CA SB1408

Merges the Seastrand Health Insurance Guaranty Association with the California Life Insurance Guaranty Association to create the California Life and Health Insurance Guarantee Association with two accounts: life insurance/annuity and health insurance.

Increases coverage limits for life insurance death benefits to $300,000 per life (with $100,000 cap on cash surrender values) and annuity benefits to $250,000 in present value, with an aggregate cap of $300,000 across life and annuity coverage.

Sets health insurance coverage limit at $200,000 per individual (adjusted annually for healthcare cost inflation from January 1, 1991 baseline) and excludes Medicare Parts C and D, self-funded plans, and certain other policies from coverage.

Establishes assessment procedures with Class A assessments for administrative costs and Class B assessments for specific insolvencies, capped at 2 percent of member insurers' average annual premiums per calendar year, with provisions for deferrals and protests.

Requires insurers to deliver a disclaimer document to policyholders describing the association's purposes and limitations before or at time of policy delivery, and prohibits using the association's existence in advertising or sales solicitation.