AB 1130, as amended, Wilk. Insurance: home protection contracts.
begin insertExisting law governs home protection contracts for the repair or replacement of a component, system, or appliance of a home. Existing law makes various provisions of the Insurance Code applicable to those contracts, including provisions governing reinsurance transactions and actions, suits, or proceedings against nonadmitted insurers.
end insertbegin insertThis bill would delete provisions governing reinsurance transactions and actions against nonadmitted insurers from the list of Insurance Code provisions that are applicable to home protection contracts.
end insertExisting law prohibits a person from issuing home protection contracts in this state unless that person holds a home protection company license issued by the Department of Insurance, except as specified.
end deleteThis bill wouldbegin insert alsoend insert make technical, nonsubstantive changes to that provision.
Vote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 12743 of the end insertbegin insertInsurance Codeend insertbegin insert is amended
2to read:end insert
The following provisions of this code shall be applicable
4to home protection contracts and home protection companies:
5(a) Sections 1 to 46, inclusive.
6(b) Chapter 3 (commencing with Section 330) of Part 1, Division
71.
8(c) Chapter 12 (commencing with Section 679.70) of Part 1,
9Division 1.
10(d) These provisions of Chapter 1, Part 2, Division 1:
11(1) Article 1 (commencing with Section 680).
12(2) Article 1.5 (commencing with Section 685).
13(3) Article 2 (commencing with Section 690).
14(4) Section 699, 699.5, 700, 701, 704, 704.5, 704.7, 705, 705.1,
15707, 708, 709, 710, 713, 714, 715, 716, 717, 718, 720, and 725 of
16Article 3 (commencing with Section 699).
17(5) Section 750.
18(6) Article 5.5 (commencing with Section 770).
19(7) Article 6.5 (commencing with Section 790).
20(8) Article 8 (commencing with Section 820).
21(9) Article 9 (commencing with Section 880).
22(10) Article 11 (commencing with Section 939).
23(11) Article 13 (commencing with Section 980).
24(12) Article 14 (commencing with Section 1010).
25(13) Article 14.5 (commencing with Section 1065.1).
26(14) Article 15 (commencing with Section 1070).
27(15) Article 16 (commencing with Section 1080).
28(16) Article 17 (commencing with Section 1100).
29(e) These provisions of Chapter 2, Part 2, Division 1:
30(1) Article 1 (commencing with Section 1140).
31(2) Article 2 (commencing with Sectionbegin delete 1150).end deletebegin insert
1152).end insert
32(3) Article 3 (commencing with Section 1170).
33(4) Article 4 (commencing with Section 1190).
34(5) Article 4.7 (commencing with Section 1215).
35(6) Article 7 (commencing with Section 1250).
36(7) Article 8 (commencing with Section 1260).
end delete
37(f) Article 4 (commencing with Section 1610) of Chapter 4 of
38Part 2 of Division 1.
P3 1(g)
end delete
2begin insert(f)end insert Article 3 (commencing with Section 1631) of Chapter 5 of
3Part 2 of Division 1.
4(h)
end delete
5begin insert(g)end insert Sectionsbegin delete 1850,end delete 1850.5,begin delete 1852,end delete 1853.5,begin delete 1853.7,end delete 1853.8, 1857,
61857.2, 1857.3, 1857.4,begin delete 1857.5,end delete
1858, 1858.05, 1858.1, 1858.15,
71858.2, 1858.3, 1858.4, 1858.5, 1858.6, 1858.7, 1859, 1859.1,
81860, 1860.1, 1860.2 of Chapter 9, Part 2, Division 1.
9(i)
end delete10begin insert(h)end insert Division 3 (commencing with Section 12900).
11(j)
end delete
12begin insert(i)end insert In any references in the provisions made applicable to this
13part by subdivisions (a) tobegin delete (i)end deletebegin insert
(h)end insert inclusive of this section:
14(1) “Insurer” shall mean home protection company.
15(2) “Insured” shall mean a home protection contract holder.
16(3) “Premium” shall mean protection contract fee.
17(4) “Policy” or “insurance” shall mean home protection contract.
18(k)
end delete
19begin insert(j)end insert When any provision of this code, other than this part, is
20applied to home protection companies, such provision shall
be
21construed in accordance with the nature of home protection
22companies and the home protection business. In the event of any
23conflict between such other provision and this part, this part shall
24prevail.
Section 12744 of the Insurance Code is amended
26to read:
(a) No person shall issue or offer to issue home
28protection contracts in this state unless that person has been issued
29a home protection company license issued by the department,
30except as provided in subdivision (b).
31(b) An insurer
admitted for the class of insurance defined in
32Section 120 is authorized, in addition to the underwriting powers
33granted by that class, to issue home protection contracts, but the
34provisions of this part shall not be otherwise applicable to those
35insurers or their contracts.
36(c) No license shall be granted to a foreign applicant that has
37not fulfilled the requirements of Sections 716 and 717. For
38purposes of this part, the term “class of insurance” as used in
those
39sections shall mean the business of a home protection company.
40This section shall not prohibit the admission of a foreign home
P4 1protection company which has actively transacted home protection
2business in its state of domicile for three years or more.
3(d) The commissioner shall by regulation prescribe forms for
4applications for home protection company licenses consistent with
5the provisions of this part. Any reference to a certificate of
6authority in Article 3 (commencing with Section 699) of Chapter
71 of Part 2 of Division 1, shall mean a home protection company
8license.
O
98