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ASSEMBLY BILL 297 (MORETTI – 1968)

CHAPTER 137, STATUTES OF 1968

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As enacted, Assembly Bill 297 repealed and added Insurance Code sections 660 et seq. and repealed Insurance Code sections 670 et seq., relating to insurance.  (See Exhibit A, #1d)  Assembly Bill 297 was introduced by Assembly member Bob Moretti as a response to complaints regarding cancellation of automobile insurance policies.  (See Exhibit A, #1a and #4, document AP-1) 

The measure was assigned to the Assembly Committee on Finance and Insurance and the Senate Committee on Insurance and Financial Institutions where policy issues raised by the bill were considered.  (See Exhibit A, #2 and #3)  Assembly Bill 297 was amended two times as it went through the Assembly and Senate Committees.  (See Exhibit A, #1b, #1c and #2)  Subsequent to legislative approval, Assembly Bill 297 was signed by Governor Ronald Reagan on May 16, 1968, and recorded on that date as Chapter 137 of the Statutes of 1968.  (See Exhibit A, #1d and #2)

The Assembly Committee on Finance and Insurance analysis of Assembly Bill 297 described this measure as follows:

    This bill deals with the cancellation of private passenger automobile insurance polices.  It provides simply that there shall only be two reasons for which an insurer may cancel an automobile policy after the first sixty days it is on the risk.  These two reasons are:  nonpayment of premium, and termination or revocation of the driver’s license or motor vehicle registration.
(See Exhibit A, #3)