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Assembly Bill 557 (Morgan 1935)

Chapter 245, Statutes of 1935 - AB 557

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The Insurance Code was established in 1935 following legislative passage of Chapter 145, which was amended later that same year by Chapter 245 to add section 10113 to the Insurance Code, relating to life and disability insurance policies, following legislative passage of Assembly Bill 557.  (See Exhibit #1c)  Assembly member Geoffrey Morgan introduced Assembly Bill 557 on January 22, 1935.  (See Exhibit #1a)  This measure was a single-section bill that proposed only to add section 10113 to the Insurance Code.  (See Exhibit #1c)

Assembly Bill 557 was assigned to the Assembly Committee on Insurance and the Senate Committee on Insurance where policy issues raised by the bill were considered.  (See Exhibit #2)  One amendment was made to Assembly Bill 557 during the legislative process.  (See Exhibits #1b and #2)  Subsequent to legislative approval, Governor Frank F. Merriam signed the bill on June 1, 1935 and it was recorded by the Secretary of State on September 15, 1935 as Chapter 245 of the Statutes of 1935.  (See Exhibits #1c and 2)

Legislative Counsel in its Summary Digest of Statutes Enacted provided the following digest of Assembly Bill 557:

A.B. 557          (Ch. 245).  MORGAN.  Adds Sec. 10113, Ins. C., re life and disability insurance policies.

Requires entire contract to be included in policy.  Makes statements of insured representations and not warranties, unless fraud is involved.

(See Exhibit #5, page 49)