California Insurance Code

§ 10110.6

INS § 10110.6 Effective Jan 1, 2012Div. 2 · Part 2 · Ch. 1 · Art. 1

Statute text

(a)If a policy, contract, certificate, or agreement offered, issued, delivered, or renewed, whether or not in California, that provides or funds life insurance or disability insurance coverage for any California resident contains a provision that reserves discretionary authority to the insurer, or an agent of the insurer, to determine eligibility for benefits or coverage, to interpret the terms of the policy, contract, certificate, or agreement, or to provide standards of interpretation or review that are inconsistent with the laws of this state, that provision is void and unenforceable.

(b)For purposes of this section, “renewed” means continued in force on or after the policy’s anniversary date.

(c)For purposes of this section, the term “discretionary authority” means a policy provision that has the effect of conferring discretion on an insurer or other claim administrator to determine entitlement to benefits or interpret policy language that, in turn, could lead to a deferential standard of review by any reviewing court.

…

Legislative history

Added by Stats. 2011, Ch. 425, Sec. 1. (SB 621) Effective January 1, 2012.