BILL NUMBER: AB 1083	CHAPTERED  07/24/03

	CHAPTER  115
	FILED WITH SECRETARY OF STATE  JULY 24, 2003
	APPROVED BY GOVERNOR  JULY 23, 2003
	PASSED THE SENATE  JULY 10, 2003
	PASSED THE ASSEMBLY  MAY 15, 2003
	AMENDED IN ASSEMBLY  APRIL 21, 2003

INTRODUCED BY   Assembly Member Cogdill

                        FEBRUARY 20, 2003

   An act to add Section 10110.3 to the Insurance Code, relating to
life insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1083, Cogdill.  Life insurance:  notification.
   Existing law provides that a contract of life insurance procured
upon another individual is void unless the person applying for the
insurance has an insurable interest in the individual insured at the
time of the application.
   This bill would prohibit an insurer from issuing a policy to  an
applicant that insures the life of the applicant's spouse unless the
applicant's spouse has signed the policy application or has otherwise
been notified in advance of the issuance of the policy.  The bill
would apply to policies with face amounts greater than $50,000 issued
on or after July 1, 2004.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 10110.3 is added to the Insurance Code, to
read:
   10110.3.  (a) An insurer may not issue an individual life
insurance policy to an applicant that insures the life of the
applicant's spouse unless the applicant's spouse has signed the
policy application or has otherwise been notified in advance of the
issuance of the policy.
   (b) This section shall apply to policies of individual life
insurance with face amounts exceeding fifty thousand dollars
($50,000) that are issued on or after July 1, 2004.