BILL NUMBER: SB 423	CHAPTERED  09/27/00

	CHAPTER   694
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 25, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   JUNE 8, 2000
	AMENDED IN ASSEMBLY   JUNE 15, 1999
	AMENDED IN SENATE   MAY 19, 1999
	AMENDED IN SENATE   MARCH 22, 1999

INTRODUCED BY   Senator Johnston

                        FEBRUARY 16, 1999

   An act to add Section 10506.5 to the Insurance Code, relating to
insurance, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 423, Johnston.  Life insurance:  guaranteed living benefits.
   Existing law provides for the licensing and regulation of life
insurers by the Insurance Commissioner, and in that regard, provides
that certain types of insurance policies may be issued and delivered
in this state.
   This bill would authorize a life insurer to deliver or issue for
delivery variable contracts or riders to variable contracts
containing guaranteed living benefits, as defined, under certain
conditions.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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


  SECTION 1.  Section 10506.5 is added to the Insurance Code, to
read:
   10506.5.  (a) For the purposes of this section, "guaranteed living
benefit" means a benefit in a variable annuity or a variable life
insurance contract providing that one or more benefit amounts
available to a living contractholder, under specified conditions,
will be enhanced should it fall below a given level, in the absence
of the guaranteed living benefit.
   (b) An insurer may deliver or issue for delivery contracts
containing, or riders to variable contracts providing, guaranteed
living benefits if all the following requirements are met:
   (1) The insurer is authorized to deliver, or issue for delivery,
variable insurance products in this state.
   (2) The insurer meets the requirements of paragraph (1) of
subdivision (d) of Section 10506.4.
   (3) The commissioner has issued a bulletin setting forth the terms
and conditions under which variable contracts containing or riders
to variable contracts providing guaranteed living benefits may be
issued or delivered in this state.
   (4) The variable contract or rider meets the terms and conditions
for guaranteed living benefits established by the commissioner and
set forth in the bulletin described in paragraph (3) and the insurer
desiring to issue the variable contract or rider has satisfied the
requirements set forth in Section 2529 of Title 10 of the California
Code of Regulations.
   (c) The bulletin described in paragraph (3) of subdivision (b) may
include provisions covering requirements similar to those included
in subdivision (f) of Section 10506.4.  The bulletin shall have the
same force and effect, and may be enforced by the commissioner to the
same extent and degree as regulations issued by the commissioner
until the time that the commissioner issues additional or amended
regulations pertaining to guaranteed living benefits.
   (d) An insurer may not deliver or issue for delivery variable
contracts containing, or riders to variable contracts, providing
guaranteed living benefits except pursuant to this section.  No
policy, contract, rider, or agreement that constitutes investment
return assurance pursuant to Section 10203.10 or 10507, or guarantee
pursuant to Section 10506.4, may be issued pursuant to this section.

  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for consumers to receive the benefits of the insurance
contracts authorized by this act on a timely basis, it is necessary
that this act take effect immediately.