Amended in Senate March 28, 2016

Senate BillNo. 1424


Introduced by Senator Wieckowski

February 19, 2016


begin deleteAn act to amend Section 700 of the Corporations Code, relating to corporations. end deletebegin insertAn act to amend Section 11580.17 of the Insurance Code, relating to insurance.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1424, as amended, Wieckowski. begin deleteShareholder voting. end deletebegin insertInsurance. end insert

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Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the department’s powers and duties. Existing law prohibits the department from prohibiting an insurer from inspecting a motor vehicle prior to issuing collision or comprehensive coverage for the vehicle. Existing law also requires an insurer conducting these inspections to inspect every motor vehicle for which coverage is requested except new motor vehicles and motor vehicles previously insured. Existing law requires the inspection to be done by the insurer or its agent, and to be performed not more than 20 miles from the address where the vehicle is insured.

end insert
begin insert

This bill would allow the above inspection to be performed not more than 25 miles from the address where the vehicle is insured.

end insert
begin delete

Existing law, the General Corporation Law, authorizes a corporation to issue one or more classes or series of shares with full, limited, or no voting rights and with such other rights, preferences, privileges and restrictions as are stated or authorized in articles of incorporation of that corporation. Existing law generally provides that each outstanding share is entitled to one vote on each matter submitted to a vote of shareholders.

end delete
begin delete

This bill would make nonsubstantive changes to this provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 11580.17 of the end insertbegin insertInsurance Codeend insertbegin insert is
2amended to read:end insert

3

11580.17.  

The department shall not prohibit an insurer from
4electing to inspect physically a motor vehicle for purposes of
5issuing a policy for collision or comprehensive coverage. The
6inspection of the motor vehicle shall be at no cost to the insured.
7The information ascertained from that inspection may only be used
8to determine the extent of insurability for collision or
9comprehensive coverage for the motor vehicle. If an insurer elects
10to conduct an inspection prior to offering comprehensive and
11collision insurance pursuant to this section, the insurer shall inspect
12every motor vehicle for which coverage is requested if the vehicle
13was not previously insured under a policy of comprehensive and
14collision coverage. An insurer may exempt from this requirement
15new motor vehicles if a copy of the sales contract is delivered to
16the insurer within five business days of the purchase of the new
17motor vehicle. The inspection shall be done by the insurer or its
18agent, and shall be performed not more thanbegin delete 20end deletebegin insert 25end insert miles from the
19address where the vehicle is insured, and during normal business
20hours.

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21

SECTION 1.  

Section 700 of the Corporations Code is amended
22to read:

23

700.  

(a) Except as provided in Section 708 and except as may
24be otherwise provided in the articles, each outstanding share,
25regardless of class, shall be entitled to one vote on each matter
26submitted to a vote of shareholders.

27(b) Any holder of shares entitled to vote on any matter may vote
28part of the shares in favor of the proposal and refrain from voting
29the remaining shares or vote them against the proposal, other than
30elections to office, but, if the shareholder fails to specify the
31number of shares the shareholder is voting affirmatively, it will
P3    1be conclusively presumed that the shareholder’s approving vote
2is with respect to all shares the shareholder is entitled to vote.

end delete


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