BILL NUMBER: SB 989	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Fuller

                        FEBRUARY 10, 2016

   An act to amend Section 779.2 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 989, as introduced, Fuller. Insurance: life and disability.
   Under existing law, the Insurance Commissioner, who controls the
Department of Insurance, regulates insurers and specified classes of
insurance, including life insurance and disability insurance.
   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 779.2 of the Insurance Code is amended to read:

   779.2.   All life   (a)    
Life    insurance  and all   or
 disability insurance sold in connection with  loans
  a loan  or other credit  transactions
shall be   transaction is  subject to  the
provisions of  this article, except  (a) such
insurance   under either of the following circumstances:

    (1)     Insurance  sold in connection
with a loan or other credit transaction  having a term  of
more than 10  years duration, and (b) such insurance where
its issuance is an   years.   
    (2)     Insurance sold in an  isolated
transaction  on the part of   by  the
insurer  that is  not related to an agreement or a plan or
regular course of conduct for insuring debtors of the creditor.
 Nothing in this article 
    (b)     This article  shall  not
 be construed to relieve any person from compliance with any
other applicable  law of this state,   law,
 including, but not limited to, Article 6.5 (commencing with
Section 790),  nor shall anything in this article be
construed so as   or  to alter, amend, or otherwise
affect existing case law. 
   For the purpose of 
    (c)     For purposes of  this article:

   (1) "Credit life insurance" means insurance on the life of a
debtor pursuant to or in connection with a specific loan or other
credit transaction, exclusive of any  such 
insurance procured at no expense to the debtor. Insurance shall be
deemed procured at no expense to the debtor unless the cost of the
credit transaction to the debtor varies depending on whether 
or not  the insurance is procured.
   (2) "Credit disability insurance" means insurance on a debtor to
provide indemnity for payments becoming due on a specific loan or
other credit transaction while the debtor is  disabled
  disabled,  as defined in the policy, exclusive of
any insurance procured at no expense to the debtor. Insurance shall
be deemed to have been procured at no expense to the debtor unless
the cost of the credit transaction to the debtor varies depending on
whether  or not the insurance is procured.
   (3) "Creditor" means the lender of money or vendor or lessor of
goods, services, property, rights or privileges, for which payment is
arranged through a credit transaction or any successor to the right,
title or interest of  any such   the 
lender, vendor or lessor, and an affiliate, associate or subsidiary
of any of them or any director,  officer  
officer,  or employee of any of  them  
them,  or any other person in any way associated with any of
them.
   (4) "Debtor" means a borrower of money or a purchaser or lessee of
goods, services, property, rights or privileges for which payment is
arranged through a credit transaction.
   (5) "Indebtedness" means the total amount payable by a debtor to a
creditor in connection with a loan or other credit transaction.