BILL NUMBER: SB 1449	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 17, 2012
	AMENDED IN SENATE  MARCH 29, 2012

INTRODUCED BY   Senator Calderon

                        FEBRUARY 24, 2012

   An act to add  Section   Sections  101.5
 and 101.6  to the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1449, as amended, Calderon. Life insurance  and annuities
 .
   Existing law governs the business of insurance and defines various
types of insurance for these purposes, including life insurance, and
disability insurance.
   This bill would provide that a life insurance policy that includes
accelerated  payment of part or all of the  death benefits,
a waiver of a premium benefit, or a waiver of surrender charges
 for annuity contracts  , as specified,  or an
annuity that includes a waiver of surrender charges,  
would   shall  be deemed to be life insurance 
or annuity coverage, as applicable  and would 
 shall  not be subject to provisions governing disability
 , health, or long-term care  insurance, unless those
provisions also apply to life insurance  or annuities, as
applicable  .
   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 101.5 is added to the 
 Insurance Code   , to read:  
   101.5.  If a policy of life insurance includes any of the
following provisions, the policy shall be deemed to be life insurance
and shall not be subject to provisions governing disability, health,
or long-term care insurance unless those provisions also apply to
life insurance:
   (a) Accelerated payment of part or all of the death benefits if an
insured becomes confined in an eligible institution; needs
extraordinary medical intervention; has a medical condition that, in
the absence of extensive or extraordinary medical treatment, would
result in a drastically reduced life span; is unable to perform a
specified number of activities of daily living; or is cognitively
impaired.
   (b) Waiver of premium benefit  until the end of disability of the
insured or the attainment of an age as established by the insurer.
   (c) Waiver of surrender charges if the insured has been diagnosed
with a limited life expectancy, is receiving care from a health care
facility, has a medical condition that may reduce his or her life
expectancy, is disabled and unable to perform tasks of daily living
or be employed, or is cognitively impaired. 
   SEC. 2.    Section 101.6 is added to the  
Insurance Code   , to read:  
   101.6.  If an annuity includes a waiver of surrender charges for
an annuitant or beneficiary who is diagnosed with a limited life
expectancy, is receiving care from a health care facility, has a
medical condition that may reduce his or her life expectancy, is
disabled and unable to perform tasks of daily living or be employed,
or is cognitively impaired, the annuity shall be deemed to be annuity
coverage and shall not be subject to provisions governing
disability, long-term care, and health insurance, unless those
provisions also apply to annuities.  
  SECTION 1.    Section 101.5 is added to the
Insurance Code, to read:
   101.5.  If a policy of life insurance includes any of the
following provisions, the policy shall be deemed to be life insurance
and shall not be subject to provisions governing disability
insurance, unless those provisions also apply to life insurance:
   (a) Accelerated death benefits.
   (b) Waiver of a premium benefit for a life insurance policy until
the end of a disability of the insured or the attainment of an age as
established by the insurer.
   (c) Waiver of surrender charges for annuity contracts if the
insured or beneficiary has been diagnosed with a limited life
expectancy, is receiving care from a health care facility, has a
medical condition that may reduce his or her life expectancy, is
disabled and unable to perform tasks of daily living or be employed,
or is cognitively impaired.