California Senate Bill SB1451 Introduced / Bill

 BILL NUMBER: SB 1451INTRODUCED BILL TEXT INTRODUCED BY Senator Calderon FEBRUARY 24, 2012 An act to amend Section 1104 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST SB 1451, as introduced, Calderon. Insurance: loans. Existing law prohibits an admitted insurer from making any loan, other than a policy loan, to any officer, director, trustee, or other person having authority in the management of its funds, and the officer, director, trustee, or other person is prohibited from accepting the loan. The prohibition does not include a loan to, or for the benefit of, an employee for the purpose of paying the premiums on a life insurance policy on the life of the employee. This bill would include as exceptions to the loan prohibition, startup loans to an agent, or policy loans by parties subject to the laws regulating fraternal benefit societies. 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 1104 of the Insurance Code is amended to read: 1104. An admitted insurer shall not make any loan, other than a policy loan, to any officer, director, trustee  ,  or other person having authority in the management of its funds, nor shall  such   that  officer, director, trustee  ,  or other person accept  any such   the  loan. This section does not prohibit a loan to, or for the benefit of, an employee for the purpose of paying the premiums on a life insurance policy on the life of  such   that  employee  , agent startup loans, or policy loans by parties subject to Chapter 10 (commencing with Section 10970) of Part 2 of Division 2 regarding fraternal benefit societies  .