Store Research
Assembly Bill 274 (Papan – 1981)
Chapter 36, Statutes of 1981
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Insurance Code sections 11580.1 and 11580.9, pertaining to automobile liability insurance, were amended in 1981, following the passage of Assembly Bill 274, which affected these two sections only. (See Exhibit A, #1a through #1d) Assembly member Louis Papan introduced this measure on January 15, 1981 on behalf of the Farmers Insurance Group. (See Exhibit A, #1a; #4, document AP-4; and #6)
Assembly Bill 274 was assigned to the Assembly Committee on Finance, Insurance and Commerce and the Senate Committee on Insurance and Indemnity where policy issues raised by the bill were considered. (See Exhibit A, #3 and #6) Three amendments were made to Assembly Bill 274. (See Exhibit A, #1b through #1d and #2) Subsequent to legislative approval, Governor Edmund G. Brown, Jr., signed the bill on May 21, 1981 and it was recorded by the Secretary of State on that day as Chapter 36 of the Statutes of 1981. (See Exhibit A, #1e and #2)
The Senate Republican Caucus, in its third reading analysis of Assembly Bill 274, as last amended on April 7, 1981, offered the following digest of the measure:
This bill relating to insurance, provides for the following:
Allows insured engaged in the business of leasing vehicles, in instances where the vehicles are leased in excess of 6 months, to agree contractually with the insurer to limit liability to the named insured and his employees or agents. The lessor would be required to incorporate a provision in each vehicle contract advising the lessee of the liability limitation.
Clarifies existing law relative to excess auto liability that insurers who provide such coverage when the primary policy is not valid or collectible are only liable up to the minimum financial responsibility requirements of $15,000/$30,000/$5,000.
(See Exhibit A, #9, page 1)