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News & Press: CalAdvisor Newsletter

Legislative Issues of Interest in 2016

Thursday, May 19, 2016   (0 Comments)
Posted by: Shari McHugh
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After an incredibly successful Day on the Hill in Sacramento, NAIFA-California’s Sacramento team has been very busy working on a number of issues that are very important to NAIFA-California members.  Here is a quick overview of some of the issues:

California Secure Choice Savings Program – SB 1234 (DeLeon)

Senator Kevin DeLeon (D-Los Angeles) is moving SB 1234 to provide legislative approval for the California Secure Choice Retirement Savings Program (SCRSP) and set forth recommendations and requirements for the design and implementation of the program.  The program would provide state administered retirement savings for private sector employees who do not have access to employer-sponsored retirement plans. 

For years, NAIFA-California has been telling the author that we support the effort to find innovative ways for all individuals to save for retirement.  Further, we have told him that most NAIFA-California members spend their careers educating and assisting their clients and prospects on the importance of providing for their own families and saving for their retirement.

Thanks to the diligent efforts of NAIFA-California’s members and NAIFA-California’s presence in Sacramento, Senator DeLeon agreed to take an amendment to the bill to direct the Board to collaborate with and evaluate the role of insurance agents and financial advisors in assisting and providing guidance for eligible employers and employees.  This was a huge step towards ensuring that agents and advisors are taken into consideration by the Board, and it gives NAIFA-California an opportunity to work with the Board to protect the role of the agent and advisor. The language should be amended into the bill in May.  

SB 923 -- SUPPORT

NAIFA-California is pleased to support, along with CAHU and IIABCal, SB 923 by Senator Ed Hernandez (D-Azusa). The bill would make it clear that in the individual (grandfathered and non-grandfathered) and non-grandfathered small group markets, a health care service plan contract or health insurance policy that is issued, amended or renewed on or after January 1, 2017 may not change any cost sharing requirements during the plan year or policy year.  The only exception is when a change is required due to a change in state or federal law. The bill protects those who purchase health coverage for themselves or for their small business from unexpected price changes during the term of the contract.

Long Term Care Bills of Interest 

A number of bills have been introduced and are moving through the process in an attempt to address the highly challenged long term care marketplace.  AB 2366, by Assemblyman Matt Dababneh (D-Encino) and sponsored by the Association of California Life and Health Insurance Companies (ACLHIC), is designed to help insurers with getting new and innovative long-term care products to the marketplace by exempting insurers that offer a policy that combines both life and long-term care (LTC) coverage from the requirement to offer the new policy to their existing long-term care policy holders.   NAIFA-California is supporting the bill.

Two other bills that are being considered are SB 1091 and SB 1384 by Senator Carol Liu (D-Pasadena).  SB 1091 would establish definitions for types of long-term care insurance (LTCI) based on the benefits provided and require insurers to provide written notice when they deny a request for treatment for an alternate plan of care. SB 1384 would move the California Partnership for Long-term Care Program (“Partnership”) from the Department of Health Care Services (DHCS) to the Department of Aging and require the program to offer a lower-priced inflation protection option and permit insurers to offer home care-only policies.  NAIFA-California is hopeful that both bills will ultimately improve the marketplace and we are working with interested parties to help ensure that is the case.

Other Bills of Interest

NAIFA-California is pleased to support AB 1899 by Assemblyman Ian Calderon (D-Montebello), which would require the CDI to offer the licensing exam for life agent, life-only agent and accident and health agent licenses be provided in English and Spanish. 

SB 924 by Senator Richard Roth (D-Riverside) would add to the suitability information required for the sale of annuities whether the consumer intends to apply for means-tested government benefits, including, but not limited to, Medi-Cal or the veterans’ aid and attendance benefit.




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