BILL NUMBER: SB 1065	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Monning

                        FEBRUARY 18, 2014

   An act to amend Section 116 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1065, as introduced, Monning. Insurance.
   Under existing law, automobile insurance includes, among other
things, a contract of warranty or guaranty that promises service,
maintenance, parts replacement, repair, money, or other indemnity in
the event of loss or damage to a motor vehicle. Automobile insurance
also includes an agreement that promises repair or replacement of a
motor vehicle, or part of a motor vehicle, after a mechanical or
electrical breakdown at either no cost or a reduced cost to the
agreementholder.
   This bill would make technical, nonsubstantive changes to those
provisions.
   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 116 of the Insurance Code is amended to read:
   116.  (a) Automobile insurance includes insurance of automobile
owners, users, dealers, or others having insurable interests therein,
against hazards incident to ownership, maintenance, operation, and
use of automobiles, other than loss resulting from accident or
physical injury, fatal or nonfatal, to, or death of, any natural
person.
   (b) Automobile insurance also includes  any  
a  contract of warranty  ,  or guaranty that
promises service, maintenance, parts replacement, repair, money, or
any other indemnity in event of loss of or damage to a motor vehicle
or a trailer, as defined by Section 630 of the Vehicle Code, or any
part thereof from any cause, including loss of or damage to or loss
of use of the motor vehicle or trailer by reason of depreciation,
deterioration, wear and tear, use, obsolescence, or breakage if made
by a warrantor or guarantor who is doing an insurance business.
   (c) Automobile insurance also includes  any  
an  agreement that promises repair or replacement of a motor
vehicle, or part thereof, after a mechanical or electrical breakdown,
at either no cost or a reduced cost for the agreement holder.
However, automobile insurance does not include a vehicle service
contract subject to Part 8 (commencing with Section 12800) of
Division 2, or an agreement deemed not to be insurance under that
part.
   (d) The doing or proposing to do  any  business
in substance equivalent to the business described in this section in
a manner designed to evade the provisions of this section is the
doing of an insurance business.