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Assembly Bill 1517 (Maloney 1941)

Chapter 272, Statutes of 1941 - AB 1517

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As enacted Assembly Bill 1517 amended and enacted several Insurance Code sections.  (See Exhibit #1b)  Assembly members Thomas A. Maloney and Robert Miller Green introduced the measure on January 24, 1941.  (See Exhibit #1a)

While before the Legislature, the measure was heard in the Assembly Committee on Insurance and the Senate Committee on Financial Institutions where policy issues raised by the bill were heard.  (See Exhibit #2)  Assembly Bill 1517 passed through both Houses of the Legislature without amendment.  (See Exhibits #1 and #2)  Following legislative approval, Governor Earl Warren signed the measure on May 15, 1941, and the Secretary of State recorded it as Chapter 272 of the Statutes of 1941.  (See Exhibits #1b and #2) 

Assembly Bill 1517 was described by the Legislative Counsel in the Summary Digest of Statutes Enacted as follows:

A.B. 1517 (Ch.272).   MALONEY and GREEN.  Amends sec.

10172 and heading of second Art. 5, Ch. 4, Pt. 2, Div. 2, adds secs.10129, 10173, 10174, 10175, 10291.5 and Art. 5.5, secs. 10370-10374, Ins. C., re life and disability insurance.

   Permits insurer to pay policy proceeds notwithstanding community property rights, unless written notice of 3d party claim received at insurer’s home office.  Requires disapproval of disability policy if form or provisions found misleading.

   Authorizes provisions in disability policies with 5-year noncancellable clause to provide for proration and reduction of benefits when benefits from all policies exceed average monthly compensation of insured, and provides for pro rata return of premium.

(See Exhibit #4, pages 171 and 172)