AB 1130 Assembly Bill

BILL NUMBER: AB 1130	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Wilk

                        FEBRUARY 22, 2013

   An act to amend Section  12744   12743 
of the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1130, as amended, Wilk. Insurance: home protection contracts.

   Existing 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.  
   This 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.  
   Existing 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. 
   This bill would  also  make technical, nonsubstantive
changes to that provision.
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 12743 of the  
Insurance Code   is amended to read: 
   12743.  The following provisions of this code shall be applicable
to home protection contracts and home protection companies:
   (a) Sections 1 to 46, inclusive.
   (b) Chapter 3 (commencing with Section 330) of Part 1, Division 1.

   (c) Chapter 12 (commencing with Section 679.70) of Part 1,
Division 1.
   (d) These provisions of Chapter 1, Part 2, Division 1:
   (1) Article 1 (commencing with Section 680).
   (2) Article 1.5 (commencing with Section 685).
   (3) Article 2 (commencing with Section 690).
   (4) Section 699, 699.5, 700, 701, 704, 704.5, 704.7, 705, 705.1,
707, 708, 709, 710, 713, 714, 715, 716, 717, 718, 720, and 725 of
Article 3 (commencing with Section 699).
   (5) Section 750.
   (6) Article 5.5 (commencing with Section 770).
   (7) Article 6.5 (commencing with Section 790).
   (8) Article 8 (commencing with Section 820).
   (9) Article 9 (commencing with Section 880).
   (10) Article 11 (commencing with Section 939).
   (11) Article 13 (commencing with Section 980).
   (12) Article 14 (commencing with Section 1010).
   (13) Article 14.5 (commencing with Section 1065.1).
   (14) Article 15 (commencing with Section 1070).
   (15) Article 16 (commencing with Section 1080).
   (16) Article 17 (commencing with Section 1100).
   (e) These provisions of Chapter 2, Part 2, Division 1:
   (1) Article 1 (commencing with Section 1140).
   (2) Article 2 (commencing with Section  1150). 
 1152). 
   (3) Article 3 (commencing with Section 1170).
   (4) Article 4 (commencing with Section 1190).
   (5) Article 4.7 (commencing with Section 1215).
   (6) Article 7 (commencing with Section 1250). 
   (7) Article 8 (commencing with Section 1260).  
   (f) Article 4 (commencing with Section 1610) of Chapter 4 of Part
2 of Division 1.  
   (g) 
    (f)  Article 3 (commencing with Section 1631) of Chapter
5 of Part 2 of Division 1. 
   (h) 
    (g)  Sections  1850,  1850.5, 
1852,  1853.5,  1853.7,  1853.8, 1857,
1857.2, 1857.3, 1857.4,  1857.5,  1858, 1858.05,
1858.1, 1858.15, 1858.2, 1858.3, 1858.4, 1858.5, 1858.6, 1858.7,
1859, 1859.1, 1860, 1860.1, 1860.2 of Chapter 9, Part 2, Division 1.

   (i) 
    (h)  Division 3 (commencing with Section 12900).

   (j) 
    (i)  In any references in the provisions made applicable
to this part by subdivisions (a) to  (i)   (h)
 inclusive of this section:
   (1) "Insurer" shall mean home protection company.
   (2) "Insured" shall mean a home protection contract holder.
   (3) "Premium" shall mean protection contract fee.
   (4) "Policy" or "insurance" shall mean home protection contract.

   (k) 
    (j)  When any provision of this code, other than this
part, is applied to home protection companies, such provision shall
be construed in accordance with the nature of home protection
companies and the home protection business. In the event of any
conflict between such other provision and this part, this part shall
prevail. 
  SECTION 1.    Section 12744 of the Insurance Code
is amended to read:
   12744.  (a) No person shall issue or offer to issue home
protection contracts in this state unless that person has been issued
a home protection company license issued by the department, except
as provided in subdivision (b).
   (b) An insurer admitted for the class of insurance defined in
Section 120 is authorized, in addition to the underwriting powers
granted by that class, to issue home protection contracts, but the
provisions of this part shall not be otherwise applicable to those
insurers or their contracts.
   (c) No license shall be granted to a foreign applicant that has
not fulfilled the requirements of Sections 716 and 717. For purposes
of this part, the term "class of insurance" as used in those sections
shall mean the business of a home protection company. This section
shall not prohibit the admission of a foreign home protection company
which has actively transacted home protection business in its state
of domicile for three years or more.
   (d) The commissioner shall by regulation prescribe forms for
applications for home protection company licenses consistent with the
provisions of this part. Any reference to a certificate of authority
in Article 3 (commencing with Section 699) of Chapter 1 of Part 2 of
Division 1, shall mean a home protection company license.