BILL NUMBER: SB 1164	ENROLLED
	BILL TEXT

	PASSED THE SENATE  MAY 10, 2012
	PASSED THE ASSEMBLY  JUNE 27, 2012
	AMENDED IN SENATE  MARCH 26, 2012

INTRODUCED BY   Senator Emmerson

                        FEBRUARY 22, 2012

   An act to amend Section 678.3 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1164, Emmerson. 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 nonrenewal 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.


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,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.