Re-referred to Com. on INS.

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

  8. Referred to Com. on INS.

  9. From printer. May be heard in committee March 20.

  10. Read first time. To print.

Sponsors

  • Committee on Insurance · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Committee on Insurance

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 2398 INS. Consent Calendar Second Day

Passed 75 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 21001
Unaffiliated 48003
Republican 6000
Total 75004
% of votes cast 95%0%0%5%
How each member voted (79)
Member Party Vote
Holden — Yea
Friedman — Yea
Cooper — Yea
Smith — Yea
Kiley — Yea
Brough — Yea
Nazarian — Yea
Weber — Yea
Bigelow — Yea
Santiago — Yea
Rendon — Yea
Rodriguez — Yea
McCarty — Yea
Low — Yea
Bloom — Yea
Burke — Yea
Daly — Yea
Cooley — Yea
Gloria — Yea
Mullin — Yea
Salas — Yea
Fong — Yea
Levine — Yea
Eggman — Yea
Medina — Yea
Waldron — Yea
Gonzalez — Yea
Wood — Yea
Kamlager — Yea
O'Donnell — Yea
Chiu — Yea
Chu — Yea
Cunningham — Yea
Jones-Sawyer — Yea
Ting — Yea
Voepel — Yea
Gray — Yea
Chau — Yea
Mathis — Yea
Frazier — Yea
Obernolte — Yea
Mayes — Yea
Quirk — Not Voting
Maienschein — Not Voting
Diep — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Not Voting
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 14 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 9000
Democratic 4000
Republican 1000
Total 14000
% of votes cast 100%0%0%0%
How each member voted (14)
Member Party Vote
Cooley — Yea
Kamlager — Yea
Cooper — Yea
Voepel — Yea
Frazier — Yea
Wood — Yea
Mayes — Yea
Daly — Yea
Bigelow — Yea
Berman, Marc Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Rivas, Robert Democratic Yea
Chen, Phillip Republican Yea

Official roll call →

Subjects

labor health-insurance
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Frequently asked questions

What does AB 2398 do?
Existing law creates the California Insurance Guarantee Association (CIGA) and requires all insurers admitted to transact specified insurance lines in this state to become members. Under existing law, CIGA pays and discharges covered claims, which are the obligations of an insolvent insurer that meet specified requirements, including, for a policy of workers' compensation insurance, that the obligation is to provide workers' compensation benefits under California's workers' compensation law. Under existing law, an obligation to a state or to the federal government is not a covered claim. Existing law requires CIGA to collect premium payments from its member insurers sufficient to discharge its obligations. Existing law requires CIGA to adopt a plan of operation that requires a member insurer to recoup the premium charge paid by the member insurer through a surcharge on premiums charged for insurance policies. Existing law requires CIGA to reimburse member insurers who report surcharge collections that are less than what they paid in the preceding year's premium charge. This bill would expand covered claims under CIGA to include benefits under the workers' compensation law of any state if the injured worker is a California resident and not otherwise entitled to coverage from another organization similar to CIGA, obligations for medical services provided by a medical facility owned in whole or in part by a state or federal agency, and claims arising under a policy that has been statutorily allocated to or assumed by a company that is later placed in liquidation if the claim would have been a covered claim if the original company had been placed in liquidation. The bill would require each member insurer to file a report to CIGA within 90 days after filing an annual statement indicating the amount of premiums not subject to CIGA's premium charge and the amount of special excess workers' compensation premiums for the preceding calendar year. The bill would authorize an insurer to amend its reports indicating the amount of surcharges collected for the prior 5 years if it discovers there was an error in the original reports.
Who sponsors AB 2398?
AB 2398 is sponsored by Committee on Insurance.
What is the current status of AB 2398?
This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” 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 2398?
Track AB 2398 free on One Click Politics — get push/email alerts when it moves.

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