BILL NUMBER: AB 2842	CHAPTERED
	BILL TEXT

	CHAPTER  744
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2008
	PASSED THE SENATE  AUGUST 13, 2008
	PASSED THE ASSEMBLY  AUGUST 18, 2008
	AMENDED IN SENATE  JULY 10, 2008
	AMENDED IN ASSEMBLY  MAY 23, 2008
	AMENDED IN ASSEMBLY  APRIL 10, 2008

INTRODUCED BY   Assembly Member Berg

                        FEBRUARY 22, 2008

   An act to add Section 1361.1 to the Health and Safety Code, and to
add Section 790.037 to the Insurance Code, relating to health care
coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2842, Berg. Solicitation: unfair business practices.
   Existing law provides for licensing and regulation of health care
service plans by the Department of Managed Health Care. Existing law
provides for regulation of health insurers by the Insurance
Commissioner. Existing law regulates the solicitation of health care
service plan products and health insurance. Existing law prohibits
certain unfair insurance practices specifically and unfair business
practices in general. Existing law provides that a willful violation
of provisions governing health care service plans is a crime.
   This bill would provide that it is an unfair business practice for
health insurance agents or brokers and various parties engaged in
the solicitation of health care service plans to engage in cold lead
advertising, as defined, when marketing a Medicare product or to use
an appointment made to discuss a particular Medicare product to
solicit the sale of another Medicare product or other health care
coverage or health insurance products, except as specified. Because a
willful violation of provisions governing health care service plans
would be a crime, this bill would impose a state-mandated local
program by creating a new crime.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


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

  SECTION 1.  Section 1361.1 is added to the Health and Safety Code,
to read:
   1361.1.  It is an unfair business practice for a solicitor,
solicitor firm, or representative of a health care service plan to
sell, solicit, or negotiate the purchase of health care coverage
products by any of the following methods:
   (a) The use of a marketing technique known as cold lead
advertising when marketing a Medicare product. As used in this
section, "cold lead advertising" means making use directly or
indirectly of a method of marketing that fails to disclose in a
conspicuous manner that a purpose of the marketing is health care
service plan sales solicitation and that contact will be made by a
solicitor, solicitor firm, or representative of a health care service
plan.
   (b) The use of an appointment that was made to discuss a
particular Medicare product or to solicit the sale of a particular
Medicare product in order to solicit the sale of another Medicare
product or other health care coverage products, unless the consumer
specifically agrees in advance of the appointment to discuss that
other Medicare product or other types of health care coverage
products during the same appointment. As used in this section,
"Medicare product" includes Medicare Parts A, B, C, and D, and
Medicare supplement plans.
  SEC. 2.  Section 790.037 is added to the Insurance Code, to read:
   790.037.  It is an unfair business practice for a health insurance
agent or broker to sell, solicit, or negotiate the purchase of
health insurance by any of the following methods:
   (a) The use of a marketing technique known as cold lead
advertising when marketing a Medicare product. As used in this
section, "cold lead advertising" means making use directly or
indirectly of a method of marketing that fails to disclose in a
conspicuous manner that a purpose of the marketing is health
insurance sales solicitation and that contact will be made by a
health insurance agent or broker.
   (b) The use of an appointment that was made to discuss a
particular Medicare product or to solicit the sale of a particular
Medicare product in order to solicit the sale of another Medicare
product or other health insurance products, unless the consumer
specifically agrees in advance of the appointment to discuss that
other Medicare product or other types of health insurance products
during the same appointment. As used in this section, "Medicare
product" includes Medicare Parts A, B, C, and D, and Medicare
supplement plans.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.