BILL NUMBER: SB 1408	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Banking, Finance and Insurance (Senators
Calderon (Chair), Cogdill, Correa, Cox, Florez, Kehoe, Liu,
Lowenthal, Padilla, Price, and Runner)

                        FEBRUARY 19, 2010

   An act to amend Section 1067.01 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1408, as introduced, Committee on Banking, Finance and
Insurance. Insurance: California Life and Health Insurance Guarantee
Association Act.
   Existing law requires the formation of the California Life and
Health Insurance Guarantee Association to provide coverage for
persons for direct, nongroup life, health, annuity, and supplemental
policies or contracts of insurance, except as specified, in case of
failure in the performance of contractual obligations under policies
and contracts because of the impairment or insolvency of the member
insurer that issued the policies or contracts.
   This bill would make clarifying and conforming changes in
provisions declaring the purpose of this law.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1067.01 of the Insurance Code is amended to
read:
   1067.01.  (a) The purpose of this article is to protect, subject
to certain limitations, the persons specified in Section 1067.02
against failure in the performance of contractual obligations, 
arising  under life and health insurance policies and annuity
contracts specified in Section 1067.02, because of the impairment or
insolvency of the member insurer that issued the policies or  ann
  uities and other  contracts.
   (b) To provide this protection, an association of insurers is
created to pay benefits and to continue coverages as limited herein,
and members of the association are subject to assessment to provide
funds to carry out the purposes of this article.