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SENATE BILL 472 (DIFANI – 1935)

CHAPTER 291, STATUTES OF 1935, SB 472

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Senate Bill 472, as enacted, added sections 1010 through 1061 to the Insurance Code relating to insolvency and delinquency.  (See Exhibit #1d)  Senator Difani introduced this legislation on January 25, 1935.  (See Exhibit #1a) The Insurance Journal of August 1936 indicated that Senator Difani carried this measure for the Department of Insurance. (See Exhibit #9, right hand side, last two sentences carrying over to the next page)

Senate Bill 472 was introduced as a “spot bill” which simply means that it was introduced in order to hold a place for changes to be made later.  (See Exhibit #1a)  The Senate amendments of April 1, 1935 in the first amended version of the bill added the substantive provisions of the bill. (See Exhibit #1b) 

The Senate and Assembly Committees on Insurance considered the policy issues raised by the bill.  (See Exhibit #2)  Senate Bill 472 was amended twice, once in the Senate and once in the Assembly.  (See Exhibits #1b, #1c and #2)  When Senate Bill 472 was returned to the Senate, the Assembly amendments were reviewed and rejected.  (See Exhibit #2 and #7, page 1786)  Consequently, Senate Bill 472 was assigned to a Free Conference Committee.  (Id.) The purpose of a Free Conference Committee is to bring together six legislators, three from each House, in an attempt to reach a compromise on a bill’s language which is acceptable to both Houses.

The Free Conference Report was adopted by the Senate on May 16th and the Assembly on May 21, 1935. (See Exhibits #2 and #7, pages 1872 and 2064 through 2065)  The Report is printed in the Senate Journal and enclosed herein.  (See Exhibit #7, pages 2064 and 2065)  Governor Frank F. Merriam signed the bill on June 7, 1935 and it was recorded by the Secretary of State as Chapter 291 of the Statutes of 1935.  (See Exhibits #1e and #2)

The following short digest of Senate Bill 472 as enacted was provided in the Summary Digest of Statutes Enacted:

 . . . Amends Article XIV of Chapter 1 of Part 2 of Division 1, Ins. C.  Changes proceedings by the commissioner against insolvent insurers.
(See Exhibit #4, page 18)