BILL NUMBER: AB 1049	CHAPTERED  09/22/03

	CHAPTER  442
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 9, 2003
	PASSED THE SENATE  SEPTEMBER 8, 2003
	AMENDED IN SENATE  SEPTEMBER 3, 2003
	AMENDED IN SENATE  JULY 15, 2003
	AMENDED IN SENATE  JULY 3, 2003
	AMENDED IN SENATE  JUNE 30, 2003
	AMENDED IN ASSEMBLY  JUNE 3, 2003
	AMENDED IN ASSEMBLY  JUNE 2, 2003

INTRODUCED BY   Assembly Members Calderon and Wyland

                        FEBRUARY 20, 2003

   An act to amend Section 791.12 of the Insurance Code, relating to
underwriting.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1049, Calderon.  Insurance:  underwriting:  information.
   Existing law prohibits an insurance institution or agent from
reaching specified adverse underwriting decisions, including denial
or cancellation of insurance coverage, based on personal information
received from an insurance-support organization whose primary source
of information is insurance institutions, except that an insurance
institution may reach an adverse underwriting decision based on
further personal information obtained as the result of information
received from an insurance-support organization.
   This bill would, in addition, prohibit an insurance institution or
agent from basing an adverse underwriting decision on the fact that
an individual has previously inquired and received information about
the scope or nature of coverage under a residential fire or property
insurance policy, if the information is received from an
insurance-support organization whose primary source of information is
insurance institutions and the inquiry did not result in the filing
of a claim.


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


  SECTION 1.  Section 791.12 of the Insurance Code is amended to
read:
   791.12.  No insurance institution or agent may base an adverse
underwriting decision in whole or in part on the following:
   (a) On the fact of a previous adverse underwriting decision or on
the fact that an individual previously obtained insurance coverage
through a residual market mechanism; provided, however, an insurance
institution or agent may base an adverse underwriting decision on
further information obtained from an insurance institution or agent
responsible for a previous adverse underwriting decision.  The
further information, when requested, shall create a conclusive
presumption that the information is necessary to perform the
requesting insurer's function in connection with an insurance
transaction involving the individual and, when reasonably available,
shall be furnished the requesting insurer and the individual, if
applicable.
   (b) On personal information received from an insurance-support
organization whose primary source of information is insurance
institutions; provided, however, an insurance institution or agent
may base an adverse underwriting decision on further personal
information obtained as the result of information received from an
insurance-support organization.
   (c) On the fact that an individual has previously inquired and
received information about the scope or nature of coverage under a
residential fire or property insurance policy, if the information is
received from an insurance-support organization whose primary source
of information is insurance institutions and the inquiry did not
result in the filing of a claim.