BILL ANALYSIS �
SB 220
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Date of Hearing: June 22, 2011
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
SB 220 (Price) - As Amended: June 15, 2011
SENATE VOTE : 40-0
SUBJECT : Life insurance
SUMMARY : Increases the age that a dependent child is eligible
to be added to certain life insurance policies of the parent.
Specifically, this bill :
1)Increases from age 20 to age 25 the age at which dependent
children who are not still in school are eligible to be
included as an insured on a parent's employee group life
insurance policy.
2)Increases from age 24 to age 25 the age at which dependent
children who are in school are eligible to be included as an
insured on a parent's employee group life insurance policy.
3)Makes conforming changes to the provision of law that allows
children older than 21 who are physically or mentally disabled
to be included as an insured on the parent's policy by
increasing that age to 26.
EXISTING LAW :
1)Regulates employee group life insurance, which is life
insurance that is provided to employees through their job, on
a group basis, and purchased at the option of the employee.
2)Provides a number of regulatory requirements on this class of
group life insurance, including rights to add dependents to
the coverage under specified circumstances.
3)Limits dependent coverage to unmarried dependents under 21
years of age, or under 25 years of age if the dependent is in
school.
4)Provides that dependents who are unable to provide for
themselves due to mental or physical disabilities and who are
21 years of age or older may also be covered, provided that
SB 220
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evidence of this disability is provided to the insurer 31 days
prior to attainment of age 21, and no more frequently than
every two years thereafter.
FISCAL EFFECT : Undetermined, but likely no impact on the
Department of Insurance.
COMMENTS :
1)Purpose . The purpose of SB 220 is to conform state law to
recent changes in federal law, specifically the Patient
Protection and Affordable Care Act of 2010. This federal law
increases the age eligibility for a range of insurance
coverages, including group life insurance.
2)Health care reform . Part of the federal health care reform
law enacted last year involved allowing adult children
extended opportunities to remain on their parents' insurance
policies. That extension also included eligibility for life
insurance. This bill conforms state law to these new federal
requirements.
REGISTERED SUPPORT / OPPOSITION :
Support
Association of California Life and Health Insurance Companies
California Association of Health Underwriters
National Association of Insurance and Financial Advisors
Opposition
None received.
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086