Insurance: California Life and Health Insurance Guarantee Association Act.

Existing law requires the formation of the California Life and Health Insurance Guarantee Association to provide coverage for persons for direct, nongroup life, health, annuity, and supplemental policies or contracts of insurance, except as specified, in case of failure in the performance of contractual obligations under policies and contracts because of the impairment or insolvency of the member insurer that issued the policies or contracts. This bill would revise and recast provisions of the act, including, but not limited to, the powers and duties of the association, coverage eligibility, the conditions and procedures for payment of a claim, association reporting requirements, and other related changes. The bill would also make various technical and conforming changes. This bill would provide that the amendments made to the California Life and Health Insurance Guarantee Association Act by this act shall not apply to any member insurer that, before the effective date of this act, has been placed under an order of liquidation with a finding of insolvency. This bill would declare that it is to take effect immediately as an urgency statute.