BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2084 (Solorio) - Blanket Insurance
Amended: July 5, 2012 Policy Vote: Ins 9-0
Urgency: No Mandate: No
Hearing Date: August 6, 2012
Consultant: Maureen Ortiz
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 2084 expands and redefines the types of
blanket insurance policies that may be offered by California
admitted insurers.
Fiscal Impact: First year costs of $85,000 and annual ongoing
costs of $99,000 to the Department of Insurance for a Staff
Counsel position to address the application workload. (Special)
Background: Blanket insurance is a form of group insurance but
covers the eligible class of participants only while they are
engaged in specified activities covered under the policy.
Blanket insurance covers accidents and related injuries. It
does not provide 24 hour coverage, nor is it health insurance or
workers' compensation insurance.
Existing law authorizes blanket insurance to be issued to
specified entities including: a volunteer fire company
providing benefits to members only in the event of accident
incurred while performing actions incident to such membership;
and, a proprietor or sponsor of an organized camping institution
providing benefits to campers or persons responsible for their
support for death or dismemberment resulting from accident, or
for hospital, medical, surgical, or nursing expenses resulting
from accident or sickness related to the camper's specified
connection with the camping institution.
California statute governing blanket insurance has not been
updated since 1973, during which time the marketplace has
evolved in several new types of businesses that could benefit
from blanket insurance coverage.
AB 2084 (Solorio)
Page 1
Proposed Law: AB 2084 will revise and recast the provision
related to a volunteer fire company and an organized camping
institution to instead include:
a. A volunteer or governmental fire department, emergency
medical services company, or similar volunteer or governmental
organization providing benefits to members or participants only
in the event of accident incurred while performing actions
incident to an activity or operation sponsored or supervised by
the department, company, or organization; and,
b. A sports team or camp providing benefits to participants,
campers, and other specified persons.
Additionally, AB 2084 expands the permitted types of blanket
insurance to include:
a. An employer providing accident benefits to any group of
workers, dependents, or guests, limited by reference to
specified hazards incident to activities or operations of the
employer.
b. Any common carrier or any operator, owner, or lessor of a
means of transportation providing accident benefits to any
specified group of persons who may become lessees or passengers
limited by reference to travel status.
c) An entertainment production company providing accident
benefits to any group of participants, volunteers, audience
members, contestants, or workers while engaged in any activity
or operation of the entertainment production company.
AB 2084 requires an insurer intending to issue a policy
according to these revised provisions to submit, prior to
issuance, any new language in that policy to the Insurance
Commissioner for approval.
AB 2084 also provides the Insurance Commissioner with
discretionary authority to cover other classes of risk that he
or she deems eligible. The Commissioner will be required to
post a letter order on its Internet Website every time the
discretionary authority is exercised.
AB 2084 (Solorio)
Page 2
Staff Comments: While general liability insurance covers the
policyholder, blanket insurance covers the insured - but only
for a specific period as defined in the policy. Group blanket
coverage will pay for a covered accident regardless of liability
insurance coverage and in addition to any coverage under
workers' compensation. It is not exclusive, but in addition to,
those policies.
For example, an entertainment organization could provide blanket
insurance for participants, audience members, contestants or
volunteers while they are participating, watching, or assisting
in the production of activities organized by the entertainment
organization.