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