BILL NUMBER: AB 2780INTRODUCED BILL TEXT INTRODUCED BY Committee on Insurance (Solorio (Chair), Bradford, Carter, Feuer, Hayashi, Nava, and Torres) MARCH 3, 2010 An act to amend Sections 674.9, 1874.86, and 12962 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST AB 2780, as introduced, Committee on Insurance. Insurance: reporting requirements. (1) Existing law requires each insurer writing liability insurance for long-term health care facilities, residential care facilities for the elderly, or physicians who provide or oversee the provision of services to residents in long-term health care facilities or residential care facilities for the elderly to report to the Insurance Commissioner specified information regarding liability policies for those facilities or physicians by a date to be set by the commissioner, but not later than July 1 of each calendar year. This bill would instead require the report by a date set by the commissioner without restriction, except that the report shall be required not more than once each calendar year. (2) Existing law requires each insurer that issues automobile liability or collision policies to report annually to the Department of Insurance regarding the number of vehicles inspected for which it has approved a claim for the cost of auto body repairs, the percentage that number represents of the total number of vehicles it paid an auto body repair claim in the prior calendar year, and the results of the inspection, including any fraud uncovered and whether any legal action was pursued. This bill would make change the reporting requirement so that the report need only be submitted at the request of the commissioner and not more than annually. (3) Existing law requires the commissioner to report annually to the Governor, the Legislature, and the committees of the Senate and Assembly having jurisdiction over insurance an analysis of information, including, but not limited to, certain medical malpractice insurance statistics reported by insurers upon the request of the commissioner. This bill would eliminate the analysis of information from medical malpractice insurance statistical reports from the commissioner's annual report and would eliminate an obsolete reference. 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 674.9 of the Insurance Code is amended to read: 674.9. (a) Notwithstanding subdivision (b) of Section 674.6, an insurer issuing policies of liability insurance to long-term health care facilities, residential care facilities for the elderly, or physicians who provide or oversee the provision of services to residents in long-term health care facilities or residential care facilities for the elderly shall notify the department at least 90 days prior to the date it intends to cease, withdraw, or substantially withdraw from offering liability policies to those facilities or physicians. (b) Each insurer writing liability insurance for long-term health care facilities, residential care facilities for the elderly, or physicians who provide or oversee the provision of services to residents in long-term health care facilities or residential care facilities for the elderly shall, by a date to be set by the commissioner, butin any event no later than July 1 ofnot more than once each calendar year, report to the commissioner information specified by him or her regarding liability policies for those facilities or physicians. The information shall include, but not be limited to, the following: (1) Whether the insurer is writing coverage for long-term health care facilities, residential care facilities for the elderly, or physicians who provide or oversee the provision of services to residents in long-term health care facilities or residential care facilities for the elderly, including new and renewal policies, and the types of policies it is writing. (2) The number and types of long-term health care facilities or residential care facilities for the elderly and beds covered. (3) The total amount of premiums from insureds, both written and earned, during the immediately preceding five calendar years. (4) The total number of claims received, including the amount per claim. (5) The number of claims incurred, together with the monetary amount reserved for loss and defense and cost containment expense for the immediately preceding accident year or report year. (6) The number of claims closed with payment during the immediately preceding five calendar years, the total monetary amount paid for loss thereon, reported by the year the claim was incurred, and the total defense and cost containment expense paid thereon, reported by the year the claim was incurred. (7) The monetary amount paid on claims, including the amount paid per claim, during the immediately preceding five calendar years to be reported separately by the year the claim was incurred, with defense and cost containment expense paid. (8) The number of claims closed without payment during the immediately preceding five calendar years, reported by the year the claim was incurred, and the defense and cost containment expense paid thereon. (9) The monetary amount reserved in the annual statement for loss and defense cost containment expense for the immediately preceding calendar year for outstanding claims incurred but not reported to the insurer. (10) The number and types of lawsuits filed against the insureds in the immediately preceding calendar year. (11) Annualized information on investment income or loss,whichthat shall be consistent with the reported information provided by insurers to the National Association of Insurance Commissioners. (c) For the purposes of information collection conducted pursuant to this section, first priority shall be given by the department and commissioner to collecting and compiling information from insurers concerning long-term health care facilities and physicians providing services in those facilities, and, to the extent that departmental resources allow, secondary priority shall then be given to the collecting and compiling of information concerning residential care facilities for the elderly and the physicians who provide services in those facilities. (d) Information that is collected for long-term health care facilities and the physicians for those facilities shall be collected, maintained, analyzed, and reported separately from information that is collected, maintained, analyzed, and reported concerning residential care facilities for the elderly, and the physicians for those facilities. (e) As used in this section, "long-term health care facility" has the same meaning as that term is defined in Section 1418 of the Health and Safety Code. (f) As used in this section, "residential care facilities for the elderly" has the same meaning as that term is defined in Section 1569.2 of the Health and Safety Code. (g) Information collected by the department pursuant to this section shall be deemed official information and subject to the disclosure protections of Section 1040 of the Evidence Code. Nothing in this section shall require individualized information that would identify the amount paid by a specific insurer or facility to be released. However, nothing in this subdivision shall prevent the department from preparing reports and policy recommendations based on the data collected pursuant to this section. SEC. 2. Section 1874.86 of the Insurance Code is amended to read: 1874.86. Each insurer subject to this article shall report , at the request of the commissioner, but not more than annually , to the department on the following: (a) The number of vehicles inspected pursuant to Section 1874.85 and the percentage that this number represents of the total number of vehicles for which it paid a claim for the cost of auto body repairs in the prior calendar year. (b) The results of the inspections, including the nature of any fraud uncovered, and whether or not legal action was pursued. The department shall make the information provided pursuant to this section available to the California Highway Patrol and the Bureau of Automotive Repair. SEC. 3. Section 12962 of the Insurance Code is amended to read: 12962. The commissioner shall report to the Governor, the Legislature, and to the committees of the Senate and Assembly having jurisdiction over insurance all of the following in the annual report submitted pursuant to Section 12922: (a) An analysis of the information required by Sections 674.5, 1857.7, 1857.9, 1864, 11555.2, and 12963, including, but not limited to, all of the following: (1) An aggregate and an average for all insurers for each item of information required by these sections. (2) The number of insurers reporting policies written for each class during the calendar year. (3) For each class, the number of insurers reporting a combined loss ratio of 100 percent or more, and the number reporting a combined loss ratio of under 100 percent. (4) An analysis of adjustments made to loss reserves for prior years. (5) The change in any item required to be included by paragraphs (1) to (4), inclusive, from the immediately prior year. (b) An analysis of the activities of the Department of Insurance in implementing the provisions of Proposition 103 on the November 8, 1988, general election ballot, as set forth in Article 10 (commencing with Section 1861.01) of Chapter 9 of Part 2 of Division 1. (c) Recommendations and proposals, including suggested legislation, to protect consumers from arbitrary insurance rates and practices, to encourage a competitive insurance marketplace, to provide for an accountable Insurance Commissioner, and to ensure that insurance is fair, available, and affordable for all Californians.(d) An analysis on the results of the program to reduce the number of uninsured motorists and the relationship to affordable private passenger vehicle liability insurance rates pursuant to Sections 4750.2 and 4750.4 of the Vehicle Code.(e)(d) The requirements of this section shall be satisfied if the analysis required by this section is included in the annual report to the Governor required by Section 12922, and a copy of that report is provided to the Legislature.