BILL NUMBER: SB 701AMENDED BILL TEXT AMENDED IN SENATE APRIL 16, 2015 INTRODUCED BY Senator Berryhill FEBRUARY 27, 2015 An act to amend Section 10752.4 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST SB 701, as amended, Berryhill. Stop-loss insurance coverage: attachment points. Existing law prohibits a stop-loss insurance policy issued, reissued, or renewed on or after January 1, 2016, to a small employer from containing an aggregate attachment point for a policy year that is less than the greater of one of the following: $5,000 multiplied by the total number of group members, 120% of expected claims, or $40,000. This bill would instead require that the $5,000 per group member attachment point be changed to $2,500 per qualified employee. 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 10752.4 of the Insurance Code is amended to read: 10752.4. A stop-loss insurance policy issued, reissued, or renewed on or after January 1, 2016, to a small employer shall not contain any of the following provisions: (a) An individual attachment point for a policy year that is less than forty thousand dollars ($40,000). (b) An aggregate attachment point for a policy year that is less than the greater of one of the following: (1) Two thousand five hundred dollars ($2,500) per qualified employee. (2) One hundred twenty percent of expected claims. (3) Forty thousand dollars ($40,000). (c) A provision for direct coverage of an employee or dependent of an employee.