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.

Health insurance: postclaims underwriting: unfair and deceptive practices. 2009-2010 Legislature. View bill details
Author(s):
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… More
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. Hide
 
Status:
This bill was passed by both houses and vetoed by the Governor. It did not become law
Senate Vote: On Passage

PASSED on August 24, 2010.

voted YES: 26 voted NO: 8
5 voted present/not voting

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
    Introduced2/19/2010
    Referred to Committee
    Passed Assembly Committee on Health4/20/2010
    Passed Assembly Committee on Appropriations5/05/2010
    Passed Assembly5/13/2010
    Passed Senate Committee on Health6/23/2010
    Passed Senate Committee on Appropriations8/02/2010
    Passed Senate8/24/2010
    Passed Assembly8/26/2010
    Presented to the governor (enrolled)9/08/2010
    Vetoed by Governor9/29/2010
    Vetoed by Governor9/29/2010
    Bill History
    Chamber/CommitteeMotionDateResult
    select this voteAssembly Committee on HealthDo pass and be re-referred to the Committee on Appropriations.4/20/2010This motion PASSED the Assembly Committee on Health
    16 voted YES 0 voted NO 3 voted present/not voting
    select this voteAssembly Committee on AppropriationsDo pass, to Consent Calendar.5/05/2010This motion PASSED the Assembly Committee on Appropriations
    17 voted YES 0 voted NO 0 voted present/not voting
    select this voteAssemblyAB 2540 DE LA TORRE Consent Calendar Second Day Regular Session5/13/2010This bill PASSED the Assembly
    76 voted YES 0 voted NO 3 voted present/not voting
    select this voteSenate Committee on HealthDo pass as amended, and re-refer to the Committee on Appropriations.6/23/2010This motion PASSED the Senate Committee on Health
    6 voted YES 0 voted NO 3 voted present/not voting
    select this voteSenate Committee on AppropriationsDo pass.8/02/2010This motion PASSED the Senate Committee on Appropriations
    8 voted YES 1 voted NO 2 voted present/not voting
    currently selectedSenateAssembly 3rd Reading AB2540 De La Torre By Romero8/24/2010This bill PASSED the Senate
    26 voted YES 8 voted NO 5 voted present/not voting
    select this voteAssemblyAB 2540 DE LA TORRE Concurrence in Senate Amendments8/26/2010This bill PASSED the Assembly
    61 voted YES 16 voted NO 1 voted present/not voting
    ActionDateDescription
    Introduced2/19/2010
    2/19/2010Introduced. To print.
    2/21/2010From printer. May be heard in committee March 23.
    2/22/2010Read first time.
    4/08/2010Referred to Com. on HEALTH. From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
    4/12/2010Re-referred to Com. on HEALTH.
    select this voteVote4/20/2010Do pass and be re-referred to the Committee on Appropriations.
    4/21/2010From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 16. Noes 0.) (April 20).
    select this voteVote5/05/2010Do pass, to Consent Calendar.
    5/06/2010From committee: Do pass. To Consent Calendar. (May 5).
    5/10/2010Read second time. To Consent Calendar.
    5/13/2010Read third time, passed, and to Senate. (Ayes 76. Noes 0. Page 5161.)
    5/13/2010In Senate. Read first time. To Com. on RLS. for assignment.
    select this voteAssembly Vote on Passage5/13/2010AB 2540 DE LA TORRE Consent Calendar Second Day Regular Session
    5/27/2010Referred to Com. on HEALTH.
    select this voteVote6/23/2010Do pass as amended, and re-refer to the Committee on Appropriations.
    7/01/2010From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 23).
    7/15/2010Read second time and amended. Re-referred to Com. on APPR.
    select this voteVote8/02/2010Do pass.
    8/03/2010From committee: Do pass. (Ayes 8. Noes 1.) (August 2).
    8/04/2010Read second time. To third reading.
    8/24/2010Read third time, passed, and to Assembly. (Ayes 26. Noes 8. Page 4816.)
    8/24/2010In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 26 pursuant to Assembly Rule 77.
    currently selectedSenate Vote on Passage8/24/2010Assembly 3rd Reading AB2540 De La Torre By Romero
    8/25/2010Assembly Rule 77 suspended. (Ayes 49. Noes 27. Page 6645.)
    8/26/2010Senate amendments concurred in. To enrollment. (Ayes 61. Noes 16. Page 6712.)
    select this voteAssembly Vote on Passage8/26/2010AB 2540 DE LA TORRE Concurrence in Senate Amendments
    9/08/2010Enrolled and to the Governor at 4 p.m.
    Vetoed9/29/2010Vetoed by Governor.

    Total contributions given to Senators from interest groups that…

    $539,998
    $1,574,410
    $44,699
    $100
    $2,159,207
    $0
    5 Organizations Supported and 0 Opposed; See Which Ones

    Organizations that took a position on
    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.: Assembly 3rd Reading AB2540 De La Torre By Romero

    5 organizations supported this bill

    American College of Emergency Physicians
    Senate Rules Committee (2010, August 3). Bill Analysis AB 2540 8-3-2010. Retrieved September 14, 2010, from Leg Info.
    California Department of Insurance
    Senate Rules Committee (2010, August 3). Bill Analysis AB 2540 8-3-2010. Retrieved September 14, 2010, from Leg Info.
    California Medical Association
    Senate Rules Committee (2010, August 3). Bill Analysis AB 2540 8-3-2010. Retrieved September 14, 2010, from Leg Info.
    Consumer Attorneys of California
    Senate Rules Committee (2010, August 3). Bill Analysis AB 2540 8-3-2010. Retrieved September 14, 2010, from Leg Info.
    Health Access
    Senate Rules Committee (2010, August 3). Bill Analysis AB 2540 8-3-2010. Retrieved September 14, 2010, from Leg Info.

    0 organizations opposed this bill

    Need proof?

    View citations of support and opposition

    Includes reported contributions to campaigns of Senators in office on day of vote, from interest groups invested in the vote according to MapLight, January 1, 2007 – December 31, 2010.
    Contributions data source: FollowTheMoney.org

    Contributions by Legislator

    Namesort iconPartyDistrict$ From Interest Groups
    That Supported
    $ From Interest Groups
    That Opposed
    Vote
    Sam AanestadRCA-4$15,600$0Yes
    Elaine AlquistDCA-13$22,126$0Yes
    Roy AshburnRCA-18$0$0No
    Sam BlakesleeRCA-15$11,700$0Yes
    Ron CalderonDCA-30$30,600$0Yes
    Gilbert CedilloDCA-22$10,650$0Yes
    Dave CogdillRCA-14$23,100$0No
    Ellen CorbettDCA-10$113,517$0Yes
    Lou CorreaDCA-34$59,650$0Yes
    Mark DeSaulnierDCA-7$84,358$0Yes
    Jeff DenhamRCA-12$9,100$0Not Voting
    Denise DuchenyDCA-40$0$0Yes
    Bob DuttonRCA-31$21,295$0No
    Bill EmmersonRCA-37$27,031$0Yes
    Dean FlorezDCA-16$4,000$0Yes
    Loni HancockDCA-9$145,240$0Yes
    Tom HarmanRCA-35$45,748$0Not Voting
    Dennis HollingsworthRCA-36$3,500$0No
    Bob HuffRCA-29$18,395$0No
    Christine KehoeDCA-39$32,975$0Yes
    Mark LenoDCA-3$171,402$0Yes
    Carol LiuDCA-21$69,700$0Yes
    Alan LowenthalDCA-27$18,800$0Yes
    Gloria Negrete McLeodDCA-32$45,350$0Yes
    Jenny OropezaDCA-28$34,059$0Not Voting
    Alex PadillaDCA-20$121,699$0Yes
    Fran PavleyDCA-23$109,429$0Yes
    Curren PriceDCA-26$44,159$0Yes
    Gloria RomeroDCA-24$42,473$0Yes
    George RunnerRCA-17$62,948$0Not Voting
    Joe SimitianDCA-11$52,625$0Yes
    Darrell SteinbergDCA-6$270,972$0Yes
    Tony StricklandRCA-19$99,226$0No
    Mimi WaltersRCA-33$78,575$0No
    Pat WigginsDCA-2$14,250$0Not Voting
    Lois WolkDCA-5$84,751$0Yes
    Rod WrightDCA-25$57,800$0Yes
    Mark WylandRCA-38$28,200$0No
    Leland YeeDCA-8$74,205$0Yes

    Add Data Filters:

    Legislator Filters
    Legislator Filters
    Show All
    NamePartyDistrict$ From Interest Groups
    That Supported
    $ From Interest Groups
    That Opposed
    Vote
    Sam AanestadRCA-4$15,600$0Yes
    Elaine AlquistDCA-13$22,126$0Yes
    Roy AshburnRCA-18$0$0No
    Sam BlakesleeRCA-15$11,700$0Yes
    Ron CalderonDCA-30$30,600$0Yes
    Gilbert CedilloDCA-22$10,650$0Yes
    Dave CogdillRCA-14$23,100$0No
    Ellen CorbettDCA-10$113,517$0Yes
    Lou CorreaDCA-34$59,650$0Yes
    Mark DeSaulnierDCA-7$84,358$0Yes
    Jeff DenhamRCA-12$9,100$0Not Voting
    Denise DuchenyDCA-40$0$0Yes
    Bob DuttonRCA-31$21,295$0No
    Bill EmmersonRCA-37$27,031$0Yes
    Dean FlorezDCA-16$4,000$0Yes
    Loni HancockDCA-9$145,240$0Yes
    Tom HarmanRCA-35$45,748$0Not Voting
    Dennis HollingsworthRCA-36$3,500$0No
    Bob HuffRCA-29$18,395$0No
    Christine KehoeDCA-39$32,975$0Yes
    Mark LenoDCA-3$171,402$0Yes
    Carol LiuDCA-21$69,700$0Yes
    Alan LowenthalDCA-27$18,800$0Yes
    Gloria Negrete McLeodDCA-32$45,350$0Yes
    Jenny OropezaDCA-28$34,059$0Not Voting
    Alex PadillaDCA-20$121,699$0Yes
    Fran PavleyDCA-23$109,429$0Yes
    Curren PriceDCA-26$44,159$0Yes
    Gloria RomeroDCA-24$42,473$0Yes
    George RunnerRCA-17$62,948$0Not Voting
    Joe SimitianDCA-11$52,625$0Yes
    Darrell SteinbergDCA-6$270,972$0Yes
    Tony StricklandRCA-19$99,226$0No
    Mimi WaltersRCA-33$78,575$0No
    Pat WigginsDCA-2$14,250$0Not Voting
    Lois WolkDCA-5$84,751$0Yes
    Rod WrightDCA-25$57,800$0Yes
    Mark WylandRCA-38$28,200$0No
    Leland YeeDCA-8$74,205$0Yes

    Interest Groups that supported this bill

    $ Donated
    Attorneys & law firms$1,574,410
    Physicians$539,998
    Health & welfare policy$44,699
    Public official (elected or appointed)$100

    Interest Groups that opposed this bill

    $ Donated
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