On May 5, 2008, a vital amendment to SB 483 was reported on the California legislative Web site. In connection with the Federal Deficit Reduction Act of 2006, Senate Bill 483, introduced by Senator Sheila Kuehl (D-Santa Monica), was amended and could have some drastic affects to the long term care delivery system in California. Similar changes are also being implemented nationally. This will be the first part of a series of articles analyzing the bill.
Section 789.8 of the Insurance Code has been proposed to be amended to read, in part:
(b) If a life agent offers to sell to an aged, blind, or disabled individual any life insurance or annuity product, the life agent shall advise that individual or that individual’s agent in writing …
This was the provision originally established by AB 2107 during the 1999-2000 legislative session. I encourage all of you working with California residents to go to www.leginfo.ca.gov and see the April version of the AB 2107 bill. Compare that version with what ultimately passed. This disclosure was the result of compromise and work.
Section (d) now contains language that must be used when “A life agent … offers for sale or sells any financial product on the basis of its treatment under the Medi-Cal program.” I have had the privilege of listening to several plaintiff attorneys who encourage disclosure, and I agree that all clients should be made aware of the rules contained in this disclosure. Remember, it is up to you to make sure your forms are up to date and current.