AB 953

This bill defines short-term, limited-duration insurance using the federal

government's definition. Under the bill, if the federal government defines

short-term, limited-duration insurance to have shorter initial and aggregate

durations than current law and if the federal law no longer preempts the state law,

the commissioner shall define short-term, limited-duration insurance as insurance

that complies with current state law. Under current state law, an insurer is not

required to renew short-term coverage, which is coverage that is marketed and

designed to provide short-term coverage as a bridge between health coverage with

an initial term of not more than 12 months and an aggregate term of all consecutive

periods of coverage that does not exceed 18 months. The current federal regulation

defines short-term, limited-duration to have an initial expiration date that is less

than 12 months after the effective date and an aggregate duration, including

renewals or extensions, of no longer than 36 months.