BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1164
                                                                  Page  1

          Date of Hearing:   June 20, 2012

                           ASSEMBLY COMMITTEE ON INSURANCE
                                 Jose Solorio, Chair
                   SB 1164 (Emmerson) - As Amended:  March 26, 2012

           SENATE VOTE  :   37-0
           
          SUBJECT  :   Professional Liability Insurance

           SUMMARY  :   Extends the sunset date for three years on existing 
          statute that provides immunity to professional liability 
          insurers for explaining the reasons for not renewing a 
          professional liability insurance policy of a healthcare 
          practitioner.  

          EXISTING LAW  :

          1)Requires professional liability insurers to provide a 
            healthcare provider a reason for refusing to renew a 
            malpractice policy.

          2)Provides that professional liability insurers have no 
            liability for statements made regarding the reasons for the 
            non-renewal of a malpractice insurance policy.

          3)Provides that this liability protection sunsets on January 1, 
            2013.

           FISCAL EFFECT  :   None.

           COMMENTS  :   

           1)Purpose.  According to the author, California law requires 
            insurers to give written notice of a policy cancellation or 
            nonrenewal.  The written notice must contain the reasons for 
            the cancellation or nonrenewal.  Like other insurers, 
            professional liability insurers were threatened with and 
            occasionally sued for defamation or libel arising from 
            compliance with the requirement to give a written notice and 
            reasons for nonrenewal.  This bill would extend the liability 
            protection provided to malpractice insurers that has rectified 
            this problem.

           REGISTERED SUPPORT / OPPOSITION  :








                                                                  SB 1164
                                                                  Page  2


           Support 
           
          California Association of Professional Liability Insurers 
          (sponsor)
           
            Opposition 
           
          None Received.

           Analysis Prepared by  :    Paul Riches / INS. / (916) 319-2086