BILL NUMBER: SB 487	CHAPTERED  09/06/05

	CHAPTER  174
	FILED WITH SECRETARY OF STATE  SEPTEMBER 6, 2005
	APPROVED BY GOVERNOR  SEPTEMBER 6, 2005
	PASSED THE ASSEMBLY  AUGUST 22, 2005
	PASSED THE SENATE  MAY 2, 2005
	AMENDED IN SENATE  APRIL 27, 2005
	AMENDED IN SENATE  MARCH 29, 2005

INTRODUCED BY   Senator Cox

                        FEBRUARY 18, 2005

   An act to add Section 10204.5 to the Insurance Code, relating to
life insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 487, Cox  Group life insurance.
   Existing law generally regulates group life insurance policies,
and defines various forms of group life insurance.
   This bill would provide that, in addition to the issuance of group
life insurance otherwise permitted by specified provisions of law,
the Insurance Commissioner may approve the issuance of group life
insurance if the insurer or applicant proves specified facts to the
commissioner's satisfaction, including facts regarding the insurer,
the group to be insured, the premiums charged, and the public
interest. The bill would allow an insurer under a policy covered by
these provisions to exclude or limit the coverage on any person as to
whom evidence of individual insurability is not satisfactory to that
insurer.


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


  SECTION 1.  Section 10204.5 is added to the Insurance Code, to
read:
   10204.5.  (a) In addition to the issuance of group life insurance
to groups in this state as permitted elsewhere in this chapter, the
commissioner may approve the issuance of group life insurance if the
insurer or applicant proves to the satisfaction of the commissioner
each of the following:
   (1) The policy, when issued, covers no fewer than 10 eligible
group members.
   (2) There is a common enterprise or economic or social affinity or
relationship among members of the group.
   (3) The premiums charged are reasonable in relation to the
benefits provided under the group insurance policy.
   (4) The issuance of the policy would result in economies of
acquisition or administration, would be actuarially sound, and would
not be contrary to the best interests of the public.
   (5) The group was formed in good faith for purposes other than
obtaining insurance.
   (6) If the group policyholder is an association, the association
has a constitution and bylaws and has been in existence for more than
two years.
   (7) The insurer has been actively engaged in the business of
writing the types of coverage offered in the group insurance policy
for insureds other than the type of group covered by the policy, and
is not organized solely or principally for the purpose of furnishing
coverage to groups of this type.
   (b) An insurer under a policy covered by this section may exclude
or limit the coverage on any person as to whom evidence of individual
insurability is not satisfactory to the insurer.
   (c) A fee of five hundred dollars ($500) shall be charged to each
insurer or applicant for each filing made pursuant to this section.