BILL NUMBER: SB 1297	CHAPTERED  09/02/99

	CHAPTER   314
	FILED WITH SECRETARY OF STATE   SEPTEMBER 2, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 1, 1999
	PASSED THE ASSEMBLY   AUGUST 19, 1999
	PASSED THE SENATE   MAY 24, 1999

INTRODUCED BY   Senator Schiff

                        FEBRUARY 26, 1999

   An act to repeal Section 1490 of the Insurance Code, relating to
reciprocal insurers.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1297, Schiff.  Reciprocal insurers:  unlawful rebates.
   Existing law governing the business of insurance authorizes
persons to exchange reciprocal or interinsurance contracts with one
another providing insurance, other than life, title, mortgage,
mortgage guaranty, or insolvency insurance, among themselves against
insurable losses.  Existing law makes it unlawful for any reciprocal
or interinsurance exchange, its attorney, agent, or broker, to give
or offer to a subscriber an allowance, gift, setoff, or payment as an
inducement to secure an exchange of indemnities, except in certain
cases of savings or credits to be returned to a subscriber pursuant
to a power of attorney or reciprocal or interinsurance contract.
   This bill would repeal those provisions making it unlawful to give
or offer inducements to secure an exchange of indemnities.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1490 of the Insurance Code is repealed.