BILL ANALYSIS �
AB 2084
Page 1
Date of Hearing: May 9, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2084 (Solorio) - As Amended: May 3, 2012
Policy Committee: InsuranceVote:13
- 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill expands the list of eligible policyholders who can
purchase blanket insurance. Specifically, this bill allows the
following groups to purchase the insurance:
1)An emergency medical services company or similar organization.
2)A sports team, camp, or proprietor of a sports team or camp.
3)An employer providing accident insurance to a group of
workers, dependents or guests.
4)A carrier or operator of any means of transportation who is
providing accident benefits.
5)An entertainment production company.
6)A bank or other financial institution.
7)Any other entities the Insurance Commissioner deems
appropriate.
FISCAL EFFECT
California Department of Insurance (CDI) workload associated
with the increase in new policy filings could be up to $300,000
for the first year and $150,000 on-going (Insurance Fund).
COMMENTS
1)Rationale . According to the sponsor, American International
AB 2084
Page 2
Group (AIG), blanket insurance is a valuable tool to control
risk for a broad array of organizations that carry on group
activities involving participants or other people not
specifically known to the organization in advance, or, if
known, the identities of the participants are constantly
changing within the class of people participating in the
activities. However, the law has not changed in many years,
and as a result numerous organizations that would like to
purchase blanket insurance are unable to do so.
This bill adds several types of businesses and organizations
to the list of entities that may obtain blanket insurance
coverage. In addition, it gives the Commissioner the
discretion to add to the list in the future as he or she deems
appropriate.
2)Blanket Insurance . Blanket insurance is a form of insurance
that provides coverage for specified circumstances, and
insuring a class of persons by reference to a description of
that class, and not by specifically naming the persons
covered. For example, a blanket insurance policy may cover
volunteer firefighters in the event of an accident that occurs
specifically while performing the duties of a volunteer
firefighter. Another example might be major medical insurance
that covers campers at a summer camp in the event those
campers become sick or injured while at camp or at a
camp-sponsored activity.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081