BILL NUMBER: AB 2084	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 25, 2012
	AMENDED IN ASSEMBLY  MAY 3, 2012
	AMENDED IN ASSEMBLY  APRIL 12, 2012

INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 23, 2012

   An act to amend Section 10270.2 of, and to add Section 10270.2.5
to, the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2084, as amended, Solorio. Blanket insurance.
   Existing law provides that blanket insurance is that form of
insurance providing coverage for specified circumstances and insuring
by describing all persons within a class of persons defined in a
policy issued to a master policyholder, and not by specifically
naming the persons covered. Under existing law, the permitted types
of blanket insurance are those where the blanket policy is issued to
specified entities, including, but not limited to, a volunteer fire
company providing benefits to members only in the event of accident
incurred while performing actions incident to such membership and a
proprietor or sponsor of an organized camping institution providing
benefits to campers or persons responsible for their support for
death or dismemberment resulting from accident, or for hospital,
medical, surgical, or nursing expenses resulting from accident or
sickness related to the camper's specified connection with the
camping institution.
   This bill would revise and recast those above entities to instead
include (1) a volunteer or governmental fire department, emergency
medical services company, or similar volunteer or governmental
organization providing benefits to members or participants only in
the event of accident incurred while performing actions incident to
an activity or operation sponsored or supervised by the department,
company, or organization and (2) a sports team or camp, as specified,
providing benefits to participants, campers, and other specified
persons responsible for their support for death or dismemberment
resulting from accident, or for hospital, medical, surgical, or
nursing expenses resulting from specified accident or sickness
related to the participants, campers, or other specified person's
connection with the sports team or camp, as specified.
   This bill would additionally specify other permitted types of
blanket insurance issued to specified entities that include, but are
not limited to, (1) an employer providing accident benefits to any
group of workers, dependents, or guests, limited by reference to
specified hazards incident to activities or operations of the
employer, (2) any common carrier or any operator, owner, or lessor of
a means of transportation providing accident benefits to any
specified group of persons who may become lessees or passengers
limited by reference to travel status, and (3) an entertainment
production company providing accident benefits to any group of
participants, volunteers, audience members, contestants, employees,
or independent contractors while engaged in any activity or operation
of the entertainment production company. The bill would authorize
the person insured, when the premium is paid for these types of
blanket insurance, to request a copy of the policy from the insurer.
The bill would define the term "accident benefits" for purposes of
these provisions.
   Existing law prohibits a person from transacting any class of
insurance business in this state without first being an admitted
insurer. Under existing law, admission is secured by procuring a
certificate of authority from the Insurance Commissioner. Existing
law authorizes the above-described blanket policies, among others, to
provide that the cost of the insurance coverage is required to be
paid by either the policyholder, or the individuals insured or their
parents or guardians, payable through the policyholder. Existing law
prohibits a blanket policy from being issued until approved as to
substance and form by the commissioner.
   This bill would extend these provisions to the newly established
permitted types of blanket insurance described above. The bill would
also authorize the commissioner to add to the list of entities that
may be eligible to purchase blanket insurance for any risk or class
of risks, relating to accident benefits, as defined, which may be
properly eligible for blanket insurance.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 10270.2 of the Insurance Code is amended to
read:
   10270.2.  Blanket insurance is that form of insurance providing
coverage for specified circumstances and insuring by description all
or nearly all persons within a class of persons defined in a policy
issued to a master policyholder, and not by specifically naming the
persons covered (by certificate or otherwise, although a statement of
the coverage provided may be given, or required by the policy to be
given to persons eligible). The permitted types of blanket insurance
are those where the blanket policy is issued to any of the following:

   (a) A volunteer or governmental fire department, emergency medical
services company, or similar volunteer or governmental organization
providing benefits to members or participants only in the event of
accident incurred while performing actions incident to an activity or
operation sponsored or supervised by the department, company, or
organization.
   (b) A college, school, or other institution of learning, a school
district or districts or school jurisdictional unit, or to the head,
principal, or governing board of any such educational unit who or
which shall be deemed the policyholder; providing benefits to
students without necessarily any restriction as to activity, time, or
place, or to teachers or employees while performing actions incident
to special duties, such as at camps, at summer playgrounds, or
during tours or excursions; and providing benefits to such students,
teachers, or employees, and spouses and dependents of such students,
teachers, and employees, for death or dismemberment resulting from
accident or for hospital, medical, surgical, drug, or nursing
expenses resulting from accident or sickness.
   (c)  Asports   A sports  team, camp, or
sponsor, or proprietor thereof, who shall be deemed the policyholder,
providing benefits to sports team participants, campers, employees,
officials, supervisors, or persons responsible for their support for
death or dismemberment resulting from accident, or for hospital,
medical, surgical, or nursing expenses resulting from accident to
those participants, campers, employees, officials, supervisors, or
persons responsible for their support, or arising out of sickness of
those participants, campers, employees, officials, supervisors, or
persons responsible for their support, provided the accident or the
first manifestation of such sickness occurs while those participants,
campers, employees, officials, supervisors, or persons responsible
for their support are in or on the buildings or premises of the
sports team or camp, or being transported between their homes and the
sports team or camp, or while at any other place as an incident to
sports team-sponsored or camp-sponsored activities or while being
transported to, from, or between those places.
   (d)  To a   A  newspaper, farm paper,
magazine, or other periodical publication, which shall be deemed the
policyholder, providing benefits for independent contractors, such as
carriers, newsboys, dealers, distributors, wholesalers, or others
engaged in the sale, distribution, collecting for, or other
activities pertaining to the marketing and delivery of such
publications, including attendance at a coaching school or
participation as a member of a trip organized, supervised, and
sponsored as a reward for meritorious service, on account of loss
resulting from accident or sickness, such benefit to be payable to
such independent contractors or to their parents, guardians, or other
persons responsible for their support.
   When the premium for the insurance is paid by the person insured,
he or she may, upon request, obtain from the insurer in certificate
form a copy of the policy.
   (e) Any religious, charitable, recreational, educational, athletic
or civic organization, or branch thereof, which shall be deemed the
policyholder, providing benefits to any group of members, employees,
or participants for death or dismemberment or for hospital, medical,
surgical, or nursing expenses all resulting from accident incurred
incident to specific hazards pertaining to any activity or activities
or operations sponsored or supervised by or on the premises of such
policyholder.
   (f)  To a policy issued on application of an 
 An  employer, a majority of the employees in this state of
an employer, or both,  upon application,  to pay the
benefits afforded by a voluntary plan of unemployment compensation
disability insurance. Notwithstanding the provisions of Section
10113, such policies may incorporate by reference any of the
appropriate provisions of Part 2 (commencing with Section 2601) of
Division 1 of the Unemployment Insurance Code and the authorized
regulations of the Director of Employment Development.
   (g) An employer, who shall be deemed the policyholder, providing
accident benefits to any group of workers, dependents, or guests,
limited by reference to specified hazards incident to activities or
operations of the policyholder. When the premium for the insurance is
paid by the person insured, he or she may, upon request, obtain from
the insurer in certificate form a copy of the policy.
   (h) Any common carrier or any operator, owner, or lessor of a
means of transportation, who shall be deemed the policyholder,
providing accident benefits to any group of persons who may become
lessees or passengers limited by reference to their travel status on
that common carrier or that means of transportation. When the premium
for the insurance is paid by the person insured, he or she may, upon
request, obtain from the insurer in certificate form a copy of the
policy.
   (i) An entertainment production company, who shall be deemed the
policyholder, providing accident benefits to any group of
participants, volunteers, audience members, contestants, employees,
or independent contractors while engaged in any activity or operation
of the policyholder. When the premium for the insurance is paid by
the person insured, he or she may, upon request, obtain from the
insurer in certificate form a copy of the policy. 
   (j) A bank or other financial institution, a parent holding
company of a bank or other financial institution, or to the trustee,
trustees, or agent designated by one or more banks, financial
institutions, or parent holding company of a bank or other financial
institution providing accident benefits to debtors, guarantors,
purchasers, credit card holders, checking account holders,
mortgagors, and other customers. When the premium for the insurance
is paid by the person insured, he or she may, upon request, obtain
from the insurer in certificate form a copy of the policy. 
   A "blanket policy" is any disability policy of the nature herein
described sold to any of the entities described in subdivision (a),
(b), (c), (d), (e), (f), (g), (h),  or  (i),  or
(j),  of this section and providing coverage for any group
of persons within permitted categories defined in the policy.
Policies referred to in subdivision (f) shall comply with the
provisions of this section specifically referring thereto. Policies
referred to in subdivision (a), (b), (c), (d), (e), (g), (h),  or
 (i),  or (j)  may provide that the cost of
the insurance coverage shall be borne by either the policyholder, or
the individuals insured or their parents or guardians, payable
through the policyholder. In the absence of a policy provision
excluding coverage for otherwise covered individuals who have not
individually enrolled with the policyholder and undertaken to pay all
or a specified portion of the premium allocable to such individual,
such policy shall provide the described insurance for all who fall
within the categories of covered individuals defined in the policy.
Such policy may, but is not required to, contain provisions requiring
a minimum number of participating persons or a minimum percentage of
participation before the policy is effective. In the absence of such
a provision, coverage shall not be denied any individual otherwise
eligible on those grounds.
   No policies described in subdivision (a), (b), (c), (d), (e), (g),
(h),  or  (i),  or (j),  of this section
shall be issued until approved as to substance and form by the
commissioner. The commissioner  may   may, 
after notice and  hearing   hearing, 
promulgate such reasonable rules and regulations, relating to the
substance, form, and issuance of such policies, as are necessary or
desirable to preserve, insofar as applicable, standards as respects
substance, form, and issuance comparable to the standards in such
respects prescribed by this chapter and applicable to other types of
disability policies, and to further the purpose or purposes for which
such policies are to be issued.
   No policies described in subdivision (f) shall be issued until
approved as to form by the commissioner. The commissioner 
may   may,  after notice and  hearing
  hearing,  promulgate such reasonable rules and
regulations, relating to the form and issuance of such policies, as
do not affect the substance of the coverage, and as are necessary or
desirable to preserve, insofar as applicable, standards as respects
form and issuance comparable to the standards in such respects
prescribed by this chapter and applicable to other types of
disability policies, and to further the purpose or purposes for which
such policies are to be issued. Notwithstanding the provisions of
Section 10113, such policies may incorporate by reference any of the
appropriate provisions of Part 2 (commencing with Section 2601) of
Division 1 of the Unemployment Insurance Code and the authorized
regulations of the Director of Employment Development.
  SEC. 2.  Section 10270.2.5 is added to the Insurance Code, to read:

   10270.2.5.  (a) In addition to the permitted types of blanket
insurance issued to entities described in Section 10270.2, the
commissioner may, in his or her discretion, add other entities that
may be eligible to purchase blanket insurance for any class of risks
relating to accident benefits which may be properly eligible for
blanket insurance.
   (b) For purposes of this section and Section 10270.2, the term
"accident benefits" means those benefits that are payable as a result
of an unintended and unexpected occurrence that produces loss,
damage, or injury.