BILL NUMBER: SB 1184 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Corbett
FEBRUARY 22, 2012
An act to add Section 785.5 to the Insurance Code, relating to
senior insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 1184, as amended, Corbett. Senior insurance: veterans benefits.
Existing law requires all insurers, brokers, agents, and others
engaged in the transaction of insurance to owe to a prospective
insured who is 65 years of age or older, a duty of honesty, good
faith, and fair dealing.
This bill would prohibit an insurance broker or agent from
participating in, being associated with, or employing any party that
participates in, or is associated with, the obtaining of veterans
benefits for a senior, unless the insurance agent or broker maintains
procedural safeguards designed to ensure that the agent or broker
transacting insurance has no direct financial incentive to refer the
policyholder or prospective policyholder to any government
benefits program veterans benefits program offered
through the government .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 785.5 is added to the Insurance Code, to read:
785.5. An insurance broker or agent shall not participate in, be
associated with, or employ any party that participates in, or is
associated with, the obtaining of veterans benefits for a senior,
unless the insurance agent or broker maintains procedural safeguards
designed to ensure that the agent or broker transacting insurance has
no direct financial incentive to refer the policyholder or
prospective policyholder to any government benefits program
veterans benefits program offered through the
government .