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| 1 | + | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1315Introduced by Assembly Member CalderonFebruary 16, 2023 An act to amend Section 1971 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1315, as introduced, Calderon. Marine insurance.Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.This bill would make technical, nonsubstantive changes to that provision.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 1971 of the Insurance Code is amended to read:1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1315Introduced by Assembly Member CalderonFebruary 16, 2023 An act to amend Section 1971 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1315, as introduced, Calderon. Marine insurance.Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.This bill would make technical, nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO | |
| 4 | 4 | ||
| 5 | - | Amended IN Assembly March 09, 2023 | |
| 6 | 5 | ||
| 7 | - | Amended IN Assembly March 09, 2023 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 1315 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member CalderonFebruary 16, 2023 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Assembly Member Calderon | |
| 18 | 18 | February 16, 2023 | |
| 19 | 19 | ||
| 20 | - | An act to amend Section 1971 | |
| 20 | + | An act to amend Section 1971 of the Insurance Code, relating to insurance. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | AB 1315, as | |
| 26 | + | AB 1315, as introduced, Calderon. Marine insurance. | |
| 27 | 27 | ||
| 28 | - | Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law requires the Insurance Commissioner to develop a pamphlet to provide specified information to small business owners and others on the key features of, and suggested ways of purchasing, commercial property insurance. Existing law requires the pamphlet, to the extent feasible, to be made available to persons operating small businesses, business groups, chambers of commerce, and other persons and groups. Commencing on July 1, 2024, and at least every 5 years thereafter, this bill would require the commissioner to complete a revision of that pamphlet. The bill would also make technical, nonsubstantive changes to those provisions. Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.This bill would make technical, nonsubstantive changes to that provision. | |
| 29 | - | ||
| 30 | - | Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law requires the Insurance Commissioner to develop a pamphlet to provide specified information to small business owners and others on the key features of, and suggested ways of purchasing, commercial property insurance. Existing law requires the pamphlet, to the extent feasible, to be made available to persons operating small businesses, business groups, chambers of commerce, and other persons and groups. | |
| 31 | - | ||
| 32 | - | Commencing on July 1, 2024, and at least every 5 years thereafter, this bill would require the commissioner to complete a revision of that pamphlet. The bill would also make technical, nonsubstantive changes to those provisions. | |
| 28 | + | Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.This bill would make technical, nonsubstantive changes to that provision. | |
| 33 | 29 | ||
| 34 | 30 | Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half. | |
| 35 | 31 | ||
| 36 | - | ||
| 37 | - | ||
| 38 | 32 | This bill would make technical, nonsubstantive changes to that provision. | |
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| 40 | - | ||
| 41 | 33 | ||
| 42 | 34 | ## Digest Key | |
| 43 | 35 | ||
| 44 | 36 | ## Bill Text | |
| 45 | 37 | ||
| 46 | - | The people of the State of California do enact as follows:SECTION 1. Section | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 1971 of the Insurance Code is amended to read:1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned. | |
| 47 | 39 | ||
| 48 | 40 | The people of the State of California do enact as follows: | |
| 49 | 41 | ||
| 50 | 42 | ## The people of the State of California do enact as follows: | |
| 51 | 43 | ||
| 52 | - | SECTION 1. Section | |
| 44 | + | SECTION 1. Section 1971 of the Insurance Code is amended to read:1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned. | |
| 53 | 45 | ||
| 54 | - | SECTION 1. Section | |
| 46 | + | SECTION 1. Section 1971 of the Insurance Code is amended to read: | |
| 55 | 47 | ||
| 56 | 48 | ### SECTION 1. | |
| 57 | 49 | ||
| 58 | - | ||
| 50 | + | 1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned. | |
| 59 | 51 | ||
| 60 | - | ||
| 52 | + | 1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned. | |
| 61 | 53 | ||
| 62 | - | ||
| 54 | + | 1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned. | |
| 63 | 55 | ||
| 64 | 56 | ||
| 65 | 57 | ||
| 66 | - | ||
| 58 | + | 1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true: | |
| 67 | 59 | ||
| 68 | - | (b) The pamphlet shall be completed by July 1, 1995, and to To the extent feasible, copies of the pamphlet shall be made available to persons operating small businesses, business groups, chambers of commerce, and other persons and groups. | |
| 69 | - | ||
| 70 | - | (c) The pamphlet shall provide information on the key features of commercial property insurance and recommend steps for purchasing this insurance. The pamphlet shall include, but not be limited to, providing information on the following: | |
| 71 | - | ||
| 72 | - | (1) Various types of commercial insurance. | |
| 73 | - | ||
| 74 | - | (2) Limits of liability in policies, including that limits for the following: | |
| 75 | - | ||
| 76 | - | (A) Structures. | |
| 77 | - | ||
| 78 | - | (B) Personal property. | |
| 79 | - | ||
| 80 | - | (C) Inventory. | |
| 81 | - | ||
| 82 | - | (D) Business interruption. | |
| 83 | - | ||
| 84 | - | (3) Deductibles. | |
| 85 | - | ||
| 86 | - | (d) Commencing on July 1, 2024, and at least every five years thereafter, the commissioner shall complete a revision of the pamphlet required under this section. | |
| 87 | - | ||
| 88 | - | ||
| 89 | - | ||
| 90 | - | ||
| 91 | - | ||
| 92 | - | In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof that is separately valued by the policy or otherwise separately insured, if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in Section 1963, if any of the following circumstances is true: | |
| 93 | - | ||
| 94 | - | ||
| 95 | - | ||
| 96 | - | (a)More than half in value of the subject matter is actually lost by the peril, or would have to be expended to recover it from the peril. | |
| 97 | - | ||
| 98 | - | ||
| 60 | + | (a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril. | |
| 99 | 61 | ||
| 100 | 62 | (b) The subject matter is injured to such an extent as to reduce its value more than half. | |
| 101 | 63 | ||
| 64 | + | (c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances. | |
| 102 | 65 | ||
| 103 | - | ||
| 104 | - | (c)The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk that a prudent person would not take under the circumstances. | |
| 105 | - | ||
| 106 | - | ||
| 107 | - | ||
| 108 | - | (d)The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk that a prudent person would not take under the circumstances. However, freightage cannot be abandoned unless the ship also is abandoned. | |
| 66 | + | (d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned. |