AB 2540 - An Act to Amend Sections 790.03, 790.035, and 10400 Of, and to Add Section 12739.06 To, the Insurance Code, Relating to Health Insurance.

An Act to Amend Sections 790.03, 790.035, and 10400 Of, and to Add Section 12739.06 To, the Insurance Code, Relating to Health Insurance.

AB 2540 — 2009-2010 Legislature

Summary

Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law prohibits a health insurer from engaging in postclaims underwriting, as defined, and requires an insurer that willfully violates that provision to pay a $118 penalty to the state.

Existing law prohibits any person in the state from engaging in any trade practices that are defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance and makes a person who engages in those practices liable to the state for a civil penalty not to exceed $5,000 or $10,000, as specified.

This bill would include engaging in health insurance postclaims underwriting as an unfair method of competition or unfair or deceptive act or practice in the business of insurance. The bill would specify the penalties that could be levied on a person who engages in postclaims underwriting, as specified, and would require that the amount by which a penalty exceeds $118 be deposited in the Major Risk Medical Insurance Fund to be used, upon appropriation by the Legislature, for the California Major Risk Medical Insurance Program.

Learn More

At LegInfo.ca.gov

Title

An Act to Amend Sections 790.03, 790.035, and 10400 Of, and to Add Section 12739.06 To, the Insurance Code, Relating to Health Insurance.

Author(s)

Hector De La Torre

Co-Authors

Subjects

• Health insurance: postclaims underwriting: unfair and deceptive practices

Major Actions

Introduced	2/19/2010
Referred to Committee
Passed Assembly Committee on Health	4/20/2010
Passed Assembly Committee on Appropriations	5/05/2010
Passed Assembly	5/13/2010
Passed Senate Committee on Health	6/23/2010
Passed Senate Committee on Appropriations	8/02/2010
Passed Senate	8/24/2010
Passed Assembly	8/26/2010
Presented to the governor (enrolled)	9/08/2010
Vetoed by Governor	9/29/2010
Vetoed by Governor	9/29/2010

Bill History

• All Votes
• All Actions

	Chamber/Committee	Motion	Date	Result
select this vote	Assembly Committee on Health	Do pass and be re-referred to the Committee on Appropriations.	4/20/2010	This motion PASSED the Assembly Committee on Health 16 voted YES 0 voted NO 3 voted present/not voting
select this vote	Assembly Committee on Appropriations	Do pass, to Consent Calendar.	5/05/2010	This motion PASSED the Assembly Committee on Appropriations 17 voted YES 0 voted NO 0 voted present/not voting
select this vote	Assembly	AB 2540 DE LA TORRE Consent Calendar Second Day Regular Session	5/13/2010	This bill PASSED the Assembly 76 voted YES 0 voted NO 3 voted present/not voting
select this vote	Senate Committee on Health	Do pass as amended, and re-refer to the Committee on Appropriations.	6/23/2010	This motion PASSED the Senate Committee on Health 6 voted YES 0 voted NO 3 voted present/not voting
select this vote	Senate Committee on Appropriations	Do pass.	8/02/2010	This motion PASSED the Senate Committee on Appropriations 8 voted YES 1 voted NO 2 voted present/not voting
currently selected	Senate	Assembly 3rd Reading AB2540 De La Torre By Romero	8/24/2010	This bill PASSED the Senate 26 voted YES 8 voted NO 5 voted present/not voting
select this vote	Assembly	AB 2540 DE LA TORRE Concurrence in Senate Amendments	8/26/2010	This bill PASSED the Assembly 61 voted YES 16 voted NO 1 voted present/not voting

	Action	Date	Description
	Introduced	2/19/2010
		2/19/2010	Introduced. To print.
		2/21/2010	From printer. May be heard in committee March 23.
		2/22/2010	Read first time.
		4/08/2010	Referred to Com. on HEALTH. From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
		4/12/2010	Re-referred to Com. on HEALTH.
select this vote	Vote	4/20/2010	Do pass and be re-referred to the Committee on Appropriations.
		4/21/2010	From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 16. Noes 0.) (April 20).
select this vote	Vote	5/05/2010	Do pass, to Consent Calendar.
		5/06/2010	From committee: Do pass. To Consent Calendar. (May 5).
		5/10/2010	Read second time. To Consent Calendar.
		5/13/2010	Read third time, passed, and to Senate. (Ayes 76. Noes 0. Page 5161.)
		5/13/2010	In Senate. Read first time. To Com. on RLS. for assignment.
select this vote	Assembly Vote on Passage	5/13/2010	AB 2540 DE LA TORRE Consent Calendar Second Day Regular Session
		5/27/2010	Referred to Com. on HEALTH.
select this vote	Vote	6/23/2010	Do pass as amended, and re-refer to the Committee on Appropriations.
		7/01/2010	From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 23).
		7/15/2010	Read second time and amended. Re-referred to Com. on APPR.
select this vote	Vote	8/02/2010	Do pass.
		8/03/2010	From committee: Do pass. (Ayes 8. Noes 1.) (August 2).
		8/04/2010	Read second time. To third reading.
		8/24/2010	Read third time, passed, and to Assembly. (Ayes 26. Noes 8. Page 4816.)
		8/24/2010	In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 26 pursuant to Assembly Rule 77.
currently selected	Senate Vote on Passage	8/24/2010	Assembly 3rd Reading AB2540 De La Torre By Romero
		8/25/2010	Assembly Rule 77 suspended. (Ayes 49. Noes 27. Page 6645.)
		8/26/2010	Senate amendments concurred in. To enrollment. (Ayes 61. Noes 16. Page 6712.)
select this vote	Assembly Vote on Passage	8/26/2010	AB 2540 DE LA TORRE Concurrence in Senate Amendments
		9/08/2010	Enrolled and to the Governor at 4 p.m.
	Vetoed	9/29/2010	Vetoed by Governor.