California Assembly Bill AB2776 Latest Draft

 BILL NUMBER: AB 2776INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Chu FEBRUARY 19, 2016 An act to amend Section 790.034 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST AB 2776, as introduced, Chu. Insurance: claims settlement. Existing law specifies various acts that are defined as unfair methods of competition and deceptive acts or practices in the business of insurance. Existing law, on January 1, 2017, requires that regulations adopted by the Insurance Commissioner, with regard to unfair business practices as it relates to the settlement of claims, take into consideration settlement practices by classes of insurers, and every insurer, upon receiving notice of a claim, is required to immediately, but no more than 15 calendar days after receipt of the claim, provide the insured with a legible reproduction of specified provisions of law along with a written notice containing specified language. This bill would make technical, nonsubstantive changes to that provision. 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 790.034 of the Insurance Code, as added by Section 7 of Chapter 348 of the Statutes of 2015, is amended to read: 790.034. (a) Regulations adopted by the commissioner pursuant to this article that relate to the settlement of claims shall take into consideration settlement practices by classes of insurers. (b) (1) Upon receiving notice of a claim,  every   each  insurer shall immediately, but  no   not  more than 15 calendar days after receipt of the claim, provide the insured with a legible reproduction of subdivisions (h) and (i) of Section 790.03 along with a written notice containing the following language in at least 10-point type: "In addition to Section 790.03 of the Insurance Code, Fair Claims Settlement Practices Regulations govern how insurance claims must be processed in this state. These regulations are available at the Department of Insurance Internet Web site, www.insurance.ca.gov, or by calling the department's consumer information line at 1-800-927-HELP(4357). You may also obtain a copy of this law and these regulations free of charge from this insurer." (2) Every insurer shall provide, when requested orally or in writing by an insured, a legible reproduction of Section 790.03  of the Insurance Code  and copies of Sections 2695.5, 2695.7, 2695.8, and 2695.9 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, unless the regulations are inapplicable to that class of insurer. This law and these regulations shall be provided to the insured within 15 calendar days of request. (3) The provisions of this subdivision shall apply to all insurers except for those that are licensed pursuant to Chapter 1 (commencing with Section 12340) of Part 6 of Division 2, with respect to policies and endorsements described in Section 790.031. (c) This section shall become operative on January 1, 2017.