BILL NUMBER: AB 204 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 10, 2005
INTRODUCED BY Assembly Member Harman
JANUARY 31, 2005
An act to amend Section 10172.5 of the Insurance Code,
relating to life insurance. An act to amend Sections
249.5 and 294.7 of the Probate Code, relating to decedents' estates.
LEGISLATIVE COUNSEL'S DIGEST
AB 204, as amended, Harman. Life insurance: interest:
posthumous conception Decedents' estates: posthumously
conceived children .
(1) Existing law provides for the distribution of a decedent's
estate among heirs and beneficiaries. Existing law provides that, for
purposes of determining rights to property to be distributed upon
the death of a decedent, a child of the decedent conceived after the
decedent's death, other than a child conceived as a result of human
cloning, is deemed to have been born in the decedent's lifetime if
the child or his or her representative proves by clear and convincing
evidence that specified conditions are satisfied. Those conditions
include the requirement that the child or the child's representative
has given written notice by certified mail that the decedent's
genetic material was available for the purpose of posthumous
conception.
This bill would instead require that the decedent's spouse or
registered domestic partner or some other designated person, as
specified, has given that written notice.
(2) Existing law bars a decedent's child, conceived after the
decedent's death, or the child's representative from making a claim
against the person making or receiving the distribution of the
decedent's property when the claim is based on wrongful distribution
and written notice has not been given in a timely manner, as
specified.
This bill would specify that that provision applies to a decedent'
s child, conceived after the death of the decedent, who is subject to
the provision of law that requires that notice be given.
Existing law requires each insurer admitted to transact
life insurance, credit life insurance, or accidental death insurance
in this state that fails or refuses to pay the proceeds of any policy
of life insurance issued by it within 30 days after the date of
death of the insured to pay interest, at a specified rate, on any
moneys payable and unpaid after the expiration of the 30-day period
requirement except as specified.
This bill would provide that this requirement shall not
apply if the insurer has received a specified notice regarding the
availability of the insured's genetic material for posthumous
conception.
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 10172.5 of the Insurance Code is amended to
read:
SECTION. 1. Section 249.5 of the Probate Code
is amended to read:
249.5. For purposes of determining rights to property to be
distributed upon the death of a decedent, a child of the decedent
conceived after the death of the decedent shall be deemed to have
been born in the lifetime of the decedent, and after the execution of
all of the decedent's testamentary instruments, if the child or his
or her representative proves by clear and convincing evidence that
all of the following conditions are satisfied:
(a) The decedent, in writing, specifies that his or her genetic
material shall be used for the posthumous conception of a child of
the decedent, subject to the following:
(1) The specification shall be signed by the decedent and at least
one competent witness.
(2) The specification may be revoked or amended only by a writing,
signed by the decedent and at least one competent witness.
(3) The person designated by the decedent to use the genetic
material shall be either of the following:
(A) The spouse or registered domestic partner of the decedent, as
of the decedent's date of death.
(B) Some other person named in the specification as approved by
the decedent to be the person designated by the decedent to use the
genetic material for posthumous conception.
(b) The child or the child's representative
person named in subparagraph (A) or (B) of paragraph (3) of
subdivision (a) has given written notice by certified mail,
return receipt requested, that the decedent's genetic material was
available for the purpose of posthumous conception. The notice shall
have been given to a person who has the power to control the
distribution of either the decedent's property or death benefits
payable by reason of the decedent's death, within four months of the
date of issuance of a certificate of the decedent's death or entry of
a judgment determining the fact of the decedent's death, whichever
event occurs first.
(c) The child was in utero using the decedent's genetic material
and was in utero within two years of the date of issuance of a
certificate of the decedent's death or entry of a judgment
determining the fact of the decedent's death, whichever event occurs
first. This subdivision does not apply to a child who shares all of
his or her nuclear genes with the person donating the implanted
nucleus as a result of the application of somatic nuclear transfer
technology commonly known as human cloning.
SEC. 2. Section 249.7 of the Probate Code
is amended to read:
249.7. If the written notice required pursuant to Section 249.5
is not given in a timely manner to any person who has the power to
control the distribution of either the decedent's property or death
benefits payable by reason of the decedent's death, that person may
make the distribution in the manner provided by law as if any child
of the decedent conceived after the death of the decedent had
predeceased the decedent without heirs. Any child of a decedent
conceived after the death of the decedent who is subject to
Section 249.5 , or that child's representative, shall be barred
from making a claim against either the person making the
distribution or the recipient of the distribution when the claim is
based on wrongful distribution and written notice has not been given
in a timely manner pursuant to Section 249.5 to the person making
that distribution.
10172.5. (a) Notwithstanding any other provision of law, each
insurer admitted to transact life insurance, credit life insurance,
or accidental death insurance in this state that fails or refuses to
pay the proceeds of, or payments under, any policy of life insurance
issued by it within 30 days after the date of death of the insured
shall pay interest, at a rate not less than the then current rate of
interest on death proceeds left on deposit with the insurer computed
from the date of the insured's death, on any moneys payable and
unpaid after the expiration of the 30-day period. This section shall
apply only to deaths of insureds which occur on or after January 1,
1976.
(b) Nothing in this section shall be construed to allow any
insurer admitted to transact life insurance, credit life insurance,
or accidental death insurance in this state to withhold payment of
money payable under a life insurance policy to any beneficiary for a
period longer than reasonably necessary to transmit that payment.
Whenever possible payment shall be made within 30 days after the date
of death of the insured.
(c) In any case in which interest on the proceeds of, or payments
under, any policy of life insurance, credit life insurance, or
accidental death insurance becomes payable pursuant to subdivision
(a), the insurer shall notify the named beneficiary or beneficiaries
at their last known address that interest will be paid on the
proceeds of, or payments under, that policy from the date of death of
the named insured. That notice shall specify the rate of interest to
be paid.
(d) This section shall not require the payment of interest in any
case in which the beneficiary elects in writing delivered to the
insurer to receive the proceeds of, or payments under, the policy by
any means other than a lump-sum payment thereof.
(e) This section shall not require the payment of interest in any
case in which the insurer has been provided with the notice specified
in subdivision (b) of Section 249.5 of the Probate Code.