SB 590 - An Act to Amend Sections 789.10 and 10127.7 of the Insurance Code, Relating to Life Insurance.

An Act to Amend Sections 789.10 and 10127.7 of the Insurance Code, Relating to Life Insurance.

SB 590 — 2011-2012 Legislature

Summary

(1)Existing law regulates the sale of life insurance to seniors, including annuities, as specified. Existing law requires a person who meets with a senior in the senior’s home regarding the sale of life insurance to deliver a notice in writing to the senior no less than 24 hours prior to that individual’s meeting, and to abide by other restrictions regarding contacting the senior in the senior’s home.

The bill would specify that the above notice, including an additional statement regarding the senior’s rights, may be provided at the time of the meeting in the senior’s home when the meeting concerns the sale of life insurance designated by the purchaser as payment for funeral and burial expenses if the life insurance policy has an initial face value amount of $15,000 or less. The bill would also require, within 14 days of the purchase of that type of life insurance or annuity by a senior, that the issuer of the policy provide by first-class mail a written notice of the purchase and notice of a 60-day right of cancellation with specified content to the senior and certain other persons. The bill would prohibit the insurance salesperson who meets with a senior in… More

(1)Existing law regulates the sale of life insurance to seniors, including annuities, as specified. Existing law requires a person who meets with a senior in the senior’s home regarding the sale of life insurance to deliver a notice in writing to the senior no less than 24 hours prior to that individual’s meeting, and to abide by other restrictions regarding contacting the senior in the senior’s home.

The bill would specify that the above notice, including an additional statement regarding the senior’s rights, may be provided at the time of the meeting in the senior’s home when the meeting concerns the sale of life insurance designated by the purchaser as payment for funeral and burial expenses if the life insurance policy has an initial face value amount of $15,000 or less. The bill would also require, within 14 days of the purchase of that type of life insurance or annuity by a senior, that the issuer of the policy provide by first-class mail a written notice of the purchase and notice of a 60-day right of cancellation with specified content to the senior and certain other persons. The bill would prohibit the insurance salesperson who meets with a senior in the senior’s home to sell that type of life insurance or annuity to sell any other insurance policies or annuities without providing the required 24-hour advance notice.

(2)Existing law provides that life insurance policies with a face value of less than $10,000, issued after July 1, 1974, shall contain a notice permitting the return of the policy within a period of time designated in the notice, which may not be less than 10 days nor more than 30 days.

This bill would provide that a life insurance policy with an initial face value of $15,000 or less shall contain a notice permitting the return of the policy within not less than 10 days nor more than 30 days, provided that, for a policy relating to funeral and burial expenses described in (1) above, the right of return shall last 60 days when the 24-hour advance notice is not delivered. Hide

Learn More

At LegInfo.ca.gov

Title

An Act to Amend Sections 789.10 and 10127.7 of the Insurance Code, Relating to Life Insurance.

Author(s)

Ron Calderon

Co-Authors

Subjects

• Life insurance

Major Actions

Introduced	2/17/2011
Referred to Committee
Passed Senate Committee on Insurance	3/23/2011
Passed Senate	5/31/2011
Passed Assembly Committee on Insurance	7/06/2011
Passed Assembly Committee on Appropriations	8/17/2011
Passed Assembly	9/01/2011
Passed Senate	9/07/2011
Presented to the governor (enrolled)	9/12/2011
Vetoed by Governor	9/30/2011
Vetoed by Governor	9/30/2011

Bill History

• All Votes
• All Actions

	Chamber/Committee	Motion	Date	Result
select this vote	Senate Committee on Insurance	Do pass as amended, and re-refer to the Committee on Appropriations.	3/23/2011	This motion PASSED the Senate Committee on Insurance 6 voted YES 2 voted NO 1 voted present/not voting
select this vote	Senate	Senate 3rd Reading SB590 Calderon	5/31/2011	This bill PASSED the Senate 28 voted YES 9 voted NO 3 voted present/not voting
select this vote	Assembly Committee on Insurance	Do pass as amended and be re-referred to the Committee on Appropriations.	7/06/2011	This motion PASSED the Assembly Committee on Insurance 11 voted YES 0 voted NO 1 voted present/not voting
select this vote	Assembly Committee on Appropriations	Do pass, to Consent Calendar.	8/17/2011	This motion PASSED the Assembly Committee on Appropriations 17 voted YES 0 voted NO 0 voted present/not voting
select this vote	Assembly	SB 590 Calderon Senate Third Reading By FUENTES	9/01/2011	This bill PASSED the Assembly 71 voted YES 5 voted NO 4 voted present/not voting
currently selected	Senate	Unfinished Business SB590 Calderon Concurrence	9/07/2011	This bill PASSED the Senate 27 voted YES 12 voted NO 1 voted present/not voting

	Action	Date	Description
	Introduced	2/17/2011
		2/17/2011	Introduced. Read first time. To Com. on RLS. for assignment. To print.
		2/18/2011	From printer. May be acted upon on or after March 20.
		3/03/2011	Referred to Com. on INS.
		3/09/2011	Set for hearing March 23.
select this vote	Vote	3/23/2011	Do pass as amended, and re-refer to the Committee on Appropriations.
		3/30/2011	From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 2. Page 453.) (March 23).
		3/31/2011	Read second time and amended. Re-referred to Com. on APPR.
		4/05/2011	Set for hearing April 11.
		4/11/2011	From committee: Be placed on second reading file pursuant to Senate Rule 28.8.
		4/12/2011	Read second time. Ordered to third reading.
		5/31/2011	Read third time. Passed. (Ayes 28. Noes 9. Page 1169.) Ordered to the Assembly.
select this vote	Senate Vote on Passage	5/31/2011	Senate 3rd Reading SB590 Calderon
		6/01/2011	In Assembly. Read first time. Held at Desk.
		6/09/2011	Referred to Com. on INS.
		6/22/2011	Set, first hearing. Hearing canceled at the request of author.
		7/01/2011	From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.
select this vote	Vote	7/06/2011	Do pass as amended and be re-referred to the Committee on Appropriations.
		7/11/2011	From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 6).
		7/12/2011	Read second time and amended. Re-referred to Com. on APPR.
select this vote	Vote	8/17/2011	Do pass, to Consent Calendar.
		8/18/2011	From committee: Do pass. Ordered to consent calendar. (Ayes 17. Noes 0.) (August 17).
		8/22/2011	Read second time. Ordered to consent calendar.
		8/25/2011	From consent calendar. Ordered to third reading.
		8/29/2011	Read third time and amended. (Page 2639.) Ordered to third reading.
		9/01/2011	Read third time. Passed. (Ayes 71. Noes 5. Page 2774.) Ordered to the Senate.
		9/01/2011	In Senate. Concurrence in Assembly amendments pending.
select this vote	Assembly Vote on Passage	9/01/2011	SB 590 Calderon Senate Third Reading By FUENTES
		9/07/2011	Assembly amendments concurred in. (Ayes 27. Noes 12. Page 2337.) Ordered to engrossing and enrolling.
currently selected	Senate Vote on Passage	9/07/2011	Unfinished Business SB590 Calderon Concurrence
		9/12/2011	Enrolled and presented to the Governor at 3:30 p.m.
	Vetoed	9/30/2011	Vetoed by the Governor.
		9/30/2011	In Senate. Consideration of Governor's veto pending.
		3/01/2012	Consideration of Governor's veto stricken from file. Veto sustained.