California Senate Bill SB989 Latest Draft

 BILL NUMBER: SB 989INTRODUCED BILL TEXT INTRODUCED BY Senator Fuller FEBRUARY 10, 2016 An act to amend Section 779.2 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST SB 989, as introduced, Fuller. Insurance: life and disability. Under existing law, the Insurance Commissioner, who controls the Department of Insurance, regulates insurers and specified classes of insurance, including life insurance and disability insurance. This bill would make technical, nonsubstantive changes to those provisions. 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 779.2 of the Insurance Code is amended to read: 779.2.  All life   (a)     Life    insurance  and all   or  disability insurance sold in connection with  loans   a loan  or other credit  transactions shall be   transaction is  subject to  the provisions of  this article, except  (a) such insurance   under either of the following circumstances:   (1)     Insurance  sold in connection with a loan or other credit transaction  having a term  of more than 10  years duration, and (b) such insurance where its issuance is an   years.     (2)     Insurance sold in an  isolated transaction  on the part of   by  the insurer  that is  not related to an agreement or a plan or regular course of conduct for insuring debtors of the creditor.  Nothing in this article   (b)     This article  shall  not  be construed to relieve any person from compliance with any other applicable  law of this state,   law,  including, but not limited to, Article 6.5 (commencing with Section 790),  nor shall anything in this article be construed so as   or  to alter, amend, or otherwise affect existing case law.  For the purpose of   (c)     For purposes of  this article: (1) "Credit life insurance" means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction, exclusive of any  such  insurance procured at no expense to the debtor. Insurance shall be deemed procured at no expense to the debtor unless the cost of the credit transaction to the debtor varies depending on whether  or not  the insurance is procured. (2) "Credit disability insurance" means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is  disabled   disabled,  as defined in the policy, exclusive of any insurance procured at no expense to the debtor. Insurance shall be deemed to have been procured at no expense to the debtor unless the cost of the credit transaction to the debtor varies depending on whether  or not the insurance is procured. (3) "Creditor" means the lender of money or vendor or lessor of goods, services, property, rights or privileges, for which payment is arranged through a credit transaction or any successor to the right, title or interest of  any such   the  lender, vendor or lessor, and an affiliate, associate or subsidiary of any of them or any director,  officer   officer,  or employee of any of  them   them,  or any other person in any way associated with any of them. (4) "Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction. (5) "Indebtedness" means the total amount payable by a debtor to a creditor in connection with a loan or other credit transaction.