CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2520Introduced by Assembly Member CooperFebruary 14, 2018 An act to amend Sections 777.1 and 777.2 of the Insurance Code, relating to insurance.LEGISLATIVE COUNSEL'S DIGESTAB 2520, as introduced, Cooper. Insurance: inducements.Existing law prohibits an insurer from participating in a plan to offer or effect any kind of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property or services, without a separate charge to the insured for the insurance, with specified exceptions. Existing law prohibits an agent, broker, or solicitor from arranging the sale of that insurance. A willful violation of these provisions by an insurer, agent, broker, or solicitor is subject to suspension or revocation of his or her certificate, license, or other authority to do business or engage in his or her occupation for a period not exceeding one year.This bill would make technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 777.1 of the Insurance Code is amended to read:777.1. No (a) An insurer shall not participate in any a plan to offer or effect any kind or kinds of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, real or personal or mixed, or services, without any a separate charge to the insured for such the insurance, nor shall any an agent, broker, or solicitor arrange the sale of any such that insurance. The provisions of this article shall not be applicable to insurance(b) This article does not apply to any of the following:(1) Insurance written in connection with subscriptions to newspapers of general circulation; nor shall it apply to insurance circulation.(2) Insurance issued to credit unions or to members of credit unions in connection with the purchase of shares in such a the credit union; nor shall it apply to insurance union.(3) Insurance offered as a guarantee of the performance of goods, which insurance is designed to protect the purchasers or users of such goods; nor shall it be applicable to any title those goods.(4) Title insurance or life or disability insurance written in connection with an indebtedness, the purpose of which insurance is to pay the balance of the indebtedness in the event of the death or disability of the person insured; nor shall it be applicable to any of the insured.(5) The provisions of Part 5 (commencing at Section 12140), Division 2 of this code; nor shall it be applicable to insurance with Section 12140) of Division 2.(6) Insurance provided incidentally to the sale of services if the cost of the insurance to the seller of the services does not exceed the sum of one dollar ($1) per annum for each purchaser of those services.SEC. 2. Section 777.2 of the Insurance Code is amended to read:777.2. If any an insurer, agent, broker broker, or solicitor wilfully violates the provisions of this article, the Insurance Commissioner may suspend or revoke his or her certificate or license or other authority to do business or engage in his or her occupation for a period not exceeding one year. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2520Introduced by Assembly Member CooperFebruary 14, 2018 An act to amend Sections 777.1 and 777.2 of the Insurance Code, relating to insurance.LEGISLATIVE COUNSEL'S DIGESTAB 2520, as introduced, Cooper. Insurance: inducements.Existing law prohibits an insurer from participating in a plan to offer or effect any kind of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property or services, without a separate charge to the insured for the insurance, with specified exceptions. Existing law prohibits an agent, broker, or solicitor from arranging the sale of that insurance. A willful violation of these provisions by an insurer, agent, broker, or solicitor is subject to suspension or revocation of his or her certificate, license, or other authority to do business or engage in his or her occupation for a period not exceeding one year.This bill would make technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 2520
Introduced by Assembly Member CooperFebruary 14, 2018
Introduced by Assembly Member Cooper
February 14, 2018
An act to amend Sections 777.1 and 777.2 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2520, as introduced, Cooper. Insurance: inducements.
Existing law prohibits an insurer from participating in a plan to offer or effect any kind of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property or services, without a separate charge to the insured for the insurance, with specified exceptions. Existing law prohibits an agent, broker, or solicitor from arranging the sale of that insurance. A willful violation of these provisions by an insurer, agent, broker, or solicitor is subject to suspension or revocation of his or her certificate, license, or other authority to do business or engage in his or her occupation for a period not exceeding one year.This bill would make technical, nonsubstantive changes to these provisions.
Existing law prohibits an insurer from participating in a plan to offer or effect any kind of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property or services, without a separate charge to the insured for the insurance, with specified exceptions. Existing law prohibits an agent, broker, or solicitor from arranging the sale of that insurance. A willful violation of these provisions by an insurer, agent, broker, or solicitor is subject to suspension or revocation of his or her certificate, license, or other authority to do business or engage in his or her occupation for a period not exceeding one year.
This bill would make technical, nonsubstantive changes to these provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 777.1 of the Insurance Code is amended to read:777.1. No (a) An insurer shall not participate in any a plan to offer or effect any kind or kinds of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, real or personal or mixed, or services, without any a separate charge to the insured for such the insurance, nor shall any an agent, broker, or solicitor arrange the sale of any such that insurance. The provisions of this article shall not be applicable to insurance(b) This article does not apply to any of the following:(1) Insurance written in connection with subscriptions to newspapers of general circulation; nor shall it apply to insurance circulation.(2) Insurance issued to credit unions or to members of credit unions in connection with the purchase of shares in such a the credit union; nor shall it apply to insurance union.(3) Insurance offered as a guarantee of the performance of goods, which insurance is designed to protect the purchasers or users of such goods; nor shall it be applicable to any title those goods.(4) Title insurance or life or disability insurance written in connection with an indebtedness, the purpose of which insurance is to pay the balance of the indebtedness in the event of the death or disability of the person insured; nor shall it be applicable to any of the insured.(5) The provisions of Part 5 (commencing at Section 12140), Division 2 of this code; nor shall it be applicable to insurance with Section 12140) of Division 2.(6) Insurance provided incidentally to the sale of services if the cost of the insurance to the seller of the services does not exceed the sum of one dollar ($1) per annum for each purchaser of those services.SEC. 2. Section 777.2 of the Insurance Code is amended to read:777.2. If any an insurer, agent, broker broker, or solicitor wilfully violates the provisions of this article, the Insurance Commissioner may suspend or revoke his or her certificate or license or other authority to do business or engage in his or her occupation for a period not exceeding one year. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 777.1 of the Insurance Code is amended to read:777.1. No (a) An insurer shall not participate in any a plan to offer or effect any kind or kinds of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, real or personal or mixed, or services, without any a separate charge to the insured for such the insurance, nor shall any an agent, broker, or solicitor arrange the sale of any such that insurance. The provisions of this article shall not be applicable to insurance(b) This article does not apply to any of the following:(1) Insurance written in connection with subscriptions to newspapers of general circulation; nor shall it apply to insurance circulation.(2) Insurance issued to credit unions or to members of credit unions in connection with the purchase of shares in such a the credit union; nor shall it apply to insurance union.(3) Insurance offered as a guarantee of the performance of goods, which insurance is designed to protect the purchasers or users of such goods; nor shall it be applicable to any title those goods.(4) Title insurance or life or disability insurance written in connection with an indebtedness, the purpose of which insurance is to pay the balance of the indebtedness in the event of the death or disability of the person insured; nor shall it be applicable to any of the insured.(5) The provisions of Part 5 (commencing at Section 12140), Division 2 of this code; nor shall it be applicable to insurance with Section 12140) of Division 2.(6) Insurance provided incidentally to the sale of services if the cost of the insurance to the seller of the services does not exceed the sum of one dollar ($1) per annum for each purchaser of those services.
SECTION 1. Section 777.1 of the Insurance Code is amended to read:
### SECTION 1.
777.1. No (a) An insurer shall not participate in any a plan to offer or effect any kind or kinds of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, real or personal or mixed, or services, without any a separate charge to the insured for such the insurance, nor shall any an agent, broker, or solicitor arrange the sale of any such that insurance. The provisions of this article shall not be applicable to insurance(b) This article does not apply to any of the following:(1) Insurance written in connection with subscriptions to newspapers of general circulation; nor shall it apply to insurance circulation.(2) Insurance issued to credit unions or to members of credit unions in connection with the purchase of shares in such a the credit union; nor shall it apply to insurance union.(3) Insurance offered as a guarantee of the performance of goods, which insurance is designed to protect the purchasers or users of such goods; nor shall it be applicable to any title those goods.(4) Title insurance or life or disability insurance written in connection with an indebtedness, the purpose of which insurance is to pay the balance of the indebtedness in the event of the death or disability of the person insured; nor shall it be applicable to any of the insured.(5) The provisions of Part 5 (commencing at Section 12140), Division 2 of this code; nor shall it be applicable to insurance with Section 12140) of Division 2.(6) Insurance provided incidentally to the sale of services if the cost of the insurance to the seller of the services does not exceed the sum of one dollar ($1) per annum for each purchaser of those services.
777.1. No (a) An insurer shall not participate in any a plan to offer or effect any kind or kinds of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, real or personal or mixed, or services, without any a separate charge to the insured for such the insurance, nor shall any an agent, broker, or solicitor arrange the sale of any such that insurance. The provisions of this article shall not be applicable to insurance(b) This article does not apply to any of the following:(1) Insurance written in connection with subscriptions to newspapers of general circulation; nor shall it apply to insurance circulation.(2) Insurance issued to credit unions or to members of credit unions in connection with the purchase of shares in such a the credit union; nor shall it apply to insurance union.(3) Insurance offered as a guarantee of the performance of goods, which insurance is designed to protect the purchasers or users of such goods; nor shall it be applicable to any title those goods.(4) Title insurance or life or disability insurance written in connection with an indebtedness, the purpose of which insurance is to pay the balance of the indebtedness in the event of the death or disability of the person insured; nor shall it be applicable to any of the insured.(5) The provisions of Part 5 (commencing at Section 12140), Division 2 of this code; nor shall it be applicable to insurance with Section 12140) of Division 2.(6) Insurance provided incidentally to the sale of services if the cost of the insurance to the seller of the services does not exceed the sum of one dollar ($1) per annum for each purchaser of those services.
777.1. No (a) An insurer shall not participate in any a plan to offer or effect any kind or kinds of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, real or personal or mixed, or services, without any a separate charge to the insured for such the insurance, nor shall any an agent, broker, or solicitor arrange the sale of any such that insurance. The provisions of this article shall not be applicable to insurance(b) This article does not apply to any of the following:(1) Insurance written in connection with subscriptions to newspapers of general circulation; nor shall it apply to insurance circulation.(2) Insurance issued to credit unions or to members of credit unions in connection with the purchase of shares in such a the credit union; nor shall it apply to insurance union.(3) Insurance offered as a guarantee of the performance of goods, which insurance is designed to protect the purchasers or users of such goods; nor shall it be applicable to any title those goods.(4) Title insurance or life or disability insurance written in connection with an indebtedness, the purpose of which insurance is to pay the balance of the indebtedness in the event of the death or disability of the person insured; nor shall it be applicable to any of the insured.(5) The provisions of Part 5 (commencing at Section 12140), Division 2 of this code; nor shall it be applicable to insurance with Section 12140) of Division 2.(6) Insurance provided incidentally to the sale of services if the cost of the insurance to the seller of the services does not exceed the sum of one dollar ($1) per annum for each purchaser of those services.
777.1. No (a) An insurer shall not participate in any a plan to offer or effect any kind or kinds of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, real or personal or mixed, or services, without any a separate charge to the insured for such the insurance, nor shall any an agent, broker, or solicitor arrange the sale of any such that insurance. The provisions of this article shall not be applicable to insurance
(b) This article does not apply to any of the following:
(1) Insurance written in connection with subscriptions to newspapers of general circulation; nor shall it apply to insurance circulation.
(2) Insurance issued to credit unions or to members of credit unions in connection with the purchase of shares in such a the credit union; nor shall it apply to insurance union.
(3) Insurance offered as a guarantee of the performance of goods, which insurance is designed to protect the purchasers or users of such goods; nor shall it be applicable to any title those goods.
(4) Title insurance or life or disability insurance written in connection with an indebtedness, the purpose of which insurance is to pay the balance of the indebtedness in the event of the death or disability of the person insured; nor shall it be applicable to any of the insured.
(5) The provisions of Part 5 (commencing at Section 12140), Division 2 of this code; nor shall it be applicable to insurance with Section 12140) of Division 2.
(6) Insurance provided incidentally to the sale of services if the cost of the insurance to the seller of the services does not exceed the sum of one dollar ($1) per annum for each purchaser of those services.
SEC. 2. Section 777.2 of the Insurance Code is amended to read:777.2. If any an insurer, agent, broker broker, or solicitor wilfully violates the provisions of this article, the Insurance Commissioner may suspend or revoke his or her certificate or license or other authority to do business or engage in his or her occupation for a period not exceeding one year. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
SEC. 2. Section 777.2 of the Insurance Code is amended to read:
### SEC. 2.
777.2. If any an insurer, agent, broker broker, or solicitor wilfully violates the provisions of this article, the Insurance Commissioner may suspend or revoke his or her certificate or license or other authority to do business or engage in his or her occupation for a period not exceeding one year. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
777.2. If any an insurer, agent, broker broker, or solicitor wilfully violates the provisions of this article, the Insurance Commissioner may suspend or revoke his or her certificate or license or other authority to do business or engage in his or her occupation for a period not exceeding one year. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
777.2. If any an insurer, agent, broker broker, or solicitor wilfully violates the provisions of this article, the Insurance Commissioner may suspend or revoke his or her certificate or license or other authority to do business or engage in his or her occupation for a period not exceeding one year. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
777.2. If any an insurer, agent, broker broker, or solicitor wilfully violates the provisions of this article, the Insurance Commissioner may suspend or revoke his or her certificate or license or other authority to do business or engage in his or her occupation for a period not exceeding one year. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.