BILL NUMBER: SB 49 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 19, 1995
AMENDED IN SENATE MAY 23, 1995
AMENDED IN SENATE APRIL 18, 1995
INTRODUCED BY Senator Lockyer
DECEMBER 20, 1994
An act to add Section 3333.5 to the Civil Code, to add Sections
997.5 and 1141.115 to, to add Chapter 5.6 (commencing with Section
117.110) to Title 1 of Part 1 of, and to add Chapter 2.5 (commencing
with Section 997) to Title 14 of Part 2 of, the Code of Civil
Procedure, to amend Section 68616 of, and to add and repeal Section
68616.1 of, the Government Code, to amend Sections 11580.1 and
11580.2 of, to add Sections 1871.9, 11580.02, 11580.03, 11580.04,
11580.7, and 11580.71 to, and to add Article 6.59 (commencing with
Section 790.60) to Chapter 1 of Part 2 of Division 1 to, the
Insurance Code, to amend Section 550 of the Penal Code, and to amend
Sections 12810, 16056, 16377, 16430, 16451, 17151, 17709, 20002, and
20003 of, and to add Sections 4750.3, 9250.5, and 16006 to, the
Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
SB 49, as amended, Lockyer. Vehicles.
(1) Under existing law, in an action to recover damages for an
injury, evidence of benefits that the injured party is entitled to
receive from collateral sources is generally inadmissible.
This bill would provide that in a 3rd-party action for personal
injury arising out of the operation or use of a motor vehicle, the
recovery shall be reduced by amounts paid as a medical payment
benefit under a policy of motor vehicle insurance. The bill would
enact related provisions.
(2) Existing law establishes a small claims court, which has
jurisdiction where the demand does not exceed $5,000.
This bill would establish a small claims division for automobile
claims involving less than $10,000. It would apply to claims in
excess of $5,000. The bill would permit representation by attorneys
in those cases, subject to various limits.
(3) Existing law establishes various discovery procedures prior to
trial of an action.
This bill would require the mutual exchange of information in
connection with 3rd-party claims that seek or contest a claim for
money damages arising from a motor vehicle accident.
The bill would also permit the use of a medical injury profile as
evidence in a 3rd-party action involving a nonserious bodily injury.
(4) Existing law provides for judicial arbitration of claims where
the amount in controversy does not exceed $50,000.
This bill would require judicial arbitration of motor vehicle
accident claims involving 3rd-party liability for bodily injury if
the amount in controversy does not exceed $50,000. The bill would
provide for sanctions in certain instances.
(5) Existing law requires the adoption of trial court delay
reduction rules. Under existing law, parties may agree to a single
continuance within 30 days of service of pleadings.
This bill would permit agreement for a continuance at any time
following service of responsive pleadings and prior to the status
conference. This change would be repealed on July 1, 1998. The bill
would also permit a second continuance in certain cases involving
motor vehicle accidents until January 1, 2000.
(6) Existing law does not generally limit fees that health care
providers may charge.
This bill would provide that the charges for health care services
that are incurred as a result of an injury arising from a motor
vehicle accident may not exceed specified amounts.
(7) Existing law prohibits certain false and fraudulent acts in
connection with insurance claims.
This bill would provide for a 5-year sentence enhancement and
prohibit probation if the false claim, along with previous false
claims, involves $100,000 or more, as specified. It also would make
related changes.
(8) Existing law requires owners and operators of motor vehicles
to maintain liability insurance. Existing law requires that
insurance be in the amount of $15,000 for bodily injury to one
person, subject to a limit for bodily injury of $30,000, and in the
amount of $5,000 for property damage.
This bill would reduce those amounts to $10,000, $20,000, and
$3,000, respectively. It would permit insureds to waive the property
damage coverage if they are good drivers and purchase minimum
coverage, but would require medical payment coverage. This bill
would also provide that policies include binding arbitration of
3rd-party disputes concerning property damage or nonserious bodily
injury unless waived.
(9) Existing law provides for payment under uninsured motorist
coverage where the owner or operator is unknown only if the injury
arose out of physical contact between the uninsured vehicle and the
insured or with an automobile which the insured is occupying.
This bill would provide for payment in that circumstance only if
the bodily injury has arisen out of action of the motorist that
caused physical contact between property of that motorist and the
insured or with an automobile which the insured is occupying.
(10) Existing law does not authorize motor vehicle liability and
casualty insurers to require insureds and other claimants for motor
vehicle repair costs to have those repairs performed at a repair
facility under contract to the insurer.
This bill would authorize policies issued by these insurers to
require insureds and other claimants for repair of motor vehicle
damage in this state to have those repairs done at repair facilities
designated by, and under contract with, the insurer, as specified.
The bill would limit monetary liability of insurers to the cost of
repairs at a repair facility under contract with the insurer.
(11) This bill would require the Department of Motor Vehicles to
require, upon registration of a motor vehicle, evidence satisfactory
to the department that the owner of the motor vehicle is in
compliance with the financial responsibility laws.
(12) Existing law imposes registration and license fees for the
privilege of operating upon the public highways in this state any
vehicle of a type that is subject to registration under the Vehicle
Code, except as specified. These fees are collected by the
Department of Motor Vehicles and deposited to the credit of the Motor
Vehicle Account in the State Transportation Fund.
This bill would impose an additional $1 registration fee upon
every vehicle subject to registration, except as specified. The bill
would require all of the additional fees collected to be used, upon
appropriation by the Legislature, to reimburse the department for its
costs incurred in implementing the provision specified above
relating to verifying that the owner of a motor vehicle is in
compliance with the financial responsibility laws.
(13) Under existing law, the Department of Motor Vehicles may
refuse to issue or renew a driver's license to any person who is a
negligent operator. The determination of whether a person is a
negligent operator is based on the number of traffic violation points
the person acquires within a specified period. Under existing law,
certain traffic violations are given a value of 2 points and others
one point.
The bill would provide that a violation of the provision requiring
the wearing of a seatbelt does not result in a violation point
count.
(14) Existing law requires various reports to be made by persons
involved in motor vehicle accidents.
This bill would require certain reports to the person's insurer
and to the insurer for a person against whom a claim will be made.
(15) Existing law requires persons involved in accidents to
present their driver's license and other information on request, in
certain instances.
This bill would require that presentation without request, and
would require presentation of proof of financial responsibility.
Since a violation would be a crime, the bill would create a
state-mandated local program. The bill would require a willful
violation in order for the violation to be a crime.
The bill would require the Department of Motor Vehicles to include
information concerning these requirements in its "Drivers
Information Handbook," and to test for knowledge of these
requirements.
(16) The bill would set forth various findings
, and would request the Insurance
Commissioner to act in accordance with those findings
declarations .
(17) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide for costs relating to crimes that no
reimbursement is required by this act for a specified reason. For
other costs, it would provide that, if the Commission on State
Mandates determines that this bill contains costs mandated by the
state, reimbursement for those costs shall be made pursuant to those
statutory procedures.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3333.5 is added to the Civil Code, to read:
3333.5. (a) In a third-party action for personal injury arising
out of the operation or use of a motor vehicle, the judgment,
arbitration decision, or settlement for the plaintiff or claimant
shall be reduced by any amount paid as a benefit to the plaintiff or
claimant as a result of the personal injury from any medical payment
benefit under a policy of motor vehicle insurance.
(b) No source of benefits specified under subdivision (a) shall
recover any amounts against the plaintiff or claimant nor shall it be
subrogated to the rights of the plaintiff or claimant against a
defendant for any amount reduced under subdivision (a).
(c) In a third-party action or claim for personal injury arising
out of the operation or use of a motor vehicle, the plaintiff or
claimant shall give notice of that claim or action to any health or
sickness disability insurer, any nonprofit hospital service plan, or
any health care service plan that provided benefits to the plaintiff
or claimant injured by the operation or use of a motor vehicle. The
notice shall be given within 10 days of the filing of the claim or
complaint, whichever occurs first. The same notice shall be given to
any motor vehicle insurer providing medical payment benefits in
excess of three thousand dollars ($3,000).
(d) Where the plaintiff's or claimant's action results in the
creation or preservation of a fund, the proceeds of which a
collateral source of benefits provider is entitled as a result of
pursuing its lien or subrogation rights under the law, the plaintiff
or claimant may be awarded attorney's fees out of the fund in order
to require beneficiaries of the fund who did not actively participate
in the action to bear a fair share of the litigation costs.
(e) Any reduction of a plaintiff's or claimant's judgment,
arbitration decision, or settlement award pursuant to subdivision
(a):
(1) Shall not exceed three thousand dollars ($3,000).
(2) Shall take into account any comparative negligence reduction
of the award attributable to medical expenses paid under an
automobile insurance medical payment benefit.
SEC. 2. Chapter 5.6 (commencing with Section 117.110) is added to
Title 1 of Part 1 of the Code of Civil Procedure, to read:
CHAPTER 5.6. SMALL CLAIMS JURISDICTION FOR AUTOMOBILE INJURIES
117.110. Many automobile accident cases can be handled
expeditiously, efficiently, and economically in the relatively
informal setting of small claims court.
117.111. (a) Except as provided in this chapter, the provisions
of Chapter 5.5 (commencing with Section 116.110) shall apply to
actions filed pursuant to this chapter. The provisions of Chapter
2.5 (commencing with Section 997) of Part 2 of Title 14 shall not
apply to actions filed pursuant to this chapter or Chapter 5.5
(commencing with Section 116.110).
(b) Notwithstanding Section 116.220, beginning January 1, 1997,
the small claims court jurisdiction for a personal injury or property
damage claim, or both, arising out of an automobile collision is ten
thousand dollars ($10,000). The provisions of this chapter shall
apply to actions in which the claim exceeds five thousand dollars
($5,000).
(c) These automobile injury claims before the small claims court
shall be tried by a judge or court commissioner sitting without a
jury. A party may appeal a judgment of the court to the superior
court pursuant to Section 117.113.
(d) The filing fee for automobile cases filed with the small
claims court shall be forty dollars ($40) for a complaint or answer.
Five dollars ($5) of each fee charged and collected shall be
deposited in each county in a special account specified in Section
116.910 to fund the small claims advisor service.
(e) A party served with a claim shall answer using a form
specified in subdivision (f) within 30 days after service. Upon
failure to answer within the time period, the court may enter the
defendant's default.
(f) Forms for filing a claim or answer to an automobile injury or
property damage complaint in the small claims court shall be adopted
by the Judicial Council on or before January 1, 1997, and may be
adopted before that date notwithstanding any other applicable
operative date. The Judicial Council shall consult with members of
the trial bar, both plaintiff and defense, members of the general
public, and representatives of the insurance industry in preparing
forms for usage by the general public in the court. The form shall
advise a claimant filing in the small claims court of the
jurisdictional limit of the court and that the claimant's recovery in
the small claims court for damages for wage loss, medical expenses,
pain and suffering, and property damage would be limited to a total
of ten thousand dollars ($10,000).
(g) The case shall be scheduled for hearing within the time
periods specified in Section 116.330, however, the computation of
time shall commence with the filing of the answer, or, if no answer
is filed, with the expiration of the period for filing an answer.
(h) As used in this section, "automobile collision" means a
collision between two automobiles whether private passenger or
commercial, between an automobile and a pedestrian or bicyclist,
between an automobile and a motorcycle, between two motorcycles, or
between a motorcycle and a pedestrian or bicyclist.
117.112. (a) A defendant in a small claims action filed pursuant
to this chapter may move to transfer the case to municipal or justice
court. Election of the defendant to not transfer the case shall
constitute a waiver of the party's right to a jury trial on appeal to
the extent that the right exists.
(b) Parties to a small claims action filed pursuant to this
chapter may be represented by an attorney. An insurer may provide an
attorney to represent a defendant provided that the insurer
stipulates that its policy with the defendant covers the matter to
which the claim applies. If a plaintiff is not represented by an
attorney and the defendant is represented by an attorney or an
insurer's attorney, the small claims court shall conduct its
proceeding in light of the possibly disparate and unequal ability of
a nonattorney plaintiff to pursue effectively a claim, and shall
utilize its inherent judicial powers to achieve a just and equitable
resolution of the claim. If the claimant is not represented by an
attorney and the defendant is disputing the appropriateness or
necessity of health care treatment provided to the claimant, the
court shall continue the matter if the claimant did not have prior
notice and an opportunity to obtain witnesses or evidence to support
the claim.
117.113. (a) Except as otherwise provided in this section, the
provisions of Article 7 (commencing with Section 116.710) shall apply
to appeals and motions to vacate a judgment pursuant to this
chapter.
(b) Notwithstanding subdivision (c) of Section 116.780, for good
cause and where necessary to achieve substantial justice between the
parties, the superior court may award a party to an appeal, including
any settlement following a notice of appeal, reimbursement of
attorney's fees and costs actually and reasonably incurred in
connection with the appeal, not exceeding one thousand dollars
($1,000).
(c) Notwithstanding Section 116.790, if the superior court finds
that the appeal was without substantial merit and not based on good
faith, but was intended to harass or delay the other party, or to
encourage the other party to abandon the claim, the court shall award
the other party (1) attorney's fees and costs actually and
reasonably incurred in connection with the appeal, including any
settlement following a notice of appeal, and (2) any actual loss of
earnings and any expenses of transportation and lodging actually and
reasonably incurred in connection with the appeal, following a
hearing on the matter.
(d) Any reimbursement of attorney's fees and costs pursuant to
this section shall be paid to the party, or to the insurer if the
party's defense is handled by an insurer, and shall be applied toward
any fee and costs obligation owed by the party to the attorney.
117.114. An attorney for a plaintiff in an action filed pursuant
to this chapter shall not recover a contingency fee from the client
in excess of 20 percent of any recovery in the small claims court
unless upon court approval of a higher fee. The court may, upon
motion, increase the allowable contingency fee if it finds that
application of the 20 percent contingency fee would result in
inadequate compensation given the amount of time actually and
reasonably spent by the attorney on the case and given the difficulty
of the matter.
SEC. 3. Chapter 2.5 (commencing with Section 997) is added to
Title 14 of Part 2 of the Code of Civil Procedure, to read:
CHAPTER 2.5. MANDATORY EXCHANGE OF CLAIMS INFORMATION
997. (a) This chapter applies to claims, including cross-claims,
which seek or contest a third-party claim for money damages arising
from a motor vehicle accident which are filed on or after July 1,
1996, or are pending on that date and the responsive pleading has not
yet been filed on that date.
(b) The documents required under this chapter shall be in writing
and executed by the parties. These documents shall be served upon
the parties, or their attorneys if represented by counsel, or their
insurer if represented by an insurer.
(c) "Motor vehicle accident" means an event in which a motor
vehicle, as defined in Section 415 of the Vehicle Code, causes injury
or damage to a person or property.
997.1. (a) The Judicial Council shall, on or before July 1, 1996,
design and develop an "Automobile Injury Case Questionnaire" form
for use pursuant to this chapter to elicit fundamental information
about each party's case in a claim for damages arising from a motor
vehicle accident. These forms shall be made available by the clerk
of the county courts and by any self-insurer or insurer writing
automobile liability insurance in this state.
(b) The Judicial Council shall consult with members of the trial
bar, both civil and defense, and with representatives from consumer
groups and insurers in promulgating the form.
(c) The forms shall request information from each party concerning
all of the following:
(1) The name, address, date of birth, telephone number, and driver'
s license number, if applicable, of the party, and any other name or
names by which the party has been known.
(2) The facts of the party's version of the collision, including,
but not limited to, a narrative description or statement executed by
the party in accordance with subdivision (b) of Section 997.
(3) The names, addresses, telephone numbers, and statements of any
witnesses with knowledge of any relevant facts of the accident,
including whether any other person may be liable for the damages
claimed.
(4) A copy of any law enforcement agency report, if the party is
in possession of it, or the name of the law enforcement agency which
has the report and the report number.
(5) If the party is claiming damages, a statement of the nature of
the damages and the amount of the damages, including those for
bodily injury, property damage, and loss of earnings. If a party is
contesting a claim for damages, a statement of the specific facts and
reasons for contesting the claim, whether in whole or in part.
(6) The names, addresses, and telephone numbers of all medical
providers who have treated or examined the party for the accident for
which damages are claimed, and the dates of the treatments or
examinations. If a party is undergoing continuing medical treatment
at the time of response, the names, addresses, and telephone numbers
of the medical provider.
(7) The names, addresses, and telephone numbers of the most
knowledgeable persons or entities who can substantiate a party's loss
of earnings or loss of earnings capacity claim.
(8) The names, addresses, and telephone numbers of each insurer
and the number of each policy that may cover the party's damages in
whole or in part, the policy limits of each policy, and the existence
of a policy coverage dispute, if any.
(9) A description of all documents, photographs, or physical
evidence that relate to the party's claim for damages, or defense to
the claim, and their location. A copy of all documents or
photographs in the party's possession which support its claim for
damages or its defense to the claim shall be attached to the case
questionnaire.
997.2. (a) Each party seeking damages or contesting a claim for
damages arising out of a motor vehicle accident shall complete the
Judicial Council form questionnaire and serve the questionnaire upon
the other party, or if represented by counsel or an insurer, upon the
party's attorney or insurer.
(b) Upon filing a response to a filed claim for damages against an
insured for injuries arising out of a motor vehicle accident, an
insurer shall, within five business days, inform the claimant or the
claimant's representative in writing of the claimant's responsibility
to complete an "Automobile Injury Case Questionnaire" form within 30
days and to send it to the carrier. The notice shall also inform
the claimant of the carrier's insured's responsibility to complete
and send a similar form to the claimant within 30 days. The insurer
shall send the Judicial Council prepared form to the claimant with
the notice.
(c) Upon receiving the notice and form questionnaire from the
insurer, the claimant shall have 30 days to respond. Upon sending
the notice to the claimant, the insurer shall also send a notice and
Judicial Council form questionnaire to its insured notifying the
insured of his or her responsibility to complete an "Automobile
Injury Case Questionnaire" form and to send it to the claimant within
30 days.
(d) A party shall respond to each and every question of the case
questionnaire relevant to a claim for damages or to a defense to the
claim. A party contesting the claim shall additionally respond to
questions regarding insurance applicable to the claim. Each response
shall be as complete as the information reasonably available to the
responding party permits. If a question cannot be answered
completely, it shall be answered to the extent possible. If the
responding party does not have personal knowledge sufficient to
respond fully to a question, that party shall so state, but shall
make a reasonable and good faith effort to obtain the information by
inquiry to other natural persons or organizations. If a party
declares that he or she has insufficient information to answer the
questionnaire, the party shall have 30 additional days to complete
that part of the questionnaire.
(e) After the service of an Automobile Injury Case Questionnaire,
either party may request executed authorizations to examine the
records of the responding party, as described in subdivision (c) of
Section 997.1, if the responding party is seeking or contesting a
claim for damages for bodily injury, or loss of earnings or earning
capacity, or both. The responding parties shall serve the executed
authorizations permitting review of records relevant to the litigated
issues upon the requesting party within 20 days from the date of
request. Nothing in this subdivision shall require the
authorizations to permit depositions or statements of the source of
the records.
(f) A party may move, upon showing of good cause, to amend any
response to the questionnaire. A party may move for an order to
compel compliance with this chapter, and for monetary sanctions under
Section 2023 for noncompliance. If a party represented by counsel
then fails to obey an order compelling compliance, the court may make
those orders that are just, including the imposition of further
monetary sanctions, an issue sanction, an evidence sanction, or a
terminating sanction under Section 2023. Motions pursuant to this
chapter are governed by the time limits applicable to discovery
motions in general.
(g) Each party may conduct discovery to supplement the information
provided in the questionnaire. Except in cases claiming damage for
a serious injury, as defined in Section 997.5, additional discovery
shall be governed by Sections 94 and 95.
(h) This chapter applies to claims filed in the justice,
municipal, or superior courts.
SEC. 4. Section 997.5 is added to the Code of Civil Procedure, to
read:
997.5. (a) On and after January 1, 1997, in any third-party
action seeking money damages for a nonserious bodily injury arising
from a motor vehicle accident, the defendant may introduce a medical
injury profile for the claimed injury, as established by the
Insurance Commissioner.
(b) As used in this section, "nonserious injury" means a personal
injury that results in a concussion of a nonpermanent nature or an
impairment or injury of the musculoskeletal system of a nonpermanent
nature. It includes sprains, strains, abrasions, bruises, hematomas,
lacerations that are not permanently disfiguring, and injuries
commonly characterized in the automobile injury reparation's system
as soft tissue.
(c) (1) Subdivision (a) shall not apply to an action or claim for
serious injury arising out of the operation or use of a motor
vehicle.
(2) As used in this section, "serious injury" means a personal
injury that results in a fracture, herniated discs, laceration that
results in scarring or permanent disfigurement, internal organ
injury, loss of sense or senses that is not temporary, loss of body
part, any permanent nerve impairment, loss of fetus, paralysis,
permanent brain injury, or death. The determination of whether an
injury is serious or nonserious shall be made by the court.
(d) On or before December 1, 1996, the Insurance Commissioner
shall establish a medical injury profile for nonserious injuries
after consultation with appropriate health care organizations. The
profile shall establish parameters for the treatment of nonserious
injuries.
(e) A medical injury profile shall not be deemed to establish
prima facie evidence of necessary and appropriate treatment for an
injury in a particular case.
SEC. 5. Section 1141.115 is added to the Code of Civil Procedure,
to read:
1141.115. Notwithstanding any other provision of this chapter:
(a) In each municipal or superior court, all at-issue civil
actions pending on or filed after the operative date of this section
that involve third-party liability for bodily injury resulting from
an automobile collision shall be submitted to arbitration, by the
presiding judge or the judge designated, under this chapter if the
amount in controversy in the opinion of the court will not exceed
fifty thousand dollars ($50,000) for each plaintiff, which decision
shall not be appealable.
(b) If the settlement following a request for a trial de novo or
the judgment upon trial de novo is not at least 20 percent more
favorable for the party electing trial de novo than the damages
awarded by arbitration, that party shall pay to the other party's or
parties' attorney's fees and costs reasonably incurred by the other
party as a result of the party's request for trial de novo. This
assessment shall be in addition to any sanctions assessed under
Section 1141.21. For purposes of assessing the reimbursement of
attorney's fees when a party is represented on a contingency fee
basis, the court shall, in its sole discretion, determine the
reasonable value of the services performed by the attorney if
performed on a per-hour basis by an attorney retained by an insurer
in defense of those actions in the community where the claim is being
defended. Any reimbursement of attorney's fees and costs pursuant
to this section shall be paid to the party, or to the insurer if the
party's defense is handled by an insurer, and shall be applied toward
any fee and costs obligation owed by the party to the attorney.
(c) At the trial de novo, testimony or evidence presented at the
arbitration may be introduced to impeach or rebut testimony or
evidence presented at the trial de novo. Nothing in this subdivision
shall be construed to permit any reference to an arbitration award
during the trial de novo.
(d) As used in this section, "automobile collision" means a
collision between two automobiles whether private passenger or
commercial, between an automobile and a pedestrian or bicyclist,
between an automobile and a motorcycle, between two motorcycles, or
between a motorcycle and a pedestrian or bicyclist.
(e) Nothing in this section shall preclude any party from
mediating the dispute or utilizing any other voluntary dispute
resolution process.
SEC. 6. Section 68616 of the Government Code is amended to read:
68616. Delay reduction rules shall not require shorter time
periods than as follows:
(a) Service of the complaint within 60 days after filing.
Exceptions, for longer periods of time, may be granted as authorized
by local rule.
(b) Service of responsive pleadings within 30 days after service
of the complaint. The parties may stipulate to an additional 15
days. Exceptions, for longer periods of time, may be granted as
authorized by local rule.
(c) Time for service of notice or other paper under Sections 1005
and 1013 of the Code of Civil Procedure and time to plead after
service of summons under Section 412.20 of the Code of Civil
Procedure shall not be shortened except as provided in those
sections.
(d) At any time following service of the responsive pleadings,
and prior to the status conference, the parties may, by stipulation
filed with the court, agree to a single continuance not to exceed 30
days.
It is the intent of the Legislature that these stipulations not
detract from the efforts of the courts to comply with standards of
timely disposition. To this extent, the Judicial Council shall
develop statistics that distinguish between cases involving, and not
involving, these stipulations.
(e) No status conference, or similar event, other than a challenge
to the jurisdiction of the court, may be required to be conducted
sooner than 30 days after service of the first responsive pleadings,
or no sooner than 30 days after expiration of a stipulated
continuance, if any, pursuant to subdivision (d).
(f) Article 3 (commencing with Section 2016) of Chapter 3 of Title
3 of Part 4 of the Code of Civil Procedure shall govern discovery,
except in arbitration proceedings.
(g) An order referring an action to arbitration or mediation may
be made at any status conference held in accordance with subdivision
(e), provided that any arbitration ordered may not commence prior to
210 days after the filing of the complaint, exclusive of the
stipulated period provided in subdivision (d). Any mediation ordered
pursuant to Section 1775.3 of the Code of Civil Procedure may be
commenced prior to 210 days after the filing of the complaint,
exclusive of the stipulated period provided in subdivision (d). No
rule adopted pursuant to this article may contravene Sections 638 and
639 of the Code of Civil Procedure.
(h) Unnamed (DOE) defendants shall not be dismissed prior to the
conclusion of the introduction of evidence at trial, except upon
stipulation or motion of the parties.
(i) Notwithstanding Section 170.6 of the Code of Civil Procedure,
in direct calendar courts, challenges pursuant to that section shall
be exercised within 15 days of the party's first appearance. Master
calendar courts shall be governed solely by Section 170.6 of the Code
of Civil Procedure.
(j) This section applies to all cases subject to this article
which are filed on or after January 1, 1991.
(k) This section shall remain in effect only until July 1, 1998,
and as of that date is repealed, unless a later enacted statute,
which is enacted before July 1, 1998, deletes or extends that date.
SEC. 7. Section 68616 of the Government Code is amended to read:
68616. Delay reduction rules shall not require shorter time
periods than as follows:
(a) Service of the complaint within 60 days after filing.
Exceptions, for longer periods of time, may be granted as authorized
by local rule.
(b) Service of responsive pleadings within 30 days after service
of the complaint. The parties may stipulate to an additional 15
days. Exceptions, for longer periods of time, may be granted as
authorized by local rule.
(c) Time for service of notice or other paper under Sections 1005
and 1013 of the Code of Civil Procedure and time to plead after
service of summons under Section 412.20 of the Code of Civil
Procedure shall not be shortened except as provided in those
sections.
(d) Within 30 days of service of the responsive pleadings, the
parties may, by stipulation filed with the court, agree to a single
continuance not to exceed 30 days.
It is the intent of the Legislature that these stipulations not
detract from the efforts of the courts to comply with standards of
timely disposition. To this extent, the Judicial Council shall
develop statistics that distinguish between cases involving, and not
involving, these stipulations.
(e) No status conference, or similar event, other than a challenge
to the jurisdiction of the court, may be required to be conducted
sooner than 30 days after service of the first responsive pleadings,
or no sooner than 30 days after expiration of a stipulated
continuance, if any, pursuant to subdivision (d).
(f) Article 3 (commencing with Section 2016) of Chapter 3 of Title
3 of Part 4 of the Code of Civil Procedure shall govern discovery,
except in arbitration proceedings.
(g) No case may be referred to arbitration prior to 210 days after
the filing of the complaint, exclusive of the stipulated period
provided for in subdivision (d). No rule adopted pursuant to this
article may contravene Sections 638 and 639 of the Code of Civil
Procedure.
(h) Unnamed (DOE) defendants shall not be dismissed prior to the
conclusion of the introduction of evidence at trial, except upon
stipulation or motion of the parties.
(i) Notwithstanding Section 170.6 of the Code of Civil Procedure,
in direct calendar courts, challenges pursuant to that section shall
be exercised within 15 days of the party's first appearance. Master
calendar courts shall be governed solely by Section 170.6 of the Code
of Civil Procedure.
(j) This section shall become operative on July 1, 1998.
SEC. 8. Section 68616.1 is added to the Government Code, to read:
68616.1. Notwithstanding subdivision (b) of Section 68616, prior
to the filing of the answer and in addition to the 15-day continuance
permitted in that provision, in any action
subject to Section 1141.115 of the Code of Civil
Procedure the parties may stipulate to a continuance not to exceed 15
days if the parties certify in the stipulation that settlement
offers have been exchanged and that the parties believe that a
settlement may be reached during this period.
It is the intent of the Legislature in providing this procedure
that those stipulations be used by the parties to resolve cases and
avoid the need for further litigation and use of court resources. It
is also the intent of the Legislature that the stipulations not
detract from the efforts of the courts to comply with standards of
timely disposition. To this extent, the Judicial Council shall
develop statistics that distinguish between cases involving and not
involving those stipulations.
This section shall remain in effect only until January 1, 2000,
and as of that date is repealed, unless a later enacted statute,
which is enacted before January 1, 2000, deletes or extends that
date.
SEC. 9. Article 6.59 (commencing with Section 790.60) is added to
Chapter 1 of Part 2 of Division 1 of the Insurance Code, to read:
Article 6.59. Health Care Cost Containment
790.60. (a) The charges for health care services that are
incurred as a result of an injury arising from a motor vehicle
accident shall not exceed the charges permissible under the schedules
prepared and established by the administration of the Workers'
Compensation Appeals Board for industrial accidents. If the services
are not included in the schedules, the charges shall not exceed 80
percent of the provider's usual and customary charge.
(b) On or before January 1, 1997, the commissioner, after
consulting with the administration of the Worker's
Workers' Compensation Appeals Board, shall adopt rules
and regulations implementing and coordinating the provisions of this
article and the workers' compensation law with respect to charges for
health services provided to persons injured in a motor vehicle
accident, including the establishment of schedules for those services
for which schedules have not been prepared and established by the
administration of the Workers' Compensation Appeals Board.
(c) No provider of health services may demand or request any
payment in addition to the charges authorized pursuant to this
section. An insurer shall report to the appropriate licensing agency
any patterns of overcharging, excessive treatment, or other improper
actions by a health care provider within 30 days after the insurer
has knowledge of those patterns.
(d) This section shall become operative January 1, 1997, except
that the commissioner shall adopt rules and regulations under
subdivision (b) prior to that date.
SEC. 10. Section 1871.9 is added to the Insurance Code, to read:
1871.9. (a) It is unlawful to do any of the following:
(1) Knowingly present or cause to be presented any false or
fraudulent claim for the payment of a loss, including payment of a
loss under a contract of insurance.
(2) Knowingly present multiple claims for the same loss or injury,
including presentation of multiple claims to more than one insurer,
with an intent to defraud.
(3) Knowingly cause or participate in a vehicular collision, or
any other vehicular accident, for the purpose of presenting any false
or fraudulent claim.
(4) Knowingly present a false or fraudulent claim for the payments
of a loss for theft, destruction, damage, or conversion of a motor
vehicle, a motor vehicle part, or contents of a motor vehicle.
(5) Knowingly prepare, make, or subscribe any writing, with intent
to present or use the same, or to allow it to be presented in
support of any false or fraudulent claim.
(6) Knowingly assist, abet, solicit, or conspire with (A) any
person who knowingly presents any false or fraudulent claim for the
payment of a loss, including payment of a loss under a contract of
insurance; (B) any person who knowingly presents multiple claims for
the same loss or injury, including presentation of multiple claims to
more than one insurer, with an intent to defraud; (C) any person who
knowingly causes or participates in a vehicular collision, or any
other vehicular accident, for the purpose of presenting any false or
fraudulent claim; and (D) any person who knowingly prepares, makes,
or subscribes any writing, with the intent to present or use the
same, or to allow it to be presented in support on any such claim.
(7) Knowingly make or cause to be made any false or fraudulent
claim for payment of a health care benefit.
(8) Knowingly submit a claim for a health care benefit which was
not used by, or on behalf of, the claimant.
(9) Knowingly present multiple claims for payment of the same
health care benefit with an intent to defraud.
(10) Knowingly present for payment any undercharges for health
care benefits on behalf of a specific claimant unless any known
overcharges for health care benefits for that claimant are presented
for reconciliation at that same time.
(b) (1) Every person who violates paragraph (1), (2), (3), (4),
(5), or (6) of subdivision (a) of this section shall be punished by
imprisonment in the state prison, for two, three, or five years, or
by a fine not exceeding fifty thousand dollars ($50,000), or by both,
unless the value of the fraud exceeds fifty thousand dollars
($50,000), in which event the fine may not exceed the value of the
fraud.
(2) Every person who violates paragraph (7), (8), (9), or (10) of
subdivision (a) of this section is guilty of a public offense.
(A) Where the claim or amount at issue exceeds four hundred
dollars ($400), the offense, upon conviction, is punishable by
imprisonment in the state prison for two, three, or five years, or by
a fine not exceeding fifty thousand dollars ($50,000), or by both,
unless the value of the fraud exceeds fifty thousand dollars
($50,000), in which event the fine may not exceed the value of the
fraud, or by imprisonment in a county jail not to exceed one year or
a fine of not more than one thousand dollars ($1,000), or by both the
fine and imprisonment.
(B) Where the claim or amount at issue is four hundred dollars
($400) or less, the offense is punishable by imprisonment in a county
jail not to exceed six months or a fine of not more than one
thousand dollars ($1,000), or both the fine and imprisonment unless
the aggregate amount of the claims or amount at issue exceeds four
hundred dollars ($400) in any 12 consecutive month period, in which
case those claims or amounts may be charged as in subparagraph (A).
(c) Notwithstanding any other provision of law, probation shall
not be granted to, nor shall the execution or imposition of a
sentence be suspended for, any adult person convicted of felony
violations of this section who has been previously convicted of
felony violations of this section as an adult under charges
separately brought and tried two or more times. The existence of any
fact which would make a person ineligible for probation under this
subdivision shall be alleged in the information or indictment, and
either admitted by the defendant in an open court, or found to be
true by the jury trying the issue of guilt or by the court where
guilt is established by plea of guilty or nolo contendere or by trial
by the court sitting without a jury.
Except where the existence of that fact was not admitted or found
to be true or the court finds that a prior felony conviction was
invalid, the court shall not strike or dismiss any prior felony
convictions alleged in the information or indictment.
This subdivision does not prohibit the adjournment of criminal
proceedings pursuant to Division 3 (commencing with Section 3000) or
Division 6 (commencing with Section 6000) of the Welfare and
Institutions Code.
(d) Any person who violates subdivision (a) and who has a prior
felony conviction of the offense set forth in that subdivision or in
Section 548 of the Penal Code, shall receive a two-year enhancement
for each prior felony conviction in addition to the sentence provided
in subdivision (b). The existence of any fact which would subject a
person to a penalty enhancement shall be alleged in the information
or indictment and either admitted by the defendant in open court, or
found to be true by the jury trying the issue of guilt or by the
court where guilt is established by plea of guilty or nolo contendere
or by trial by the court sitting without a jury.
(e) This section shall not be construed to preclude the
applicability of any other provision of criminal law that applies or
may apply to any transaction.
(f) For any person who violates subdivision (a), if the false
claim or claims involve more than one hundred thousand dollars
($100,000) in losses or potential losses, or if the claim or claims,
together with all other convictions for violations of this section,
involve more than one hundred thousand dollars ($100,000) in losses
or potential losses, the following provisions shall apply:
(1) The person shall receive a five-year enhancement.
(2) The person shall not be granted probation except in unusual
cases where the interests of justice would best be served by granting
probation.
The fact that the person is subject to this subdivision shall be
alleged in the accusatory pleading, and either admitted by the
defendant in open court, or found to be true by the trier of fact.
SEC. 11. Section 11580.02 is added to the Insurance Code, to read:
11580.02. No policy of automobile liability insurance described
in Section 16054 of the Vehicle Code covering liability arising out
of the ownership, maintenance, or use of any motor vehicle shall be
issued or delivered in this state unless it provides insurance
against liability because of injury to or destruction of property
subject to a limit of three thousand dollars ($3,000).
However, for an insured who is a good driver, as defined in
Section 1861.025, who purchases the minimum personal injury liability
coverage, the insurer and any named insured may, prior to or
subsequent to the issuance or renewal of a policy, by agreement in
writing, in a form prescribed by the commissioner, delete the
provision covering liability for property damage. Notwithstanding any
other provision of law, a policy for which the provision covering
liability for property damage has been waived shall for all purposes
satisfy the financial responsibility laws of this state.
The commissioner shall prescribe the form of an agreement to
delete property damage liability coverage. The form shall disclose
the potential liabilities of the insured and the hazards of not
procuring property damage liability coverage.
SEC. 12. Section 11580.03 is added to the Insurance Code, to read:
11580.03. Every policy of automobile liability insurance
described in Section 16054 of the Vehicle Code shall also include
insurance covering insureds and occupants of an insured vehicle
against medical expenses incurred as a result of injuries arising out
of the operation or use of the motor vehicle, subject to a limit of
one thousand dollars ($1,000) per person.
SEC. 13. Section 11580.04 is added to the Insurance Code, to read:
11580.04. (a) Every policy of motor vehicle third-party liability
insurance sold in this state shall include a provision, operative at
the option of the insured, in which the insured agrees to submit any
third-party claim involving property damage or a nonserious injury
to binding nonjudicial arbitration. The election by the insured
shall be made at the time of the policy application or renewal, and
may be changed in writing at any time.
(b) Any person insured under a policy including an agreement to
submit any third-party claim involving property damage or a
nonserious injury to binding nonjudicial arbitration thereby agrees
that any dispute between the insured and the insurer, between the
insured and any person insured under a policy containing a similar
agreement, or between the insured and any person willing to submit
the dispute to binding arbitration, involving property damage or a
nonserious bodily injury will be determined by binding nonjudicial
arbitration and not by civil action.
(c) Arbitration shall be conducted pursuant to Title 9 (commencing
with Section 1280) of Part 3 of the Code of Civil Procedure by a
single neutral arbitrator. The following provisions shall also
apply:
(1) The provisions of Sections 997, 997.1, and 997.2 of the Code
of Civil Procedure shall apply to a claim being arbitrated pursuant
to this section.
(2) The provisions of Section 997.5 shall apply to the
arbitration.
(3) The insured shall be required to cooperate reasonably in the
defense of the claim.
(4) Each party shall pay an arbitration fee of one hundred dollars
($100).
(5) The arbitration proceeding shall be set for hearing no later
than 90 days after selection of the arbitrator. The arbitrator shall
render the decision pursuant to the evidence and the law no later
than 20 days after completion of the hearing. Nothing in this
section shall prohibit the arbitrator from making an award in excess
of policy limits.
(d) Arbitration provisions contained in policies offered and sold
under this section shall be fair, consistent, and impartial, and
shall comply with California Rules of Court 1600 and following that
are not in conflict with this section.
(e) A policy sold under this section in which the insured elects
the optional provision specified in subdivision (a) shall require the
policyholder to sign a disclosure statement acknowledging that (1)
the policy is provided at a lower price in consideration for the
requirement for the insured to resolve property damage and nonserious
injury third-party claims involving the insured by binding
nonjudicial arbitration, and (2) that the insured is waiving any
right he or she may have to jury trial of that dispute.
(f) As used in this section, "nonserious injury" means a personal
injury that results in a concussion of a nonpermanent nature or an
impairment or injury of the musculoskeletal system of a nonpermanent
nature. It includes sprains, strains, abrasions, bruises,
lacerations that are not permanently disfiguring, and injuries
commonly characterized in the automobile reparations system as soft
tissue.
(g) This section does not apply to first-party claims.
(h) This section shall not prohibit a carrier from asserting that
it is not liable under the policy under which the claim is made if,
in the offer to submit the claim to arbitration, the carrier makes
that assertion and has notified the claimant of the provisions of
this section. The carrier's claim that it is not liable under the
policy shall be decided by the arbitrator at the same time as the
underlying claim. Notwithstanding any other provision of law, the
arbitrator's decision regarding the carrier's liability under the
policy may be reviewed de novo in an action for declaratory relief on
the petition of any party unless the parties have agreed in writing
that the award on that issue shall be final. The petition shall be
filed and served within 30 days after the award is mailed to the
parties. If a carrier fails to assert that it is not liable under a
policy in its offer to submit to arbitration as required by this
section, it shall be prohibited from seeking judicial review of
policy coverage for a claim submitted to arbitration.
SEC. 14. Section 11580.1 of the Insurance Code is amended to read:
11580.1. (a) No policy of automobile liability insurance
described in Section 16054 of the Vehicle Code covering liability
arising out of the ownership, maintenance, or use of any motor
vehicle shall be issued or delivered in this state on or after the
effective date of this section unless it contains the provisions set
forth in subdivision (b). However, none of the requirements of
subdivision (b) shall apply to the insurance afforded under that
policy (1) to the extent that the insurance exceeds the limits
specified in subdivision (a) of Section 16056 of the Vehicle Code, or
(2) if the policy contains an underlying insurance requirement, or
provides for a retained limit of self-insurance, equal to or greater
than the limits specified in subdivision (a) of Section 16056 of the
Vehicle Code.
(b) Every policy of automobile liability insurance to which
subdivision (a) applies shall contain all of the following
provisions:
(1) (A) Coverage limits for liability for personal injury or death
not less than the limits specified in subdivision (a) of Section
16056 of the Vehicle Code.
(B) Coverage limits for liability because of injury to or
destruction of property subject to the limits specified in
subdivision (a) of Section 16056 of the Vehicle Code, unless that
property damage liability coverage has been waived as provided in
Section 11580.02.
(C) Insurance for medical costs incurred by an insured or an
occupant of an insured motor vehicle in the amount required by
Section 11580.03.
(2) Designation by explicit description of, or appropriate
reference to, the motor vehicles or class of motor vehicles to which
coverage is specifically granted.
(3) Designation by explicit description of the purposes for which
coverage for that those motor vehicles
is specifically excluded.
(4) Provision affording insurance to the named insured with
respect to any owned or leased motor vehicle covered by that policy,
and to the same extent that insurance is afforded to the named
insured, to any other person using, or legally responsible for the
use of, the motor vehicle, provided the use is by the named insured
or with his or her permission, express or implied, and within the
scope of that permission, except that: (i) with regard to insurance
afforded for the loading or unloading of that motor vehicle, the
insurance may be limited to apply only to the named insured, a
relative of the named insured who is a resident of the named insured'
s household, a lessee or bailee of the motor vehicle, or an employee
of any of those persons; and (ii) the insurance afforded to any
person other than the named insured need not apply to: (A) any
employee with respect to bodily injury sustained by a fellow employee
injured in the scope and course of his or her employment, or (B) any
person, or to any agent or employee thereof, employed or otherwise
engaged in the business of selling, repairing, servicing, delivering,
testing, road-testing, parking, or storing automobiles with respect
to any accident arising out of the maintenance or use of a motor
vehicle in connection therewith. As used in this chapter, "owned
motor vehicle" includes all motor vehicles described and rated in the
policy.
(c) In addition to any exclusion as provided in paragraph (3) of
subdivision (b), the insurance afforded by that policy of automobile
liability insurance to which subdivision (a) applies, including the
insurer's obligation to defend, may, by appropriate policy provision,
be made inapplicable to any or all of the following:
(1) Liability assumed by the insured under contract.
(2) Liability for bodily injury or property damage caused
intentionally by or at the direction of the insured.
(3) Liability imposed upon or assumed by the insured under any
workers' compensation law.
(4) Liability for bodily injury to any employee of the insured
arising out of and in the course of his or her employment.
(5) Liability for bodily injury to an insured or liability for
bodily injury to an insured whenever the ultimate benefits of that
indemnification accrue directly or indirectly to an insured.
(6) Liability for damage to property owned, rented to, transported
by, or in the charge of, an insured. A motor vehicle operated by an
insured shall be considered to be property in the charge of an
insured.
(7) Liability for any bodily injury or property damage with
respect to which insurance is or can be afforded under a nuclear
energy liability policy.
(8) Any motor vehicle or class of motor vehicles, as described or
designated in the policy, with respect to which coverage is
explicitly excluded, in whole or in part.
The term "the insured" as used in paragraphs (1), (2), (3), and
(4) shall mean only that insured under the policy against whom the
particular claim is made or suit brought. The term "an insured" as
used in paragraphs (5) and (6) shall mean any insured under the
policy including those persons who would have otherwise been included
within the policy's definition of an insured but, by agreement, are
subject to the limitations of paragraph (1) of subdivision (d).
(d) Notwithstanding the provisions of paragraph (4) of subdivision
(b), or the provisions of Article 2 (commencing with Section 16450)
of Chapter 3 of Division 7, or Article 2 (commencing with Section
17150) of Chapter 1 of Division 9, of the Vehicle Code, the insurer
and any named insured may, by the terms of any policy of automobile
liability insurance to which subdivision (a) applies, or by a
separate writing relating thereto, agree as to either or both of the
following limitations, the agreement to be binding upon every insured
to whom the policy applies and upon every third-party claimant:
(1) That coverage and the insurer's obligation to defend under the
policy shall not apply nor accrue to the benefit of any insured or
any third-party claimant while any motor vehicle is being used or
operated by a natural person or persons designated by name. These
limitations shall apply to any use or operation of a motor vehicle
including the negligent or alleged negligent entrustment of a motor
vehicle to the designated person or persons. The insurer shall have
an obligation to defend the named insured when all of the following
apply to the designated natural person:
(A) He or she is a resident of the same household as the named
insured.
(B) As a result of operating the insured motor vehicle of the
named insured, he or she is jointly sued with the named insured.
(C) He or she is an insured under a separate automobile liability
insurance policy issued to him or her as a named insured, which
policy does not provide a defense to the named insured.
An agreement made by the insurer and any named insured more than
60 days following the inception of the policy excluding a designated
person by name shall be effective from the date of the agreement and
shall, with the signature of a named insured, be conclusive evidence
of the validity of the agreement.
That agreement shall remain in force as long as the policy remains
in force, and shall apply to any continuation, renewal, or
replacement of the policy by the named insured, or reinstatement of
the policy within 30 days of any lapse thereof.
(2) That with regard to any such policy issued to a named insured
engaged in the business of leasing vehicles for those vehicles that
are leased for a term in excess of six months, or selling, repairing,
servicing, delivering, testing, road-testing, parking, or storing
automobiles, coverage shall not apply to any person other than the
named insured or his or her agent or employee, except to the extent
that the limits of liability of any other valid and collectible
insurance available to that person are not equal to the limits of
liability specified in subdivision (a) of Section 16056 of the
Vehicle Code. If the policy is issued to a named insured engaged in
the business of leasing vehicles, which business includes the lease
of vehicles for a term in excess of six months, and the lessor
includes in the lease automobile liability insurance, the terms and
limits of which are not otherwise specified in the lease, the named
insured shall incorporate a provision in each vehicle lease contract
advising the lessee of the provisions of this subdivision and the
fact that this limitation is applicable except as otherwise provided
for by statute or federal law.
(e) Nothing in this section or in Section 16054 or 16450 of the
Vehicle Code shall be construed to constitute a homeowner's policy,
personal and residence liability policy, personal and farm liability
policy, general liability policy, comprehensive personal liability
policy, manufacturers' and contractors' policy, premises liability
policy, special multiperil policy, or any policy or endorsement where
automobile liability coverage is offered as incidental to some other
basic coverage as an "automobile liability policy" within the
meaning of Section 16054 of the Vehicle Code, or as a "motor vehicle
liability policy" within the meaning of Section 16450 of the Vehicle
Code, nor shall any provision of this section apply to a policy that
provides insurance covering liability arising out of the ownership,
maintenance, or use of any motor vehicle in the Republic of Mexico
issued or delivered in this state by a nonadmitted Mexican insurer,
notwithstanding that any such policy may provide automobile or motor
vehicle liability coverage on insured premises or the ways
immediately adjoining.
(f) On and after January 1, 1976, no policy of automobile
liability insurance described in subdivision (a) shall be issued,
amended, or renewed in this state if it contains any provision that
expressly or impliedly excludes from coverage under the policy the
operation or use of an insured motor vehicle by the named insured in
the performance of volunteer services for a nonprofit charitable
organization or governmental agency by providing social service
transportation. This subdivision shall not apply in any case in
which the named insured receives any remuneration of any kind other
than reimbursement for actual mileage driven in the performance of
those services at a rate not to exceed the following:
(1) For the 1980-81 fiscal year, the maximum rate authorized by
the State Board of Control, which shall also be known as the "base
rate."
(2) For each fiscal year thereafter, the greater of either (A) the
maximum rate authorized by the State Board of Control or (B) the
base rate as adjusted by the California Consumer Price Index.
No policy of insurance issued under this section may be canceled
by an insurer solely for the reason that the named insured is
performing volunteer services for a nonprofit charitable organization
or governmental agency consisting of providing social service
transportation.
For the purposes of this section, "social service transportation"
means transportation services provided by private nonprofit
organizations or individuals to either individuals who are senior
citizens or individuals or groups of individuals who have special
transportation needs because of physical or mental conditions and
supported in whole or in part
by funding from private or public agencies.
(g) Notwithstanding the provisions of paragraph (4) of subdivision
(b) of this section, or the provisions of Article 2 (commencing with
Section 16450) of Chapter 3 of Division 7 of, or Article 2
(commencing with Section 17150) of Chapter 1 of Division 9 of, the
Vehicle Code, a Mexican nonadmitted insurer and any named insured
may, by the terms of any policy of automobile insurance for use
solely in the Republic of Mexico to which subdivision (a) applies, or
by a separate writing relating thereto, agree to the limitation that
coverage under that policy shall not apply to any person riding in
or occupying a vehicle owned by the insured or driven by another
person with the permission of the insured. The agreement shall be
binding upon every insured to whom that policy applies and upon any
third-party claimant.
(h) No policy of automobile insurance that provides insurance
covering liability arising out of the ownership, maintenance or use
of any motor vehicle solely in the Republic of Mexico issued by a
nonadmitted Mexican insurance company, shall be subject to, or
provide coverage for, those coverages provided in Section 11580.2.
SEC. 15. Section 11580.2 of the Insurance Code is amended to read:
11580.2. (a) (1) No policy of bodily injury liability insurance
covering liability arising out of the ownership, maintenance, or use
of any motor vehicle, except for policies which provide insurance in
the Republic of Mexico issued or delivered in this state by
nonadmitted Mexican insurers, shall be issued or delivered in this
state to the owner or operator of a motor vehicle, or shall be issued
or delivered by any insurer licensed in this state upon any motor
vehicle then principally used or principally garaged in this state,
unless the policy contains, or has added to it by endorsement, a
provision with coverage limits at least equal to the limits specified
in subdivision (m) and in no case less than the financial
responsibility requirements specified in Section 16056 of the Vehicle
Code insuring the insured, the insured's heirs or legal
representative for all sums within the limits which he, she, or they,
as the case may be, shall be legally entitled to recover as damages
for bodily injury or wrongful death from the owner or operator of an
uninsured motor vehicle. The insurer and any named insured, prior to
or subsequent to the issuance or renewal of a policy, may, by
agreement in writing, in the form specified in paragraph (2) or
paragraph (3), (1) delete the provision covering damage caused by an
uninsured motor vehicle completely, or (2) delete the coverage when a
motor vehicle is operated by a natural person or persons designated
by name, or (3) agree to provide the coverage in an amount less than
that required by subdivision (m) but not less than the financial
responsibility requirements specified in Section 16056 of the Vehicle
Code. Any of these agreements by any named insured or agreement for
the amount of coverage shall be binding upon every insured to whom
the policy or endorsement provisions apply while the policy is in
force, and shall continue to be so binding with respect to any
continuation or renewal of the policy or with respect to any other
policy which extends, changes, supersedes, or replaces the policy
issued to the named insured by the same insurer, or with respect to
reinstatement of the policy within 30 days of any lapse thereof. A
policy shall be excluded from the application of this section if the
automobile liability coverage is provided only on an excess or
umbrella basis. Nothing in this section shall require that uninsured
motorist coverage be offered or provided in any homeowner policy,
personal and residents' liability policy, comprehensive personal
liability policy, manufacturers' and contractors' policy, premises
liability policy, special multiperil policy, or any other policy or
endorsement where automobile liability coverage is offered as
incidental to some other basic coverage, notwithstanding that the
policy may provide automobile or motor vehicle liability coverage on
insured premises or the ways immediately adjoining.
(2) The agreement specified in paragraph (1) to delete the
provision covering damage caused by an uninsured motor vehicle
completely or delete the coverage when a motor vehicle is operated by
a natural person or persons designated by name shall be in the
following form:
"The California Insurance Code requires an insurer to provide
uninsured motorists coverage in each bodily injury liability
insurance policy it issues covering liability arising out of the
ownership, maintenance, or use of a motor vehicle. Those provisions
also permit the insurer and the applicant to delete the coverage
completely or to delete the coverage when a motor vehicle is operated
by a natural person or persons designated by name. Uninsured
motorists coverage insures the insured, his or her heirs, or legal
representatives for all sums within the limits established by law,
which the person or persons are legally entitled to recover as
damages for bodily injury, including any resulting sickness, disease,
or death, to the insured from the owner or operator of an uninsured
motor vehicle not owned or operated by the insured or a resident of
the same household. An uninsured motor vehicle includes an
underinsured motor vehicle as defined in subdivision (p) of Section
11580.2 of the Insurance Code."
The agreement may contain additional statements not in derogation
of or in conflict with the foregoing. The execution of the agreement
shall relieve the insurer of liability under this section while the
agreement remains in effect.
(3) The agreement specified in paragraph (1) to provide coverage
in an amount less than that required by subdivision (m) shall be in
the following form:
"The California Insurance Code requires an insurer to provide
uninsured motorists coverage in each bodily injury liability
insurance policy it issues covering liability arising out of the
ownership, maintenance, or use of a motor vehicle. Those provisions
also permit the insurer and the applicant to agree to provide the
coverage in an amount less then that required by subdivision (m) of
Section 11580.2 of the Insurance Code but not less than the financial
responsibility requirements. Uninsured motorists coverage insures
the insured, his or her heirs, or legal representatives for all sums
within the limits established by law, which the person or persons are
legally entitled to recover as damages for bodily injury, including
any resulting sickness, disease, or death, to the insured from the
owner or operator of an uninsured motor vehicle not owned or operated
by the insured or a resident of the same household. An uninsured
motor vehicle includes an underinsured motor vehicle as defined in
subdivision (p) of Section 11580.2 of the Insurance Code."
The agreement may contain additional statements not in derogation
of or in conflict with this paragraph. However, it shall be presumed
that an application for a policy of bodily injury liability
insurance containing uninsured motorist coverage in an amount less
than that required by subdivision (m), signed by the named insured
and approved by the insurer, with a policy effective date after
January 1, 1985, shall be a valid agreement as to the amount of
uninsured motorist coverage to be provided.
(b) As used in subdivision (a), "bodily injury" includes sickness
or disease, including death, resulting therefrom; "named insured"
means only the individual or organization named in the declarations
of the policy of motor vehicle bodily injury liability insurance
referred to in subdivision (a); as used in subdivision (a) if the
named insured is an individual , "insured" means the named
insured and the spouse of the named insured and, while residents of
the same household, relatives of either while occupants of a motor
vehicle or otherwise, heirs and any other person while in or upon or
entering into or alighting from an insured motor vehicle and any
person with respect to damages he or she is entitled to recover for
care or loss of services because of bodily injury to which the policy
provisions or endorsement apply; as used in subdivision (a), if the
named insured is an entity other than an individual, "insured" means
any person while in or upon or entering into or alighting from an
insured motor vehicle and any person with respect to damages he or
she is entitled to recover for care or loss of services because of
bodily injury to which the policy provisions or endorsement apply.
As used in this subdivision, "individual" shall not include persons
doing business as corporations, partnerships, or associations. As
used in this subdivision "insured motor vehicle" means the motor
vehicle described in the underlying insurance policy of which the
uninsured motorist endorsement or coverage is a part, a temporary
substitute automobile for which liability coverage is provided in the
policy or a newly acquired automobile for which liability coverage
is provided in the policy if the motor vehicle is used by the named
insured or with his or her permission or consent, express or implied,
and any other automobile not owned by or furnished for the regular
use of the named insured or any resident of the same household, or by
a natural person or persons for whom coverage has been deleted in
accordance with subdivision (a) while being operated by the named
insured or his or her spouse if a resident of the same household, but
"insured motor vehicle" shall not include any automobile while used
as a public or livery conveyance. As used in this section,
"uninsured motor vehicle" means a motor vehicle with respect to the
ownership, maintenance or use of which there is no bodily injury
liability insurance or bond applicable at the time of the accident,
or there is the applicable insurance or bond but the company writing
the insurance or bond denies coverage thereunder or refuses to admit
coverage thereunder except conditionally or with reservation, or an
"underinsured motor vehicle" as defined in subdivision (p), or a
motor vehicle used without the permission of the owner thereof if
there is no bodily injury liability insurance or bond applicable at
the time of the accident with respect to the owner or operator
thereof, or the owner or operator thereof be unknown, provided that,
with respect to an "uninsured motor vehicle" whose owner or operator
is unknown:
(1) The bodily injury has arisen out of action of the motorist
that caused physical contact between property of that motorist and
the insured or with an automobile which the insured is occupying.
(2) The insured or someone on his or her behalf has reported the
accident within 24 hours to the police department of the city where
the accident occurred or, if the accident occurred in unincorporated
territory then either to the sheriff of the county where the accident
occurred or to the local headquarters of the California Highway
Patrol, and has filed with the insurer within 30 days thereafter a
statement under oath that the insured or his or her legal
representative has or the insured's heirs have a cause of action
arising out of the accident for damages against a person or persons
whose identity is unascertainable and set forth facts in support
thereof. As used in this section, "uninsured motor vehicle" shall
not include a motor vehicle owned or operated by the named insured or
any resident of the same household or self-insured within the
meaning of the Financial Responsibility Law of the state in which the
motor vehicle is registered or which is owned by the United States
of America, Canada, a state or political subdivision of any such
government or an agency of any of the foregoing, or a land motor
vehicle or trailer while located for use as a residence or premises
and not as a vehicle, or any equipment or vehicle designed or
modified for use primarily off public roads, except while actually
upon public roads.
As used in this section, "uninsured motor vehicle" also means an
insured motor vehicle where the liability insurer thereof is unable
to make payment with respect to the legal liability of its insured
within the limits specified therein because of insolvency. An
insurer's solvency protection shall be applicable only to accidents
occurring during a policy period in which its insured's motor vehicle
coverage is in effect where the liability insurer of the tortfeasor
becomes insolvent within one year of the accident. In the event of
payment to any person under the coverage required by this section and
subject to the terms and conditions of the coverage, the insurer
making the payment, shall to the extent thereof, be entitled to any
proceeds which may be recoverable from the assets of the insolvent
insurer through any settlement or judgment of the person against the
insolvent insurer.
Nothing in this section is intended to exclude from the definition
of an uninsured motor vehicle any motorcycle or private passenger
type four wheel drive motor vehicle if that vehicle was subject to
and failed to comply with the Financial Responsibility Law of this
state.
(c) The insurance coverage provided for in this section does not
apply either as primary or as excess coverage:
(1) To property damage sustained by the insured.
(2) To bodily injury of the insured while in or upon or while
entering into or alighting from a motor vehicle other than the
described motor vehicle if the owner thereof has insurance similar to
that provided in this section.
(3) To bodily injury of the insured with respect to which the
insured or his or her representative shall, without the written
consent of the insurer, make any settlement with or prosecute to
judgment any action against any person who may be legally liable
therefor.
(4) In any instance where it would inure directly or indirectly to
the benefit of any workers' compensation carrier or to any person
qualified as a self-insurer under any workers' compensation law, or
directly to the benefit of the United States, or any state or any
political subdivision thereof.
(5) To establish proof of financial responsibility as provided in
subdivisions (a), (b), and (c) of Section 16054 of the Vehicle Code.
(6) To bodily injury of the insured while occupying a motor
vehicle owned by an insured or leased to an insured under a written
contract for a period of six months or longer, unless the occupied
vehicle is an insured motor vehicle. "Motor vehicle" as used in this
paragraph means any self-propelled vehicle.
(7) To bodily injury of the insured when struck by a vehicle owned
by an insured.
(8) To bodily injury of the insured while occupying a motor
vehicle rented or leased to the insured for public or livery
purposes.
(d) Subject to paragraph (2) of subdivision (c), the policy or
endorsement may provide that if the insured has insurance available
to the insured under more than one uninsured motorist coverage
provision, any damages shall not be deemed to exceed the higher of
the applicable limits of the respective coverages, and the damages
shall be prorated between the applicable coverages as the limits of
each coverage bear to the total of the limits.
(e) The policy or endorsement added thereto may provide that if
the insured has valid and collectible automobile medical payment
insurance available to him or her, the damages which the insured
shall be entitled to recover from the owner or operator of an
uninsured motor vehicle shall be reduced for purposes of uninsured
motorist coverage by the amounts paid or due to be paid under the
automobile medical payment insurance.
(f) The policy or an endorsement added thereto shall provide that
the determination as to whether the insured shall be legally entitled
to recover damages, and if so entitled, the amount thereof, shall be
made by agreement between the insured and the insurer or, in the
event of disagreement, by arbitration. The arbitration shall be
conducted by a single neutral arbitrator. An award or a judgment
confirming an award shall not be conclusive on any party in any
action or proceeding between (i) the insured, his or her insurer, his
or her legal representative, or his or her heirs and (ii) the
uninsured motorist to recover damages arising out of the accident
upon which the award is based. If the insured has or may have rights
to benefits, other than nonoccupational disability benefits, under
any workers' compensation law, the arbitrator shall not proceed with
the arbitration until the insured's physical condition is stationary
and ratable. In those cases in which the insured claims a permanent
disability, the claims shall, unless good cause be shown, be
adjudicated by award or settled by compromise and release before the
arbitration may proceed. Any demand or petition for arbitration
shall contain a declaration, under penalty of perjury, stating
whether (i) the insured has a workers' compensation claim; (ii) the
claim has proceeded to findings and award or settlement on all issues
reasonably contemplated to be determined in that claim; and (iii) if
not, what reasons amounting to good cause are grounds for the
arbitration to proceed immediately. The arbitration shall be deemed
to be a proceeding and the hearing before the arbitrator shall be
deemed to be the trial of an issue therein for purposes of issuance
of a subpoena by an attorney of a party to the arbitration under
Section 1985 of the Code of Civil Procedure. Article 3 (commencing
with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of
Civil Procedure shall be applicable to these determinations, and all
rights, remedies, obligations, liabilities and procedures set forth
in Article 3 shall be available to both the insured and the insurer
at any time after the accident, both before and after the
commencement of arbitration, if any, with the following limitations:
(1) Whenever in Article 3, reference is made to the court in which
the action is pending, or provision is made for application to the
court or obtaining leave of court or approval by the court, the court
which shall have jurisdiction for the purposes of this section shall
be the superior court of the State of California, in and for any
county which is a proper county for the filing of a suit for bodily
injury arising out of the accident, against the uninsured motorist,
or any county specified in the policy or an endorsement added thereto
as a proper county for arbitration or action thereon.
(2) Any proper court to which application is first made by either
the insured or the insurer under Article 3 for any discovery or other
relief or remedy, shall thereafter be the only court to which either
of the parties shall make any applications under Article 3 with
respect to the same accident, subject, however, to the right of the
court to grant a change of venue after a hearing upon notice, upon
any of the grounds upon which change of venue might be granted in an
action filed in the superior court.
(3) A deposition pursuant to Section 2016 of the Code of Civil
Procedure may be taken without leave of court, except that leave of
court, granted with or without notice and for good cause shown, must
be obtained if the notice of the taking of the deposition is served
by either party within 20 days after the accident.
(4) Paragraph (4) of subdivision (a) of Section 2019 of the Code
of Civil Procedure is not applicable to discovery under this section.
(5) For the purposes of discovery under this section, the insured
and the insurer shall each be deemed to be "a party to the record of
any civil action or proceedings," where that phrase is used in
paragraph (2) of subdivision (b) of Section 2019 of the Code of Civil
Procedure.
(6) Interrogatories under Section 2030 of the Code of Civil
Procedure and requests for admission under Section 2033 of the Code
of Civil Procedure may be served by either the insured or the insurer
upon the other at any time more than 20 days after the accident
without leave of court.
(7) Nothing in this section limits the rights of any party to
discovery in any action pending or which may hereafter be pending in
any court.
(g) The insurer paying a claim under an uninsured motorist
endorsement or coverage shall be entitled to be subrogated to the
rights of the insured to whom the claim was paid against any person
legally liable for the injury or death to the extent that payment was
made. The action may be brought within three years from the date
that payment was made hereunder.
(h) An insured entitled to recovery under the uninsured motorist
endorsement or coverage shall be reimbursed within the conditions
stated herein without being required to sign any release or waiver of
rights to which he or she may be entitled under any other insurance
coverage applicable; nor shall payment under this section to the
insured be delayed or made contingent upon the decisions as to
liability or distribution of loss costs under other bodily injury
liability insurance or any bond applicable to the accident. Any loss
payable under the terms of the uninsured motorist endorsement or
coverage to or for any person may be reduced:
(1) By the amount paid and the present value of all amounts
payable to him or her, his or her executor, administrator, heirs, or
legal representative under any workers' compensation law, exclusive
of nonoccupational disability benefits.
(2) By the amount the insured is entitled to recover from any
other person insured under the underlying liability insurance policy
of which the uninsured motorist endorsement or coverage is a part,
including any amounts tendered to the insured as advance payment on
behalf of the other person by the insurer providing the underlying
liability insurance.
(i) No cause of action shall accrue to the insured under any
policy or endorsement provision issued pursuant to this section
unless one of the following actions have been taken within one year
from the date of the accident:
(1) Suit for bodily injury has been filed against the uninsured
motorist, in a court of competent jurisdiction.
(2) Agreement as to the amount due under the policy has been
concluded.
(3) The insured has formally instituted arbitration proceedings.
(j) Notwithstanding subdivisions (b) and (i), in the event the
accident occurs in any other state or foreign jurisdiction to which
coverage is extended under the policy and the insurer of the
tortfeasor becomes insolvent, any action authorized pursuant to this
section may be maintained within three months of the insolvency of
the tortfeasor's insurer, but in no event later than the pertinent
period of limitation of the jurisdiction in which the accident
occurred.
(k) Notwithstanding subdivision (i), any insurer whose insured has
made a claim under his or her uninsured motorist coverage, and the
claim is pending, shall, at least 30 days before the expiration of
the applicable statute of limitation, notify its insured in writing
of the statute of limitation applicable to the injury or death.
Failure of the insurer to provide the written notice shall operate to
toll any applicable statute of limitation or other time limitation
for a period of 30 days from the date the written notice is actually
given. The notice shall not be required if the insurer has received
notice that the insured is represented by an attorney.
(l) As used in subdivision (b), "public or livery conveyance," or
terms of similar import, shall not include the operation or use of a
motor vehicle by the named insured in the performance of volunteer
services for a nonprofit charitable organization or governmental
agency by providing social service transportation as defined in
subdivision (f) of Section 11580.1. This subdivision shall apply
only to policies of insurance issued, amended, or renewed on or after
January 1, 1976.
(m) Coverage provided under an uninsured motorist endorsement or
coverage shall be offered with coverage limits equal to the limits of
liability for bodily injury in the underlying policy of insurance,
but shall not be required to be offered with limits in excess of the
following amounts:
(1) A limit of thirty thousand dollars ($30,000) because of bodily
injury to or death of one person in any one accident.
(2) Subject to the limit for one person set forth in paragraph
(1), a limit of sixty thousand dollars ($60,000) because of bodily
injury to or death of two or more persons in any one accident.
(n) Underinsured motorist coverage shall be offered with limits
equal to the limits of liability for the insured's uninsured motorist
limits in the underlying policy, and may be offered with limits in
excess of the uninsured motorist coverage. For the purposes of this
section, uninsured and underinsured motorist coverage shall be
offered as a single coverage. However, an insurer may offer coverage
for damages for bodily injury or wrongful death from the owner or
operator of an underinsured motor vehicle at greater limits than an
uninsured motor vehicle.
(o) If an insured has failed to provide an insurer with wage loss
information or medical treatment record releases within 15 days of
the insurer's request or has failed to submit to a medical
examination arranged by the insurer within 20 days of the insurer's
request, the insurer may, at any time prior to 30 days before the
actual arbitration proceedings commence, request, and the insured
shall furnish, wage loss information or medical treatment record
releases, and the insurer may require the insured, except during
periods of hospitalization, to make himself or herself available for
a medical examination. The wage loss information or medical
treatment record releases shall be submitted by the insured within 10
days of request and the medical examination shall be arranged by the
insurer no sooner than 10 days after request, unless the insured
agrees to an earlier examination date, and not later than 20 days
after the request. If the insured fails to comply with the
requirements of this subdivision, the actual arbitration proceedings
shall be stayed for at least 30 days following compliance by the
insured. The proceedings shall be scheduled as soon as practicable
following expiration of the 30-day period.
(p) This subdivision applies only when bodily injury, as defined
in subdivision (b), is caused by an underinsured motor vehicle. If
the provisions of this subdivision conflict with subdivisions (a)
through (o), the provisions of this subdivision shall prevail.
(1) As used in this subdivision, "an insured motor vehicle" is one
that is insured under a motor vehicle liability policy, or
automobile liability insurance
policy, self-insured, or for which a cash deposit or bond has
been posted to satisfy a financial responsibility law.
(2) "Underinsured motor vehicle" means a motor vehicle that is an
insured motor vehicle but insured for an amount that is less than the
uninsured motorist limits carried on the motor vehicle of the
injured person.
(3) This coverage does not apply to any bodily injury until the
limits of bodily injury liability policies applicable to all insured
motor vehicles causing the injury have been exhausted by payment of
judgments or settlements, and proof of the payment is submitted to
the insurer providing the underinsured motorist coverage.
(4) When bodily injury is caused by one or more motor vehicles,
whether insured, underinsured, or uninsured, the maximum liability of
the insurer providing the underinsured motorist coverage shall not
exceed the insured's underinsured motorist coverage limits, less the
amount paid to the insured by or for any person or organization that
may be held legally liable for the injury.
(5) The insurer paying a claim under this subdivision shall, to
the extent of the payment, be entitled to reimbursement or credit in
the amount received by the insured from the owner or operator of the
underinsured motor vehicle or the insurer of the owner or operator.
(6) If the insured brings an action against the owner or operator
of an underinsured motor vehicle, he or she shall forthwith give to
the insurer providing the underinsured motorist coverage a copy of
the complaint by personal service or certified mail. All pleadings
and depositions shall be made available for copying or copies
furnished the insurer, at the insurer's expense, within a reasonable
time.
(7) Underinsured motorist coverage shall be included in all
policies of bodily injury liability insurance providing uninsured
motorist coverage issued or renewed on or after July 1, 1985.
Notwithstanding this section, an agreement to delete uninsured
motorist coverage completely, or with respect to a person or persons
designated by name, executed prior to July 1, 1985, shall remain in
full force and effect.
(q) Regardless of the number of vehicles involved whether insured
or not, persons covered, claims made, premiums paid or the number of
premiums shown on the policy, in no event shall the limit of
liability for two or more motor vehicles or two or more policies be
added together, combined, or stacked to determine the limit of
insurance coverage available to injured persons.
SEC. 16. Section 11580.7 is added to the Insurance Code, to read:
11580.7. (a) Any policy of automobile insurance or motor vehicle
insurance issued or renewed in this state on or after July 1, 1996,
may contain provisions requiring insureds to obtain any repair of
vehicular damage occurring in this state that is a repairable loss,
and for which there is liability, collision, comprehensive, or other
coverage under the policy, at a facility under contract to the
insurer pursuant to subdivision (b). Whenever that claim is allowed,
the insurer shall refer the claimant to three or more of these
repair facilities within reasonable proximity where the claimant
requests that the repairs be performed. If the claimant elects to
not repair the vehicle at one of the referral facilities, any
monetary benefit or compensation paid under the policy shall be
limited to the cost of repairs at a facility under contract to the
insurer pursuant to subdivision (b). If the insurer is not able to
provide the required referrals, the policy requirements requiring
repairs at a referral facility shall not apply.
(b) Each insurer that issues policies subject to this section
shall contract with sufficient numbers of motor vehicle repair
facilities throughout the state to allow referrals as required by
subdivision (a). Discounts or other reductions in prices authorized
by these contracts are not prohibited by subdivision (a) of Section
754 in accordance with paragraph (1) thereof.
(c) An insured's liability to another person for a repairable loss
subject to this section shall not exceed the insurer's liability.
(d) "Repairable loss," as used in this section, does not include a
loss which exceeds the value of the vehicle to be repaired.
(e) It is the intent of the Legislature in enacting this section
to help control the high cost of automobile and motor vehicle
insurance by providing a means for insurers to hold down repair
costs.
SEC. 17. Section 11580.71 is added to the Insurance Code, to read:
11580.71. Every insurer issuing policies of automobile or motor
vehicle insurance that refers claimants to automotive body or repair
shops for repairs shall develop a plan to assure that the repairs
were completed properly and within a reasonable time. The insurer
shall submit the plan to the commissioner by July 1, 1996, and at
least every three years thereafter.
SEC. 18. Section 550 of the Penal Code is amended to read:
550. (a) It is unlawful to do any of the following:
(1) Knowingly present or cause to be presented any false or
fraudulent claim for the payment of a loss, including payment of a
loss under a contract of insurance.
(2) Knowingly present multiple claims for the same loss or injury,
including presentation of multiple claims to more than one insurer,
with an intent to defraud.
(3) Knowingly cause or participate in a vehicular collision, or
any other vehicular accident, for the purpose of presenting any false
or fraudulent claim.
(4) Knowingly present a false or fraudulent claim for the payments
of a loss for theft, destruction, damage, or conversion of a motor
vehicle, a motor vehicle part, or contents of a motor vehicle.
(5) Knowingly prepare, make, or subscribe any writing, with the
intent to present or use it, or to allow it to be presented in
support of any false or fraudulent claim.
(6) Knowingly assist, abet, solicit, or conspire with any person
described as follows:
(A) Any person who knowingly presents any false or fraudulent
claim for the payment of a loss, including payment of a loss under a
contract of insurance.
(B) Any person who knowingly presents multiple claims for the same
loss or injury, including presentation of multiple claims to more
than one insurer, with an intent to defraud.
(C) Any person who knowingly causes or participates in a vehicular
collision, or any other vehicular accident, for the purpose of
presenting any false or fraudulent claim.
(D) Any person who knowingly prepares, makes, or subscribes any
writing, with the intent to present or use it, or to allow it to be
presented in support on any claim.
(7) Knowingly make or cause to be made any false or fraudulent
claim for payment of a health care benefit.
(8) Knowingly submit a claim for a health care benefit which was
not used by, or on behalf of, the claimant.
(9) Knowingly present multiple claims for payment of the same
health care benefit with an intent to defraud.
(10) Knowingly present for payment any undercharges for health
care benefits on behalf of a specific claimant unless any known
overcharges for health care benefits for that claimant are presented
for reconciliation at that same time.
(b) (1) Every person who violates paragraph (1), (2), (3), (4),
(5), or (6) of subdivision (a) shall be punished by imprisonment in
the state prison for two, three, or five years, or by a fine not
exceeding fifty thousand dollars ($50,000), or by both that
imprisonment and fine, unless the value of the fraud is fifty
thousand dollars ($50,000) or more. Whenever the value of the fraud
is fifty thousand dollars ($50,000) or more, the fine may be double
the amount of the value of the fraud.
(2) Every person who violates paragraph (7), (8), (9), or (10) of
subdivision (a) is guilty of a public offense.
(A) Where the claim or amount at issue exceeds four hundred
dollars ($400), the offense is punishable by imprisonment in the
state prison for two, three, or five years, by a fine not exceeding
fifty thousand dollars ($50,000), or by both that imprisonment and
fine, unless the value of the fraud exceeds fifty thousand dollars
($50,000), in which event the fine may not exceed the value of the
fraud, or by imprisonment in a county jail not to exceed one year, by
a fine of not more than one thousand dollars ($1,000), or by both
that imprisonment and fine.
(B) Where the claim or amount at issue is four hundred dollars
($400) or less, the offense is punishable by imprisonment in a county
jail not to exceed six months, by a fine of not more than one
thousand dollars ($1,000), or by both that imprisonment and fine
unless the aggregate amount of the claims or amount at issue exceeds
four hundred dollars ($400) in any 12 consecutive month period, in
which case the claims or amounts may be charged as in subparagraph
(A).
(c) Notwithstanding any other provision of law, probation shall
not be granted to, nor shall the execution or imposition of a
sentence be suspended for, any adult person convicted of felony
violations of this section who previously has been convicted of
felony violations of this section as an adult under charges
separately brought and tried two or more times. The existence of any
fact which would make a person ineligible for probation under this
subdivision shall be alleged in the information or indictment, and
either admitted by the defendant in an open court, or found to be
true by the jury trying the issue of guilt or by the court where
guilt is established by plea of guilty or nolo contendere or by trial
by the court sitting without a jury.
Except where the existence of the fact was not admitted or found
to be true or the court finds that a prior felony conviction was
invalid, the court shall not strike or dismiss any prior felony
convictions alleged in the information or indictment.
This subdivision shall not prohibit the adjournment of criminal
proceedings pursuant to Division 3 (commencing with Section 3000) of,
or Division 6 (commencing with Section 6000) of, the Welfare and
Institutions Code.
(d) Any person who violates subdivision (a) and who has a prior
felony conviction of the offense set forth in that subdivision or in
Section 548 shall receive a two-year enhancement for each prior
felony conviction in addition to the sentence provided in subdivision
(b). The existence of any fact which would subject a person to a
penalty enhancement shall be alleged in the information or indictment
and either admitted by the defendant in open court, or found to be
true by the jury trying the issue of guilt or by the court where
guilt is established by plea of guilty or nolo contendere or by trial
by the court sitting without a jury.
(e) This section shall not be construed to preclude the
applicability of any other provision of criminal law that applies or
may apply to any transaction.
(f) For any person who violates subdivision (a), if the false
claim or claims involves more than one hundred thousand dollars
($100,000) in losses or potential losses, or if the claim or claims,
together with all other convictions for violations of this section
involve more than one hundred thousand dollars ($100,000) in losses
or potential losses, the following provisions shall apply:
(1) The person shall receive a five-year enhancement.
(2) The person shall not be granted probation except in unusual
cases where the interest of justice would best be served by granting
probation.
The fact that the person is subject to this subdivision shall be
alleged in the accusatory pleading, and either admitted by the
defendant in open court, or found to be true by the trier of fact.
SEC. 19. Section 4750.3 is added to the Vehicle Code, to read:
4750.3. Unless the department has received evidence of financial
responsibility that shows that the motor vehicle is covered by a
motor vehicle liability policy or an automobile liability policy that
satisfies the financial responsibility requirements, the department
shall refuse registration or renewal of registration of a motor
vehicle on which registration fees are due. For purposes of this
subdivision, evidence of financial responsibility is a copy or
facsimile copy of any one of the following:
(1) A motor vehicle liability policy or an automobile liability
policy for the motor vehicle.
(2) An insurance covering note for the motor vehicle, as specified
in Section 382 of the Insurance Code.
(3) A certificate of self-insurance.
(4) A surety bond meeting the requirements of Section 16056.
(5) A certificate or deposit number of a cash deposit meeting the
requirements of Section 16054.2.
(6) An insurance identification form or card evidencing coverage
at the time of vehicle registration, in a manner determined by the
department.
SEC. 20. Section 9250.5 is added to the Vehicle Code, to read:
9250.5. (a) In addition to any other fees specified in this code
and the Revenue and Taxation Code, a fee of one dollar ($1) shall be
paid at the time of registration or renewal of registration of every
vehicle subject to registration under this code, except those
vehicles that are expressly exempted under this code from the payment
of registration fees.
(b) The money collected pursuant to this section shall, upon
appropriation by the Legislature, be used to reimburse the department
for its costs incurred in implementing Section 4750.3.
SEC. 21. Section 12810 of the Vehicle Code is amended to read:
12810. In determining the violation point count, the following
shall apply:
(a) Any conviction of failure to stop in the event of an accident
in violation of Section 20001 or 20002 shall be given a value of two
points.
(b) Any conviction of a violation of Section 23152 or 23153 shall
be given a value of two points.
(c) Any conviction of reckless driving shall be given a value of
two points.
(d) (1) Any conviction of a violation of subdivision (c) of
Section 192 of the Penal Code, or of Section 2800.2 or 2800.3,
subdivision (b) of Section 21651, subdivision (b) of Section 22348,
subdivision (a) of Section 23109, subdivision (c) of Section 23109,
or Section 31602 of this code, shall be given a value of two points.
(2) Any conviction of a violation of subdivision (a) or (b) of
Section 23140 shall be given a value of two points.
(e) Except as provided in subdivision (g), any other traffic
conviction involving the safe operation of a motor vehicle upon the
highway shall be given a value of one point.
(f) Any accident in which the operator is deemed by the department
to be responsible shall be given a value of one point.
(g) (1) A violation of paragraph (1), (2), (3), or (5) of
subdivision (b) of Section 40001 shall not result in a violation
point count being given to the driver if the driver is not the owner
of the vehicle.
(2) Any conviction of a violation of subdivision (a) of Section
21116, Section 21207.5, 21708, 21710, 21716, 23120, 24800, 26707, or
27315 shall not be given a violation point count.
(3) A violation of Section 23136 shall not result in a violation
point count.
(h) A conviction for only one violation arising from one occasion
of arrest or citation shall be counted in determining the violation
point count for the purposes of this section.
(i) Any conviction of a violation of Section 14601, 14601.1,
14601.2, or 14601.3 shall be given a value of two points.
(j) Any conviction of a violation of Section 27360 within a
37-month period shall be given a value of one point.
SEC. 22. Section 16006 is added to the Vehicle Code, to read:
16006. (a) Every person required to make a report to the
department by this chapter shall, at the same time that report is
required, make a report of the accident to his or her insurer
providing liability insurance.
(b) The report shall include the following information to the
extent known to the person making the report:
(1) The names and addresses of the persons involved in the
accident.
(2) The vehicle registration numbers of the involved vehicles.
(3) The date, time, and location of the accident.
(4) A general description of the circumstance of the accident, and
of any injuries or damage, including injury or damage to the
insured.
(c) In lieu of the report required by subdivision (b), the insured
may send the insurer a copy of the SR-1 report filed with the
department.
(d) (1) Except for good cause shown, a person injured in an
accident originating from the operation of a motor vehicle on any
street or highway, or any off-highway accident reportable under
Section 16000.1, shall notify any insurer , that
issued an automobile insurance policy believed to cover any
third-party bodily injury claim arising from the accident ,
of the accident and potential claim within 10 days of
discovery of the injury.
(2) The failure of an injured party to provide the notice required
by paragraph (1) may be introduced at the court's discretion under
Section 352 of the Evidence Code to contest the necessity of medical
services provided to the injured party.
(3) As used in this section, "good cause" includes, but is not
limited to, situations in which the injured person was mentally or
physically incapacitated following the accident or was provided
incorrect or no insurance information by other participants in the
accident.
(e) The department shall advise motorists of the requirements of
this section in its "Driver Information Handbook" and in its annual
notice for vehicle registration and shall test for knowledge of this
section in its testing of applicants for a new or renewed driver's
license.
(f) This section shall become operative January 1, 1997, except
that the department shall commence to advise motorists under
subdivision (e) no later than July 1, 1996.
SEC. 23. Section 16056 of the Vehicle Code is amended to read:
16056. (a) No policy or bond shall be effective under Section
16054 unless issued by an insurance company or surety company
authorized to do business in this state, except as provided in
subdivision (b) of this section, nor unless the policy or bond is
subject, if the accident has resulted in bodily injury or death, to a
limit, exclusive of interest and costs, of not less than ten
thousand dollars ($10,000) because of bodily injury to or death of
one person in any one accident and, subject to that limit for one
person, to a limit of not less than twenty thousand dollars ($20,000)
because of bodily injury to or death of two or more persons in any
one accident, and, if the accident has resulted in injury to, or
destruction of property, to a limit of not less than three thousand
dollars ($3,000) because of injury to or destruction of property of
others in any one accident. However, the property damage liability
requirements of this section do not apply if that coverage has been
waived under Section 11580.02 of the Insurance Code.
(b) No policy or bond shall be effective under Section 16054 with
respect to any vehicle which was not registered in this state or was
a vehicle which was registered elsewhere than in this state at the
effective date of the policy or bond or the most recent renewal
thereof, unless the insurance company or surety company issuing the
policy or bond is authorized to do business in this state, or if the
company is not authorized to do business in this state, unless it
executes a power of attorney authorizing the department to accept
service on its behalf of notice or process in any action upon the
policy or bond arising out of an accident mentioned in subdivision
(a).
SEC. 24. Section 16377 of the Vehicle Code is amended to read:
16377. Every judgment shall for the purposes of this chapter be
deemed satisfied:
(a) When ten thousand dollars ($10,000) has been credited, upon
any judgment in excess of that amount, or upon all judgments,
collectively, which together total in excess of that amount, for
personal injury to or death of one person as a result of any one
accident.
(b) When, subject to the limit of ten thousand dollars ($10,000)
as to one person, the sum of twenty thousand dollars ($20,000) has
been credited, upon any judgment in excess of that amount, or upon
all judgments, collectively, which together total in excess of that
amount, for personal injury to or death of more than one person as a
result of any one accident.
(c) When three thousand dollars ($3,000) has been credited, upon
any judgment in excess of that amount, or upon all judgments,
collectively, each of which is in excess of five hundred dollars
($500), and which together total in excess of three thousand dollars
($3,000), for damage to property of others as a result of any one
accident.
(d) When the judgment debtor or a person designated by him or
her has deposited with the department a sum equal to the
amount of the unsatisfied judgment for which the suspension action
was taken and presents proof, satisfactory to the department, of
inability to locate the judgment creditor.
SEC. 25. Section 16430 of the Vehicle Code is amended to read:
16430. Proof of financial responsibility when required by this
code means proof of financial responsibility resulting from the
ownership or operation of a motor vehicle and arising by reason of
personal injury to, or death of, any one person, of at least ten
thousand dollars ($10,000), and, subject to the limit of ten thousand
dollars ($10,000) for each person injured or killed, of at least
twenty thousand dollars ($20,000) for the injury to, or the death of,
two or more persons in any one accident, and for damages to property
(in excess of five hundred dollars ($500)), of at least three
thousand dollars ($3,000) resulting from any one accident. Proof of
financial responsibility may be given in any manner authorized in
this chapter. However, the property damage liability requirements of
this section do not apply if that coverage has been waived under
Section 11580.02 of the Insurance Code, and such a policy shall
constitute proof of financial responsibility for all purposes,
notwithstanding that waiver.
SEC. 26. Section 16451 of the Vehicle Code is amended to read:
16451. An owner's policy of motor vehicle liability insurance
shall insure the named insured and any other person using any motor
vehicle registered to the named insured with the express or implied
permission of the named insured, against loss from the liability
imposed by law for damages arising out of ownership, maintenance, or
use of the motor vehicle within the continental limits of the United
States to the extent and aggregate amount, exclusive of interest and
costs, with respect to each motor vehicle, of ten thousand dollars
($10,000) for bodily injury to or death of each person as a result of
any one accident and, subject to the limit as to one person, the
amount of twenty thousand dollars ($20,000) for bodily injury to or
death of all persons as a result of any one accident and, unless
waived pursuant to Section 11580.02 of the Insurance Code, the amount
of three thousand dollars ($3,000) for damage to property of others
as a result of any one accident.
SEC. 27. Section 17151 of the Vehicle Code is amended to read:
17151. (a) The liability of an owner, bailee of an owner, or
personal representative of a decedent imposed by this chapter and not
arising through the relationship of principal and agent or master
and servant is limited to the amount of ten thousand dollars
($10,000) for the death of or injury to one person in any one
accident and, subject to the limit as to one person, is limited to
the amount of twenty thousand dollars ($20,000) for the death of or
injury to more than one person in any one accident and is limited to
the amount of three thousand dollars ($3,000) for damage to property
of others in any one accident.
(b) An owner, bailee of an owner, or personal representative of a
decedent is not liable under this chapter for damages imposed for the
sake of example and by way of punishing the operator of the vehicle.
Nothing in this subdivision makes an owner, bailee, or personal
representative immune from liability for damages imposed for the sake
of example and by way of punishing him for his own wrongful conduct.
SEC. 28. Section 17709 of the Vehicle Code is amended to read:
17709. (a) No person, or group of persons collectively, shall
incur liability for a minor's negligent or wrongful act or omission
under Sections 17707 and 17708 in any amount exceeding ten thousand
dollars ($10,000) for injury to or death of one person as a result of
any one accident or, subject to the limit as to one person,
exceeding twenty thousand dollars ($20,000) for injury to or death of
all persons as a result of any one accident or exceeding three
thousand dollars ($3,000) for damage to property of others as a
result of any one accident.
(b) No person is liable under Section 17707 or 17708 for damages
imposed for the sake of example and by way of punishing the minor.
Nothing in this subdivision makes any person immune from liability
for damages imposed for the sake of example and by way of punishing
him for his own wrongful conduct.
SEC. 29. Section 20002 of the Vehicle Code is amended to read:
20002. (a) The driver of any vehicle involved in an accident
resulting in damage to any property, including vehicles, shall
immediately stop the vehicle at the scene of the accident and shall
then and there do one of the following:
(1) Locate and notify the owner or person in charge of that
property of the name and address of the driver and owner of the
vehicle involved and, upon locating the driver of any other vehicle
involved or the owner or person in charge of any damaged property,
present his or her driver's license, vehicle registration, and
evidence of financial responsibility as specified in subparagraph (B)
of paragraph (2) to the other driver, property owner, or person in
charge of that property. The information presented shall include the
current residence address of the driver and of the registered owner.
If the registered owner of an involved vehicle is present at the
scene, he or she shall also, upon request, present his or her driver'
s license information, if available, or other valid identification to
the other involved parties, and evidence of financial responsibility
to the other involved parties.
(2) If a traffic or police officer is present at the scene of an
accident and a police report is made, each driver involved in the
accident shall, unless rendered incapable, exchange with any other
driver or property owner involved in the accident
and present at the scene, all of the
following information:
(A) Driver's name and current residence address, driver's license
number, vehicle identification number, and name and current residence
address of registered owner.
(B) Evidence of financial responsibility, as specified in Section
16021. If the financial responsibility of a person is a form of
insurance, then that person shall, unless rendered incapable, supply
the name and address of the insurance company.
(3) Leave in a conspicuous place on the vehicle or other property
damaged a written notice giving the name and address of the driver
and of the owner of the vehicle involved and a statement of the
circumstances thereof and shall without unnecessary delay notify the
police department of the city wherein the collision occurred or, if
the collision occurred in unincorporated territory, the local
headquarters of the Department of the California Highway Patrol.
(b) Any person who parks a vehicle which, prior to the vehicle
again being driven, becomes a runaway vehicle and is involved in an
accident resulting in damage to any property, attended or unattended,
shall comply with the requirements of this section relating to
notification and reporting and shall, upon conviction thereof, be
liable to the penalties of this section for failure to comply with
the requirements.
(c) (1) Any person willfully failing to comply with all the
requirements of paragraph (1) or (3) of subdivision (a), or
subdivision (b) is guilty of a misdemeanor and, upon conviction
thereof, shall be punished by imprisonment in a county jail for not
to exceed six months, or by a fine not exceeding one thousand dollars
($1,000), or by both.
(2) Any person who willfully fails to comply with the requirements
of paragraph (2) of subdivision (a) shall be guilty of an infraction
punishable by a fine not to exceed two hundred fifty dollars ($250).
(d) The department shall advise motorists of the requirements of
this section in its "Driver Information Handbook" and its annual
notice for vehicle registration and shall test for knowledge of this
section in its testing of applicants for a new or renewed driver's
license.
SEC. 30. Section 20003 of the Vehicle Code is amended to read:
20003. (a) The driver of any vehicle involved in an accident
resulting in injury to or death of any person shall also give his or
her name, current residence address, the registration number of the
vehicle he or she is driving, and the name and current residence
address of the registered owner of the vehicle, evidence of financial
responsibility as specified in Section 16021, to the person struck
or the driver or occupants of any vehicle involved in the vehicle
collision. The driver also shall give the information to any traffic
or police officer at the scene of the accident and shall render to
any person injured in the accident reasonable assistance, including
transporting, or making arrangements for transporting that person to
a physician, surgeon, or hospital for medical or surgical treatment
if it is apparent that treatment is necessary or if that
transportation is requested by the injured person.
(b) Any driver subject to the provisions of subdivision (a) shall
also exhibit his or her driver's license, if available, to the person
struck or to the driver or occupants of any vehicle collided with,
and to any traffic or police officer at the scene of the accident.
(c) Any person willfully failing to comply with all of the
requirements of subdivision (a) or subdivision (b) is guilty of a
misdemeanor and, upon conviction, shall be punished by imprisonment
in a county jail for not to exceed six months or by a fine of not to
exceed one thousand dollars ($1,000), or by both.
(d) The department shall advise motorists of the requirements of
this section in its "Driver Information Handbook" and its annual
notice for vehicle registration and shall test for knowledge of this
section in its testing of applicants for a new or renewed driver's
license.
SEC. 31. (a) The Legislature finds and declares
that the reforms made by this act will result in substantial savings
and reduced costs for private passenger automobile insurance. More
particularly, the Legislature finds that this act, and the enactment
of related provisions to prevent insurance fraud and enhance vehicle
safety, will make it more affordable for all Californians to purchase
required insurance coverage.
(b) It is the intent of the Legislature that the reforms provided
by this bill shall:
(1) Result in the availability to good drivers in all areas of the
state of a policy providing the minimum required insurance at a
price of less than four hundred fifty dollars ($450) if property
damage liability coverage is included, and less than three hundred
fifty dollars ($350) if property damage liability coverage is waived,
as set by the Insurance Commissioner in between five and eight
territories. If the commissioner determines that the target price is
not achievable as desired in between five and eight territories, he
or she may select a lower number of territories in which to set the
price. Savings flowing from the enactment of measures in the 1995-96
Regular Session shall be considered by the commissioner in setting
the price of the minimum insurance policy.
(2) Encourage the purchase of insurance by all drivers by making
the minimum coverage available at lower, more affordable, prices.
(c) It is the further intent of the Legislature that the Insurance
Commissioner do all of the following:
(1) In setting the price for the minimum policy and in setting
rates, consider ways to recapture any subsidy of the basic policy
when an insured buys additional coverage, beginning when more than
forty thousand dollars ($40,000) in bodily injury liability coverage
is purchased and consider establishment of prices for policies other
than those described in paragraph (1) of subdivision (b), including
policies sold to persons who are not good drivers and policies sold
through the assigned risk plan, that are not lower than the price for
the minimum policy sold to good drivers.
(2) Assure the availability of good driver discount insurance to
good drivers by requiring insurers to offer that insurance throughout
the county in which they do business.
(3) To assure the equal distribution among insurers of the cost of
providing minimum insurance to good drivers, consider establishment
of premium exchange systems, whether territorial or interterritorial,
or other steps to equalize the distribution.
(d) Accordingly, the Insurance Commissioner shall take those steps
consistent with Proposition 103 to implement the legislative intent
expressed in this section, including, where an amendment of
Proposition 103 is required in order to implement that intent,
reporting to the Legislature on that additional legislation necessary
to effectuate that intent.
SEC. 32. If any provision of this act or the application thereof
to any person or circumstances is held invalid, that invalidity shall
not affect other provisions or applications of the act which can be
given effect without the invalid provision or application, and to
this end the provisions of this act are severable.
SEC. 33. (a) Except as otherwise provided in this act, this act
shall become operative January 1, 1997.
(b) Notwithstanding the delayed operative date of any provision of
this act, where any provision of this act provides for the adoption
of a regulation by an agency or officer, that regulation may be
adopted and amended upon the effective date of this act.
(c) Sections 3, 5, 7, 8, 16, 17, 29, and 30 of this act shall
become operative July 1, 1996.
(d) Sections 1, 10, 18, 21, and 31 of this act shall become
operative January 1, 1996.
SEC. 34. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for those
costs which may be incurred by a local agency or school district
because this act creates a new crime or infraction, eliminates a
crime or infraction, changes the penalty for a crime or infraction,
within the meaning of Section 17556 of the Government Code, or
changes the definition of a crime within the meaning of Article XIIIB
of the California Constitution.
However, notwithstanding Section 17580 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.