BILL NUMBER: AB 2298	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 29, 2012
	PASSED THE ASSEMBLY  AUGUST 30, 2012
	AMENDED IN SENATE  AUGUST 24, 2012
	AMENDED IN SENATE  AUGUST 22, 2012
	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 25, 2012
	AMENDED IN SENATE  JUNE 19, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 24, 2012

   An act to amend Sections 488.5, 557.5, and 791.12 of the Insurance
Code, and to amend Section 16051 of the Vehicle Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2298, Solorio. Insurance: public safety employees: accidents.
   Existing law provides that no insurer shall, in issuing or
renewing a private automobile insurance policy to a peace officer,
member of the Department of the California Highway Patrol, or
firefighter, with respect to his or her operation of a private motor
vehicle, increase the premium on that policy for the reason that the
insured or applicant for insurance has been involved in an accident
while operating an authorized emergency vehicle, as defined, in the
performance of his or her duty during the hours of his or her
employment.
   This bill would also provide that no insurer shall, in issuing or
renewing a private automobile insurance policy to a peace officer,
member of the Department of the California Highway Patrol, or
firefighter, with respect to his or her operation of a private
passenger motor vehicle, increase the premium on that policy for the
reason that the insured or applicant for insurance has been involved
in an accident while operating his or her private passenger motor
vehicle in the performance of his or her duty at the request or
direction of the employer.
   Existing law provides that a peace officer, member of the
Department of the California Highway Patrol, or firefighter shall not
be required to report any accident in which he or she is involved
while operating any employer-leased or employer-rented vehicle, in
the performance of his or her duty during the hours of his or her
employment, to any person who has issued that peace officer, member
of the Department of the California Highway Patrol, or firefighter a
private automobile insurance policy.
   This bill would provide that, in the event of a loss or injury
that occurs as the result of an accident during any time period when
a private passenger motor vehicle is operated by an employee who is a
peace officer, member of the Department of the California Highway
Patrol, or firefighter and used by him or her at the request or
direction of the employer in the performance of the employee's duty,
the vehicle's owner shall have no liability, and the employer shall
be considered the owner of the vehicle for the purpose of any
liability and defense of the claim. The bill would require the peace
officer, member of the Department of the California Highway Patrol,
or firefighter to report and provide, within 10 days of the accident,
to his or her private automobile insurer all documentation and
information known to him or her related to the accident. The bill
would impose a similar duty on both the employer and employee if it
is subsequently discovered that the employer did not direct or
request the employee to use the vehicle when the loss occurred. The
bill would prohibit, only under specified circumstances, a good faith
delay by an employee in reporting the accident to his or her private
passenger motor vehicle liability insurer, under the circumstances
described, from being used by the insurer as a basis to claim delayed
reporting, noncooperation, prejudice, or the like as a means of
avoiding the defense or indemnity obligations that would otherwise
exist under the terms of the automobile liability insurance policy or
applicable law in the absence of delayed reporting.
   The bill would make conforming changes relating to proof of
financial responsibility and adverse underwriting decisions, in the
event of an accident involving a private passenger motor vehicle
operated on behalf of a public agency, as specified.



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

  SECTION 1.  Section 488.5 of the Insurance Code is amended to read:

   488.5.  (a) An insurer shall not, in issuing or renewing a private
automobile insurance policy to a peace officer, member of the
Department of the California Highway Patrol, or firefighter, with
respect to his or her operation of a private passenger motor vehicle,
increase the premium on that policy for the reason that the insured
or applicant for insurance has been involved in an accident while
operating an authorized emergency vehicle, as defined in subdivision
(a) or (f) of Section 165 of the Vehicle Code or in paragraph (1) or
(2) of subdivision (b) of Section 165 of the Vehicle Code, or any
employer-leased vehicle or employer-rented vehicle, in the
performance of his or her duty during the hours of his or her
employment, or was involved in an accident while operating his or her
private passenger motor vehicle in the performance of his or her
duty at the request or direction of an employer.
   (b) An insurer shall not, in issuing or renewing a private
automobile insurance policy to a federal officer or federal customs
agent, with respect to his or her operation of a private motor
vehicle, increase the premium on that policy for the reason that the
insured or applicant for insurance has been involved in an accident
while operating an official government vehicle in the performance of
his or her duty during the hours of his or her employment.
   (c) As used in this section:
   (1) "Peace officer" means every person defined in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code.

   (2) "Policy" shall have the same meaning as defined in subdivision
(a) of Section 660.
  SEC. 2.  Section 557.5 of the Insurance Code is amended to read:
   557.5.  (a) A peace officer, member of the Department of the
California Highway Patrol, or firefighter shall not be required to
report, nor shall any employer of the same be authorized to request
or require that a peace officer, member of the Department of the
California Highway Patrol, or firefighter report, any accident in
which he or she is involved while operating an authorized emergency
vehicle, as defined in subdivision (a), (b), or (f) of Section 165 of
the Vehicle Code, or any employer-leased or employer-rented vehicle
in the performance of his or her duty during the hours of his or her
employment, to any person who has issued that peace officer, member
of the California Highway Patrol, or firefighter a private automobile
insurance policy.
   (b) (1) Notwithstanding any other provision of law or any
provision in a private passenger motor vehicle owner's automobile
liability insurance policy, in the event of a loss or injury that
occurs as the result of an accident during any time period when that
private passenger motor vehicle is operated by an employee who is a
peace officer, member of the Department of the California Highway
Patrol, or firefighter and is used by him or her at the request or
direction of the employer in the performance of the employee's duty,
the vehicle's owner shall have no liability. The peace officer,
member of the Department of the California Highway Patrol, or
firefighter shall report and provide, within 10 days of the accident,
to his or her private automobile insurer all documentation and
information known to him or her related to the accident. The employer
shall be considered the owner of the vehicle for the purpose of any
liability and defense of the claim, and any losses shall be borne
solely by the employer.
   (2) Notwithstanding any other provision of law, the employer shall
assume liability for and defense of a claim in which a dispute
exists as to whether the employer directed or requested the employee
to use the private passenger motor vehicle when the loss occurred
that gave rise to the claim.
   (3) If it is subsequently determined that the employer did not
direct or request the employee to use the private passenger motor
vehicle when the loss occurred, the employer and employee shall
provide notice to the private passenger motor vehicle's insurer of
this determination and provide all documentation and information
known to him or her related to the claim or loss to the private
passenger motor vehicle's insurer within 10 days of the
determination. The private passenger motor vehicle insurer that
insures the vehicle shall reimburse the employer the reasonable costs
of defense to the extent of the insurer's obligation and up to the
coverage limits under the applicable automobile liability insurance
policy.
   (4) A good faith delay by an employee in reporting the accident to
his or her private passenger motor vehicle liability insurer, under
the circumstances described in this section, shall not be used by the
insurer as a basis to claim delayed reporting, noncooperation,
prejudice, or the like as a means of avoiding the defense or
indemnity obligations that would otherwise exist under the terms of
the automobile liability insurance policy or applicable law in the
absence of delayed reporting. This subdivision shall apply only if
the employee complies with requirements set forth in paragraphs (1)
and (3).
   (5) This subdivision shall not apply to the operation of a private
passenger motor vehicle when operated by an employee, otherwise
subject to this section, for the purposes of reporting to or from his
or her regularly assigned work location.
   (c) As used in this section:
   (1) "Peace officer" means every person defined in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code.

   (2) "Policy" shall have the same meaning as defined in subdivision
(a) of Section 660.
   (3) "Private passenger motor vehicle" or "private motor vehicle"
means a motor vehicle that is insured under a personal automobile
liability insurance policy insuring a single individual or
individuals residing in the same household as the named insured, but
does not include a vehicle with less than four wheels.
  SEC. 3.  Section 791.12 of the Insurance Code is amended to read:
   791.12.  No insurance institution or agent may base an adverse
underwriting decision in whole or in part on the following:
   (a) On the fact of a previous adverse underwriting decision or on
the fact that an individual previously obtained insurance coverage
through a residual market mechanism; provided, however, an insurance
institution or agent may base an adverse underwriting decision on
further information obtained from an insurance institution or agent
responsible for a previous adverse underwriting decision. The further
information, when requested, shall create a conclusive presumption
that the information is necessary to perform the requesting insurer's
function in connection with an insurance transaction involving the
individual and, when reasonably available, shall be furnished the
requesting insurer and the individual, if applicable.
   (b) On personal information received from an insurance-support
organization whose primary source of information is insurance
institutions; provided, however, an insurance institution or agent
may base an adverse underwriting decision on further personal
information obtained as the result of information received from an
insurance-support organization.
   (c) On the fact that an individual has previously inquired and
received information about the scope or nature of coverage under a
residential fire or property insurance policy, if the information is
received from an insurance-support organization whose primary source
of information is insurance institutions and the inquiry did not
result in the filing of a claim.
   (d) On the fact that an accident involving a peace officer, member
of the Department of the California Highway Patrol, or firefighter
has been reported and the insurer retains no liability pursuant to
Section 488.5 and subdivision (b) of Section 557.5.
  SEC. 4.  Section 16051 of the Vehicle Code is amended to read:
   16051.  (a) Evidence may be established by filing a report
indicating that the motor vehicle involved in the accident was owned,
rented, or leased by or under the direction of the United States,
this state, or any political subdivision of this state or
municipality thereof.
   (b) Evidence may be established by filing a report indicating that
the motor vehicle involved in the accident was owned and operated by
a peace officer, member of the Department of the California Highway
Patrol, or firefighter in the performance of his or her duty, and at
the request of or under the direction of the United States, this
state, or any political subdivision or municipality of this state.