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County of Los Angeles
Department of Consumer Affairs

New Consumer Laws 2009

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MEDICAL INSURANCE – EMPLOYEES CAN’T BE COMPENSATED FOR CANCELING OR LIMITING POLICIES

AB 1150, Health & Safety Code 1389.6, Insurance Code 10385

This law prohibits health care service plans and health care insurers from paying employees or contractors for canceling policies or limiting coverage.

This law also prohibits health care service plans and health care insurers from setting performance goals or quotas related to cancellations of or limitations on insurance policies.

May be reprinted for non-commercial use if a credit line is included acknowledging the County of Los Angeles Department of Consumer Affairs.

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For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
Web site: dca.lacounty.gov