BILL NUMBER: AB 822	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 6, 2015

INTRODUCED BY   Assembly Member Cooley

                        FEBRUARY 26, 2015

   An act to add Section 1063.18 to the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 822, as amended, Cooley. Insurance: California Insurance
Guarantee Association: insolvency.
   Existing law creates the California Insurance Guarantee
Association (CIGA) and requires all insurers admitted to transact
insurance in this state to become members. Existing law requires CIGA
to collect premium payments from members and to discharge covered
claims, as defined, of an insolvent insurer. CIGA is required to
allocate its claim payments and costs based on categories of
insurance, including, but not limited to, workers' compensation
claims and  homeowners'claims   homeowners'
claims  .
   This bill would provide that the laws described above governing
CIGA do not require  the   a  final
 adjudication   determination  of 
claims   a claim  in an insolvent insurer's
liquidation  proceedings   proceeding 
before a covered claim may be submitted to CIGA. The bill would
provide that these laws also do not require a claim to first be
 adjudicated   determined  and approved by
the liquidator before CIGA pays and discharges a covered claim. The
bill would also provide that if the association provides written
denial of a claim, the person asserting the claim  against the
association  has one year to bring an action  against
the association  challenging the denial  , including an
action for declaratory relief  . This bill would also 
provide that   require,  if the written denial is
based on a failure to exhaust other insurance available to pay the
claim, a claim must   to  be reasserted
against the association within 6 months after all other insurance has
been exhausted.
   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 1063.18 is added to the Insurance Code, to
read:
   1063.18.  (a) Nothing in this article requires  the
  a  final  adjudication of claims
  determination of a claim  in an insolvent insurer'
s liquidation proceedings   proceeding 
before a covered claim may be submitted to the California Insurance
Guarantee Association (CIGA). Nothing in this article requires a
claim to first be  adjudicated   determined
 and approved by the liquidator before CIGA pays and discharges
a covered claim. If a claim is presented to the association and all
requirements for processing a covered claim are satisfied, the
association shall  proceed to  process the claim for payment
under this article.
   (b) If the association provides a written denial of a claim, 
then  the person asserting the claim  against the
association  shall have one year to bring an action 
against the association  challenging the denial  ,
including an action for declaratory relief  . If the written
denial is based on  the   a  failure to
exhaust other insurance available to pay the claim, a claim 
must   shall  be reasserted against the association
within six months after all other insurance has been exhausted.