BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2084
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2084 (Solorio) - As Amended:  May 3, 2012 

          Policy Committee:                              InsuranceVote:13 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill expands the list of eligible policyholders who can 
          purchase blanket insurance. Specifically, this bill allows the 
          following groups to purchase the insurance: 

          1)An emergency medical services company or similar organization.

          2)A sports team, camp, or proprietor of a sports team or camp.

          3)An employer providing accident insurance to a group of 
            workers, dependents or guests.

          4)A carrier or operator of any means of transportation who is 
            providing accident benefits.

          5)An entertainment production company.

          6)A bank or other financial institution.

          7)Any other entities the Insurance Commissioner deems 
            appropriate.

           FISCAL EFFECT  

          California Department of Insurance (CDI) workload associated 
          with the increase in new policy filings could be up to $300,000 
          for the first year and $150,000 on-going (Insurance Fund).

           COMMENTS  

           1)Rationale  . According to the sponsor, American International 








                                                                  AB 2084
                                                                  Page  2

            Group (AIG), blanket insurance is a valuable tool to control 
            risk for a broad array of organizations that carry on group 
            activities involving participants or other people not 
            specifically known to the organization in advance, or, if 
            known, the identities of the participants are constantly 
            changing within the class of people participating in the 
            activities.  However, the law has not changed in many years, 
            and as a result numerous organizations that would like to 
            purchase blanket insurance are unable to do so.  

             This bill adds several types of businesses and organizations 
            to the list of entities that may obtain blanket insurance 
            coverage.  In addition, it gives the Commissioner the 
            discretion to add to the list in the future as he or she deems 
            appropriate.  

          2)Blanket Insurance  . Blanket insurance is a form of insurance 
            that provides coverage for specified circumstances, and 
            insuring a class of persons by reference to a description of 
            that class, and not by specifically naming the persons 
            covered. For example, a blanket insurance policy may cover 
            volunteer firefighters in the event of an accident that occurs 
            specifically while performing the duties of a volunteer 
            firefighter.  Another example might be major medical insurance 
            that covers campers at a summer camp in the event those 
            campers become sick or injured while at camp or at a 
            camp-sponsored activity. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081