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Senate Bill 538 (Robbins – 1983)

Chapter 1244, Statutes of 1983

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As enacted Senate Bill 538 amended California Insurance Code sections 11580.06, 11580.2, and 11580.9 and California Vehicle Code section 16451.  (See Exhibit #1f)  Senator Alan Robbins introduced Senate Bill 538 on February 24, 1983 at the request of the Association of California Insurance Companies.  (See Exhibits #1a; #7, document AP-1; and #13, document PE-1) 

While before the Senate, the measure was heard by the Committee on Insurance, Claims, and Corporations.  (See Exhibit #3)  After amending Senate Bill 538 on April 12 and May 3, 1983, the Senate forwarded the bill to the Assembly.  (See Exhibits #1b, #1c, and #2) In the Assembly, Senate Bill 538 was heard by the Committee on Finance and Insurance.  (See Exhibit #6)  The Assembly amended the bill on June 1, 1983 and August 29, 1983.  (See Exhibits #1d, #1e and #2)  Governor Edmund G. Brown Jr., approved Senate Bill 538 and it was recorded by the Secretary of State as Chapter 1244 of the Statutes of 1983.  (See Exhibits #1f and #2) 

The Senate Republican Caucus analysis provides the following digest of Senate Bill 538 as it was last amended on August 29, 1983:

This bill makes changes in the Insurance and Vehicle Codes relative to auto insurance.

Specifically, the bill:

Makes a definitional change to automobile in the Insurance Code to mean as having no more than nor less than 4 wheels.

Defines the term uninsured motor vehicle to include a motor vehicle operated by the named insured or any resident of the same household.

Conforms Sections 16451 and 16432 of the Vehicle Code so that both sections refer to vehicles “registered” and further use the same terminology “named insured” instead of “person named therein.”

Defines that the policy issued to a named insured engaged in the business of renting or leasing motor vehicles is excess only with respect to the vehicles leased or rented.

Negates the argument that an accident was caused by the negligent maintenance of a borrowed motor vehicle operated by an insured.
(See Exhibit #9, page 1)