California Assembly Bill AB822 Amended / Bill

 BILL NUMBER: AB 822AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 6, 2015 INTRODUCED BY Assembly Member Cooley FEBRUARY 26, 2015 An act to add Section 1063.18 to the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST AB 822, as amended, Cooley. Insurance: California Insurance Guarantee Association: insolvency. Existing law creates the California Insurance Guarantee Association (CIGA) and requires all insurers admitted to transact insurance in this state to become members. Existing law requires CIGA to collect premium payments from members and to discharge covered claims, as defined, of an insolvent insurer. CIGA is required to allocate its claim payments and costs based on categories of insurance, including, but not limited to, workers' compensation claims and  homeowners'claims   homeowners' claims  . This bill would provide that the laws described above governing CIGA do not require  the   a  final  adjudication   determination  of  claims   a claim  in an insolvent insurer's liquidation  proceedings   proceeding  before a covered claim may be submitted to CIGA. The bill would provide that these laws also do not require a claim to first be  adjudicated   determined  and approved by the liquidator before CIGA pays and discharges a covered claim. The bill would also provide that if the association provides written denial of a claim, the person asserting the claim  against the association  has one year to bring an action  against the association  challenging the denial  , including an action for declaratory relief  . This bill would also  provide that   require,  if the written denial is based on a failure to exhaust other insurance available to pay the claim, a claim must   to  be reasserted against the association within 6 months after all other insurance has been exhausted. 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 1063.18 is added to the Insurance Code, to read: 1063.18. (a) Nothing in this article requires  the   a  final  adjudication of claims   determination of a claim  in an insolvent insurer' s liquidation proceedings   proceeding  before a covered claim may be submitted to the California Insurance Guarantee Association (CIGA). Nothing in this article requires a claim to first be  adjudicated   determined  and approved by the liquidator before CIGA pays and discharges a covered claim. If a claim is presented to the association and all requirements for processing a covered claim are satisfied, the association shall  proceed to  process the claim for payment under this article. (b) If the association provides a written denial of a claim,  then  the person asserting the claim  against the association  shall have one year to bring an action  against the association  challenging the denial  , including an action for declaratory relief  . If the written denial is based on  the   a  failure to exhaust other insurance available to pay the claim, a claim  must   shall  be reasserted against the association within six months after all other insurance has been exhausted.