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Paul Zimmerman
pzimmerman@mrllp.com
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M&R Urges California State Senator to Correct Errors in Bill

Michelman and Robinson, LLP (M&R) has written to California State Senator Connie Leyva recommending amendment of SB 585. This bill would require insurers to divert claims payments to a new state child support program if the claimant is delinquent in making child support payments. In a letter sent on May 7, M&R advised the Senator that language in the bill dealing with the nonadmitted market is a significant legal defect. The letter was delivered both to the Senator and to key legislative and Department of Insurance staff. 

Many insurance trade associations oppose the bill on general policy grounds. The issue raised in the M&R letter addresses a specific legal defect in the bill which had not been discussed previously in the legislative debate. The bill as drafted would be a dramatic expansion of the state’s regulation of nonadmitted insurers. The letter explains the legal reasons why the state cannot do this. 

The letter may be found HERE.  Additional information about the bill may be found at www.leginfo.ca.gov.

This article is not offered as, and should not be relied on as, legal advice. You should consult an attorney for advice in specific situations.