BILL NUMBER: SB 119	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 12, 2009

INTRODUCED BY   Senator Wyland

                        FEBRUARY 2, 2009

   An act to amend Section 678.3 of the Insurance Code, relating to
professional liability insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 119, as amended, Wyland. Professional liability insurance:
insurers: bad faith.
   Existing law prohibits the bringing of an action  for
statements made in bad faith  against an insurer issuing
professional liability insurance policies to health care providers
 for statements made in bad faith  unless the statement was
made under a specified circumstance. Under existing law, that
provision is repealed as of January 1, 2011, unless another statute
deletes or extends that date.
   This bill would  delete   extend  that
date  to January 1, 2013  .
   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 678.3 of the Insurance Code is amended to read:

   678.3.  (a) There shall be no liability on the part of, and no
cause of action of any nature shall arise against, any insurer
 which   that  issues professional
liability insurance policies to health care providers or its
authorized representatives, agents, or employees, or any licensed
insurance agent or broker, for any statement made, unless shown to
have been made in bad faith, by any of them in any of the following:
   (1) A written notice of nonrenewal, or any other oral or written
communication specifying the reasons for nonrenewal of a policy
issued to a health care provider.
   (2) Any communication providing information pertaining to the
nonrenewal.
   (3) Evidence submitted at any court proceeding or informal inquiry
in which the nonrenewal is an issue.
   (b) This section shall apply only to nonrenewals for which written
notice is provided by the insurer on or after January 1, 2006. 
   (c) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.