BILL NUMBER: AB 689	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Blumenfield

                        FEBRUARY 17, 2011

   An act to amend Section 789.9 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 689, as introduced, Blumenfield. Insurance: seniors: annuities.

   Existing law prohibits the sale of an annuity to a senior where
the senior's purpose in purchasing the annuity is to affect Medi-Cal
eligibility and if certain facts are established, such as after the
purchase of the annuity, the senior or the senior's spouse would not
qualify for Medi-Cal.
   This bill would make a technical, nonsubstantive change to that
provision.
   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 789.9 of the Insurance Code is amended to read:

   789.9.  (a) In addition to any other reasons that a sale of an
individual annuity to a senior may violate any provision of law, an
annuity shall not be sold to a senior in any of the following
circumstances:
   (1) The senior's purpose in purchasing the annuity is to affect
Medi-Cal eligibility and either of the following is true:
   (A) The purchaser's assets are equal to or less than the community
spouse resource allowance established annually by the State
Department of Health  Care  Services pursuant to the
Medi-Cal Act (Chapter 7 (commencing with Section 14000) of Part 3 of
Division 9 of the Welfare and Institutions Code).
   (B) The senior would otherwise qualify for Medi-Cal.
   (2) The senior's purpose in purchasing the annuity is to affect
Medi-Cal eligibility and, after the purchase of the annuity, the
senior or the senior's spouse would not qualify for Medi-Cal.
   (b) In the event that a fixed annuity specified in subdivision (a)
is issued to a senior, the issuer shall rescind the contract and
refund to the purchaser all premiums, fees, any interest earned under
the terms of the contract, and costs paid for the annuity. This
remedy shall be in addition to any other remedy that may be
available.