BILL NUMBER: SB 119	CHAPTERED
	BILL TEXT

	CHAPTER  30
	FILED WITH SECRETARY OF STATE  AUGUST 6, 2009
	APPROVED BY GOVERNOR  AUGUST 5, 2009
	PASSED THE SENATE  MAY 14, 2009
	PASSED THE ASSEMBLY  JULY 1, 2009
	AMENDED IN SENATE  MAY 12, 2009

INTRODUCED BY   Senator Wyland

                        FEBRUARY 2, 2009

   An act to amend Section 678.3 of the Insurance Code, relating to
professional liability insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 119, Wyland. Professional liability insurance: insurers: bad
faith.
   Existing law prohibits the bringing of an action against an
insurer issuing professional liability insurance policies to health
care providers for statements made in bad faith unless the statement
was made under a specified circumstance. Under existing law, that
provision is repealed as of January 1, 2011, unless another statute
deletes or extends that date.
   This bill would extend that date to January 1, 2013.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 678.3 of the Insurance Code is amended to read:

   678.3.  (a) There shall be no liability on the part of, and no
cause of action of any nature shall arise against, any insurer that
issues professional liability insurance policies to health care
providers or its authorized representatives, agents, or employees, or
any licensed insurance agent or broker, for any statement made,
unless shown to have been made in bad faith, by any of them in any of
the following:
   (1) A written notice of nonrenewal, or any other oral or written
communication specifying the reasons for nonrenewal of a policy
issued to a health care provider.
   (2) Any communication providing information pertaining to the
nonrenewal.
   (3) Evidence submitted at any court proceeding or informal inquiry
in which the nonrenewal is an issue.
   (b) This section shall apply only to nonrenewals for which written
notice is provided by the insurer on or after January 1, 2006.
   (c) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.