BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1708
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1708 (Villines)
          As Amended  August 10, 2010
          Majority vote
           
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          |ASSEMBLY:  |70-0 |(April 15,      |SENATE: |34-0 |(August 18,    |
          |           |     |2010)           |        |     |2010)          |
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           Original Committee Reference:    INS.

          SUMMARY  : Increases the minimum capital requirements for a  
          nonadmitted insurer to be placed on the List of Eligible Surplus  
          Lines Insurers (LESLI list).

           The Senate amendments  : 

          1)Delay from 2012 to 2013 the phase-in period for insurers  
            already on the list to increase their capital to the new  
            $45,000,000 level.

          2)Add double-jointing language with respect to AB 1837.

           AS PASSED BY THE ASSEMBLY  , this bill increased the capital  
          requirements for LESLI list insurers from $15 million to $45  
          million, and allowed a 1-year phase-in for companies already on  
          the list.

           FISCAL EFFECT  :  Non-fiscal.

           Analysis prepared by  :       Mark Rakich/INS./(916) 319-2086


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