BILL NUMBER: AB 822	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2015
	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.
   This bill would provide that the laws described above governing
CIGA do not require a final determination of a claim in an insolvent
insurer's liquidation 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 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  nonworkers' compensation  claim, the person asserting
the claim against the association has one year to bring an action
challenging the denial, including an action for declaratory relief.
This bill would also require, if the written denial is based on a
failure to exhaust other insurance available to pay the claim, a
claim 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 a final
determination of a claim in an insolvent insurer's liquidation
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 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  under
paragraph (1) of subdivision (c) of Section 1063.1  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 
nonworkers' compensation  claim,  then  the
person asserting the claim against the association shall have one
year to bring an action challenging the denial, including an action
for declaratory relief. If the written denial is based on a failure
to exhaust other insurance available to pay the claim, a claim shall
be reasserted against the association within six months after all
other insurance has been exhausted.