Bills · 2015-2016 Regular Session

AB 668

Became law Official bill text Atom feed

Relating to: rights under certain agreements or qualified financial contracts.

Contracts Insurance

Introduced, completed
Passes Assembly, completed
Passes Senate, completed
Governor signs, completed
Law, completed

Unfamiliar terms? Glossary

What this bill does

Plain-language analysis by the nonpartisan Legislative Reference Bureau

This bill prohibits the staying or prevention of a person from exercising certain

rights related to certain agreements and qualified financial contracts. After the

appointment of a receiver in a rehabilitation or liquidation action against an insurer,

current law prohibits the staying or prohibition from exercising certain rights under

a qualified financial contract unless the person is notified that the contract has been

sold or transferred under certain circumstances. The bill maintains that no person

may be stayed or prohibited from exercising those specified rights but eliminates the

specification on the time period and the exception for notification that the contract

has been sold or transferred. The bill specifies that the prohibition on staying or

preventing the exercise of those rights takes precedence over other rehabilitation

and liquidation provisions in the statutes.

Votes

Assembly: Report passage recommended by Committee on Insurance, Ayes 15, Noes 0

Passed 15–0 Jan 15, 2016 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: Public hearing requirement waived by committee on Senate Organization, pursuant to Senate Rule 18 (1m), Ayes 3, Noes 2

Passed 3–2 Mar 14, 2016 official source full page