BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 76
                                                                  Page  1

          Date of Hearing:  April 22, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 76 (Yamada) - As Amended:  March 9, 2009 

          Policy Committee:                              Insurance  
          Vote:10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill extends the sunset on the Life and Annuity Consumer  
          Protection Fund (Fund) within the California Department of  
          Insurance (CDI) from January 1, 2010 to January 1, 2015. In  
          addition, this bill requires the Insurance Commissioner (IC) to  
          publish specified data online about consumer protection efforts  
          supported by the Fund. 

           FISCAL EFFECT  

          1)Annual special fund fee revenues of $1 million collected  
            through an annual $1 fee per policy levied on life insurance  
            and annuity products.  

          2)Minor absorbable workload to CDI to post specified annual  
            report information online. 

           COMMENTS 

           1)Rationale  . This bill extends the sunset on a $1 annual fee for  
            each life and annuity insurance policy issued. The funds are  
            used to fight financial abuse in the insurance industry.   
            Complaints about elder abuse related to life and annuity  
            insurance are common. These cases are complex and  
            time-consuming to investigate and prosecute. The funds are  
            used for consumer education and protection as well as law  
            enforcement investigation and prosecution. 

           2)Existing law  requires insurers to pay fees to fund similar  
            programs related to car insurance and workers' compensation  
            insurance.  The Department of Justice (DOJ) also has a bureau  








                                                                  AB 76
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            of Medi-Cal fraud that investigates maltreatment of elderly in  
            long-term care facilities. 
           
          3)Related Legislation  . The fund and consumer protection  
            activities addressed in this bill were established by AB 2316  
            (Chan), Chapter 835, Statutes of 2004. 
           
          Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081