BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 953
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          Date of Hearing:   January 11, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                     AB 953 (Eng) - As Amended:  January 6, 2010
           
          SUBJECT  :  Department of Motor Vehicles records: insurance  
          companies

           SUMMARY  :  Allows insurance company agents to obtain home address  
          records from the Department of Motor Vehicles (DMV) under  
          certain circumstances.  Specifically,  this bill  :  

          1)Extends, to the employees and authorized agents of insurance  
            companies, the privilege of obtaining from DMV the home  
            addresses of motorists and vehicle owners involved in  
            accidents with any individuals insured by those companies.  

          2)Requires all information obtained under this provision to be  
            subject to the use or disclosure limitations and data security  
            requirements that exist under state and federal law for the  
            insurance companies.  

          3)Requires these limitations and requirements to be enforced by  
            DMV.  

          4)Requires the use and disclosure of the information so obtained  
            to be limited to the provision of services to the insurance  
            company relating to the transaction or event for which the  
            insurance company would have been allowed to obtain that  
            information from DMV.  

          5)Prohibits the information from being disclosed for any other  
            purpose or to any other person.  

           EXISTING LAW  :  

          1)Holds confidential any home addresses within DMV records and  
            prohibits DMV from disclosing residence address in their  
            records to any person, except a court, law enforcement agency,  
            or other government agency.  

          2)Exempts from that prohibition licensed insurance companies  
            that state, under penalty of perjury, that they are requesting  
            the information for the purpose of obtaining the address of  








                                                                  AB 953
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            another motorist or vehicle owner involved in an accident with  
            their insured, or are requesting the information on an  
            individual who has signed a written waiver of the  
            confidentiality of his or her DMV home address records or an  
            individual insured under a policy if a named insured of that  
            policy has signed a written waiver.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  Existing law allows financial institutions and  
          insurance companies to access address information of persons  
          under specified circumstances.  This bill clarifies that  
          insurance companies' employees and the authorized agents of  
          those companies are covered under these provisions.  This access  
          is necessary to verify identity and current location of  
          financially responsible party in vehicle accidents.  Quite often  
          an insurance company involved in a subrogation action is seeking  
          to locate the vehicle owner and DMV is likely to have the most  
          up to date information.  Accurate identity information protects  
          consumers from identity theft and errors in identity and it  
          protects the business community from unnecessary costs.  This  
          bill is intended to ensure that financially responsible drivers  
          and owners can be properly identified.  

          Recent amendments to this bill that expressly subject insurance  
          company agents (typically collection agencies) to the same  
          limitations and restrictions as those that apply to the insurers  
          themselves were developed in response to concerns expressed by  
          privacy advocates.  Further amendments will be necessary to  
          restrict this bill's information-gathering authorization to  
          those instances directly relating to vehicle accidents involving  
          a client of the insurance company.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Collectors (sponsor)

           Opposition 
           
          None received
           

          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093 








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