BILL NUMBER: AB 802	CHAPTERED  09/15/99

	CHAPTER   388
	FILED WITH SECRETARY OF STATE   SEPTEMBER 15, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 15, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	PASSED THE SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 8, 1999
	AMENDED IN ASSEMBLY   MAY 25, 1999
	AMENDED IN ASSEMBLY   MAY 19, 1999
	AMENDED IN ASSEMBLY   APRIL 26, 1999

INTRODUCED BY   Assembly Member Dutra

                        FEBRUARY 24, 1999

   An act to add Section 778.3 to the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 802, Dutra.  Insurance policies:  disclosure of finance
charges.
   Existing law requires any person engaged in business as an
insurance agent or broker and who participates in the arrangement of
a premium financing agreement and accepts compensation for arranging,
directing, or performing services in connection with the premium
financing agreement, to disclose to the insured, in a manner and form
established by the Insurance Commissioner, the amount of that
compensation, as specified.
   This bill would require the amount of any periodic finance charge
imposed for the coverage purchased and the annual percentage rate
associated with those charges to be disclosed in the policy itself,
or if arranged pursuant to a separate premium financing agreement in
the premium financing agreement itself, and in the premium finance
billings, with certain exceptions.


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


  SECTION 1.  Section 778.3 is added to the Insurance Code, to read:

   778.3.  The amount of the periodic finance charges, if any,
imposed for the premium financing purchased and the annual percentage
rate associated with those charges shall be disclosed in the policy
itself, or if arranged pursuant to a separate premium financing
agreement in the premium financing agreement itself, and in the
premium finance billings.  If the finance charge is a fixed fee,
regardless of the amount of the loan or the balance due, the
disclosure is not required to include the annual percentage rate
associated with those charges.  This section shall not apply to any
insurance policy or premium finance billing if the same information
is otherwise disclosed to the insured as required by any other
provision of state or federal law.