California Senate Bill SB1449 Amended / Bill

 BILL NUMBER: SB 1449AMENDED BILL TEXT AMENDED IN SENATE APRIL 17, 2012 AMENDED IN SENATE MARCH 29, 2012 INTRODUCED BY Senator Calderon FEBRUARY 24, 2012 An act to add  Section   Sections  101.5  and 101.6  to the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST SB 1449, as amended, Calderon. Life insurance  and annuities  . Existing law governs the business of insurance and defines various types of insurance for these purposes, including life insurance, and disability insurance. This bill would provide that a life insurance policy that includes accelerated  payment of part or all of the  death benefits, a waiver of a premium benefit, or a waiver of surrender charges  for annuity contracts  , as specified,  or an annuity that includes a waiver of surrender charges,   would   shall  be deemed to be life insurance  or annuity coverage, as applicable  and would   shall  not be subject to provisions governing disability  , health, or long-term care  insurance, unless those provisions also apply to life insurance  or annuities, as applicable  . Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 101.5 is added to the   Insurance Code   , to read:   101.5. If a policy of life insurance includes any of the following provisions, the policy shall be deemed to be life insurance and shall not be subject to provisions governing disability, health, or long-term care insurance unless those provisions also apply to life insurance: (a) Accelerated payment of part or all of the death benefits if an insured becomes confined in an eligible institution; needs extraordinary medical intervention; has a medical condition that, in the absence of extensive or extraordinary medical treatment, would result in a drastically reduced life span; is unable to perform a specified number of activities of daily living; or is cognitively impaired. (b) Waiver of premium benefit until the end of disability of the insured or the attainment of an age as established by the insurer. (c) Waiver of surrender charges if the insured has been diagnosed with a limited life expectancy, is receiving care from a health care facility, has a medical condition that may reduce his or her life expectancy, is disabled and unable to perform tasks of daily living or be employed, or is cognitively impaired.   SEC. 2.   Section 101.6 is added to the   Insurance Code   , to read:   101.6. If an annuity includes a waiver of surrender charges for an annuitant or beneficiary who is diagnosed with a limited life expectancy, is receiving care from a health care facility, has a medical condition that may reduce his or her life expectancy, is disabled and unable to perform tasks of daily living or be employed, or is cognitively impaired, the annuity shall be deemed to be annuity coverage and shall not be subject to provisions governing disability, long-term care, and health insurance, unless those provisions also apply to annuities.   SECTION 1.   Section 101.5 is added to the Insurance Code, to read: 101.5. If a policy of life insurance includes any of the following provisions, the policy shall be deemed to be life insurance and shall not be subject to provisions governing disability insurance, unless those provisions also apply to life insurance: (a) Accelerated death benefits. (b) Waiver of a premium benefit for a life insurance policy until the end of a disability of the insured or the attainment of an age as established by the insurer. (c) Waiver of surrender charges for annuity contracts if the insured or beneficiary has been diagnosed with a limited life expectancy, is receiving care from a health care facility, has a medical condition that may reduce his or her life expectancy, is disabled and unable to perform tasks of daily living or be employed, or is cognitively impaired.