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Assembly Bill 1909 (Vargas 2006)

Chapter 345, Statutes of 2006 - AB 1909

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As Assembly Bill 1909 was enacted in 2006, it amended Insurance Code section 11580.9 only.  (See Exhibit #1c)  Assembly Member Juan Vargas introduced this measure on January 26, 2006, regarding motor vehicle insurance coverage, at the request of the California Dump Truck Owners Association.  (See Exhibits #1a; #3, page 2; and #5, page 2)

Assembly Bill 1909 was assigned to the Assembly Committee on Insurance and the Senate Committee on Banking, Finance, and Insurance where policy issues raised by the bill were considered.  (See Exhibits #3 and #5)  One amendment was made to Assembly Bill 1909.  (See Exhibits #1b and #2)  Subsequent to legislative approval, Governor Arnold Schwarzenegger signed the bill on September 20, 2006 and it was recorded by the Secretary of State on that day as Chapter 345 of the Statutes of 2006.  (See Exhibits #1c and #2)

A digest of Assembly Bill 1909 as last amended was provided in the Concurrence in Senate Amendments Analysis as follows:

SUMMARY:  Clarifies that a policy covering an insured who in the course of his or her business rents or leases motor vehicles for either commercial purposes or for at least a six-month term is considered excess to other insurance policies covering the same loss.

(See Exhibit #9a)