Legislative Update -- Floor Sessions

The Assembly Floor passed the following measures this past week:

AB 267 (Swanson): This bill would prohibit any choice of law clause, venue-selection clause, or forum-selection clause in binding employment materials that are imposed on an employee as a condition of employment.

AB 267 passed the Assembly with a vote of 49-26.

AB 771 (Butler): This bill would allow a homeowners association to charge a reasonable fee for the procurement, preparation, reproduction, or delivery of the documents required to be provided to a prospective buyer before the transfer of title or execution of a sales contract and creates a disclosure form that a seller must provide to a buyer including the cost of each disclosure document.

AB 771 passed the Assembly with a vote of 76-0.

AB 878 (Berryhill): This bill would require that a workers' compensation insurer report to the Contractors State License Board when a licensee's insurance is cancelled due to failure to pay the premium, failure to report payroll, material misrepresentation by the policy holder, or failure to cooperate with the insurer in a claim investigation.

AB 878 passed the Assembly with a vote of 75-0.

AB 1098 (Hagman): This bill would require the Department of Insurance make a request in writing when they ask an insurer to disclose the fact that they denied a registered auto body repair shop participation in their direct repair program.

AB 1098 passed the committee with a vote of 75-0.

AB 1416 (Committee on Insurance): This is the annual omnibus Assembly Insurance Committee bill.  This bill would repeal obsolete insurance code provisions and makes technical corrections and updates to the codes.

AB 1416 passed the Assembly with a vote of 75-0.

AB 1425 (Committee on Insurance): This bill would require regulations adopted by the Insurance Commissioner relating to life settlements to be adopted pursuant to the Administrative Procedure Act.

AB 1425 passed the Assembly with a vote of 75-0.

The Senate heard and passed the following measures:

SB 6 (Calderon): This bill would update California’s Real Estate Law, Appraisal Law, and Civil Code, to reflect recent changes enacted at the federal level, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

SB 6 passed the Senate with a vote of 39-0.

SB 458 (Corbett): Existing law prohibits a lender from receiving a judgment for a deficiency after a short sale on a first mortgage or deed of trust, as specified. This bill would expand that anti-deficiency protection for all mortgages or deeds of trust, provided that the holder of the mortgage or deed of trust consents to the short sale.  This bill would also restate the above prohibition to clarify that the provisions do not impact multiple collateral loans.

SB 458 passed the Senate with a vote of 39-0.

SB 712 (Committee on Insurance): This bill would require every admitted property and casualty insurer, unless exempt, to annually submit a Statement of Actuarial Opinion with supporting documents and an Actuarial Opinion Summary, as specified, and exempts from public disclosure, required under the California Public Records Act, all actuarial reports, workpapers, or opinion summaries submitted in support of the Statement of Actuarial Opinion, and such records would not be subject to subpoena or discovery, or be admissible in evidence in any private party civil action.

SB 712 passed the Senate with a vote of 39-0.

SB 713 (Calderon): This bill would establish the Life Insurance Proceeds Disclosure Act of 2011, which requires life insurers to provide disclosures regarding death settlement payment options, including retained asset accounts, to policyholders and beneficiaries, as specified.  This bill would require the insurer to provide to the beneficiary a supplemental contract disclosing the rights of the beneficiary and obligations of the insurer if the beneficiary chooses death settlement payment to be placed into a retained asset account.

SB 713 passed the Senate with a vote of 39-0.

SB 715 (Calderon): This bill would require adoption of more stringent procedures to assess suitability of proposed annuity sales for customers, including requiring insurers to establish a system to supervise the suitability of annuity sale recommendations.  In addition, this bill would establish mandatory standards, procedures and processes, for insurers and producers, for assessing suitability and monitoring annuity sales recommendations made to consumers so that the insurance needs and financial objectives of consumers at the time of the transaction are appropriately addressed.

SB 715 passed the Senate with a vote of 39-0.