BILL NUMBER: AB 1904	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Villines

                        FEBRUARY 16, 2010

   An act to add Section 1349.3 to the Health and Safety Code, and to
add Section 699.6 to the Insurance Code, relating to health care
coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1904, as introduced, Villines. Out-of-state carriers.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
requires, subject to specified exceptions, that a health care
service plan be licensed by the Department of Managed Health Care and
provide basic health care services, as defined, unless exempted from
that requirement by the director of the department. Existing law
also requires, subject to specified exceptions, that an insurer
obtain a certificate of authority from the Insurance Commissioner in
order to transact business in this state and that the insurer operate
in accordance with specified requirements.
   This bill would allow a carrier domiciled in another state to
offer, sell, or renew a health care service plan or a health
insurance policy in this state without holding a license issued by
the department or a certificate of authority issued by the
commissioner and would exempt the carrier's plan or policy from
requirements otherwise applicable to plans and insurers providing
health care coverage in this state if the plan or policy complies
with the domiciliary state's requirements, and the carrier is
lawfully authorized to issue the plan or policy in that state and to
transact business there.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 1349.3 is added to the Health and Safety Code,
to read:
   1349.3.  (a) Notwithstanding any other provision of law, a carrier
domiciled in another state is exempt from Section 1349, if it meets
the following criteria:
   (1) It offers, sells, or renews a health care service plan in this
state that complies with all of the requirements of the domiciliary
state applicable to the plan.
   (2) It is authorized to issue the plan in the state where it is
domiciled and to transact business there.
   (b) Notwithstanding any other provision of law, a health care
service plan offered, sold, or renewed in this state by a carrier
that satisfies the criteria of subdivision (a) is exempt from all
other provisions of this chapter.
  SEC. 2.  Section 699.6 is added to the Insurance Code, to read:
   699.6.  (a) Notwithstanding any other provision of law, a carrier
domiciled in another state is exempt from Section 700, if it meets
the following criteria:
   (1) It offers, sells, or renews a health insurance policy in this
state that complies with all of the requirements of the domiciliary
state applicable to the policy.
   (2) It is authorized to issue the policy in the state where it is
domiciled and to transact business there.
   (b) Notwithstanding any other provision of law, a health insurance
policy offered, sold, or renewed in this state by a carrier that
satisfies the criteria of subdivision (a) is exempt from all other
provisions of this code.