BILL ANALYSIS �
AB 2084
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CONCURRENCE IN SENATE AMENDMENTS
AB 2084 (Solorio)
As Amended July 5, 2012
Majority vote
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|ASSEMBLY: |77-0 |(May 30, 2012) |SENATE: |37-0 |(August 23, |
| | | | | |2012) |
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Original Committee Reference: INS.
SUMMARY : Expands the list of eligible policyholders who can
purchase blanket insurance.
The Senate amendments :
1)Clarify the scope of hazards that may be covered for the new
classes of policyholder.
2)Require the Insurance Commissioner (commissioner) to post on
the Department of Insurance Internet Web site any letter
orders issued pursuant to the discretionary authority granted
to the commissioner to expand the classes of eligible
policyholders.
3)Add limited policy form filing requirements that an insurer
must comply with before transacting blanket insurance with
newly authorized policyholders.
4)Establish the procedure for the commissioner to follow in the
event he or she wishes to withdraw an authorization for a
class of policyholder recognized pursuant to the
commissioner's discretionary authority.
AS PASSED BY THE ASSEMBLY , this bill:
1)Expanded the list of eligible policyholders who can purchase
blanket insurance to include:
a) Any governmental fire department, emergency medical
services company or similar volunteer or governmental
organization, in the event of an accident incurred during
activities related to the functions of these organizations.
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b) A sports team, camp or sponsor of a sports team or camp,
providing benefits to participants, campers, or supervisors
for accidents or sickness, provided the sickness first
arises during the activities associated with the
organization.
c) An employer providing accident benefits to any group of
workers, dependents or guests, limited to hazards incident
to the activities or operations of the employer.
d) A common carrier or other owner, operator or lessor of a
means of transportation, providing accident benefits to any
group of persons who may be lessees or passengers or the
carrier.
e) An entertainment production company providing accident
benefits to any group of participants, volunteers, audience
members, contestants, employees or independent contractors
while engaged in the activities of the production company.
2)Authorized the commissioner to, in his or her discretion, add
other classes of entities that may be eligible to purchase
blanket insurance.
FISCAL EFFECT : According to the Senate Appropriations
Committee, first year Special Fund costs of $85,000 and ongoing
Special Fund costs of $99,000 annually.
COMMENTS : Blanket insurance is a 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. Blanket insurance is unusual
in the sense that the law restricts who can be a policyholder,
and which hazards may be insured against. However, the law has
not evolved in many years, and as a result numerous
organizations that would like to purchase blanket insurance are
unable to do so because California law is outdated. The
modernization of the blanket insurance law will enable
California organizations that wish to purchase this protection
for those participating in their activities to do so.
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086
AB 2084
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FN: 0005077