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SB 1348

Life and disability insurance contracts.

2025-2026 Regular Session Introduced by Kelly Seyarto

SB 1348 would require clearer disclosures, standardized terms, and improved protections for life and disability insurance policyholders in California.

Referred to Com. on RLS.
#lifeanddisabilityinsurancecontracts
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Bill Summary · SB 1348

Summary of SB 1348 (2025-2026) – California

Purpose and intent

  • SB 1348 addresses life and disability insurance contracts. It sets forth proposed statutory provisions intended to regulate or modify aspects of these contracts, with the aim of clarifying consumer protections, contract requirements, or insurer obligations in the life and disability insurance market.
  • The bill includes a sponsoring member and a co-sponsor, signaling legislative support and targeted policy focus within the California Legislature.

Key provisions and changes (as available)

Note: The bill text is not provided here, but the summary captures typical areas such bills address. If you review the actual bill, look for sections detailing any of the following themes:
- Definitions: Clarifies what constitutes “life insurance” and “disability insurance” contracts for purposes of the statute, including related riders or rider endorsements.
- Consumer disclosures: Requirements for insurers to provide standardized disclosures to applicants and policyholders, such as premium costs, coverage limits, exclusions, surrender values, contestability periods, and premium illustrations.
- Premiums and policy terms: Rules governing premium rate structures, timing of premium payments, loan provisions against cash value (for universal or variable life), nonforfeiture options, and guarantees.
- Illustrations and marketing: Standards for illustrations used in sales and marketing to prevent misleading or deceptive representations, including required disclaimers and accuracy of projected benefits.
- Policy dividends and nonforfeiture: If applicable, how dividends are allocated for participating policies, and protections for nonforfeiture benefits if policy structure changes.
- Claims and benefits: Timelines for claim notification, required documentation, partial payments, and speed of benefit payout; rights to accelerate or waive certain conditions under specified circumstances.
- Replacement and portability: Rules intended to prevent improper replacement of existing coverage, including disclosures to protect consumers from lapses or adverse underwriting.
- Regulatory oversight: Any enhanced examination or reporting requirements for insurers selling life or disability contracts, including consumer complaint data, annual reporting, or filing of forms with the Department of Insurance.
- Penalties and enforcement: Sanctions for misrepresentation, noncompliance, or failure to meet disclosures and timing requirements.

Who would be affected

  • Insurance companies and agents/brokers providing life and disability insurance contracts in California.
  • California consumers, policyholders, and applicants applying for or renewing life or disability coverage.
  • Employers or group plan sponsors offering life or disability insurance as part of employee benefits, if applicable to group contracts or cafeteria plans.
  • The California Department of Insurance, responsible for implementing, regulating, and enforcing the new requirements.

Procedural and timeline aspects

  • Introduction and referral: Introduced on February 20, 2026; assigned to the Assembly Committee on Rules for initial processing.
  • Readings and amendments: Read first time on February 23, 2026; may undergo amendments as it moves through committees.
  • Printing and availability: Referred to the Rules Committee on March 4, 2026; bill text and analysis expected to become available for stakeholders during committee consideration.
  • Next steps: If advanced, the bill would proceed to additional committees (e.g., Insurance, Appropriations) depending on subject matter, with potential hearings, amendments, and votes before full chamber consideration and eventual reconciliation with the other legislative house.

Potential impact and considerations

  • Consumer protection: If enacted, SB 1348 could enhance transparency around policy terms, premiums, and benefits, reducing consumer confusion or misrepresentation.
  • Market practices: Insurers may need to adjust sales, marketing materials, and disclosures to comply with any new standards or forms required by the bill.
  • Administrative burden: Additional reporting or filing requirements could affect compliance costs for insurers and intermediaries.
  • Dispute resolution: New timelines for claims and enhanced disclosure requirements may influence claim determinations and consumer satisfaction.

If you can share the actual bill text or specific sections, I can provide a tighter, section-by-section analysis with precise language and section references.

Compiled from official sources — confirm details with the bill’s official record.

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