California 2015-2016 Regular Session Status: Passed Assembly

AB 459 — Insurance: insurable interest: declaratory relief.

Last action — Ordered to inactive file at the request of Senator Jackson.

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

This bill died with 2015-2016 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 provides that an insurable interest, with reference to life and disability insurance, is an interest based upon a reasonable expectation of pecuniary advantage through the continued life, health, or bodily safety of another person and consequent loss by reason of that person's death or disability or a substantial interest engendered by love and affection in the case of individuals closely related by blood or law. An individual has an unlimited insurable interest in his or her own life, health, and bodily safety and may lawfully take out a policy of insurance on his or her own life, health, or bodily safety and have the policy made payable to whomsoever he or she pleases, regardless of whether the beneficiary designated has an insurable interest. Existing law, effective January 1, 2010, provides that any device, scheme, or artifice designed to give the appearance of an insurable interest when there is no insurable interest, violates the insurable interest laws. This bill would authorize an owner of record of a life insurance policy, who believes in good faith that the insurer may challenge the policy for lack of an insurable interest, to bring an action, on or before January 1, 2018, for declaratory relief seeking a court order declaring the policy to have a valid insurable interest. The bill would limit the applicability of these provisions to policies issued for delivery in California prior to January 1, 2010, that have a death benefit equal to or greater than $1,000,000, when the owner of record was the owner of record on the effective date of these provisions. The bill would also prohibit an owner of record or the insurer from commencing an action against the named insured or a relative of the insured of the policy seeking damages or any other remedy if a court enters a judgment in an action brought pursuant to these provisions declaring a life insurance policy void on the basis that the policy was issued to a person who lacked an insurable interest. These provisions would remain in effect only until January 1, 2018, and would then be repealed.

Bill Text

Action History

  1. Ordered to inactive file at the request of Senator Jackson.

  2. Read second time and amended. Ordered to third reading.

  3. From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (June 28).

  4. In committee: Set, second hearing. Hearing canceled at the request of author.

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

  6. In committee: Set, first hearing. Hearing canceled at the request of author.

  7. From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (June 10). Re-referred to Com. on JUD.

  8. Referred to Coms. on INS. and JUD.

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

  10. Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1141.)

  11. Read second time. Ordered to third reading.

  12. From committee: Do pass. (Ayes 10. Noes 0.) (April 21).

  13. From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 8). Re-referred to Com. on JUD.

  14. Referred to Coms. on INS. and JUD.

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

  16. Read first time. To print.

Sponsors

  • Daly · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Daly

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

Do pass as amended

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Anderson — Yea
Hertzberg — Yea
Monning — Yea
Wieckowski — Yea
Leno — Yea
Moorlach — Yea
Jackson, Corey A. Democratic Yea

Official roll call →

AB 459 DALY Assembly Third Reading

Passed 79 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 69001
Democratic 4000
Republican 6000
Total 79001
% of votes cast 99%0%0%1%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Baker — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Maienschein — Yea
Mathis — Yea
Mayes — Yea
Nazarian — Yea
Olsen — Yea
Quirk — Yea
Rodriguez — Yea
Santiago — Yea
Eggman — Yea
Cooper — Yea
Gatto — Yea
Salas — Yea
Gordon — Yea
Burke — Yea
Harper — Yea
Jones-Sawyer — Yea
Kim — Yea
Levine — Yea
Linder — Yea
Low — Yea
McCarty — Yea
Melendez — Yea
Gray — Yea
O'Donnell — Yea
Obernolte — Yea
Atkins — Yea
Chang — Yea
Alejo — Yea
Bigelow — Yea
Chau — Yea
Chiu — Yea
Chu — Yea
Chávez — Yea
Cooley — Yea
Dababneh — Yea
Daly — Yea
Dodd — Yea
Perea — Yea
Rendon — Yea
Ridley-Thomas — Yea
Steinorth — Yea
Thurmond — Yea
Waldron — Yea
Weber — Yea
Wilk — Yea
Williams — Yea
Bonilla — Yea
Lopez — Yea
Holden — Yea
Campos — Not Voting
Medina — Yea
Mullin — Yea
Ting — Yea
Wagner — Yea
Wood — Yea
Frazier — Yea
Gomez — Yea
Gonzalez — Yea
Hadley — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea

Official roll call →

Do pass.

Passed 10 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 9000
Republican 1000
Total 10000
% of votes cast 100%0%0%0%
How each member voted (10)
Member Party Vote
Alejo — Yea
Maienschein — Yea
Chau — Yea
Chiu — Yea
Holden — Yea
O'Donnell — Yea
Wagner — Yea
Cristina Garcia — Yea
Mark Stone — Yea
Gallagher, James Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Judiciary] with recommendation: To Consent Calendar

Passed 12 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 10001
Democratic 1000
Republican 1000
Total 12001
% of votes cast 92%0%0%8%
How each member voted (13)
Member Party Vote
Rodriguez — Yea
Cooper — Yea
Daly — Yea
Cooley — Yea
Dababneh — Not Voting
Gatto — Yea
Mayes — Yea
Frazier — Yea
Gonzalez — Yea
Beth Gaines — Yea
Travis Allen — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Yea

Official roll call →

Subjects

finance health-insurance
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Frequently asked questions

What does AB 459 do?
Existing law provides that an insurable interest, with reference to life and disability insurance, is an interest based upon a reasonable expectation of pecuniary advantage through the continued life, health, or bodily safety of another person and consequent loss by reason of that person's death or disability or a substantial interest engendered by love and affection in the case of individuals closely related by blood or law. An individual has an unlimited insurable interest in his or her own life, health, and bodily safety and may lawfully take out a policy of insurance on his or her own life, health, or bodily safety and have the policy made payable to whomsoever he or she pleases, regardless of whether the beneficiary designated has an insurable interest. Existing law, effective January 1, 2010, provides that any device, scheme, or artifice designed to give the appearance of an insurable interest when there is no insurable interest, violates the insurable interest laws. This bill would authorize an owner of record of a life insurance policy, who believes in good faith that the insurer may challenge the policy for lack of an insurable interest, to bring an action, on or before January 1, 2018, for declaratory relief seeking a court order declaring the policy to have a valid insurable interest. The bill would limit the applicability of these provisions to policies issued for delivery in California prior to January 1, 2010, that have a death benefit equal to or greater than $1,000,000, when the owner of record was the owner of record on the effective date of these provisions. The bill would also prohibit an owner of record or the insurer from commencing an action against the named insured or a relative of the insured of the policy seeking damages or any other remedy if a court enters a judgment in an action brought pursuant to these provisions declaring a life insurance policy void on the basis that the policy was issued to a person who lacked an insurable interest. These provisions would remain in effect only until January 1, 2018, and would then be repealed.
Who sponsors AB 459?
AB 459 is sponsored by Daly.
What is the current status of AB 459?
This bill died with 2015-2016 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 459?
Track AB 459 free on One Click Politics — get push/email alerts when it moves.

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