AB 565 — Group life insurance: required provisions.

Summary

Existing law provides for the regulation of specified insurance products, including group life insurance, by the Insurance Commissioner. Existing law provides that insurance under a group life insurance policy may be extended to insure the dependents of each insured employee under the group policy, as specified. Existing law defines a dependent for these purposes as including the employee's spouse and all children from birth until 26 years of age, or a child 26 years of age or older who is both incapable of self-sustaining employment by reason of intellectual disability or physical handicap and chiefly dependent upon the employee for support and maintenance, as specified. This bill would clarify that for dependent children over the age of majority the group policyholder would be authorized to elect coverage at age variations up to the limiting age. Existing law defines a waiver of premium benefit or a waiver of monthly deduction benefit under a life insurance contract as a supplemental benefit that operates to safeguard a life insurance contract against lapse when the insured becomes totally disabled, as defined by the supplemental benefit, and continues until the end of the insured's disability or the period specified by the supplemental benefit, consistent with specified restrictions. Existing law requires, if the insured's total disability begins before the insured attains 60 years of age, the insurer to waive all premiums or monthly deductions due for the period that the insured continues to be totally disabled. Existing law requires, if the insured's total disability begins when the insured is 60 years of age or older, the insurer to waive all premiums or monthly deductions due for the period that the insured continues to be totally disabled up to 65 years of age. This bill would require an insurer, for an insured who becomes totally disabled before attaining 60 years of age and is covered by a group life insurance policy that includes a supplemental benefit, to waive all premiums or monthly deductions due for the period of total disability up to the time the insured attains 65 years of age. The bill would also permit an insurer to collect premiums or monthly deductions from an insured who becomes totally disabled on or after 60 years of age and is covered by a group life insurance policy that includes a supplemental benefit. The bill would require an insurer offering a renewal for a group life insurance policy issued prior to January 1, 2017, that contains a supplemental benefit to offer the employer a continuation of the in-force supplemental benefit, and would authorize the insurer to concurrently offer the group policyholder the option to change the supplemental benefit to either waive or collect premiums or monthly deductions as described above.

Bill Text

• Chaptered 09/22/16 - Chaptered Current pdf September 22, 2016
• Enrolled 08/25/16 - Enrolled pdf August 25, 2016
• Amended 06/29/16 - Amended Senate pdf June 29, 2016
• Amended 03/10/16 - Amended Senate pdf March 10, 2016
• Amended 04/28/15 - Amended Assembly pdf April 28, 2015
• Amended 03/26/15 - Amended Assembly pdf March 26, 2015
• Introduced 02/24/15 - Introduced pdf February 24, 2015
• AB565 View text html

Action History

1. September 22, 2016

   Chaptered by Secretary of State - Chapter 440, Statutes of 2016.

2. September 22, 2016

   Approved by the Governor.

3. August 30, 2016

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

4. August 23, 2016

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 6106.).

5. August 16, 2016

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 18 pursuant to Assembly Rule 77.

6. August 16, 2016

   Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5009.).

7. June 29, 2016

   Read second time and amended. Ordered to third reading.

8. June 28, 2016

   From committee: Amend, and do pass as amended. (Ayes 8. Noes 0.) (June 22).

9. June 06, 2016

   In committee: Hearing postponed by committee.

10. March 10, 2016

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

11. June 30, 2015

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

12. May 28, 2015

    Referred to Com. on INS.

13. May 14, 2015

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

14. May 14, 2015

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1452.)

15. May 07, 2015

    Read second time. Ordered to Consent Calendar.

16. May 06, 2015

    From committee: Do pass. To Consent Calendar. (Ayes 13. Noes 0.) (May 6).

17. April 29, 2015

    Re-referred to Com. on INS.

18. April 28, 2015

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

19. April 06, 2015

    Re-referred to Com. on INS.

20. March 26, 2015

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

21. March 26, 2015

    Referred to Com. on INS.

22. February 25, 2015

    From printer. May be heard in committee March 27.

23. February 24, 2015

    Read first time. To print.

Sponsors

• Cooley · Primary

Votes

Subjects