BILL NUMBER: AB 2780	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Insurance (Solorio (Chair), Bradford,
Carter, Feuer, Hayashi, Nava, and Torres)

                        MARCH 3, 2010

   An act to amend Sections 674.9, 1874.86, and 12962 of the
Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2780, as introduced, Committee on Insurance. Insurance:
reporting requirements.
   (1) Existing law requires each insurer writing liability insurance
for long-term health care facilities, residential care facilities
for the elderly, or physicians who provide or oversee the provision
of services to residents in long-term health care facilities or
residential care facilities for the elderly to report to the
Insurance Commissioner specified information regarding liability
policies for those facilities or physicians by a date to be set by
the commissioner, but not later than July 1 of each calendar year.
   This bill would instead require the report by a date set by the
commissioner without restriction, except that the report shall be
required not more than once each calendar year.
   (2) Existing law requires each insurer that issues automobile
liability or collision policies to report annually to the Department
of Insurance regarding the number of vehicles inspected for which it
has approved a claim for the cost of auto body repairs, the
percentage that number represents of the total number of vehicles it
paid an auto body repair claim in the prior calendar year, and the
results of the inspection, including any fraud uncovered and whether
any legal action was pursued.
   This bill would make change the reporting requirement so that the
report need only be submitted at the request of the commissioner and
not more than annually.
   (3) Existing law requires the commissioner to report annually to
the Governor, the Legislature, and the committees of the Senate and
Assembly having jurisdiction over insurance an analysis of
information, including, but not limited to, certain medical
malpractice insurance statistics reported by insurers upon the
request of the commissioner.
   This bill would eliminate the analysis of information from medical
malpractice insurance statistical reports from the commissioner's
annual report and would eliminate an obsolete reference.
   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 674.9 of the Insurance Code is amended to read:

   674.9.  (a)  Notwithstanding subdivision (b) of Section 674.6, an
insurer issuing policies of liability insurance to long-term health
care facilities, residential care facilities for the elderly, or
physicians who provide or oversee the provision of services to
residents in long-term health care facilities or residential care
facilities for the elderly shall notify the department at least 90
days prior to the date it intends to cease, withdraw, or
substantially withdraw from offering liability policies to those
facilities or physicians.
   (b) Each insurer writing liability insurance for long-term health
care facilities, residential care facilities for the elderly, or
physicians who provide or oversee the provision of services to
residents in long-term health care facilities or residential care
facilities for the elderly shall, by a date to be set by the
commissioner, but  in any event no later than July 1 of
  not more than once  each calendar year, report to
the commissioner information specified by him or her regarding
liability policies for those facilities or physicians. The
information shall include, but not be limited to, the following:
   (1) Whether the insurer is writing coverage for long-term health
care facilities, residential care facilities for the elderly, or
physicians who provide or oversee the provision of services to
residents in long-term health care facilities or residential care
facilities for the elderly, including new and renewal policies, and
the types of policies it is writing.
   (2) The number and types of long-term health care facilities or
residential care facilities for the elderly and beds covered.
   (3) The total amount of premiums from insureds, both written and
earned, during the immediately preceding five calendar years.
   (4) The total number of claims received, including the amount per
claim.
   (5) The number of claims incurred, together with the monetary
amount reserved for loss and defense and cost containment expense for
the immediately preceding accident year or report year.
   (6) The number of claims closed with payment during the
immediately preceding five calendar years, the total monetary amount
paid for loss thereon, reported by the year the claim was incurred,
and the total defense and cost containment expense paid thereon,
reported by the year the claim was incurred.
   (7) The monetary amount paid on claims, including the amount paid
per claim, during the immediately preceding five calendar years to be
reported separately by the year the claim was incurred, with defense
and cost containment expense paid.
   (8) The number of claims closed without payment during the
immediately preceding five calendar years, reported by the year the
claim was incurred, and the defense and cost containment expense paid
thereon.
   (9) The monetary amount reserved in the annual statement for loss
and defense cost containment expense for the immediately preceding
calendar year for outstanding claims incurred but not reported to the
insurer.
   (10) The number and types of lawsuits filed against the insureds
in the immediately preceding calendar year.
   (11) Annualized information on investment income or loss, 
which   that  shall be consistent with the
reported information provided by insurers to the National Association
of Insurance Commissioners.
   (c) For the purposes of information collection conducted pursuant
to this section, first priority shall be given by the department and
commissioner to collecting and compiling information from insurers
concerning long-term health care facilities and physicians providing
services in those facilities, and, to the extent that departmental
resources allow, secondary priority shall then be given to the
collecting and compiling of information concerning residential care
facilities for the elderly and the physicians who provide services in
those facilities.
   (d) Information that is collected for long-term health care
facilities and the physicians for those facilities shall be
collected, maintained, analyzed, and reported separately from
information that is collected, maintained, analyzed, and reported
concerning residential care facilities for the elderly, and the
physicians for those facilities.
   (e) As used in this section, "long-term health care facility" has
the same meaning as that term is defined in Section 1418 of the
Health and Safety Code.
   (f) As used in this section, "residential care facilities for the
elderly" has the same meaning as that term is defined in Section
1569.2 of the Health and Safety Code.
   (g) Information collected by the department pursuant to this
section shall be deemed official information and subject to the
disclosure protections of Section 1040 of the Evidence Code. Nothing
in this section shall require individualized information that would
identify the amount paid by a specific insurer or facility to be
released. However, nothing in this subdivision shall prevent the
department from preparing reports and policy recommendations based on
the data collected pursuant to this section.
  SEC. 2.  Section 1874.86 of the Insurance Code is amended to read:
   1874.86.  Each insurer subject to this article shall report  ,
at the request of the commissioner, but not more than  annually
 ,  to the department on the following:
   (a) The number of vehicles inspected pursuant to Section 1874.85
and the percentage that this number represents of the total number of
vehicles for which it paid a claim for the cost of auto body repairs
in the prior calendar year.
   (b) The results of the inspections, including the nature of any
fraud uncovered, and whether or not legal action was pursued.
   The department shall make the information provided pursuant to
this section available to the California Highway Patrol and the
Bureau of Automotive Repair.
  SEC. 3.  Section 12962 of the Insurance Code is amended to read:
   12962.  The commissioner shall report to the Governor, the
Legislature, and to the committees of the Senate and Assembly having
jurisdiction over insurance all of the following in the annual report
submitted pursuant to Section 12922:
   (a) An analysis of the information required by Sections 674.5,
1857.7, 1857.9, 1864  , 11555.2  , and 12963,
including, but not limited to, all of the following:
   (1) An aggregate and an average for all insurers for each item of
information required by these sections.
   (2) The number of insurers reporting policies written for each
class during the calendar year.
   (3) For each class, the number of insurers reporting a combined
loss ratio of 100 percent or more, and the number reporting a
combined loss ratio of under 100 percent.
   (4) An analysis of adjustments made to loss reserves for prior
years.
   (5) The change in any item required to be included by paragraphs
(1) to (4), inclusive, from the immediately prior year.
   (b) An analysis of the activities of the Department of Insurance
in implementing the provisions of Proposition 103 on the November 8,
1988, general election ballot, as set forth in Article 10 (commencing
with Section 1861.01) of Chapter 9 of Part 2 of Division 1.
   (c) Recommendations and proposals, including suggested
legislation, to protect consumers from arbitrary insurance rates and
practices, to encourage a competitive insurance marketplace, to
provide for an accountable Insurance Commissioner, and to ensure that
insurance is fair, available, and affordable for all Californians.

   (d)  An analysis on the results of the program to reduce the
number of uninsured motorists and the relationship to affordable
private passenger vehicle liability insurance rates pursuant to
Sections 4750.2 and 4750.4 of the Vehicle Code.  
   (e) 
    (d)  The requirements of this section shall be satisfied
if the analysis required by this section is included in the annual
report to the Governor required by Section 12922, and a copy of that
report is provided to the Legislature.