BILL NUMBER: SB 1164	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 26, 2012

INTRODUCED BY   Senator Emmerson

                        FEBRUARY 22, 2012

   An act to amend Section  4001 of the Welfare and
Institutions   678.3 of the Insurance  Code,
relating to  mental health.   insurance. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1164, as amended, Emmerson.  Mental health. 
 Insurance.  
   Existing law provides, only until January 1, 2013, that an insurer
issuing professional liability insurance policies to health care
providers is not liable for statements made in any of specified
communications, including a written notice of renewal or evidence
submitted in a court proceeding or informal inquiry in which
nonrenewal is an issue, unless the statement was made in bad faith.
 
   This bill would extend the operative date of that provision until
January 1, 2016.  
   Existing law establishes the State Department of Mental Health,
under the control of the Director of Mental Health. 

   This bill would make a technical, nonsubstantive change to these
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 678.3 of the  
Insurance Code   is amended to read: 
   678.3.  (a) There shall be no liability on the part of, and no
cause of action of any nature shall arise against, any insurer that
issues professional liability insurance policies to health care
providers or its authorized representatives, agents, or employees, or
any licensed insurance agent or broker, for any statement made,
unless shown to have been made in bad faith, by any of them in any of
the following:
   (1) A written notice of nonrenewal, or any other oral or written
communication specifying the reasons for nonrenewal of a policy
issued to a health care provider.
   (2) Any communication providing information pertaining to the
nonrenewal.
   (3) Evidence submitted at any court proceeding or informal inquiry
in which the nonrenewal is an issue.
   (b) This section shall apply only to nonrenewals for which written
notice is provided by the insurer on or after January 1, 2006.
   (c) This section shall remain in effect only until January 1,
 2013   2016  , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2013,   2016,  deletes or
extends that date. 
  SECTION 1.    Section 4001 of the Welfare and
Institutions Code is amended to read:
   4001.  As used in this division, the following definitions apply:
   (a) "Department" means the State Department of Mental Health.
   (b) "Director" means the Director of Mental Health.
   (c) "State hospital" means any hospital specified in Section 4100.