BILL NUMBER: SB 701	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Berryhill

                        FEBRUARY 27, 2015

   An act to amend Section 10752.4 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 701, as introduced, Berryhill. Stop-loss insurance coverage:
attachment points.
   Existing law prohibits a stop-loss insurance policy issued,
reissued, or renewed on or after January 1, 2016, to a small employer
from containing an aggregate attachment point for a policy year that
is less than the greater of one of the following: $5,000 multiplied
by the total number of group members, 120% of expected claims, or
$40,000.
   This bill would instead require that the $5,000 per group member
attachment point be changed to $2,500 per employee.
   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 10752.4 of the Insurance Code is amended to
read:
   10752.4.  A stop-loss insurance policy issued, reissued, or
renewed on or after January 1, 2016, to a small employer shall not
contain any of the following provisions:
   (a) An individual attachment point for a policy year that is less
than forty thousand dollars ($40,000).
   (b) An aggregate attachment point for a policy year that is less
than the greater of one of the following: 
   (1) Five thousand dollars ($5,000) times the total number of group
members. 
   (1) Two thousand five hundred dollars ($2,500) per employee. 

   (2) One hundred twenty percent of expected claims.
   (3) Forty thousand dollars ($40,000).
   (c) A provision for direct coverage of an employee or dependent of
an employee.