BILL NUMBER: AB 1004	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 18, 2011

   An act to amend Section 105 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1004, as introduced, Hagman. Insurance.
   Existing law defines surety insurance to include, among other
things, guaranteeing of behavior of persons and the guaranteeing of
performance of contracts other than insurance policies and other than
for payments secured by a mortgage, deed of trust, or other
instrument constituting a lien or charge on real estate.
   This bill would make technical, nonsubstantive changes to those
provisions.
   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 105 of the Insurance Code is amended to read:
   105.  Surety insurance includes:
   (a) The guaranteeing of behavior of persons and the guaranteeing
of performance of contracts  (including   ,
including  executing or guaranteeing bonds and undertakings
required or permitted in all actions or proceedings or by law
 allowed),   allowed,  other than insurance
policies and other than for payments secured by a mortgage, deed of
trust, or other instrument constituting a lien or charge on real
estate.
   (b) Insurance against loss resulting from the forgery or
alteration of any instrument of any kind or character or of any
signature thereon. Nothing in this section shall be deemed to limit
any of the powers of title insurers.
   (c) Any of the following insurance when included as a part of
contract containing any  such  guarantee of behavior
or performance or in a contract indemnifying any bank, banker,
broker, financial  ,  or moneyed corporation or association,
any state, political subdivision, public  ,  or municipal
corporation, or any officer of any state, political subdivision,
public  ,  or municipal corporation: Insurance indemnifying
the insured named therein against loss or destruction from any cause
of any evidences of debt of any kind or character, evidences of
ownership of any kind or character, deeds, mortgages, warehouse
receipts, bills of lading, certificates of stock, bonds, notes,
drafts, checks, instruments of similar character, stamps, documents,
money, precious metals of any kind or character, refined or
unrefined, and articles made therefrom, jewelry, watches, necklaces,
bracelets, gems  ,  and precious and semiprecious stones,
and also against loss or damage, except by fire, to the insured's
premises, furnishings, fixtures, equipment, safes  ,  and
vaults therein caused by burglary, robbery, holdup, theft  ,
 or larceny or  an  attempt thereat.  No such
insurance   Insurance  indemnifying against loss of
any property as specified herein shall  not  indemnify
against loss of any  such  property occurring while
in the mail or in the exclusive custody or possession of a common
carrier for the purpose of transportation, except for the purpose of
transportation by an armored motor vehicle.
   (d)  No insurance   Insurance  may 
not  be written as surety insurance if it falls within the
definition of financial guaranty insurance as set forth in Section
12100.