BILL NUMBER: AB 108	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 2, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2009
	AMENDED IN SENATE  JULY 23, 2009
	AMENDED IN SENATE  JUNE 26, 2009
	AMENDED IN SENATE  JUNE 23, 2009
	AMENDED IN ASSEMBLY  MARCH 24, 2009
	AMENDED IN ASSEMBLY  FEBRUARY 26, 2009

INTRODUCED BY   Assembly Member Hayashi

                        JANUARY 12, 2009

   An act to add Section 1389.21 to the Health and Safety Code, and
to add Section 10384.17 to the Insurance Code, relating to health
care coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 108, Hayashi. Individual health care coverage.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans by the Department of Managed Health Care, and makes a willful
violation of its provisions a crime. Existing law provides for the
regulation of health insurers by the Department of Insurance.
Existing law prohibits the cancellation or nonrenewal of an
enrollment or subscription by a health care service plan except in
specified circumstances. Existing law prohibits the nonrenewal of
individual health benefit plans by a health insurer except in
specified circumstances.
   This bill would prohibit a health care service plan or health
insurer from rescinding an individual health care service plan
contract or individual health insurance policy for any reason, or
from canceling, limiting, or raising the premiums of the plan
contract or policy due to any omission, misrepresentation, or
inaccuracy in the application form, after 24 months following the
issuance of the plan contract or policy, except as specified.
   Because this bill would impose additional requirements on health
care service plans, the willful violation of which would be a crime,
it would impose a state-mandated local program.
   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 1389.21 is added to the Health and Safety Code,
to read:
   1389.21.  Notwithstanding any other provision of law, after 24
months following the issuance of an individual health care service
plan contract, a plan shall not rescind the plan contract for any
reason, and shall not cancel the plan contract, limit any of the
provisions of the plan contract, or raise premiums on the plan
contract due to any omissions, misrepresentations, or inaccuracies in
the application form, whether willful or not. Nothing in this
section shall be construed to alter existing law that otherwise
applies to a health care service plan within the first 24 months
following the issuance of an individual health care service plan
contract.
   SEC. 2.   Section 10384.17 is added to the Insurance Code, to
read:
   10384.17.  Notwithstanding any other provision of law, after 24
months following the issuance of an individual health insurance
policy, a health insurer shall not rescind the policy for any reason,
and shall not cancel the policy, limit any of the provisions of the
policy, or raise premiums on the policy due to any omissions,
misrepresentations, or inaccuracies in the application form, whether
willful or not. Nothing in this section shall be construed to alter
existing law that otherwise applies to a health insurer within the
first 24 months following the issuance of an individual health
insurance policy.
  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.