BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 711|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                    CONSENT


          Bill No:  SB 711
          Author:   Senate Insurance Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE INSURANCE COMMITTEE  :  8-0, 04/27/11 
          AYES: Calderon, Gaines, Anderson, Corbett, Lieu, Lowenthal, 
            Price, Wyland
          NO VOTE RECORDED: Correa


          SUBJECT  :    California Life and Health Insurance Guarantee 
          Association
                        Act

           SOURCE  :     Author


           DIGEST  :    This bill codifies the uncodified 
          "prospective-only application" provision of last session's 
          SB 1408 and deletes an erroneous cross-reference.

           ANALYSIS  :    Existing law:

          1.Provides a mechanism, within the California Life and 
            Health Insurance Guarantee Association (CLHIGA) Act, for 
            the payment of claims against insolvent life and health 
            insurance companies if the claims arise under qualifying 
            insurance policies.

          2.Authorizes coverage for qualified persons under direct, 
            nongroup life, health, annuity and supplemental policies, 
                                                           CONTINUED





                                                                SB 711
                                                                Page 
          2

            and contracts and includes special provisions pertaining 
            to annuity contracts, and certificates under group 
            annuity contracts, as defined.

          This bill:

          1.Places in the CLHIGA law an uncodified provision included 
            in SB 1408 (See Section 16) which was signed into law 
            last year as Chapter 334 Statutes of 2010. The uncodified 
            provision made the application of SB 1408 prospective 
            only by stating that the amendments made to the 
            California Life and Health Insurance Guarantee 
            Association Act by SB 1408 shall not apply to any member 
            insurer that, before the effective date of this act, has 
            been placed under an order of liquidation with a finding 
            of insolvency.

          2.Strikes a single erroneous cross-reference to a provision 
            no longer in the law.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  4/27/11)

          Association of California Life and Health Insurance 
          Companies
          Pacific Life Insurance Company
          California Life and Health Guarantee association 


          DLW:nl  4/28/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****