BILL ANALYSIS
AB 2139
Page 1
Date of Hearing: April 16, 2008
ASSEMBLY COMMITTEE ON INSURANCE
Joe Coto, Chair
AB 2139 (De La Torre) - As Introduced: February 20, 2008
SUBJECT : Automobile Liability Insurance: In-Home Supportive
Services
SUMMARY : Prevents an auto liability insurance policy from
excluding coverage for the purpose of using the vehicle to
perform in-home supportive services. Specifically, this bill :
1)Prohibits automobile liability insurance policies from
excluding coverage for the operation or use of an insured
motor vehicle by the named insured in the performance of
in-home supportive services.
2)Prohibits automobile liability insurance policies from being
classified as a common carrier, livery, or for-hire vehicle
solely for the reason that the named insured or applicant is
operating or using the insured motor vehicle to provide
transportation incidental to the provision of in-home
supportive services.
EXISTING LAW :
1)Requires that automobile liability insurance policies contain
coverage limits of at least $15,000 for bodily injury or death
to one person, $30,000 for bodily injury or death to two
persons or more, and $5,000 for property damage, in one
accident. (Section 11580.1 (a) of Insurance Code)
2)Allows automobile liability insurance policies to exclude
coverage when the purpose is designated by explicit
description, except as provided in law. (Sections 11580.1 (b)
(3) and 11580.1 (f) of the Insurance Code)
3)Allows automobile liability insurance policies to exclude
coverage when liability is imposed upon an insured person
under any workers' compensation law or when liability exists
for bodily injury to any employee of the insured person
arising out of and in the course of employment. (Section
11580.1 (c) of the Insurance Code)
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4)Prohibits automobile insurance policies from excluding
coverage for the operation or use of an insured motor vehicle
by the named insured person in the performance of volunteer
(i.e., unpaid) services for a nonprofit charitable
organization or governmental agency by providing social
service transportation. (Section 11580.1 (f) of the Insurance
Code)
FISCAL EFFECT : Undetermined.
COMMENTS :
1)Purpose of Bill. According to the Author, the purpose of this
bill is protect In-Home Supportive Services (IHSS) providers
who volunteer the use of their personal vehicles to
occasionally transport IHSS recipients. With this bill, these
providers will no longer be at risk of having their auto
policies cancelled or reclassified, which would result in much
higher rates.
2)Definition of In-Home Supportive Services. In-home supportive
services are services provided to aged, blind, and disabled
persons who are unable to perform the services themselves and
who cannot safely remain in their homes unless these services
are provided. These services include domestic services, heavy
cleaning, personal care services, accompaniment by a provider
when needed during necessary travel to health-related
appointments or to alternative resource sites, yard hazard
abatement, protective supervision, teaching and demonstration
directed at reducing the need for other supportive services,
and paramedical services which make it possible for the
recipient to establish and maintain an independent living
arrangement.
3)Background. The Author's office reports that an estimated
350,000 men and women serve as IHSS providers throughout the
state. Additionally, while the use of personal vehicles for
the occasional transport of IHSS recipients is not required,
some providers opt to volunteer the use of their vehicle for
purposes such providing recipients with a ride to and from
medical appointments. The Author's Office further states
that, unfortunately, some insurance companies that deem this
volunteering of vehicles to be an act "in the course of
employment" cancel or reclassify policies to much higher
rates. Therefore, this bill has been introduced to offer a
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safeguard in order to allow these providers to continue
delivering these invaluable services.
4)Arguments in Support . The United Domestic Workers of America
(UDWA), which supports this bill, states that in the last few
years IHSS providers have been encountering problems with
their automobile insurance because some companies indicated
that business coverage would be required if the provider
transports an IHSS consumer in their automobile. UDWA also
states that the IHSS program compensates IHSS providers to
perform shopping and errands for their consumer. Finally,
UDWA states that this bill will make it clear that IHSS
providers can perform shopping and errands as well as
transport their consumer to medical appointments within their
existing auto insurance coverage, and prevent these low-wage
providers from bearing unnecessary and expensive business
coverage rates.
Aging Services of California states that it is important to
ensure that more of the state's older residents have access to
services that can prevent them from prematurely moving into an
assisted living or skill nursing facility. Aging Services
also states that caregivers are critical to this approach, and
allowing IHSS providers to transport clients to medical
appointments and other IHSS authorized activities without
being required to purchase additional automobile insurance
will give seniors more independence, choice and
self-determination in their care.
5)Arguments in Opposition. State Farm Insurance Company and the
Personal Insurance Federation of California (PIFC) oppose the
bill since it applies to persons who are not family members.
State Farm and PIFC state that family members are typically
the provider of in-home supportive services, and that they
typically transport elderly parents or others to visit
doctors, senior centers, and other activities. They believe
that policies should not preclude family members from
occasionally using their vehicles to help other family
members. Accordingly, State Farm and PIFC would not oppose
this bill if it were limited to members of the family
providing transportation as part of supportive services.
6)Providing Transportation Incidental to Services. The bill
would prohibit automobile liability policies from being
classified as a common carrier or for-hire vehicle solely for
the reason that the insured driver uses the vehicle to provide
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transportation "incidental" to the provision of in-home
supportive services. According to Black's Law Dictionary,
"incidental" means something depending upon another which is
termed the principal; something that is incidental to the main
purpose. The American Heritage College Dictionary defines
"incidental" as occurring as an unpredictable or minor
accompaniment; of a minor, casual, or subordinate nature.
Used in this context, incidental transportation would be
different from situations where a driver would use his or her
vehicle for the primary purpose of transporting IHSS clients
to various appointments. This bill would not apply to those
latter instances.
REGISTERED SUPPORT / OPPOSITION :
Support
Aging Services of California
Service Employees International Union (SEIU)
United Domestic Workers of America, NUHHCE, AFSCME, AFL-CIO
Opposition
Personal Insurance Federation of California
State Farm Mutual Automobile Insurance Company
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086