BILL NUMBER: SB 1216	CHAPTERED  07/22/08

	CHAPTER  171
	FILED WITH SECRETARY OF STATE  JULY 22, 2008
	APPROVED BY GOVERNOR  JULY 22, 2008
	PASSED THE SENATE  JULY 2, 2008
	PASSED THE ASSEMBLY  JUNE 26, 2008
	AMENDED IN ASSEMBLY  JUNE 18, 2008
	AMENDED IN ASSEMBLY  MAY 19, 2008
	AMENDED IN SENATE  APRIL 2, 2008
	AMENDED IN SENATE  MARCH 24, 2008

INTRODUCED BY   Senator Scott
   (Coauthor: Senator Alquist)

                        FEBRUARY 14, 2008

   An act to amend Section 10235 of, and to add Section 10235.95 to,
the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1216, Scott. Insurance: long-term care.
   Existing law generally regulates long-term care insurance
policies.
   This bill would provide that, as to accepted long-term care claims
accepted on or after December 1, 2008, interest shall accrue and
shall be payable to the claimant at the rate of 10% per annum on the
amount of any accepted claim, beginning on the first calendar day
after payment of the accepted claim is due, as specified.


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

  SECTION 1.  Section 10235 of the Insurance Code is amended to read:

   10235.  Except as provided in Section 10235.95, this article
applies to all long-term care insurance policies delivered or issued
for delivery in this state on or after January 1, 1990.
  SEC. 2.  Section 10235.95 is added to the Insurance Code, to read:
   10235.95.  (a) Notwithstanding Section 10235, this section applies
to all long-term care policies in force, regardless of their dates
of issuance.
   (b) Interest shall accrue and shall be payable to the claimant at
the rate of 10 percent per annum on the amount of any accepted claim
beginning on the first calendar day after the day that the payment of
the accepted claim is due pursuant to Section 2695.7 of Title 10 of
the California Code of Regulations or any successor to that
provision, provided that the claim is accepted on or after December
1, 2008.