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ASSEMBLY BILL 521 (EGELAND – 1975)
CHAPTER 944, STATUTES OF 1975, AB 521
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Government Code section 12532.75 was added, Insurance Code section 10121 was amended, and Insurance Code sections 10119.5 and 11512.13 were added, with the passage of Assembly Bill 521 of 1975. (See Exhibits #1a through #1f) Assembly member Leona Egeland introduced this measure on January 16, 1975. (See Exhibit #1a)
Assembly Bill 521 was assigned to the Assembly Committee on Finance, Insurance and Commerce and the Senate Committee on Insurance and Financial Institutions where policy issues raised by the bill were considered. (See Exhibits #3 and #8) Four amendments were made to Assembly Bill 521 as the bill was considered by both Houses. (See Exhibits #1b through #1e and #2) Subsequent to legislative approval, Governor Edmund G. Brown, Jr., signed Assembly Bill 521 on September 22, 1975 and it was recorded by the Secretary of State on that day as Chapter 944 of the Statutes of 1975. (See Exhibit #1f)
The Enrolled Bill Memorandum to Governor dated September 15, 1975, summarized Assembly Bill 521 as follows:
This bill would provide that no policy of disability insurance, health care service plan, self-insured employee welfare benefit plan, or hospital service contract which provides maternity benefits for a person covered continuously from conception shall be issued, amended, delivered, or renewed on or after July 1, 1976, if it contains any exclusion, reduction, or other limitations as to coverage deductibles, or coinsurance provisions as to involuntary complications of pregnancy with specified inclusions. The bill would permit such policies, plans, and contracts to be subject to the same exclusions, deductibles, reductions, and limitations applied generally to all benefits paid, with limited exceptions for health care service plans.
This bill would not apply to policies, plans or contracts made subject to an applicable collective-bargaining agreement in effect before July 1, 1976.
(See Exhibit #14, document PE-1)